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US legislators vote to overhaul offshore drilling system

Other News Materials 31 July 2010 08:49 (UTC +04:00)
The US House of Representatives late Friday voted to overhaul the country's system of offshore drilling, mandating new safeguards and removing a limit on damages a company must pay, dpa reported.
US legislators vote to overhaul offshore drilling system

The US House of Representatives late Friday voted to overhaul the country's system of offshore drilling, mandating new safeguards and removing a limit on damages a company must pay, dpa reported.

The measure was passed in a flurry of decisions before Congress begins its six-week summer break.

Since April 20, the country's worst oil spill has plagued the Gulf Coast, washing crude oil into fragile grasslands, wetlands and beaches and threatening the economies of four states.

The House voted 209 to 193 for the measure amidst warnings from oil-state legislators that the bill would put independent oil and gas producers out of business, The Wall Street Journal reported.

The spill has already triggered a reorganization in the government's mineral resources oversight functions. The Obama administration has issued several moratoriums on deepwater drilling as its efforts are challenged by the oil drilling industry in court.

The measure passed Friday would do away with the current liability cap of 75 million dollars for economic damages to residents and businesses through an oil spill.

Oil giant BP Plc, operator of the ruptured Gulf well, has agreed to set up a 20-billion- dollar fund to compensate local Gulf Coast businesses.

The House's offshore drilling measure would have to be adopted by the Senate to become law.

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