Obama backs ‘significantly’ higher spill damage cap

WASHINGTON: The Obama administration is backing ‘significantly’ higher limits for damages BP might face for the oil spill in the Gulf of Mexico and won’t rule out scaling back plans to expand offshore drilling. “Beyond clean-up and containment, BP must be held responsible for the damages this spill causes,” White House communications director Dan Pfeiffer wrote on the White House website Tuesday.

The administration “strongly supports” a move in Congress to raise an existing $75-million cap on damages under the Oil Pollution Act. BP chief executive officer Tony Hayward said Tuesday he expects that limit will be exceeded. The London-based company, Europe’s second-largest oil producer, will honor all ‘legitimate’ claims from those harmed, such as the region’s fishing and tourist industry, he said after meeting in Washington with Gulf Coast lawmakers.

Separately, White House press secretary Robert Gibbs said “I would not rule it out,” when asked if President Barack Obama would change his mind on a plan announced March 31 to open portions of the East Coast to oil and gas exploration.