BP Oil Spill Financial Risks and Exposures – A Report from the GAO

The Government Accountability Office (GAO) has released Deepwater Horizon Oil Spill: Preliminary Assessment of Federal Financial Risks and Cost Reimbursement and Notification Policies and Procedures, GAO-11-90R November 12, 2010.

The objectives of this study were to provide a preliminary assessment of (1) financial risks and exposures to the Fund and the federal government as a result of the Deepwater Horizon oil spill, and (2) Coast Guard’s NPFC cost reimbursement policies and procedures for Deepwater Horizon oil spill costs. In addition, we provide a description of the framework for federal monitoring and oversight efforts over the Responsible Parties for the Deepwater Horizon oil spill, including federal efforts to oversee BP’s and GCCF’s Deepwater Horizon oil spill claims payments. This product is the first of a planned body of work to evaluate and assess the federal risks and exposures resulting from the Deepwater Horizon oil spill.

You can find the 57 page report to Congressional requesters here. Or read the summary and recommendations here. Or listen to “Managing Costs Resulting from the Gulf Oil Spill,” a 5 minute audio interview by GAO staff with Susan Ragland, Director, Financial Management and Assurance here.