Gulf Oil Spill Bound BP and Federal Government Together

[Stuart G]

MSNBC, AP
http://www.msnbc.msn.com/id/38800962/

By HARRY R. WEBER

updated 8/22/2010 12:16:04 AM ET



NEW ORLEANS — For months, the U.S. government talked with a boot-on-the-neck toughness about BP, with the president wondering aloud about whose butt to kick.

But privately, it worked hand-in-hand with the oil giant to cap the runaway Gulf well and chose to effectively be the company's banker — allowing future drilling revenues to potentially be used as collateral for a victim compensation fund.

Now, with a new round of investigative hearings set to begin Monday on BP's home turf and the disaster largely off the front pages, there's worry BP PLC could get a slap on the wrist from its behind-the-scenes partner. That could trickle down to states hurt by the spill and hoping for large fines because they may share in the pie.

"I don't think they've been as tough as they should have been from Day 1," said Billy Nungesser, president of Lousiana's hard-hit Plaquemines Parish. "We were at war. You don't go to war and hope people respond."