WASHINGTON (Reuters) - A proposed cap of $10 billion in liability for oil companies to cover damages from oil spills is "inadequate," U.S. Senate Majority Leader Harry Reid said on Monday.
Democrats have introduced legislation that would raise the current $75 million liability cap to $10 billion per company for each incident. Reid urged fast action on raising the cap, saying that $75 million was "clearly insufficient" but, "I certainly think a $10 billion cap is inadequate."
The move to increase the liability limits has been spurred by the Gulf of Mexico oil spill that occurred nearly a month ago, which likely will be one of the biggest environmental disasters in U.S. history.
