A pre-election settlement could also expose Obama to criticism for selling out Gulf Coastpoliticians and environmental groups. Rumours have been flying.
Gulf Coast lawmakers recently and loudly protested press reports that BP and the Justice Department have discussed shifting settlement payments based on the Clean Water Act - with their promised billions of dollars to Gulf state coffers - instead to payments based on natural resource statutes, which would not only go to the U.S. Treasury but also be tax-deductible for BP.
"BP, who is responsible for this, would also get a tax deduction that could write off millions," Representative Jo Bonner, an Alabama Republican, told Reuters. "The audacity of giving BP a tax write-off!"
