BP (NYSE:BP) to Get Bill Total from Gulf States

A better picture of the liabilities will be seen when the Gulf states given their bills to BP (NYSE:BP), which appears to be sometime in the near future.

Most are negotiating with BP over the final tally, but Alabama Attorney General Troy King went against the wishes of Governor Riley and sued BP. There's still a cloud hanging over his reasoning, as all other states are working with BP in an attempt to come to an agreement.

King attempted to justify his misguided actions by saying BP had a "record of not living up to their commitments." He oddly added, that if BP won't "pay Alabama what it owes, a court will force you to do it."

It's odd because the governor was making progress with BP and wasn't concerned over whether or not they'd pay. Now the state suffers from it.

Other states would prefer to go the route of making a deal with BP too, as the cost and time of going through a trial would be immense, and by time the litigation was over, the present need for the money would be gone.

But the states have said if they aren't able to reach an agreement with BP, they would go the legal route if all else failed.

BP spokesman Scott Dean said, "BP remains committed to paying all legitimate government claims. We have already made more than $1 billion in government payments."

BP (NYSE:BP) Says "No" to Paying Alabama Claim

At one time BP (NYSE:BP) had been ready to work with Alabama and their claims against the company from the Gulf of Mexico oil spill, and from the time Alabama Attorney General Troy King decided to file a lawsuit against the oil giant, they've pulled back on advice of legal counsel, as the matter suddenly became complicated.

Officials from BP said the lawsuit filed by King was definitely part of the reason for deciding not to make payments.

Alabama Governor Bob Riley blasted King for the lawsuit, saying, "If that lawsuit hadn't paralyzed our negotiations, we wouldn't have to make these additional cuts to education funding."

King lashed back at Riley, asserting, "...it is time for him to get out of the way and let us do our job. It is obvious that BP is not dealing in good faith and is using every excuse possible to keep from paying its obligations both to the individuals and businesses with claims as well as to the state."

That's an odd comment by King when he seems to be the one that got in the way of negotiations, which were in fact proceeding to an agreeable resolution before he filed his lawsuit against BP.

Riley ended up cutting 2 percent from the school budget on the news, although it affected only potential repairs and supplies.

BP (NYSE:BP) Attorneys Face Off with Alabama Attorney General

In what is becoming somewhat of a debacle, Alabama Attorney General Troy King met today with lawyers from BP (NYSE:BP) over the lawsuit he filed against them, delaying the payment of claims to residents in the state.

King went against the wishes of Alabama Governor Bob Riley, who understood it would be harmful to file the lawsuit because it would delay the agreed-upon payout for claims for Alabama.

The office of the Governor didn't send a representative to the meeting.

Riley and King obviously disagree on the best route to take in seeking payment from BP, with Riley filing a $148 million claim, which BP had been ready to pay.

When King filed the lawsuit, it unnecessarily complicated the matter, putting everything on hold until it is worked out.

Riley spokesman Jeff Emerson, said in response to why the Governor didn't send a representative, "We're not interested in a confrontation with the attorney general. We're interesting in getting claims paid as quickly as possible."

King has made that an impossibility at this point. BP had no comment on how the meeting went.