ConocoPhillips sets fund for China oil spill costs (AP)

SHANGHAI ? ConocoPhillips said Wednesday it plans a fund to cover costs of oil spills in China's Bohai Bay that have drawn intense criticism from marine authorities and environmentalists.

The company said Wednesday that the fund is intended to cover its responsibilities under Chinese law and to "benefit the general environment in Bohai Bay," off China's eastern coast. It did not say how much money would go into the fund.

The government ordered ConocoPhillips China to halt all production in the affected oil field, Penglai 19-3, pending a full clean-up and review to ensure no more oil seeps into the sea.

ConocoPhillips operates the field in a joint venture with state-owned China National Offshore Oil Corp.

China's maritime authorities contend that Houston, Texas-based ConocoPhillips failed to meet an Aug. 31 deadline for permanently staunching and cleaning up the spills, which began in June. The company says it met the deadline.

"ConocoPhillips deeply regrets these incidents and apologizes for the impact that the incidents have had on the Chinese people and the environment," James J. Mulva, the company's chairman and CEO said in a statement.

The company said it would work with the authorities and CNOOC on details of setting up and operating the fund.

Source: http://us.rd.yahoo.com/dailynews/rss/environment/*http%3A//news.yahoo.com/s/ap/20110907/ap_on_bi_ge/as_china_oil_spill

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