Oregon senators join call for BP to put up $20B

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Sen. Jeff Merkley isn't sure of the legal technicalities.

Oregon's two United States senators joined 53 other Senate Democrats in signing a letter Monday calling for BP to set up a $20 billion fund to compensate for economic damages and clean-up expenses of the oil disaster in the Gulf of Mexico.

Sen. Ron Wyden and Sen. Jeff Merkley signed the letter (a PDF is available for viewing here) addressed to BP CEO Tony Hayward. It suggests that a $20 billion account, administered by a third-party trustee, would serve as an act of good faith for the company, which caused the massive oil leak.

The letter asks for a response from BP no later than June 18.

"While we are pleased that BP has admitted liability for these damages and vowed to provide full remuneration for economic losses and clean-up costs, history has taught us that corporations often fail to live up to their initial promises," the letter states.

Sen. Merkley, speaking to a reporter from CQ Roll Call Group, said he wasn't sure whether Congress could legally call for BP to set up the account.

"I’m not sure of the legal technicalities, but I do think that we can make a strong stand and call for this," Merkley said.

Merkley made the comment following his speech to the Center for American Progress where he outlined an ambitious plan to eliminate U.S. dependence on foreign oil.

The BP fund is also included in President Barack Obama's plan for reaction to the oil disaster, which he is expected to outline in a prime-time speech on Tuesday.