BP halts latest effort to block oil leak in Gulf of Mexico over testing

BP’s latest attempt to stop the oil in the Gulf of Mexico has hit another snag.

The federal government ordered BP to postpone so-called “integrity tests” on a containment cap over the gushing well while officials asses whether the test itself could cause more damage. According to BP, the company also halted drilling on one of two relief wells.

Meanwhile, the Federal reserve issued a statement today calling on banks and financial institutions to expedite financial assistance to Gulf Coast residents affected by the disaster, and urged banks to waive fees and penalties on credit. Many of those affected by the disaster complain that they haven’t received claim checks from BP and that the $5,000 payment isn’t enough to compensate for business losses and ongoing financial strain.

Also today, a house committee approved an amendment to bar BP from securing new US offshore drilling leases for oil or natural gas. The House Natural Resources Committee passed the amendment by a voice note, according to Bloomberg News. It would prohibit companies who exceed a certain number of safety violations from getting leases. California Democrat George Miller said BP is the only company at this point whose poor safety record violates that rule.

Photo: NASA satellite image, Deepwater Horizon oil spill

Photo credit: NASA