Firm told to pay $420 mln for Indonesia mud disaster - Reuters

[Eugene]

Firm told to pay $420 mln for Indonesia mud disaster
28 Dec 2006 11:10:05 GMT
Source: Reuters

By Muklis Ali

JAKARTA, Dec 28 (Reuters) - An Indonesian energy firm blamed for a mud
disaster that left about 10,000 homeless will have to pay $420 million
to victims and for efforts to stop the toxic flow, the country's president
said on Thursday.

Entire villages have been inundated by the torrent of mud that has flowed
since a drilling accident in May, causing an unfolding environmental disaster
in the Sidoarjo area near Indonesia's second largest city, Surabaya.

President Susilo Bambang Yudhoyono said Lapindo Brantas, the operator
of the well, would have to pay 2.5 trillion rupiah ($275 million) in
compensation for people whose houses have been submerged by the mud.
A fifth of that money should start to be disbursed in March.

About 1.3 trillion rupiah was also needed for efforts to stop the mud and
would have to be paid by the company between January and March, he said.

-snip-

Full article: http://www.alertnet.org/thenews/newsdesk/JAK172519.htm