Now, even if a shut-in is not possible, this new cap and the additional equipment being placed in the Gulf will be able to contain up 80,000 barrels a day, which should allow us to capture nearly all the oil until the well is killed. It's important to remember that prior to installation of this new cap, we were collecting on average about 25,000 barrels a day. For almost 90 days of this environmental disaster, all of us have taken hope in the image of clean water instead of oil spewing in the Gulf. But it is our responsibility to make sure that we're taking a prudent course of action and not simply looking for a short-term solution that could lead to even greater problems down the road. So to summarize, the new cap is good news. Either we will be able to stop the flow, or we will be able to use it to capture almost all of the oil until the relief well is done. But we're not going to know for certain which approach makes sense until additional data is in. And all the American people should rest assured that all of these decisions will be based on the science and what's best for the people of the Gulf.
In other matters related to the oil spill, the Department of Interior has informed BP that it must report all oil and gas-related activities at its damaged well and pay royalties on all oil and gas captured from the leaking well. The company also will be liable for royalties on lost or wasted oil and gas if it is determined that negligence or regulatory violations caused or contributed to the Deepwater Horizon explosion and subsequent leak. The Interior Department's chief oil and gas regulatory official, Director of the Bureau of Ocean Energy Management, Regulation and Enforcement (BOEM) Michael Bromwich, officially notified BP in a July 15 letter, noting that the company's failure to fulfill these obligations could be considered a knowing and willful violation of the Federal Oil and Gas Royalty Management Act.
Also, the Unified Command reported that U.S. EPA Assistant Administrator of Solid Waste and Emergency Response Mathy Stanislaus visited a waste site in Grand Isle, LA, with representatives from the Sierra Club, Gulf Coast Fund, Gulf Restoration Network and BISCO Environmental. On June 29, the U.S. Coast Guard, in consultation with EPA, issued a directive to BP outlining expectations for the management of waste and materials collected in the Gulf oil spill response. The directive ensures that BP's waste plans will receive community input, that all of their operations will be fully transparent, and that state and federal authorities will have strong oversight roles throughout the process.