Image: Sharron Angle
Ethan Miller  /  Getty Images
U.S. Republican Senate candidate Sharron Angle is introduced after winning the GOP primary June 8, 2010 in Las Vegas, Nevada. Angle is speaking publicly against President Obama for his role in the $20 billion victims' compensation program BP set up for those affected by the oil spill.
updated 7/8/2010 2:48:23 PM ET 2010-07-08T18:48:23

Republican Senate candidate Sharron Angle backtracked on Thursday, saying she was wrong when she twice referred to BP's $20 billion victims' compensation program as "a slush fund."

Angle told a Las Vegas radio station on Wednesday that President Barack Obama strong-armed BP executives to set up the fund after the April 20 oil rig explosion that sent gallons of oil spewing into the Gulf of Mexico. The worst oil spill in the nation's history has affected all five Gulf Coast states and scores of businesses, such as fishing and tourism.

Appearing on KXNT, Angle agreed with a caller who said Obama forced BP executives to establish the fund.

"Government shouldn't be doing that to a private company and I think you named it clearly, it's a slush fund," Angle said.

On Thursday, Angle issued a statement saying she was wrong.

"Having had some time to think about it, the caller and I shouldn't have used the term slush fund; that was incorrect," Angle said. "My position is that the creation of this fund to compensate victims was an important first step — BP caused this disaster and they should pay for it."

Angle, who is challenging Senate Majority Leader Harry Reid, D-Nev., is not the first Republican to try to take back her words about BP oil.

During hearings last month, Texas Rep. Joe Barton apologized to a BP executive for what he called a "shakedown" of the private company. Republican House leaders immediately issued a statement disagreeing with Barton. Threatened with the loss of his seniority, the Texas lawmaker withdrew his apology.

Obama met with BP executives at the White House last month and emerged from the meeting with a $20 billion commitment from the company to pay fishermen whose businesses were affected and to clean up the Gulf.

BP publicly backed the plan.

"From the outset, we have said that we fully accepted our obligations as a responsible party. This agreement reaffirms our commitment to do the right thing," BP chief executive officer Tony Hayward said when announcing the plan.

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During her interview, Angle also said the entire industry shouldn't have to pay for the spill. Only BP is funding the victims' fund.

"Everyone in the petroleum industry shouldn't be penalized for one bad person's actions. It would be like throwing us all in prison because one person committed murder. And that's exactly what's going on here," she said. "It's an overreaction by government for not the right reasons. They're actually using this crisis ... to get in cap and trade and every fine and penalty and slush fund, like you said."

Angle, a former state lawmaker, seemed to suggest the oil industry was regulated by the EPA. Offshore drilling, however, was overseen by the Minerals Management Service, a part of the Interior Department.

"The problem with even the EPA is that it's all about money. It's a taxing, fining agency. What we really needed was a management agency," said Angle.

Angle's remarks were first reported Thursday on The Washington Post's website.

Copyright 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


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