By Kristen Hays
HOUSTON (Reuters) - A gathering storm was set to delay efforts to capture more oil gushing into the Gulf of Mexico, even as BP <:BP.LO:>Plc said on Monday a relief well being drilled to end the leak for good was within 20 feet of the blown-out well.
Separately, the New York Federal Reserve has been checking firms' exposure to the London-based energy giant to ensure the crisis, now into its 70th day, won't create another type of toxic spill -- to the global financial system.
And Russia's government weighed in on the future of BP's chief executive, saying the gaffe-prone Tony Hayward was on the way out, a suggestion denied by the company.
Two systems continue to siphon oil and gas flowing from the leaking Deepwater Horizon well. In the first half of Monday, about 11,070 barrels of oil were collected or flared.
Kent Wells, BP executive vice president, said current siphoning systems should not be affected, based on projections for the path of Tropical Storm Alex to steer well clear of the rogue oil well off the Louisiana coast.
Forecasters at the National Hurricane Center said Alex was expected to become a hurricane on Tuesday, with winds of 96-110 mph by late on Wednesday before striking near the Texas-Mexico border and moving inland.
But waves as high as 12 feet would delay this week's plans to hook up a third system to capture much more oil each day, Wells said.
A relief well that BP started to drill on May 2 was within 20 feet of the blown-out well, Wells said. It will be drilled another 900 feet before intercepting the well, he said.
Winds and high seas from Alex could also disrupt cleanup on the Gulf coast and push more oil toward the shoreline.
"The winds and current are going to hamper some offshore operations and the current is going to be pushing things more onto shore," said Florida state meteorologist Amy Godsey.
FED SEES NO SYSTEMIC RISK
U.S.-listed shares of BP stayed close to the 14-year lows hit on Friday, ending just 0.3 percent higher. The shares have lost more than half their value since the spill began and are down some 24 percent since the start of June.
Top U.S. officials continue to beat a path to the Gulf region, addressing criticism that President Barack Obama and his administration responded too slowly to the crisis.
Department of Homeland Security Secretary Janet Napolitano flew to New Orleans on Monday for a briefing. Vice President Joe Biden will visit the region on Tuesday.
Polls have given Obama low marks for his handling of the crisis, although not as low as those given to BP. On Monday, former President Bill Clinton told CNN Obama was getting "a bum rap" for his handling of the crisis.
The New York Fed has been checking firms' exposure to BP to ensure the global financial system would not be at risk if the oil giant buckles, said sources familiar with the matter.
After poring over documents and asking banks about their exposure to BP over the past two weeks, the Fed found no systemic risk and had not asked firms to alter their credit relationships with BP, the sources told Reuters.
Even so, some of BP's trading partners are tightening the collateral requirements the company needs to do business, CNBC reported on Monday.
Credit Suisse lowered the threshold above which BP needs to post collateral for a trade to $10 million from the previous level of $30 million, according to the report.
BP said on Monday its spending to cap the well, clean up the spill and compensate those affected had accelerated to $100 million a day, bringing the total so far to $2.65 billion.
The company has set up a $20 billion compensation fund under U.S. government pressure.
While Alex remained at a safe distance, people in southeastern Louisiana were concerned about BP and the Coast Guard's continued use of chemical dispersants. On Monday, crews sprayed the material far offshore using airplanes.
BREEDING GROUNDS ENDANGERED
Dispersants help oil dissolve within months, breaking it down into small particles that can be easily digested by organisms living in the Gulf.
But the long-term health implications are not clear. The Environmental Protective Agency is studying the use of dispersants. "They should stop using them," said Mary Tompkins of Nairn, Louisiana.
The Gulf disaster is prompting an reconsideration of U.S. oil regulation, including a flurry of legislation, as well as the Obama administration's energy policy.
A bill calling for tougher regulations on the use of blowout preventers on oil and gas wells will be considered in a House Energy and Commerce Committee hearing on Wednesday.
Separately, key U.S. lawmakers investigating the spill have asked major energy companies for information on their response plans in the event of a major oil spill.
Tourism, fisheries and wildlife in four states along the U.S. Gulf Coast continue to take a heavy hit.
As crude oil and dispersants float on the surface of the Gulf, crews are battling to keep the filth off beaches and away from critical wildlife breeding grounds.
Thousands of vessels are currently on site to assist in containment and cleanup. Millions of feet of containment boom and absorbent boom have been laid.
Even so, sludgy brown oil, light sheen and tar balls have started to wash ashore on some of Mississippi's beaches for the first time, including the popular resort of Biloxi, forcing tourists to pack their bags.
"We are leaving today. My child stepped in oil yesterday as we were playing on the beach. Obviously we are cutting our vacation short," said Susan Reed of Texas, who was vacationing with her family in Biloxi.
(Additional reporting by Darya Korsunskaya and Katya Golubkova in Moscow, Leigh Coleman in Biloxi, Jane Sutton and Michael Peltier in Miami, Ernest Scheyder in Nairn, Louisiana, Sarah Young in London, Timothy Gardner in Washington, and Joshua Schneyer and Kristina Cooke in New York; writing by Ros Krasny; editing by Todd Eastham)
