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Restore the Wetlands. Reinforce the Levees.

Posts Tagged ‘Clean Water Act’

BP Found Grossly Negligent in Deepwater Horizon Spill

Saturday, September 6th, 2014

U.S. Coast Guard:European Pressphoto Agency

Could Be Fined $18 Billion

The fire you see here may be BP’s capital reserves going up in flame.

A federal judge has ruled that BP was “reckless,” grossly negligent, and primarily to blame for the April 2010 blowout of the Deepwater Horizon oil rig that killed 11 workers and sent untold millions of gallons of crude oil gushing into the Gulf of Mexico. In New Orleans on Thursday Judge Carl J. Barbier of the District Court for the Eastern District of Louisiana apportioned to BP 67 percent of the responsibility, 30 percent to Transocean (which owned the rig), and 3 percent to Halliburton, the cement contractor on the well. Only BP was found to be grossly negligent. (Click here for the ruling.)

Throughout the legal proceedings, BP has maintained that it is not primarily responsible, but that Transocean and Halliburton are mainly to blame. (In related news, earlier this week BP asked a federal judge to remove oil spill claims administrator Pat Juneau for “conflicts of interest”—i.e., he would be too generous to Louisiana residents, too expensive for BP.)

By finding BP grossly negligent rather than merely negligent (a critical legal distinction), Judge Barbier ratcheted up the possible financial cost to BP up to as much as $18 billion in new civil penalties, “nearly quadruple the maximum Clean Water Act penalty for simple negligence and far more than the $3.5 billion the company has set aside” for fines, according to The New York Times. Under the Clean Water Act, The Times-Picayune explains, “the penalty for each barrel of oil spilled is up to $1,100 if a polluter is found to be negligent. That increases up to $4,300 per barrel with a finding of gross negligence or willful misconduct.”

BP, which has consistently downplayed its responsibility and the severity of the catastrophe, claims that 2.45 million barrels of oil were spilled into the Gulf, while U.S. Justice Department attorneys calculate the amount as 4.2 million barrels.

Halliburton has already agreed to pay $1.1 billion in damages to property and the commercial fishing industry, though that settlement has yet to be approved by the District Court for the Eastern District of Louisiana.

In a sternly worded, 153-page ruling that includes a detailed timeline of events, Judge Barbier described a “chain of failures” that led to the explosion and oil spill. The New York Times summarizes:

Vital seals and stoppers were left leaky along the casing of the well, the judge found, while BP then skimped on tests that might have shown the problems caused by the shoddy work. When tests were run, the results were interpreted with optimism at best and dishonesty at worst, and several critical decisions made by BP were found by Judge Barbier to have been “primarily driven by a desire to save time and money, rather than ensuring that the well was secure.”

In a central episode, Judge Barbier highlighted a phone call between a senior BP employee on the rig and an engineer in Houston that took place roughly 40 minutes before the explosion. In the call, the two men discussed the results of a pressure test that should have prompted quick action to prevent an impending blowout. BP did not mention this call in its own investigative report, an omission Judge Barbier found suspicious.

Louisiana Attorney General Buddy Caldwell said in a news release, “This is an important milestone in the process of recovering the damages and penalties due to Louisiana. I will continue fighting for the recoveries Louisiana is entitled to for the damages we have sustained.”

BP says it will appeal the ruling.

See also: 

Other BP oil spill–related news compiled by The Times-Picayune

Times-Picayune on what the national media are saying about the BP oil spill ruling

BP Lashes Out at Journalists and “Opportunistic” Environmentalists (Mother Jones)

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Levees Not War on the BP Oil Spill

BP Celebrates Earth Day with Bonfire, Oil Spill: Well Leaks 210,000 Gallons a Day into Gulf of Mexico  (4/26/10)

“Oil-Spotted Dick”: Cheney’s Oily Fingerprints in the BP Disaster  (5/5/10)

BP Oil Flood Brought to You by U.S. Supreme Court?  (6/10/10)

More LNW coverage here.

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Top photo by U.S. Coast Guard/European Pressphoto Agency. Bottom photo (oiled bird on Louisiana’s East Grand Terre Island) by Charlie Riedel/AP.

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