Saturday, September 13, 2014

BP Found Grossly Negligent in Deepwater Horizon Blowout

A federal district judge in New Orleans has finally decided what many following the 2010 Deepwater Horizon disaster believed: British Petroleum was grossly negligent in its "conscious disregard for known risks" during the drilling and ensuing well blowout that caused the largest environmental disaster in the history of the US oil industry and killed eleven workers.{24.04.12, Weekend Edition: BP Concealed Caspian Blowout} Because of Judge Barbier's conclusions the company will be liable for the maximum amount of $4300 per barrel spilled under the Clean Water Act. That could amount to $18bn in penalties on top of the $4.5bn BP has already paid in criminal fines for manslaughter and $27bn in cleanup costs and restitution. The amount of oil spilled is still to be determined in another phase of the case, expected to begin in January. Government experts think 4.2 million barrels spilled into the Gulf of Mexico. The case has taken almost two years to litigate. Upon announcement of the decision, the company's shares fell more than 6%. The company is expected to appeal the decision that found it 67% responsible for the disaster; BP's contractors were also found culpable.

The largest spill in US history deserves the largest penalties, said an Audubon director. Thousands of birds and uncounted marine life died from crude oil contamination. Leaking oil from the Macondo wellhead is still killing wildlife in the area. BP faces yet another set of potential fines for violating the federal Oil Pollution Act of 1990. Those liabilities could cost the company another $10bn.  BP produced $24bn in profits last year.