16 November 2012

Pin It

US BP to pay fine $4.5 billion for Oil Spill and 11 Deaths in Gulf of Mexico

US BP to pay fine $4.5 billion for Oil Spill and 11 Deaths in Gulf of Mexico

New Orleans:

Crime happened in Year 2010

The Deepwater Horizon rig, 50 miles off the Louisiana coast, sank after the April 20, 2010, explosion. The well on the sea floor spewed an estimated 206 million gallons of crude oil, soiling sensitive tidal estuaries and beaches, killing wildlife and shutting vast areas of the Gulf to commercial fishing.

BP said Thursday that it will pay $4.5 billion in a settlement with the U.S. government over the massive 2010 oil spill and will plead guilty to felony counts related to the deaths of 11 workers and lying to Congress.

The figure includes nearly $1.3 billion in criminal fines.

The settlement includes payments of nearly $2.4 billion to the National Fish and Wildlife Foundation, $350 million to the National Academy of Sciences and about $500 million to the Securities and Exchange Commission.

London-based BP PLC said in a statement that the settlement would not include civil claims under the Clean Water Act and other legislation, pending private civil claims and state claims for economic loss.

AP reported that two BP employees will also face manslaughter charges over the deaths of 11 people in the explosion of the Deepwater Horizon oil rig that triggered the massive spill.

The charges BP will plead guilty to include 11 felony counts of misconduct or neglect of ships officers, one felony count of obstruction of Congress, and one misdemeanor count each under the Migratory Bird Treaty Act and the Clean Water Act. The 11 counts related to the workers' deaths are under a provision of the Seaman's Manslaughter Act.

In particular, BP noted that the settlement does not resolve what is potentially the largest penalty related to the spill: fines under the Clean Water Act.

The potential fine for the spill under the act is $1,100 to $4,300 a barrel spilled. That means the fine could be as much as $21 billion.

The obstruction charge is for lying to Congress about how much oil was pouring out of the ruptured well.

The Justice Department also filed criminal charges against three BP employees on Thursday.

The government charged the top BP officers aboard the drilling rig, Robert Kaluza and Donald Vidrine, with manslaughter in connection with each of the men who died, alleging that they were negligent in supervising tests before the well blowout and explosion that destroyed the rig.

Prosecutors also charged BP’s former vice president for exploration in the Gulf of Mexico, David Rainey, with obstruction of Congress and making false statements about the rate at which oil was spilling from the well.

In January 2011, a presidential commission found that the spill was caused by time-saving, cost-cutting decisions by BP, Halliburton, and Transocean that created unacceptable risk.

The panel did not point blame at any one individual, concluding the mistakes were caused by systemic problems.

In September 2011, however, a team of Coast Guard officials and federal regulators issued a report that concluded BP bears ultimate responsibility for the spill.

The report found BP violated federal regulations, ignored crucial warnings, and made bad decisions during the cementing of the well a mile beneath the Gulf of Mexico.

This type of justice is it possible in India.

Do you think Indian politicians will dare to fine a rich company in India?

Still Indian citizens are fighting for justice regarding Bhopal Gas accident

Once again, above incident clearly shows that India needs to change the laws.

Reality views by sm –

Friday, November 16, 2012

Tags – BP Fine


virendra sharma November 16, 2012  

Good coverage of an important issue.Thanks.

ram ram bhai


शुक्रवार, 16 नवम्बर 2012
H1N1 bigger killer in Maharashtra State than dengue &malaria

MEcoy November 16, 2012  

wow thats a pretty huge amount but they really have to pay that