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Justice Department Sues BP Over Gulf Spill

Ryan Lee Kindel |
December 15, 2010 | 1:24 p.m. PST

Associate Editor

Creative Commons.
Creative Commons.
Today the Justice Department announced that it is suing BP Exploration and Production Inc., as well as eight other companies that were involved in this year’s Deepwater Horizon disaster.

In addition to BP the lawsuit names such companies as Transocean and QBE Underwriting, the latter of which insured BP and can only be held liable up to the amount of insurance coverage.

The suit, though civil, does not preclude future criminal charges. It seeks to hold some defendants liable without limitation for cleanup costs and damages. It also allows the U.S., under the Clean Water Act, to seek civil penalties of up to $1,100 per barrel spilled, or even more in cases of gross negligence. Altogether these penalties could amount to billions of dollars.

This is the Obama Administration’s first litigative action on the disaster, which began in April when an explosion on the Deepwater Horizon rig killed 11 people. BP’s damaged Macondo well then spewed an estimated 200 gallons of oil into the Gulf of Mexico before it was capped in July.

The suit was filed today in federal court in New Orleans.

Before today, only private parties filed suits regarding the spill. Overall more than 300 potential class-action lawsuits have been filed in this matter, by interests including the tourism industry, fishing companies, restaurants and property owners.

In October, a presidentially-appointed panel blamed the disaster on 11 poor decisions by three companies: BP, the well owner and operator; Transocean, the owner of the Deepwater Horizon rig itself; and Halliburton. The special committee found that Halliburton officials had known three weeks prior to the disaster that the cement mixture they used to seal the well was unstable. Notably, Halliburton was not named as a defendant in today’s lawsuit. It could be added to the lawsuit later if the Justice Department finds more evidence against the company.

In an official statement, U.S. Attorney General Eric Holder said: “Even though the spill has been contained, the Department’s focus on investigating this disaster and preventing future devastation has not wavered. Both our civil and criminal investigations continue, and our work to ensure that the American taxpayers are not forced to bear the costs of restoring the gulf area and its economy is moving forward.”

 

Contact associate editor Ryan Lee Kindel here. Read his Twitter: @ryanleekindel.



 

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