BP, Andarko Must Face Fines for Gulf Oil Spill
The 5th U.S. Circuit Court of Appeals affirmed a 2012 decision from U.S. District Judge Carl Barbier in New Orleans that the companies could be held liable for civil penalties under the Clean Water Act.
BP and Anadarko owned a respective 65 percent and 25 percent of the Macondo well that was drilled by Deepwater Horizon, which blew out in 2010 and resulted in a massive oil spill.
The companies had appealed Barbier’s ruling, arguing in part that they should not be responsible for oil spilled as a result of failed equipment on the drilling rig, which was owned by Transocean Ltd.
But as co-owners of the well, BP and Anadarko would be on the hook for resulting fines, the appeals court ruled.
Transocean agreed last year to pay the U.S. government $1 billion in civil penalties over the spill.
The Clean Water Act lets the government seek fines of up to $1,100 per barrel of oil spilled, or $4,300 per barrel if gross negligence or willful misconduct is found.
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