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Ocean Currents

News, opinions, photos and facts from Ocean Conservancy


BP Back in Court

Posted On January 20, 2015 by

BP once again must appear in court today as the final phase of the BP trial begins in New Orleans. This is the third phase of a multiyear trial to determine how much BP and other responsible parties should pay for their role in the BP Deepwater Horizon oil disaster in the Gulf of Mexico. Just last Thursday, the Judge issued another ruling, finding that 3.19 million barrels of oil were released into the Gulf. This means that the maximum fine BP will face is $13.7 billion. This final phase of the trial will focus on eight factors, as required by the Clean Water Act, including BP’s history of prior violations and the seriousness of this violation.

A key factor in court will be BP’s efforts to minimize the harm. In other words, did BP do enough in responding to the disaster to justify lowering their fine? Yes, BP took efforts to stop the flow from the well and the spread of oil, but BP also lied about the rate at which oil was spewing from the well.

The economic impact of the penalty on BP will be interesting to watch as well. The court will need to determine whether this inquiry focuses on BP (the parent company) as a whole or only on its subsidiary, BP Exploration & Production, known as BPXP. BP is expected to argue that the recent dip in oil prices should be factored into this inquiry. (This assertion, as you might expect, has been met with criticism.)

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Breaking: Great News For the Gulf of Mexico

Posted On September 4, 2014 by

Today, a judge found  that the Deepwater Horizon oil spill disaster was the direct result of BP’s “’gross negligence’ and ‘willful misconduct’” under the Clean Water Act. What does this mean for the Gulf? It means more funding available for restoring the Gulf.

Funding for restoration projects via the RESTORE Act comes from Clean Water Act fines. And a finding of “gross negligence,” rather than ordinary negligence, means that fines can be as high as $4,300 per barrel of oil spilled, instead of $1,100. The result of today’s court decision could mean a fine as high as $17.6 billion, 80% of which will be used to repair and restore the Gulf of Mexico ecosystem and the communities and economies that depend on it.

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BP Trial Phase 2: What You Need to Know

Posted On September 30, 2013 by

oil-smeared hand

Photo: Ken Cedeno / Ocean Conservancy

The second phase of the trial to determine how much more money BP owes for its Gulf spill begins today. Here’s what you need to know:

1. Phase two of the trial will cover how much oil BP actually discharged into the Gulf of Mexico as well as the effort to cap the well. (Remember the summer of “junk shots” and “top kills?”)

BP says the U.S. government’s estimate of 4.9 million barrels of oil is based on “faulty assumptions.” BP says they spilled ONLY about 2.45 million barrels. BP’s estimate of a lower volume is based on the work of London-based professor Martin Blunt, who *ahem* used to work for BP. Either way, that’s a lot of oil, so why the fuss? Penalties for discharging oil (a violation of the Clean Water Act) are based on the amount of oil discharged. A lower volume means a lower penalty—potentially around $7 billion less.

(Click here for an overview of all phases of the trial.)

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