Halliburton $1.1 Billion Settlement Agreement for Deepwater Horizon Oil Spill Disaster
The Halliburton Company, one of three parties (BP, Transocean and Halliburton) responsible for the Deepwater Horizon Oil Spill disaster has agreed to a $1.1 billion settlement. Upon court approval, the settlement will ensure that Halliburton avoids future punitive and compensatory lawsuits which could have been filed if the company was found to have committed fraud or gross negligence in the case of the disaster. Although, Halliburton will likely avoid many of the lawsuits they could have been subject to had they not settled, the company will still remain liable for private civil claims and state compensatory lawsuits.
Upon approval of the proposed settlement by a federal judge, an allocation order will be determined. Until then, funding allocations resulting from the settlement and the settlement’s impact on Escambia County remains unknown.
Sources:
Halliburton’s $1.1 Billion Spill Agreement Avoids Bigger Payouts, ROFFS, 2014-09-03 http://www.roffs.com/2014/09/halliburtons-1-1-billion-spill-agreement-avoids-bigger-payouts/#/
Halliburton reaches $1B Gulf Oil Spill Settlement, Freenewspos.com, 2014-09-03: http://www.freenewspos.com/en/home-news-article/b/1159955/settle%20claims/halliburton-reaches-1b-gulf-oil-spill-settlement
BP Found Grossly Negligent in Deepwater Horizon Oil Spill Disaster
U.S. District Judge Carl Barbier has ruled gross negligence this morning in the case of BP’s conduct in the Deepwater Horizon Oil Spill. Under the Clean Water Act, a ruling of gross negligence carries a maximum fine of $4,300 per barrel of spilled oil, versus $1,100 per barrel of spill oil in the case of negligence. Barrels of oil spill are estimated to have ranged from between 2.4 million to 176 million barrels; meaning that, BP could face up to $756.8 billion in penalties as a result of this morning’s ruling. BP has confirmed that they will appeal the ruling.
The final BP penalty amount will have a direct impact on the amount of grant funding received by Escambia County under the RESTORE Act’s Direct Component.
To access the, Findings of Fact and Conclusion of Law relative to the Phase One trial regarding the Oil Spill by the Oil Rig, “Deepwater Horizon” in the Gulf of Mexico on April 20, 2010,” please reference the document: Judge Barbier rule on BP Case on Sept 4.
Source: BP’s Reckless Conduct Caused Gulf Oil Spill, Federal Judge Rules, NOLA.com, 2014-09-04: http://www.nola.com/crime/index.ssf/2014/09/bps_reckless_conduct_caused_gu.html
