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Gulf of Mexico leak: BP shares hit over legal move | Gulf of Mexico leak: BP shares hit over legal move |
(about 2 hours later) | |
BP shares have fallen after the US said it was suing the oil giant for alleged violations of federal safety laws over the Gulf of Mexico oil spill. | BP shares have fallen after the US said it was suing the oil giant for alleged violations of federal safety laws over the Gulf of Mexico oil spill. |
The lawsuit asks BP and and eight other firms be held liable without limitation for all clean-up and damage costs. | The lawsuit asks BP and and eight other firms be held liable without limitation for all clean-up and damage costs. |
The Deepwater Horizon drilling rig explosion in April killed 11 workers and spilled millions of barrels of oil over several months. | The Deepwater Horizon drilling rig explosion in April killed 11 workers and spilled millions of barrels of oil over several months. |
BP's shares in London were trading down 1.7%. | |
BBC business editor Robert Peston said that drop had taken the edge off a recent strong run in BP shares. | BBC business editor Robert Peston said that drop had taken the edge off a recent strong run in BP shares. |
But he added: "Investors plainly believe that the nature of the Department of Justice's case against BP hasn't increased potential liabilities for the company in a fundamental way." | But he added: "Investors plainly believe that the nature of the Department of Justice's case against BP hasn't increased potential liabilities for the company in a fundamental way." |
BP said that it would respond to the claims later, adding the action did not constitute "any finding of liability or any judicial finding that the allegations have merit". | BP said that it would respond to the claims later, adding the action did not constitute "any finding of liability or any judicial finding that the allegations have merit". |
The oil leak became the worst environmental disaster in US history. | The oil leak became the worst environmental disaster in US history. |
And BP has set aside $39.9bn (£25bn) to cover the costs stemming from the disaster. | And BP has set aside $39.9bn (£25bn) to cover the costs stemming from the disaster. |
But our business editor said that if BP were found to be grossly negligent, the costs it faced could rise significantly. | But our business editor said that if BP were found to be grossly negligent, the costs it faced could rise significantly. |
It could potentially add almost $16bn to the penalties BP would have to pay under the US Clean Water Act, he said. | It could potentially add almost $16bn to the penalties BP would have to pay under the US Clean Water Act, he said. |
And it would make it "perhaps impossible" for BP to recover costs it is incurring in the clean up and restitution from its co-owners of the Macondo Well, Anadarko and Mitsui, he added. | And it would make it "perhaps impossible" for BP to recover costs it is incurring in the clean up and restitution from its co-owners of the Macondo Well, Anadarko and Mitsui, he added. |
Precautions | Precautions |
The lawsuit charges the companies under the US Clean Water Act and Oil Pollution Act. | The lawsuit charges the companies under the US Clean Water Act and Oil Pollution Act. |
US Attorney General Eric Holder said the complaint alleged that "violations of safety and operational regulations" caused the explosion on 20 April. | US Attorney General Eric Holder said the complaint alleged that "violations of safety and operational regulations" caused the explosion on 20 April. |
The companies named in the lawsuit are BP Exploration and Production Inc, Anadarko Exploration & Production LP, Anadarko Petroleum Corporation, MOEX Offshore 2007 LLC, Triton Asset Leasing GMBH, Transocean Holdings LLC, Transocean Offshore Deepwater Drilling Inc, Transocean Deepwater Inc and insurer QBE Underwriting Ltd/Lloyd's Syndicate 1036. | The companies named in the lawsuit are BP Exploration and Production Inc, Anadarko Exploration & Production LP, Anadarko Petroleum Corporation, MOEX Offshore 2007 LLC, Triton Asset Leasing GMBH, Transocean Holdings LLC, Transocean Offshore Deepwater Drilling Inc, Transocean Deepwater Inc and insurer QBE Underwriting Ltd/Lloyd's Syndicate 1036. |
The key accusations are: | The key accusations are: |
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"We intend to prove that these defendants are responsible for government removal costs, economic losses and environmental damages without limitation," Mr Holder said. | "We intend to prove that these defendants are responsible for government removal costs, economic losses and environmental damages without limitation," Mr Holder said. |
"As investigations continue, we will not hesitate to take whatever steps necessary to hold accountable those responsible for this spill." | "As investigations continue, we will not hesitate to take whatever steps necessary to hold accountable those responsible for this spill." |
BP said it would continue to co-operate with government inquiries and fulfil its commitments to clean up spilt oil in the Gulf. | BP said it would continue to co-operate with government inquiries and fulfil its commitments to clean up spilt oil in the Gulf. |
Halliburton, the company that cemented the Macondo well, and Cameron International, which provided equipment for the well, was not targeted in the lawsuit. | Halliburton, the company that cemented the Macondo well, and Cameron International, which provided equipment for the well, was not targeted in the lawsuit. |
Transocean disputed the charges brought by the government, saying that it should not be held liable for the actions of others. | Transocean disputed the charges brought by the government, saying that it should not be held liable for the actions of others. |
"No drilling contractor has ever been held liable for discharges from a well under the Oil Pollution Act of 1990," the company said in a statement. | "No drilling contractor has ever been held liable for discharges from a well under the Oil Pollution Act of 1990," the company said in a statement. |
"The responsibility for hydrocarbons discharged from a well lies solely with its owner and operator." | "The responsibility for hydrocarbons discharged from a well lies solely with its owner and operator." |