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BP found 'grossly negligent' in 2010 Gulf oil spill | BP found 'grossly negligent' in 2010 Gulf oil spill |
(about 1 hour later) | |
A US judge has ruled BP was "grossly negligent" in the lead-up to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. | A US judge has ruled BP was "grossly negligent" in the lead-up to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. |
The ruling could potentially cost BP billions more in compensation payments. | The ruling could potentially cost BP billions more in compensation payments. |
The New Orleans judge Carl Barbier also found BP subcontractors Transocean and Halliburton "negligent". | The New Orleans judge Carl Barbier also found BP subcontractors Transocean and Halliburton "negligent". |
The 2010 oil spill was the worst in US history, and BP has set aside $43bn (£26bn) to cover fines, legal settlements, and clean-up costs. | |
BP said in a statement that it "strongly disagrees" with the ruling and that it would appeal to a higher court. | |
"The law is clear that proving gross negligence is a very high bar that was not met in this case," said the firm. | |
Shares in BP fell 6% after the ruling was announced. | |
Quadruple penalty | |
Judge Barbier said BP should shoulder 67% of the blame for the 2010 spill, with drilling rig owner Transocean responsible for 30% and cement firm Halliburton responsible for 3%. | Judge Barbier said BP should shoulder 67% of the blame for the 2010 spill, with drilling rig owner Transocean responsible for 30% and cement firm Halliburton responsible for 3%. |
He ruled that BP will be "subject to enhanced civil penalties" due to its "gross negligence" and "wilful misconduct". | He ruled that BP will be "subject to enhanced civil penalties" due to its "gross negligence" and "wilful misconduct". |
The ruling could quadruple the civil penalties that BP must pay as a result of the spill to an estimated $18bn. | |
Under the US Clean Water Act, a ruling of negligence would have meant BP was liable to pay $1,100 per barrel of oil spilled; gross negligence increases the penalty to $4,300 per barrel. | |
In its most recent annual report, BP said it had set aside $3.5bn for this case - an indication the firm had expected a more lenient ruling. | |
BP emphasised in its statement that it planned to argue during penalty proceedings for the lesser penalty. | |
Continued wrangling | |
In 2012, BP agreed to accept criminal responsibility for the disaster and agreed to pay $4.5bn to the US government, thus settling its criminal liability in the spill. | |
Now, legal efforts have focused on the amount of civil penalties the firm must pay, both to businesses and individuals affected by the spill and to cover environmental clean-up costs. | |
Also in 2012, BP reached a $9.2bn civil settlement and agreed to put $20bn into a trust to pay to businesses and individuals. | |
However, legal proceedings have continued after BP said it had been forced to pay compensation to some businesses and individuals who were not directly affected. | |
It is not clear what impact Judge Barbier's ruling will have on the legal wrangling over that settlement fund. | |
A date to determine the total number of barrels of oil that were spilled in 2010 as well as a final civil penalty has not yet been announced. | |
US government experts have estimated a total of 4.2 million barrels spilled into the Gulf; BP has said the figure is closer to 2.45 million. |
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