U.S. Supreme Court Rejects BP, Anadarko Bids To Avoid Gulf Oil Spill Penalties
WASHINGTON, June 29 (Reuters) – The U.S. Supreme Court on Monday rejected bids by BP Plc and Anadarko Petroleum Corp to avoid penalties under federal pollution law in connection with the 2010 Gulf of Mexico oil spill.
The high court left in place a June 2014 ruling by the brand new Orleans-based 5th U.S. Circuit Court of Appeals, which said the businesses were liable for civil penalties under the federal Clean Water Act.
The April 20, 2010, Deepwater Horizon drilling rig explosion and Macondo oil well rupture killed 11 workers and caused the biggest offshore environmental disaster in U.S. history, polluting large parts of the Gulf, killing marine wildlife and harming businesses.
BP could face a maximum penalty of $13.7 billion under the Clean Water Act. Anadarko says it could possibly be required to pay greater than $1 billion.
U.S. District Judge Carl Barbier in New Orleans has not yet imposed penalties, but has ruled that BP was grossly negligent and that 3.19 million barrels of oil were spilled.
Overall, what does crude oil need to be fractionally distilled BP has incurred more than $42 billion in costs for the spill, including cleanup, fines and victim compensation.
BP and Anadarko owned a respective 65 percent and 25 percent of the Macondo well.
The businesses had argued partially that they shouldn’t be responsible for oil spilled as a result of failed equipment on the drilling rig, which was owned by Transocean Ltd.
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 cases are BP Exploration and Production Inc. v. U.S. and Anadarko Petroleum Corp v. U.S. U.S. Supreme what does crude oil need to be fractionally distilled Court, Nos 14-1217 and 14-1167.