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BP, Anadarko may face billions in fines after court ruling

  • BP and Anadarko Petroleum (APC) could be facing billions of dollars in fines after the U.S. Court of Appeals in New Orleans said today the companies are automatically liable under the U.S. Clean Water Act as co-owners of the Macondo well that blew out and started the 2010 Gulf of Mexico oil spill.
  • The court upheld a lower-court decision that allows the U.S. to seek up to $18B in fines from BP if it is found grossly negligent for its actions surrounding the spill; APC faces a maximum of $4.6B.
  • The Clean Water Act allows the government to seek fines of as much as $1,100/bbl spilled on a finding of strict liability and up to $4,300/bbl for gross negligence; the ruling leaves both companies immediately vulnerable to the $1,100/bbl fines.
Comments (35)
  • Insider-Alerts
    , contributor
    Comments (579) | Send Message
     
    Very little will come of it...BP knows who to give money to...

     

    http://politi.co/1hA3uFN

     

    “Make no mistake: BP ranks among the most powerful corporate forces in U.S. politics,” said Dave Levinthal, spokesman for the Center for Responsive Politics. “It donates hundreds of thousands of dollars every election cycle through its employees and political action committee and is routinely a seven- or eight-figure federal lobbying powerhouse each year.”
    4 Jun, 07:42 PM Reply Like
  • King Rat
    , contributor
    Comments (564) | Send Message
     
    You are right. Considering what they paid out only came to 1/3 of the estimated damages, we can't expect much to come out of this either.
    5 Jun, 12:48 AM Reply Like
  • Deja Vu
    , contributor
    Comments (1148) | Send Message
     
    Shakedown continues until every Democratic party apparatchik has built his dacha. Short BP....
    4 Jun, 07:46 PM Reply Like
  • Jake2992
    , contributor
    Comments (825) | Send Message
     
    So wait are the Democrats in BP's pocket or are the Democrats too hard on BP??

     

    You schizophrenic right wingers can never make up your mind...

     

    Here is the truth. Oil and Gas industry gave 3 to 1 to Republicans.
    http://bit.ly/1hAt25m

     

    4 Jun, 11:09 PM Reply Like
  • King Rat
    , contributor
    Comments (564) | Send Message
     
    Jake2992, you left wingers are just as out of place. Even the link you provide supports the "right winger" you are trying to discredit.

     

    No wonder America is slipping. Two many wings, not enough arms.
    5 Jun, 12:50 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5137) | Send Message
     
    $18B, if this is the number that the US seeks, is far less than the fines accrued by JPM under the watchful eye of CEO Jamie Dimon. $30B+ and counting for JPM.

     

    My point is simple. The sky is not falling on BP. Judge Barbier has been against BP from the onset and this "decision" is not a surprise.

     

    BP, the 5th largest company in the world with operations in over 80 countries, will move forward. The hope is that they don't pack up US operations after the continued court BS taking place in LA.

     

    Long BP and looking forward to Supreme Court ruling.
    4 Jun, 08:00 PM Reply Like
  • CapeCapMgmt
    , contributor
    Comments (711) | Send Message
     
    I hope your right deer. I have learned one thing about the universe however, never bet against the Feds.
    4 Jun, 08:39 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5137) | Send Message
     
    Federal government has turned fines into the "new" way to make money. Forget investments in job creation and work programs, simply fine whomever has the money to pay. Not sure if betting against the Feds will pay off, but I like BP's chances.

     

    Not sure when this fine garbage took root, but at some point it has to end. Banks are TBTF/Jail. Some other sector will pay the price, so it seems.
    4 Jun, 08:47 PM Reply Like
  • NuclearNeil
    , contributor
    Comments (108) | Send Message
     
    DCV is usually spot-on.
    4 Jun, 10:11 PM Reply Like
  • King Rat
    , contributor
    Comments (564) | Send Message
     
    deercreekvols,
    BP's US operations has expanded since pre-crisis, pre-DWH disaster. Why would they pack up and leave when they depend more and more on US-based oil and gas than ever before?
    5 Jun, 12:52 AM Reply Like
  • deercreekvols
    , contributor
    Comments (5137) | Send Message
     
    King Rat,

     

    Good points. Perhaps I should have said that BP could threaten to leave US operations if this nonsense continues...

     

    Long BP and wishing the PR Department would spin some "good" news here in the US for BP...
    5 Jun, 07:39 AM Reply Like
  • JB204zz
    , contributor
    Comments (41) | Send Message
     
    I'm all for energy development, but for a major to not apply the best technology advisable in the deep water gulf is inexcusable. Yes, they met the legal requirements, but not the same technology that was used by other majors in the gulf. There wasn't one mistake, but a series of mistakes that led to a loss of lives and what has gone down as one of the worst environmental disasters in recorded history while management was celebrating the wells safety history.

     

    BP has also spent tens of millions on the best legal and PR firms and they ended up agreeing to a claims format that allows every Cajun and Florida business and their cousins, to make a claim regarding the spill, even though there's no economic loss because of the spill.

     

    Both of these actions are a direct affront of the BP shareholders by BP management. I personally don't invest in incompetence. There is something very systemic in this company management practices that screams stay away.
    4 Jun, 08:36 PM Reply Like
  • JDoe20
    , contributor
    Comments (294) | Send Message
     
    This administration is turning every public company away from considering doing the right thing in the future. BP must be ruing the day they volunteered to put $30B into a fund for damages. In the future they will fight every claim tooth and nail while banks will not budge when asked to help for the "good of the country".

     

    Great job big government!
    4 Jun, 08:39 PM Reply Like
  • maybenot
    , contributor
    Comments (3347) | Send Message
     
    Another set-back for BP. One after another. Constantly losing each battle. When will it end? Oh the humanity!

     

    whoopee. Lawyers and stalling always win out for the big boys. BP is a big boy.

     

    Maybe I can get lucky and get more BP in the $40's. How's that song go, "Dreamer, nothing but a dreamer..."

     

    Whatev's. Long BP
    4 Jun, 09:56 PM Reply Like
  • testpack3
    , contributor
    Comments (12) | Send Message
     
    The writing was on the wall for BP in the USA Courts when President Obama called it British Petroleum, on the oil infected shores of GOM, shortly after the disaster. This was a well advised comment to place the blame on a British company, although, that is not the case when one looks at the owners of the company and it's Board of Directors. It was a Political comment and a successful one. The President should have been reminded of the Piper Alpha disaster in the North Sea, East of the British coast, when 167 of 228 workers lost their lives. At the time, Piper Alpha produced 10% of the UK's oil. Two of the major operators of the rig were Texaco, and Occidental. After a Judicial review by Lord Cullen, Occidental paid $100m to families of the deceased, and Lloyds of London paid $1B in insurance claims. No party was found culpable. It was an accident. He should also be reminded of Exxon Valdez, which caused massive pollution ( in Canada), but no loss of life. Exxon got away with a slap on the wrist, after fighting in Court for years.

     

    The mistake BP made was to accept responibility. They should have thrown the book at Haliburton for using an un-proven, and known inferior mud mix.

     

    It was an American BP employee who decided to use less centering rings in the shaft, which probably caused the gas leak, which caused the explosion after the mud failed to seal the shaft, and the blow-out valve failed to work, since the battery operating it was undercharged. The main power supply to the blow-out valve was probably cut following the explosion.

     

    It was all human error, bad decisions, which the the involved people, have to live with.

     

    I'm no big fan of companies TBTF, however, BP have already paid a price far exceeding any company involved in the Bank crisis ( in cash terms).

     

    Please remember USA courts, Might is never Right

     

    All in my honest opinion
    4 Jun, 10:12 PM Reply Like
  • JB204zz
    , contributor
    Comments (41) | Send Message
     
    I thought they replaced the mud with seawater to speed p the process when the explosion occurred.
    4 Jun, 10:39 PM Reply Like
  • Just Some Guy
    , contributor
    Comments (350) | Send Message
     
    There was a stack of errors. I owned (and own) BP stock and it has hurt me. BP has attempted to play fair, but as others have said US courts don't really know much about fair anymore.

     

    Another $20b over what they have already committed (and spent) would be robbery. BP was stupid and careless here, there is no doubt, but they have paid dearly.
    5 Jun, 01:33 AM Reply Like
  • phxbob44
    , contributor
    Comment (1) | Send Message
     
    BP employs a lot of people in USA as well. What would we gain by putting it out of business?
    4 Jun, 10:18 PM Reply Like
  • sonik
    , contributor
    Comments (29) | Send Message
     
    It really shouldn't be about "it employs people in USA" or it "being a US centred company" etc. World doesn't revolve around the US - it should be about doing the right thing, regardless of US or British.
    5 Jun, 04:34 AM Reply Like
  • MisterJ
    , contributor
    Comments (580) | Send Message
     
    Wow, I see a lot of excuses here. If my kids make a mess, they have to clean it up and pay up for it. But BP can obviously do what they want and somehow it is obviously President Obama or the government's fault. Sure. I hope you are not rinsing kids yourself or we will have a generation of irresponsible and selfish monsters here.
    4 Jun, 10:27 PM Reply Like
  • JANFA
    , contributor
    Comments (59) | Send Message
     
    I think that BP has paid enough already.
    4 Jun, 11:23 PM Reply Like
  • deercreekvols
    , contributor
    Comments (5137) | Send Message
     
    I have spent 25 years teaching elementary students, coaching HS athletes, and my wife and I have raised 5 children.

     

    There is no way that I would ever dream of punishing a student or child five years AFTER the deed.

     

    When is enough, enough?
    5 Jun, 07:41 AM Reply Like
  • Cautiously
    , contributor
    Comments (37) | Send Message
     
    deercreek, like all parents, when you learn that your kids have been naughty you mete out the punishment right away -- you're the investigator, the prosecutor and the judge, all rolled into one, and I don't suppose you give them any due process rights to present a defense, or any right to appeal once you make your decision. Do you really think BP would prefer that system? I don't. I think BP is entitled to -- and expects -- defend itself with respect to its CWA exposure, which depends on two highly disputed factual issues that have yet to be decided (by a judge who is NOT the prosecutor): (1) the number of barrels of oil released, and (2) whether BP's overall conduct rises to the level of "gross negligence". And unlike your kids, BP will exercise its right to appeal from the ruling.
    5 Jun, 08:27 PM Reply Like
  • pigeonguy
    , contributor
    Comments (100) | Send Message
     
    The banks and BP fines with the Feds are absurd. If there are criminal acts prosecute the perpetrators. Instead the fines line the government coffers and management goes on its merry way. The shareholders are the one holding the bag. BP was stupid for agreeing to pay for unverifiable claims to claimants on the Gulf Coast. If the claimants can prove losses than BP should pay those. Once again, it is a free lunch for the Freddie the Free Loaders to make unverifiable claims.
    4 Jun, 10:33 PM Reply Like
  • Jake2992
    , contributor
    Comments (825) | Send Message
     
    If they didn't collect fines, you would be whining about that.
    4 Jun, 11:12 PM Reply Like
  • JB204zz
    , contributor
    Comments (41) | Send Message
     
    I feel that BP rolled over to the US government to keep the senior executives out of criminal prosecution. Now that a number of those execs are safely drinking tea in London, BP is now trying to reverse their agreements.
    4 Jun, 11:58 PM Reply Like
  • sonik
    , contributor
    Comments (29) | Send Message
     
    I would agree - Mud never sticks that high up in most organisations, hence some drilling engineer was taken to courts when as you say "the execs are safely drinking tea" and on to bigger and better things
    5 Jun, 04:39 AM Reply Like
  • daro
    , contributor
    Comments (1506) | Send Message
     
    at a minimum, BP was negligent or grossly negligent and people died as a result. If i did that I would be in jail. the people at the company who are reponsible should go to jail. how do you put a dollar amount on loss of life and the environmental damage? (not to mention businesses who suffered damage). at the end of the day the "accident" was avoidable. I think they should put them out of business. no other company had such a large spill in the gulf.
    4 Jun, 11:38 PM Reply Like
  • Manitobatex
    , contributor
    Comments (476) | Send Message
     
    $18 Billion is a small amount....FB paid that much for an WhatsApp.

     

    BP will survive & I would like more at $40.
    4 Jun, 11:43 PM Reply Like
  • JB204zz
    , contributor
    Comments (41) | Send Message
     
    Good for you Manito, but you would have done a lot better with other oil companies. Good Luck to you
    5 Jun, 12:00 AM Reply Like
  • Patent News
    , contributor
    Comments (1312) | Send Message
     
    good law in case of big damage. there should be a law for banks causing damage as well or at least requiring a real death panel to make sure banks dont damage the economy again?
    5 Jun, 02:32 AM Reply Like
  • watermark302
    , contributor
    Comments (158) | Send Message
     
    "In January 2011, a presidential [as in President of the United States] commission found that the spill was caused by time-saving and money-saving decisions by BP, Halliburton and Transocean that created unacceptable risk.
    But the panel also concluded that the mistakes were the result of systemic problems, not necessarily the fault of any one individual."

     

    Read more: http://dailym.ai/1nRFMHB
    Follow us: @MailOnline on Twitter | DailyMail on Facebook
    5 Jun, 08:00 AM Reply Like
  • watermark302
    , contributor
    Comments (158) | Send Message
     
    Why is Halliburton not mentioned in the announcement?
    5 Jun, 08:44 AM Reply Like
  • Manitobatex
    , contributor
    Comments (476) | Send Message
     
    Moral of the story is that there is a home field advantage and it is playing out at a large cost to the visitors.
    5 Jun, 10:41 AM Reply Like
  • glf4mny
    , contributor
    Comments (237) | Send Message
     
    Watermark...Halliburton was not mentioned since they were not the well owner, only a contractor.
    5 Jun, 11:30 AM Reply Like
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