Judge Accepts Transocean Plea in Gulf Spill

The Switzerland-based owner and operator of the Deepwater Horizon oil rig was charged with negligently discharging oil into the gulf.

“I believe the plea agreement is reasonable and is accepted,” said United States District Judge Jane Triche Milazzo. No witnesses came to court to object to the agreement, and Judge Milazzo said she received no letters of opposition.

Transocean’s criminal fine is the second highest assessed for an environmental disaster, but it pales in comparison with the $1.26 billion in criminal fines that BP was assessed for the same accident, which spewed millions of barrels of crude oil into the gulf, fouling hundreds of miles of beaches in Louisiana, Mississippi and Alabama.

Various government and independent reports have concluded that Transocean’s crew was negligent in interpreting pressure tests that might otherwise have made certain that the well casing and cement would not have leaked oil and gas. In court filings, the government reiterated its contention that BP supervisors had ultimate responsibility for supervising the testing.

In a statement made when the agreement was reached last month, Transocean said it represented a “a positive step forward” and company lawyers in a filing said Transocean “accepts responsibility” for criminal conduct.

The company has also agreed to pay $1 billion in civil penalties, and will be on probation for five years. Much of the money Transocean has agreed to pay will go toward research for oil spill prevention and response and to restoration of coastal natural habitat, including the restitution of barrier islands off the coast of Louisiana.

Now the long legal process surrounding the 2010 accident will focus again on BP.

BP, which has already pleaded guilty to 11 counts of felony manslaughter and other charges and agreed to pay a total of $4.5 billion in fines and penalties, is scheduled to return to court again on Feb. 25. Unless it reaches a settlement with the Justice Department before that date, it faces as much as $21 billion in civil fines for what the government claims was gross negligence for the discharge of an estimated 4.9 million barrels of oil over 87 days.

BP has so far strongly contested the claim that it was grossly negligent and it maintains that the government’s estimates for the amount of oil spilled has been exaggerated. BP executives have publicly and privately said they do not expect to settle out of court, and government rhetoric describing the company’s responsibilities has become more heated in recent months.

In its defense in the coming trial, BP has indicated that it will try to assign more responsibility to Transocean and Halliburton, whose employees were involved in cementing the well, for causing the accident. In a $7.8 billion settlement last year with a plaintiffs’ steering committee, it sought to assign claims to the two other companies.

BP is also facing potential damages of more than $30 billion from claims made by the gulf states and local governments for property and economic damages. The company has already been forced to divest roughly $38 billion of assets to survive its long legal struggle.

Article source: http://www.nytimes.com/2013/02/15/business/judge-clears-transocean-plea-in-gulf-spill.html?partner=rss&emc=rss