The Justice Department has ordered a security zone to be set up around the site of the BP (NYSE:BP) oil spill to protect against any evidence being lost.
In a statement, the Department of Justice said, "In response to a motion by the US Department of Justice, the US District Court in New Orleans has ordered the establishment of a security zone extending 750 feet in all directions from the mobile offshore drilling unit Deepwater Horizon wreckage site and its debris field.
"The order will be enforced by the United States using the full range of security assets available, including vessels, aircraft or other appropriate means and equipment."
The zone will also extend from the surface to the floor of the sea, in addition to the surface perimeter. The order will last through October 8, 2011 unless it is renewed.
Showing posts with label Department of Justice. Show all posts
Showing posts with label Department of Justice. Show all posts
Thursday, October 28, 2010
Wednesday, September 29, 2010
BP (NYSE:BP) Negotiating with Feds Over Oil Fines
BP (NYSE:BP) has entered into negotiations with the Obama administration over coming to some type of settlement over fines related to the Gulf of Mexico oil spill.
According to Rep. Steve Scalise, R-La., his staff got wind of the discussions when working on legislation related to the oil spill which would keep money from fines paid out by BP in the Gulf region.
Unsurprisingly, the real battle is over whether or not BP will be labeled as being grossly negligent in relationship to the spill.
The problem with that is no study, other than the one conducted by BP, has been conducted to find out the absolute reason behind the accident.
So how could the government be battling over something that there is no conclusion made yet? The only reason BP is in their sights is no company related to the spill has the capital to pay the fines other than them. Of course they also had the largest stake in the well, but that has nothing to do with culpability.
It may surprise people, but BP is in the driver's seat in regard to this issue. If the government doesn't come to an agreement with them, all BP has to do is litigate, and that would take years, essentially holding up any fines being paid out until then, and with no guarantee the government would win the case (in reference to BP being considered grossly negligent).
Just under the Clean Water Act, BP could pay out up to $21 billion. It's doubtful it will ever come to that, as that wouldn't include other fines and the money they'll have to pay out from the hundreds of lawsuits.
Even with the size of BP, they just aren't big enough to pay that kind of money out, which doesn't include the $20 billion escrow fund which has the claims part of the fund administered by Kenneth Feinberg.
There should be a settlement of some sort, but it will depend on how far the Department of Justice wants to take it. If they ask for too much, it may leave BP few options.
Again, the problem is there are no conclusions yet made as to the cause of the disaster, and until that is investigated and discovered, it's hard to see the government has to stand on; at least concerning the decision on whether or not BP was grossly negligent, which is the crux of this particular part of the fine process.
According to Rep. Steve Scalise, R-La., his staff got wind of the discussions when working on legislation related to the oil spill which would keep money from fines paid out by BP in the Gulf region.
Unsurprisingly, the real battle is over whether or not BP will be labeled as being grossly negligent in relationship to the spill.
The problem with that is no study, other than the one conducted by BP, has been conducted to find out the absolute reason behind the accident.
So how could the government be battling over something that there is no conclusion made yet? The only reason BP is in their sights is no company related to the spill has the capital to pay the fines other than them. Of course they also had the largest stake in the well, but that has nothing to do with culpability.
It may surprise people, but BP is in the driver's seat in regard to this issue. If the government doesn't come to an agreement with them, all BP has to do is litigate, and that would take years, essentially holding up any fines being paid out until then, and with no guarantee the government would win the case (in reference to BP being considered grossly negligent).
Just under the Clean Water Act, BP could pay out up to $21 billion. It's doubtful it will ever come to that, as that wouldn't include other fines and the money they'll have to pay out from the hundreds of lawsuits.
Even with the size of BP, they just aren't big enough to pay that kind of money out, which doesn't include the $20 billion escrow fund which has the claims part of the fund administered by Kenneth Feinberg.
There should be a settlement of some sort, but it will depend on how far the Department of Justice wants to take it. If they ask for too much, it may leave BP few options.
Again, the problem is there are no conclusions yet made as to the cause of the disaster, and until that is investigated and discovered, it's hard to see the government has to stand on; at least concerning the decision on whether or not BP was grossly negligent, which is the crux of this particular part of the fine process.
Tuesday, September 14, 2010
BP (NYSE:BP) to be Sued by Justice Department
In a court filing on Monday, the Justice Department said they will probably sue BP (NYSE:BP) for damages related to the Gulf of Mexico oil spill from the Deepwater Horizon.
The filing was with the U.S. District Court in New Orleans, Louisiana.
If they proceed, claims against BP would be based on the Clean Water Act and the Oil Pollution Act,
The Oil Pollution Act was put in place after the oil spill from the Exxon-Valdez (NYSE:XOM).
It wasn't clear if they're going to wait to see if BP will be tagged with a "gross negligence" label, which would significantly increase the potential penalties.
The filing was with the U.S. District Court in New Orleans, Louisiana.
If they proceed, claims against BP would be based on the Clean Water Act and the Oil Pollution Act,
The Oil Pollution Act was put in place after the oil spill from the Exxon-Valdez (NYSE:XOM).
It wasn't clear if they're going to wait to see if BP will be tagged with a "gross negligence" label, which would significantly increase the potential penalties.
Monday, September 13, 2010
BP (NYSE:BP), Halliburton Battle Heating Up Over Cement
The battle between Halliburton (NYSE:HAL) and BP (NYSE:BP) is heating up as the Justice Department is entering the fray with its plans to test the cement used by Halliburton on the failed oil well.
In BP's report last week the company said the cement used by Halliburton was "likely unstable." That's important because it would result in the shrinking of the cement which would have left gaps which would have allowed the entry of hydrocarbons.
A government commission said, "The Department of Justice is presently working with Halliburton to secure cement evidence from the well and, when that process is complete, the Commission and other investigators will work with them to obtain desired test protocols."
Halliburton claims the BP report has left a lot out of it and was inaccurate, but they haven't offered up what those inaccuracies or omissions were.
In BP's report last week the company said the cement used by Halliburton was "likely unstable." That's important because it would result in the shrinking of the cement which would have left gaps which would have allowed the entry of hydrocarbons.
A government commission said, "The Department of Justice is presently working with Halliburton to secure cement evidence from the well and, when that process is complete, the Commission and other investigators will work with them to obtain desired test protocols."
Halliburton claims the BP report has left a lot out of it and was inaccurate, but they haven't offered up what those inaccuracies or omissions were.
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