Recent Blog Posts

Insurance Companies Having Hard Time With Hydraulic Fracking

Amaro Law Firm — Fri, 18 May 2012 17:47:00 GMT

According to an article featured by Reuters News Agency, the inherent risks of oil and gas extraction are often played down by those in the business. However, their insurers have every reason to keep a close eye on dangers for drillers. According to the article, underwriters now face a politically charged problem in the perceived threats to water supplies of hydraulic fracturing. Hydraulic fracking is a drilling technique where by a mixture of chemicals, water and sand is injected in the earth and high pressures in order to free trapped oil or gas. The article explains that fracking litigation and federal probes have left insurance companies scratching their heads over how to price the risk of the oil and gas production technique. Insurance companies say both the law suits and federal probes have been of little help in assessing the risk posed by hydraulic fracking.

However, the Environmental Protection Agency has just finished testing water at 61 homes involved in a recently litigated fracking contamination suit and found the drinking water was safe to consume. Sources say insurers may get more clarity once EPA releases initial findings of its five-state investigation into the risks to drinking water of fracking. Critics of the process say it can also pollute if fracking fluids seep out of wells. Reportedly, an EPA study showed fracking chemicals were likely present in a Wyoming aquifer near the town of Pavillion, but then it agreed in March to retest the water.

Reportedly, traditional forms of insurance for the oil and gas industry suddenly appeared inadequate once the shale boom was in full swing and water-contamination lawsuits cropped up. Sources say while some insurers avoid it, others like XL Group, Ironshore, Chartis and Zurich Insurance Group sell products such as those that cover the millions in dollars of costs of defending against pollution claims, even if they end up being dismissed.

According to insurance broker Willis Group, the market was getting tighter for what is known as "environmental impairment liability," or in other words, the coverage that would most directly relate to pollution claims from accidents - and so the cost is going up. Reportedly, some insurers are starting to exclude fracking from their policies. According to Willis group, policies for blowouts, called Operator's Extra Expense, exclude pollution from an underground blowout, which it saw as unlikely to change given the risks tied to fracking. Further, regulation varies between states and against federal standards and sometimes even conflicts.

Many insurance experts feel that the ultimate EPA findings on drinking water will sharpen up the debate. That study is viewed as a game changer as far as how the insurance industry will view these risks going forward. Industry sources say fracking involves injecting chemical-laced water into wells to crack open shale rock and release natural gas and oil. Sources say that while the technology is far from new, it has never been deployed as widely and extensively as in the past few years.

According to the article, Mark Regier, director of stewardship investing for Everence Financial, said the fracking debate entered a less contentious phase in the past year as firms like EOG and Chesapeake open up about it, though Chesapeake just took a hit to its safety credentials with a blowout in Wyoming. Experts assess bigger environmental dangers on a routine basis like pipelines and refineries, however; their record of past accidents and damages allows insurers to price those risks.

According to the article, Andrew Scholz, a special counsel at Goldberg Segalla in New York, saw parallels with long-running disputes like asbestos coverage, in that many complex issues have not yet been decided, "The underlying litigations concerning fracking are still in their infancy," he said. "There are many suits being filed and many more everyday, but many haven't gone to judgment and you haven't gotten to expert causation issues." According to Scholz, the lack of clear legal precedents meant lawyers had to draw analogies from other energy-related cases.

Parties Ask Judge To Approve Settlement Agreement Between BP and Plaintiffs

Amaro Law Firm — Fri, 20 Apr 2012 20:03:00 GMT

According to an article featured in the Washington Post, on April 18, 2012, BP and plaintiffs' attorneys for more than 100,000 people and businesses affected by the 2010 Gulf Coast oil spill presented a federal judge with a class-action settlement agreement. Reportedly, the agreement sets out the parameters for resolving the billions of dollars in claims resulting from the worst oil spill in American history. The article reports that both sets of lawyers are asking the federal judge to give his preliminary approval of the settlement agreement. Sources say the judge is scheduled to rule on their request on April 25, 2012.

According to the article, BP believes it will pay about $7.8 billion to resolve the claims, but the settlement is not limited to any set amount of money. Many legal sources believe it might be one of the largest class action settlements in the American courts. According to the Washington Post, the agreement acknowledges that both sides did not get everything that they want. After reviewing the settlement, interested parties have offered a mixed reaction. The Washington Post reports that many shrimpers and fisherman were disappointed with the settlement believing that their hard hit industry deserved more compensation. In fact, some individuals told the Post they might opt out of the settlement all together.

Reportedly, the agreement, which was announced March 2, does not resolve separate claims brought by the federal government and Gulf states against BP and its partners on the Deepwater Horizon drilling rig over environmental damage from the nation's worst offshore oil spill. According to the Post, the settlement also does not resolve claims against Switzerland-based rig owner Transocean Ltd. and Houston-based cement contractor Halliburton. Reportedly, the judge has scheduled a May 3 hearing to discuss plans for a possible trial on the other claims.

Legal sources say the federal judge is expected to have an overall fairness hearing on the settlement before he will approve anything. Reportedly, the agreement calls for paying medical claims from cleanup workers and others who say they suffered illnesses from exposure to the oil or chemicals used to disperse it. Legal sources say none of those claims were paid through a BP-created $20 billion compensation fund. Further, the Post reports that the agreement spells out several compensation levels, with cleanup workers eligible for the most: up to $60,700 plus money to cover hospital and medical bills they might have racked up.

The Amaro Law Firm is currently helping hundreds of people affected by the Gulf Coast oil spill. If you or anyone you know has experienced health issues or any other type of damage related to the BP Gulf Coast oil spill or clean-up effort, please feel free to contact one of the Amaro Law Firm's experienced attorneys at 713-864-1941 or toll free at 877-292-8797.

Government to Turn Over Oil Spill Documents to BP

Amaro Law Firm — Wed, 18 Apr 2012 16:30:00 GMT

According to Reuters News Agency, BP will be allowed access to U.S. government documents that may shed light on the size of the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. Legal sources say the size of the oil spill is a crucial issue in determining the oil company's liability. According to a Wednesday court filing, the government agreed to produce the documents after BP had accused it two weeks ago of unfairly withholding them because they were privileged.

The Reuters article explains that BP feels the documents may show that an August 2010 estimate of 4.9 million barrels of oil spilled, of which about 800,000 barrels were cleaned up, is too high. Legal sources say a reduction would lower the maximum civil fine BP could pay under the U.S. Clean Water Act, now estimated as high as $17.6 billion. Legal authorities say the law calls for a maximum fine of $1,100 per barrel of oil spilled, or $4,300 if there were gross negligence.

The article reports that, in a filing with the U.S. district court in New Orleans, the government said it will produce 100 documents that BP requested, citing "the importance of this case and the desire of the court to keep this case moving expeditiously."

BP Oil Settlement Transition From GCCF Speeds Up Settlement Payments

Amaro Law Firm — Tue, 17 Apr 2012 16:22:00 GMT

According to reports, the process of paying BP oil spill claims has sped up considerably in the last two weeks due to a court-appointed transition from Kenneth Feinberg's Gulf Coast Claims Facility to payments based on a settlement. Sources close to the process say the transition is run by Lafayette mediator Patrick Juneau and has increased its output of claims payments four-fold since March 23, both in terms of claimants and money paid.

Reportedly, the transition process for paying claimants is largely the same as the one Feinberg ran for more than a year and a half. Sources say Feinberg paid more than 220,000 people and businesses a total of more than $6 billion on BP's behalf for economic damages caused by the April 2010 oil spill. However, sources say a settlement between BP and a group of private plaintiffs ended Feinberg's tenure. Reportedly, the plaintiffs had openly bashed Feinberg's payment methodology and what they considered his overall stinginess, but when they struck a proposed settlement with BP, they put Feinberg's top hired deputy, Virginia lawyer Lynn Greer, in charge of the transition operations.

Sources say that when Juneau took over as Greer's boss March 8 there was no interruption in the flow of claims. Reportedly, in the first two weeks, the transition process had paid just under 1,100 claimants nearly $27 million. In contrast, the transition has currently paid 5,238 claimants a total of $134 million. Legal sources say the payouts are leading to April 16, 2012, when BP and the Plaintiffs will provide the court with the terms of their final settlement. Sources close to the deal say the settlement will be an uncapped class action. BP estimates that it will spend $7.8 billion to meet those claims, but that figure could rise or fall.

Reportedly, of those paid under the transition so far, 2,264 claimants had offers pending from Feinberg that they didn't accept by Feb. 26. Under a court order, Juneau and Greer have paid them 60 percent of what Feinberg offered them and they have not had to sign away their right to sue BP. Sources say after April 16, the settlement facility will use its own process to calculate the best amount to pay those claimants and they will then have the choice of collecting the rest of what Feinberg offered or the remainder of the new calculation.

Reportedly, the Juneau transition has also resumed interim payments in the last two weeks, paying 715 claimants money to cover three months of losses, without requiring them to give up further claims. Juneau said $13 million has gone to 925 claimants who decided to take a quick payment of $25,000 for businesses or $5,000 for individuals and sign a release of further claims against BP.

Gulf Coast Ecosystem Not Recovered Two Years After BP Oil Spill

Amaro Law Firm — Tue, 10 Apr 2012 14:10:00 GMT

As the two year anniversary of the BP Gulf Coast oil spill looms, national attention is returning to the damages Gulf Coast environment, particularly the greatly diminished production of oysters. The Gulf Oil Spill was the worst manmade disaster in United States history and, by some reports, released over 200 million gallons of oil and an additional 200 million gallons of toxic dispersants into the Gulf Coast waters. According to reports, the Gulf Coast oyster supply is experiencing a second consecutive severely limited season, with demand nowhere close to pre-oil spill levels. Recently, BP reached a $7.8 billion dollar settlement with Gulf Coast residents and business who claimed to be damaged by the oil spill. These settlements are in addition to the $6.5 billion dollars BP has already paid out from the Gulf Coast Claims Fund.

Despite its considerably large settlements, critics note that BP has not paid a cent in compensation for its impact on the Gulf Coast ecosystem. Reportedly, the federal government will be able to pursue both criminal and environmental penalties. Some legal experts say BP may be liable for up to $60 billion to the United States government. Sources say BP is spending millions to promote Gulf tourism and spread an "all-cleaned-up" image. Further, top officials from the U.S. Environmental Protection Agency (EPA) and Food and Drug Administration (FDA) are repeatedly brought out to tout Gulf food safety.

However, according to marine scientist reports, the restoration of the Gulf Coast ecosystem is not as far along as the company would the public believe. For example, Auburn University's Department of Fisheries and Allied Aquacultures found supposedly harmless tar balls--periodically found on Gulf beaches--teeming with bacteria. According to marine expert Ed Cake, "As long as BP's tar balls keep washing ashore on Gulf Coast beaches folks who come into contact with them and who have a compromised immune system or advanced diabetes or liver disease such as cirrhosis are at risk for contracting fibrosis through skin abrasions and lacerations--just as those who consume raw oysters with Vibrio vulnificus." Cake has also stated, "we knew when the oil spill was at its peak flow rate that V. vulnificus bacterium would proliferate because it consumed oil, but we were not aware those tar balls would continue to threaten beach goers and BP's clean-up crews that come into contact with them." According to the organization Food Safety News, Vibrio vulnificus is a bacteria in the same family as those that cause cholera. It normally lives in warm seawater and is part of a group of vibrios that are called "halophilic" because they require salt to live. Not all Vibrio vulnificus are pathogenic to humans, and that points to how much research still needs to be done about the Gulf's post-spill ecology.

Auburn research professor Cova Arias, who works from a Dauphin Island laboratory, warns anyone coming across a tar ball on the Gulf coast to give it a wide berth, as if were "a bad crab or something rotten on the beach." According to fourth generation oysterman Nick Collins, "there is nothing but dead shells in the Louisiana oyster beds that produced 60 to 80 sacks of oysters a day before the BP spill."

Critics feel like BP's advertisements maybe misleading the public as to the situation in the Gulf of Mexico. BP, in paid television advertising since December, depicts both tourism and commercial fishing as recovering nicely. The company is paying for $179 million in tourism promotion and another $82 million in seafood testing and marketing. Individuals who are critical of BP's attempts to close the book on the oil spill point out that the herring fishery in Prince William Sound is only now beginning to recover, 22 year after the 1989 Exxon Valdez oil spill in Alaska, and the oyster fishery in Mexico's Terminos Lagoon has not fully recovered 32 year after the 1979 Ixtoc-1 oil spill.

BP Contests Amount of Oil Spilled Into the Gulf After Deepwater Horizon Disaster

Amaro Law Firm — Mon, 09 Apr 2012 14:09:00 GMT

According to the news source UPI, the United States government is refusing to turn over certain documents which relate to the amount of oil discharged from the 2010 Gulf Coast oil spill. Reportedly, states along the southern U.S. coast sustained severe damage to tourism, fisheries and many other economic sectors. According to UPI, BP is contesting claims made in August by the Flow Rate Technical Group reporting that 4.9 million barrels of oil spilled into the Gulf of Mexico as a result of the Deepwater Horizon rig explosion. According to the London newspaper The Daily Telegraph, BP has accused the United States government of trying to protect documents "reflecting discussions and deliberations concerning a factual issue, namely, the amount of oil discharged during the oil spill." This factual issue is important because the amount of oil spilled from the incident will determine what BP pays in terms of fines under the U.S. Clean Water Act. Reportedly, the company contends 3.2 million barrels were spilled during the accident, a difference of around $7 billion in terms of penalties.

Senate Approves Bill To Aid Gulf Coast States With BP Oil Spill Fines

Amaro Law Firm — Sun, 18 Mar 2012 16:45:00 GMT

According to recent reports, the Senate has approved a highway bill which includes beneficial provisions for the Gulf Coast. Sources say that the bill guarantees that 80 percent of the fines collected from the April 2010 BP oil spill, which could reach $20 billion, would be distributed for coastal restoration to the five states along the Gulf of Mexico. These states include: Mississippi, Louisiana, Florida, Texas and Alabama.

Many sources close to Capitol Hill are uncertain how the bill will be received by the House of Representatives. Many Gulf state legislators are anxious to pass the "RESTORE Act" before a settlement between BP and the department of justice is reached.

Reportedly, under the Senate bill, the five states would divide 35 percent of the money equally and 60 percent would be directed to the Gulf Coast Ecosystem Restoration Council and 5 percent would go to a new Gulf science and fisheries program. Sources say the House version of the amendment doesn't specify how the money would be distributed and if Congress doesn't act, the fines collected would go to the Treasury.

BP Oil Spill Settlement--- Need to Know

Amaro Law Firm — Sat, 17 Mar 2012 16:35:00 GMT

How does the Order issued by the Louisiana federal court on March 8, affect me?

The order issued by the Louisiana federal court creates a transition process for dealing with BP oil spill litigation claims. The order outlines a new evaluation process for claims which are still pending with the Gulf Coast Claims Facility (GCCF). The order also creates a new evaluation process for claims which are filed with the GCCF during the transition process. The order appoints a new claims administrator. The order also directs for a new court supervised claims administration program to be created.

May I still file a claim with the GCCF? If so, how?

Yes, those who qualify will still be allowed to file claims with the GCCF. If you or a loved one is considering filing a claim as a result of the BP oil spill please feel free to contact us for a free consultation. You can contact the Amaro Law Firm by clicking here, or contact us toll free at 1-877-892-2797 or locally 713-864-1941. You may also visit the GCCF website for more information.

Who is qualifies as a claimant?

Any individual or business who suffered economic or bodily harm as a result of the BP oil spill in April of 2010 is eligible to receive compensation. Individuals may recover compensation for the following types of damages: (1) removal and clean up costs; (2) damage to real or personal property; (3) lost earnings or profits; (4) loss of subsistence use of natural resources; and (5) physical injury or death. It is not required that you live in the Gulf Coast area to make a claim for damages as a result of the BP oil spill. However, it is required that the oil spill is the direct cause of the damages.

If you or a loved one were involved in the BP Oil Spill cleanup and suffered temporary or long-term health problems, contact our BP Oil Spill attorneys to see what types of compensation you may be entitled to at 1-877-892-2797.

BP Oil Spill Settlement Health Program

Amaro Law Firm — Fri, 16 Mar 2012 16:20:00 GMT

According to various media reports in, the specifics of the BP oil spill settlement are still unknown to the public. However, according to the parts which have been made public, the health program is available to the estimated 90,000 cleanup workers and other spill responders such as government workers. The story states the settlement will also be made available to coastal residents who lived within a half-mile of a beach for at least 60 days between the April 20, 2010, explosion and sinking of the Deepwater Horizon and the end of September. Further, the article states the settlement is also available to people who lived within a mile of wetlands for at least 60 days between the date of the accident and the end of 2010. If you do not fall into one of these groups, you can still file an individual action against BP for any grievances as a result of the oil spill.

According to the initial terms of the settlement, people who have experienced low-level ailments such as eye irritation, rashes, respiratory problems, dizziness, neurophysiological issues, stomach ailments and headaches, whether acute or chronic, can qualify for compensation by signing an affidavit about when and how they were exposed and what happened to them. Reportedly, compensation levels increase if people sought medical help, visited medic tents at work sites, or can demonstrate that they have developed a chronic condition.

Reportedly, every three years, for 21 years, participants in the medical settlement will get a undergo tests to help them determine whether there has been any change in their medical condition. The article states that tests will be made available within 25 miles of where people live, or BP will pay mileage. Further, the article continues that if people get sick later, they have a right to mediate with or to sue BP. Specifically, they would not have to prove that BP is liable, but they would need to prove a link between their condition and exposure to oil or dispersants.

The story further states that the deal will also create the $105 million Gulf Coast Region Health Outreach Program, which seeks to increase the capacity for delivering physical and mental health care in coastal communities. The article states that Plaintiffs' attorneys say the program is a recognition that an oil spill can cause stress, anxiety and domestic violence, and that small-town medical practitioners don't always have the expertise to recognize signs of chemical illness or know how to treat it.

Further, the article states that the Gulf Coast Region Health Outreach Program will create a specialist referral network to help diagnose and treat oil spill illnesses and will create an online library of oil spill-related research. Reportedly, the program aims to expand access to community-based primary care, create links to specialty care and raise the level of coastal clinics to federally qualified health care facilities so that they can serve Medicare and Medicaid patients.

After BP Settlement Attention Will Shift to Civil and Criminal Penalties From Oil Spill

Amaro Law Firm — Thu, 15 Mar 2012 14:25:00 GMT

According to reports, in the wake of BP's $7.8 billion dollar settlement with Plaintiffs over the Gulf Coast oil spill, the company's financial focus will now turn toward possible fines with the United Sates government. Sources say that BP may face as much as $17.6 billion in civil pollution fines and possibly billions of dollars more in criminal penalties.

Reportedly, BP has committed to pay an estimated $7.8 billion to resolve private plaintiffs' claims for economic loss, property damage, and personal injuries. Sources close to the settlement say it is to be paid from a $20 billion trust for spill victims set up in 2010. However, the settlement does not cover the federal and state government environmental damage claims. Sources say that BP has set aside $37 billion to cover spill costs.

According to legal sources, because plaintiffs' lawyers and government officials have worked together to gather evidence about whom is at fault for the spill, U.S. Justice Department attorneys are likely to take the lead in the case.

If you or a loved one have a personal injury claim relating to exposure to chemicals or harmful agents in the cleanup of the BP Oil Spill, contact our office by completing the form on this website or call now at 1-877-892-2797 for a free and confidential consultation on how we may be able to assist you in recovering just compensation.

BP Oil Spill Settlement For Cleanup Workers

Amaro Law Firm — Wed, 14 Mar 2012 14:20:00 GMT

According to reports, the settlement that BP is hashing out with oil spill victims will provide for a system which monitors health concerns and compensates people whose illness are found to have a direct link to the April 2010 BP Oil Spill. Many Gulf Coast residents are happy that their cases will get a serious evaluation, despite the hurdles in proving that rashes, shortness of breath and other maladies were caused by the oil or chemical dispersants sprayed to break it up.

According to the settlement, BP expects to pay out $7.8 billion to settle claims which include property damage, lost wages, economic losses to businesses, and personal injury claims related to exposure to harmful chemicals and agents. Sources say that previous settlements paid out by BP through the Gulf Claims Compensation Fund had not included those people who claim that illness resulted from exposure to chemicals associated with the cleanup of the oil spill, as well as the oil itself.

Although the settlement has not been finalized, it is anticipated that Plaintiffs will have to show that they got sick from the oil spill. The claimants must be examined by a court-approved health care practitioner. Then, sources say a claims administrator working under the supervision of a federal judge will determine who should be paid. Anyone who lived in the area where there was a risk of exposure is eligible to participate in the claims process.

The settlement also establishes a program to monitor claimants' health for a period of 21 years. Legal authorities say this will enable people whose physical symptoms have not yet developed to pursue claims in the future. Reportedly, BP has also promised to pay $105 million to improve health care around the Gulf region.

BP Oil Spill Settlement Will Start to Provide Justice for Gulf Coast Residents

Amaro Law Firm — Wed, 14 Mar 2012 14:13:00 GMT

British Petroleum (BP) has recently agreed to a settlement with plaintiffs suing for damages as a result of the Gulf Coast oil spill in 2010, the worst oil spill in our nation's history. Although negotiations are still underway, BP representatives have estimated the company will spend an approximate $7.8 billion on the settlement. However, this number is simply an estimate, as the BP Oil spill settlement has not been finalized.

The damages or monetary compensation from every lawsuit or settlement are divided up into categories so that the amount of money is allocated for each particular type of claim for injury or damage. The BP settlement will be divided into two groups, people who suffered economic loss and people who became sick because of the oil and dispersants. The Amaro Law Firm is pleased with the fact that the BP oil spill cleanup workers who were exposed to the chemical dispersants and the oil spill will be allowed to participate in the settlement. Click on the following link for more information on the dispersant:Dangers of Corexit for information on the types of symptoms people may suffer as a result of exposure to dispersants.

The Amaro Law Firm has compiled a data base of articles and helpful information in order to update and educate the public on the latest news and developments in the BP oil spill litigations. Please visit the following link: BP Settlement News for the latest developments for the latest news in the BP oil spill settlement negotiations.

The Amaro Law Firm has experienced attorneys who know what it takes to make sure the BP oil spill victims receive the justice they deserve. We are currently working to help thousands of victims of the BP oil spill, and we know what it takes to help you. If you think you or a loved one were exposed to harmful chemicals used in the BP Oil Spill cleanup, please clickhere to get in contact with an experienced attorney, or contact us toll free at 877-892-2797 or locally 713-864-1941.

BP Oil Spill Settlement: Excessive Executive Payouts Draw Criticism

Amaro Law Firm — Fri, 09 Mar 2012 00:48:00 GMT

According to an article on the Washington Post, BP has continued to handsomely reward its executives despite facing billions of dollars in payouts to plaintiffs and the United States government. The Post reports that BP paid out $1.1 million worth of shares to former chiefexecutive Tony Hayward under a three-year incentive plan. The interesting fact is that Hayward resigned in the wake of the Gulf of Mexico oil spill in2010. The Post reports that Hayward earned $194,973 in fees in 2011 as a directorof BP’s TNK-BP joint venture in Russia.

Moreover, the Post points out that BP also gave current chief executive Bob Dudley a raise in the form of a $6.8 million pay package of salary, annual bonus awards, and stock grants and options. Reportedly, on March 9, 2011, Dudley received a stock award under the Executive Directors Incentive Plan that at today’s stock price would be worth about$10 million when vested in February 2014. BP’s financial information, made public in compliance with the Securities and Exchange Commission’s disclosures rule, comes as BP is working to settle claims related to the 2010 oil spill. The claims stem from a Gulf of Mexico exploration well which suffered a blowout, killing 11 people, sinking the costly drillingrig, and ultimately spilling as much as 4.9 million barrels of oil into the sea.

BP’s excessive executive payment has raised some brows as it faces stiff fines from both the government and well as plaintif fsettlements in the future. In response the director and chair of BP gavethe following statement: “We recognize a concern by government, and society atlarge, of excess in this area, but cannot ignore the reality of a global competitive market for top executive talent.We respect investors’ expectation for pay to be strongly tied to performance while also wanting to ensure that executives receive fair reward for their achievements.”

According to BP, 30 percent of the annual bonus is tied to safety, but the larger performance bonus is focused on shareholder returns, reserve replacement and operating cash flow. BP financial reports suggest that in 2011, Dudley received a salary of $1.7 million and a 150 percent bonus, $850,000 of which was paid in cash and the rest deferred. Further, Dudley also received contributions to a pension and $788,300 worth of stock because 2011 was the endof an earlier three-year performance plan. Business insiders suggest that Dudley’s salary this year will again be $1.7 million. Reportedly, he can get a 225 percent bonus if the company exceeds its targets. The company can also award Dudley “performance shares” worth 5.5 times his salary.

BP Settles Gulf Coast Oil Spill Lawsuit

Amaro Law Firm — Mon, 05 Mar 2012 21:45:00 GMT

According to reports from various news agencies, BP and the plaintiffs involved in the Gulf oil spill lawsuit have reached an agreement. Sources close to BP say that the company estimates it will have to pay about $7.8 billion in the Deepwater Horizon settlement. According to the CEO for BP, "the proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast." Reportedly, attorneys representing Plaintiffs in the case have said the settlement will fully compensate the hundreds of thousands of victims of the oil spill tragedy. Moreover, Plaintiffs' attorneys say the settlement is to be fully funded by BP, with no cap on the amount BP will pay. The three-month-long spill, the largest oil spill in U.S. history, was triggered after an explosion aboard the Deepwater Horizon oil rig on April 20, 2010. Eleven people were killed in the blast.

BP Liable For Penalties Under the Clean Water Act

Amaro Law Firm — Mon, 27 Feb 2012 19:10:00 GMT

According to an AP news report, a federal judge has ruled that BP PLC and a minority partner in the blown out Macondo well are liable for civil penalties under the Clean Water Act for their roles in Gulf of Coast oil spill in 2010. The presiding judge also ruled that Transocean Ltd. may be held liable as an operator under the same law. However, the judge stated he will not be able to make this decision before the trial is set to start on February 27, 2012.

Reportedly, the Justice Department argued that BP, minority partner Anadarko Petroleum Corp. and Transocean are each liable for per-barrel civil penalties for oil discharged from the well. According to legal sources, the judge rejected Anadarko's argument that oil discharged from Transocean's rig, not the well.

Sources say that the judge also ruled that BP and Anadarko, but not Transocean, are "responsible parties" under the Oil Pollution Act for oil that flowed from beneath the surface of the water. Reportedly, Transocean has stated that the ruling is vital win because it clearly shows that BP is the party with which liability ultimately rests.

Reportedly, Anadarko, which owned a 25 percent share in the well, has agreed to pay $4 billion to BP as part of a settlement. Moreover, MOEX Offshore 2007 LLC, BP's other minority partner, agreed last week to pay $90 million in a settlement with the federal government and Gulf states over the spill. Legal sources say the agreement included the largest civil penalty ever recovered under the Clean Water Act, but that record is likely to fall if BP reaches its own settlement with the Justice Department.