TIME Environment

Judge Places Most Blame on BP for 2010 Oil Spill

Deepwater Horizon site
Deepwater Horizon site Carrie Vonderhaar—Ocean Futures Society/Getty Images

British energy giant's conduct called "reckless"

A New Orleans judge ruled on Thursday that British energy giant BP’s gross negligence led to the largest offshore oil spill in American history.

U.S. District Judge Carl Barbier said BP was mostly to blame for the 2010 Gulf of Mexico disaster, which killed 11 people and spewed oil into the water for 87 days.

Barbier attributed 67% of the fault to BP, 30% to Transocean, which owned the Deepwater Horizon drilling rig, and 3% to Halliburton, the cement contractor.

“BP’s conduct was reckless,” Barbier wrote in the decision, according to Bloomberg. “Transocean’s conduct was negligent. Halliburton’s conduct was negligent.”

Barbier oversaw a trial last year to distribute fault for the spill. BP could face up to $18 billion in fines, Bloomberg reports, though appeals will likely delay if and when any penalties are settled. The company pleaded guilty in 2012 to 14 federal counts and agreed to pay $4 billion to end the criminal case.

BP said in a statement it would appeal the decision. Its shares were down nearly 6% at 12:12 p.m. ET on Thursday.

TIME Companies

Halliburton to Pay $1.1 Billion Over Gulf of Mexico Oil Spill

Flags flying at a Halliburton facility in Williston, North Dakota on Aug. 20, 2013.
Flags flying at a Halliburton facility in Williston, North Dakota on Aug. 20, 2013. Karen Blieber—AFP/Getty Images

The deal will pay off damage claims from property holders and commercial fisheries affected by the Deepwater Horizon disaster

Halliburton has reached a $1.1 billion settlement deal with plaintiffs claiming damages resulting from the Deepwater Horizon oil spill of 2010, the Houston-based energy company announced on Tuesday.

The company will pay $1.1 billion into a trust in three installments, which will be used to pay off damage claims from property holders and commercial fisheries along the gulf coast.

The deal removes a measure of uncertainty that has lingered over the company’s legal reserves over the past four years. Halliburton has set aside a $1.3 billion litigation fund for costs related to the spill. While the settlement resolves claims from individual plaintiffs, Halliburton still faces lawsuits from several coastal states.

Halliburton has traded blame with British Petroleum (BP) over the explosion of the Deepwater Horizon drilling rig, which unleashed nearly 5 million barrels of crude into the Gulf over several weeks in 2010, one of the largest offshore oil spills in U.S. history.

BP, the owner of the well, blamed Halliburton for faulty construction work while Halliburton said BP’s faulty management was responsible. Both companies, along with the owner of the rig, Transocean Ltd., have paid out billions in settlement deals.

TIME leadership

One of the Most Powerful CEOs on Earth Was Afraid to Come Out of the Closet. Until Now

BP Chief Resigns Over Gay Affair
Former Chief Executive of British Petroleum Lord Browne Peter Macdiarmid—Getty Images

Here’s how companies can encourage a culture of openness

fortunelogo-blue
This post is in partnership with Fortune, which offers the latest business and finance news. Read the article below originally published at Fortune.com.

Over the course of my career at BP, from trainee to chief executive, I was frequently asked whether I had a girlfriend or whether I was married. People assumed that I was a bachelor who had not yet met the right woman. It was a fair assumption, for an obvious reason: Most people are straight. But for those who remain in the closet, the assumption of heterosexuality can be highly damaging. It reinforces their feeling that being gay is something out of the ordinary, something that would put them at a disadvantage in their personal and professional lives, and something that is probably best kept hidden.

The assumption of heterosexuality is one of the reasons that many people in business and in other sectors continue to lead hidden lives. I have spent the past 18 months conducting interviews for my book, The Glass Closet: Why Coming Out Is Good Business, about the risks and rewards of coming out in business. I encountered men and women who, despite living in an age of diversity targets, lesbian, gay, bisexual and transgender corporate networks and equal marriage, are still afraid of the consequences of coming out. Young executives in their 20’s should be free of the fears that plagued me for over 40 years, but the evidence suggests that many of them are not.

Through four decades at BP, I kept my private life separate from my business life. As a young professional in the oil industry, my career was going in the right direction, and I saw absolutely no purpose in coming out. The corporate ladder was slippery enough on its own, without complicating things by throwing oil on the rungs. By the time I was chief executive, I was worried that any disclosure would damage critical business relationships, particularly those in the Middle East. In countries where homosexuality is illegal, my public profile probably would have protected me, but my sexuality could have had unknown and unlimited consequences on BP’s businesses.

For the rest of the story, got to Fortune.com.

TIME Environment

A BP Employee Convicted of Deleting Deepwater Texts Gets a New Trial

Kurt Mix
Kurt Mix, left, leaves Federal Court with an unidentified member of his defense team in New Orleans on Dec. 18, 2013. Gerald Herbert—AP

A judge rules that the original verdict was compromised by remarks overheard by the jury forewoman

A U.S. District Judge has thrown out the original verdict, and ordered a new trial, in the case of a BP employee convicted of deleting text messages to obstruct an investigation into the Deepwater Horizon oil spill.

Engineer Kurt Mix, 52, of Katy, Texas, was convicted of obstruction of justice for, prosecutors said, deleting text messages between a supervisor and a contractor with the aim of thwarting a grand jury investigation into the disaster. But Judge Stanwood Duval tossed out that verdict, ruling that it had been compromised by remarks the jury forewoman overheard outside the jury room.

Mix denies he was attempting to conceal evidence. He is one of four BP employees charged in connection with the 2010 spill.

[WDSU]

TIME justice

BP Takes Gulf Oil Spill Damages Appeal to Supreme Court

Oil Spill In The Gulf
In this satellite image, vessels are seen at the site of the oil spill on June 15, 2010 in the Gulf of Mexio. DigitalGlobe/Getty Images

After an appeals court rejected the company’s request for a rehearing

The oil company BP said Wednesday it will ask the U.S. Supreme Court to hear its appeal of a ruling by a lower court concerning damage payments to businesses affected by the 2010 Deepwater Horizon oil spill in the Gulf of Mexico.

The company argues the lower court ruling will force it to pay for economic damages to business without those businesses having to prove their losses resulted from the spill.

“No company would agree to pay for losses that it did not cause, and BP certainly did not when it entered into this settlement,” the company said in a statement. “BP will continue to fight to return the settlement to its original, explicit, and lawful purpose – the compensation of claimants who suffered actual losses due to the spill.”

On Monday, in an 8-5 decision the Fifth Circuit Court of Appeals in New Orleans declined to hear BP’s appeal of a March ruling on how payments would be made in the estimated $9.2 billion settlement the company reached with parties representing affected businesses.

TIME Companies

U.S. Court Upholds Ruling in BP Oil spill Case

BP logo is seen at a fuel station of British oil company BP in St. Petersburg
BP logo is seen at a fuel station of British oil company BP in St. Petersburg, October 18, 2012. Alexander Demianchuk—Reuters

BP is faced with billions of dollars in payments for claims the company says are 'fictitious' after an appeals court rejected its bid to revisit the case

A U.S. appeals court has rejected BP’s bid to revisit a decision made by the court in March on payments to companies affected economically by the 2010 oil spill.

BP had asked the 5th circuit to hear the case again, claiming that it was being forced to pay money to businesses that could not demonstrate that their losses were related to the spill, Reuters reports.

The court rejected BP’s bid 8-5. The company is now left with two options, to either pay billions in claims or to appeal the case at the U.S. Supreme Court.

The company is considering the options, spokesman Geoff Morell said in a statement.

[Reuters]

TIME energy

The Afterlife of Oil Spills

Exxon Valdez oil spill cleanup
Nearly 11 million gallons of oil spilled into Prince William Sound after the 1989 Exxon Valdez spill Chris Wilkins—AFP/Getty Images

Twenty-five years after the Exxon Valdez oil spill, scientists are still reckoning with the ecological cost

On a shelf at my home, I have a small jar that contains a smear of crude oil. I dug it up on the shore of a small island in Alaska’s Prince William Sound in May of 2009, on a reporting trip for a story about the legacy of the Exxon Valdez oil spill. That crude oil is more than 25 years old now, and its existence is a reminder of just how long lived the effects of a major oil accident can be. Years after the spill has been stopped, after the press has gone home, the crude oil released into a river or a sea will affect the biology of almost anything it touches—just as it continues to weigh on the people who live and work in the area fouled by crude.

That’s worth remembering as we observe the 25th anniversary of the Exxon Valdez spill today. On Mar. 25, 1989, a tanker captained by Joseph Hazelwood ran aground on Alaska’s Bligh Reef, spilling nearly 11 million gallons (42 million liters) of crude oil into Alaska’s near-pristine Prince William Sound. The oil spread out to more than 1,300 miles (2,100 km) of coastline, choking bird and sea life, and permanently damaging the region’s ecology. Even now, you can still find some of that oil on remote beaches in the Sound, preserved by the cold. As of 2010, just 12 of the 32 monitored wildlife populations, habitats and resource services affected by the spill were considered fully recovered or very likely recovered. The once-prosperous Pacific herring fishery still remains closed after the population of the fish crashed in the years following the spill. While much of the Sound has rebounded, it will never be the same—even a quarter century later.

The Exxon Valdez disaster was the biggest oil spill in U.S. history—until April 2010, when BP’s Deepwater Horizon drilling rig was destroyed in a well blowout, leading to an oil gusher that lasted 87 days and resulted in more than 200 million gallons (757 million liters) of crude flowing into the Gulf of Mexico. While much of the oil was either cleaned up in a response operation that cost billions of dollars or was broken down by bacteria in the warm Gulf waters, the ecological damage from the spill was major, and almost four yeas later, scientists are only beginning to gauge the cost to marine life.

Here’s one example: in a new study published in the Proceedings of the National Academy of Sciences, researchers from the National Oceanic and Atmospheric Administration (NOAA) and several universities assessed the impact of Deepwater Horizon oil on developing embryos of bluefin tuna, yellowfin tuna and amberjack, all commercially important fish species that spawn near the site of the accident. The research team exposed embryos taken from breeding facilities to polycyclic aromatic hydrocarbons (PAHs), a toxic agent released by crude oil. In each tested species, PAH exposure—at levels the researchers said was realistic for the Gulf spill—was linked to abnormalities in heart function and defects in heart development. As the paper concluded:

Losses of early life stages were therefore likely for Gulf populations of tunas, amberjack, swordfish, billfish, and other large predators that spawned in oiled surface habitats.

The PNAS study isn’t the first to blame the BP oil spill for lingering problems with Gulf marine life; a study published earlier this month linked the spill to dwindling numbers of bottlenose dolphins Louisiana’s Barataria Ba. Nor will it be the last. But that hasn’t slowed the rush to keep drilling going in the Gulf of Mexico, a rush that BP has now been allowed to rejoin after initially being barred from participation in lease sales in the region. The British company won 24 out of 31 bids entered in an Interior Department offshore drilling lease sale held last week, paying more than $41 million for the right to explore oil and gas in the region. Altogether 1.7 million acres (.69 million hectares) off the coast of Louisiana, Mississippi and Alabama were opened up for new drilling. Despite evidence of the risks, nothing seems likely to stop operations in the Gulf.

As long as there is offshore drilling and marine transport of oil, the risks of accidents will exist. Just two days before the 25th anniversary of the Exxon Valdez spill, at least 168,000 gallons (636,000 liters) of oil spilled from a barge in Galveston Bay in Texas. The spill is blocking the bustling Houston Ship Channel, one of the busiest seaways in the U.S., and threatens an environmentally sensitive bird sanctuary nearby. Given the small size of the spill, it won’t have the kind of major aftereffects seen in the Valdez and the BP dissters. But it’s one more reminder that as long as our economy remains so dependent on oil, there will always be the risk of another catastrophe that could linger on and on.

[Update: BP sent along a statement in response to the PNAS study—I'm including it below:

The paper provides no evidence to suggest a population-level impact on tuna, amberjack or other pelagic fish species in the Gulf of Mexico. The oil concentrations used in these lab experiments were rarely seen in the Gulf during or after the Deepwater Horizon accident. In addition, the authors themselves note that it is nearly impossible to determine the early life impact to these species. To overcome this challenge, it would take more information than what’s presented in this paper.

It's worth noting that the researchers mention in the paper how difficult it is to sample live but fragile yolksac larvae of big pelagic species like the bluefin tuna in the wild, which is the embryos used in the study were collected from breeding stations on land, not the Gulf itself.]

TIME BP

U.S. Environmental Agency Drops Ban on Federal Contracts with BP

U.S. government given the green light to work again with the oil giant

Four years after a massive oil spill in the Gulf of Mexico, the Environmental Protection Agency (EPA) cleared the way for the U.S. government to begin working again with BP.

According to a statement tweeted by the EPA this week, BP “agreed to safety and ethics improvements,” which prompted the reversal of the ban that had prevented federal agencies from contracting the multinational oil company.

“Today’s agreement will allow America’s largest energy investor to compete again for federal contracts and leases,” said John Minge, chairman and president of BP America, according to the AFP.

The ban had been imposed on the British company in 2012, after federal regulators concluded that BP had not effectively addressed the issues that led to the catastrophic oil spill two years previously.

The 2010 incident was the worst offshore oil spill in U.S. history, which resulted in the devastation of large swaths of American coastline from Florida to Louisiana after millions of gallons crude leaked into the gulf.

[AFP]

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