Criminal charges being considered against BP in Gulf oil rig tragedy

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Gulf attorneys general send letters to companies in oil spill

By The Times-Picayune

May 05, 2010, 2:16PM



Ellis Lucia/The Times-PicayuneAttorney General Buddy Caldwell

Louisiana Attorney General Buddy Caldwell has joined with the attorneys general from Alabama, Florida, Mississippi and Texas in sending letters to BP, Transocean, Halliburton and Cameron International asking each company to memorialize any commitment it has made to finance the clean-up and recovery effort regarding the recent oil spill in the Gulf of Mexico.

Additionally, Caldwell writes that while all efforts are currently concentrated on the environmental impact of this disaster, it is possible that there may be governmental investigations at some point in the future.

The attorneys general request that each company and their affected employees or affiliated organizations preserve any documents, data compilations, tangible objects or other information relevant to the explosion of the Deepwater Horizon oil rig, the resulting oil spill or the clean-up effort in the form in which they currently exist until further notice.

Here are the letters to BP, Transocean, and Halliburton and Cameron.

http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/05/gulf_attorneys_general_send_le.html

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Re: Gulf attorneys general send letters to companies in oil spill

PRESS RELEASE

Governor Jindal Designates $5 million of BP State Grant to Attorney General



BATON ROUGE (May 31, 2010) - Today, Governor Bobby Jindal announced that $5 million of the $25 million total block grant given to the state for oil clean up and response efforts will go to Attorney General Buddy Caldwell?s office to support expenses incurred as a result of the BP oil spill.

Governor Jindal said, ?BP fronted the state $25 million to support the functions of our first responders and others fighting to protect our coasts because the reimbursement process can be slow. It?s important to note that this $25 million doesn?t even scratch the surface of our state?s total needs in responding to and recovering from this catastrophic oil spill. We are designating today $5 million of this total to the Attorney General?s Office to help support their expenses incurred as a result of the BP oil spill.?


Attorney General Buddy Caldwell stated he is very pleased to receive this funding. ?Once again, the offices of the Governor and the Attorney General are joining together to protect the rights and livelihoods of the citizens of the State of Louisiana and in this instance, it precious resources and coastline as well,? said Caldwell. ?Without this essential funding it would be virtually impossible to engage in the difficult task ahead of ensuring that BP lives up to its financial obligations and responsibilities to the State of Louisiana,? added Caldwell.

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http://emergency.louisiana.gov/Releases/05312010-attyGen.html

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Re: Gulf attorneys general send letters to companies in oil spill

Feds open criminal probe of Gulf oil spill

Posted:<SCRIPT type=text/javascript orgFontSize="9px"> wnRenderDate('Tuesday, June 1, 2010 4:08 PM EST', '', true);</SCRIPT> Jun 01, 2010 3:08 PM CDT <NOSCRIPT orgFontSize="10px"></NOSCRIPT><!--END wnDate-->Updated:<SCRIPT type=text/javascript orgFontSize="9px"> wnRenderDate('Tuesday, June 1, 2010 4:08 PM EST', '', true);</SCRIPT> Jun 01, 2010 3:08 PM CDT <NOSCRIPT orgFontSize="9px"></NOSCRIPT><!--END wnDate--><!--END WNStoryHeader-->

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NEW ORLEANS (AP) - Attorney General Eric Holder says federal authorities have opened criminal and civil investigations into the Deepwater Horizon explosion and oil spill.

Holder would not specify Tuesday which companies or individuals might be the targets of the probe. He says federal clean air and pollution laws give him the power to open the investigations.

Holder met with attorneys general from Louisiana, Mississippi and Alabama on Tuesday.

http://www.kgun9.com/Global/story.asp?S=12576373

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Re: Gulf attorneys general send letters to companies in oil spill

Feds conducting criminal, civil probe of oil spill, U.S. Attorney General Eric Holder says

By David Hammer, The Times-Picayune

June 01, 2010, 8:45PM



Cheryl Gerber/The Associated PressU.S. Attorney General Eric Holder announces that the Justice Department has launched a criminal investigation into the oil spill in the Gulf of Mexico. With him Tuesday in New Orleans were, from left, Ignacia Moreno, assistant attorney general for the Environment and Natural Resources Division; Tony West, assistant attorney general for the Civil Division; and Don Burkhalter, U.S. attorney for the Southern District of Mississippi .

In the face of stiffening criticism of its management of the oil crisis in the Gulf of Mexico, the Obama administration took the unusual step Tuesday of acknowledging a sweeping federal investigation into the cause of the spill.

Attorney General Eric Holder said the FBI and lawyers from his office's civil and environmental divisions have been in Louisiana investigating for weeks, and he said they have reason to believe criminal charges may be warranted. He also said his investigators are building a case for levying civil penalties against those responsible for the spill, but he declined to name any specific targets or subjects of the probe.

"There are a wide range of possible violations under these statutes, and we will closely examine the actions of those involved in this spill," Holder said at a news conference in New Orleans. "If we find evidence of illegal behavior, we will be forceful in our response. We have already instructed all relevant parties to preserve any documents that may shed light on the facts surrounding this disaster. As our review expands in the days ahead, we will be meticulous, we will be comprehensive, and we will be aggressive. We will not rest until justice is done."

Loyola Law School professor Dane Ciolino said the public tends to be skeptical about criminal charges against corporations because they can't go to jail. But, he said, unlike civil claims, there is no cap on the fines that a corporation must pay if found guilty of criminal negligence.

BP signed a plea agreement in 2007 admitting to felonies in the 2005 Texas City refinery explosion that killed 15 workers and injured hundreds. The company agreed to pay $50 million in fines for failing to provide written procedures for maintaining equipment and for failing to inform contractors about the dangers of living in trailers nearby.

In that same plea bargain, the company admitted to a misdemeanor and paid $20 million in fines and restitution for a 2006 Alaska pipeline spill.

In the current Gulf spill, Holder said civil penalties under the Clean Water Act and the Endangered Species Act, among other laws, can be pursued to "ensure the American people do not foot the bill for this disaster."

The Oil Pollution Act of 1990, which passed after the 1989 Exxon Valdez tanker spill in Alaska and was later amended, assesses penalties of $1,100 per barrel of oil spilled and up to $4,300 per barrel if a federal court determines the spill happened because of gross negligence.

At this point, 44 days into the spill, the government's most conservative estimate is that 528,000 barrels have spilled so far. Even if no more oil were to spill -- an unlikely prospect -- BP could face a minimum of $2.3 billion in civil fines under the Oil Pollution Act if a judge found gross negligence.
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http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/06/us_attorney_general_eric_holde_1.html

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Re: Gulf attorneys general send letters to companies in oil spill

Judges Quit BP Gulf Oil-Spill Suits Over Conflicts of Interest

June 02, 2010, 12:05 AM EDT

By Laurel Brubaker Calkins and Jef Feeley

June 2 (Bloomberg) -- BP Plc and Transocean Ltd. oil-spill lawsuits may be combined before a judge from outside the Gulf Coast states, because judges in the region are withdrawing from cases, citing conflicts of interest.

Six of 12 active judges in the federal judicial district based in New Orleans have removed themselves from spill-damage cases filed by fishermen, property owners and coastal businesses, according to a court official and court records. The judges found conflicts tied to oil investments or personal relationships with lawyers or companies involved.

?Plaintiffs have been informed that most or all of the judges in the district have a conflict and cannot preside? over the litigation, victims? lawyers said in a request to a Washington judicial panel asking that all the cases be combined before one judge in the New Orleans district.

Federal judges in southern Alabama also have stepped aside from handling spill-damage cases, a court official there said.

Virtually all of more than 150 lawsuits over the spill are proposed class actions representing potentially thousands of claims against BP, owner of the offshore lease where the damaged well is located, and Transocean, which owned the Deepwater Horizon rig that exploded and sank in April.

Also named in the majority of the cases are Halliburton Energy Services, the Halliburton Co. unit that which provided cementing services, and Cameron International Corp., which supplied blowout-prevention equipment...

Full text at:

http://www.businessweek.com/news/2010-06-02/judges-quit-bp-gulf-oil-spill-suits-over-conflicts-of-interest.html

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Re: Gulf attorneys general send letters to companies in oil spill

State of Louisiana Makes Repeated Requests to BP with No Action from BP

BATON ROUGE (June 4, 2010) - The Louisiana Department of Social Services (DSS) and Louisiana Workforce Commission (LWC), along with the Louisiana Attorney General's office, are requesting that BP allow the state access to the oil giant's claims database and procedures for approving or denying claims, paying claimants and closing cases related to the Gulf of Mexico oil spill.

DSS and LWC have already made repeated requests, but BP still has failed to share its process for considering claims made by individuals and businesses. In the latest response to the repeated requests, BP Managing Attorney Mark Holstein again denied to provide the material stating in a June 2 letter that while the state's requests are "undoubtedly made in good faith, they risk distracting our team from the very important goal of handling claims."

"I'm concerned about reports from citizens and parish officials that many people have not been paid by BP, or have only received an initial payment of $5,000 or less," said DSS Secretary Kristy Nichols. "More than 40 days into this disaster, people's livelihoods are on indefinite hold, it is becoming harder to support their families and some even face eviction from their homes. Immediate assistance from BP is critical."

Additionally, for many individuals and businesses that have received initial payments, many report that they have not been informed about how they will receive additional payments.

LWC Executive Director Curt Eysink added, "Hardworking people should not be forced into poverty by the oil spill. We need to understand why so many claims have not been paid, some for many weeks. We also want to make sure that people who have lost their jobs because of the spill get the first opportunity at the jobs that are being created from clean up and oil spill response efforts. Knowing who has filed lost income claims with BP will help us ensure people are getting the help they need."

DSS and LWC are also conferring with Louisiana's Commissioner of Insurance Jim Donelon, who has formed an internal committee to guide their oversight of the third party administrators overseeing and analyzing BP's claims process.

Donelon said, "I have created a committee of our senior leadership to coordinate what I believe will be many years of consumer protection as we make our way through this catastrophe. Today, I sent personnel to observe the sites where claims are being processed on behalf of BP. Following their report, I will coordinate with the Governor's office and the Attorney General's office on what steps need to be taken immediately."

Based on limited information provided by BP, the state believes the largest amount requested by individuals is compensation for loss of income. The information obtained by the state shows that the total is $9.1 million, based on data received on May 29. However, more than half of those claims have not yet been processed. Of 7,469 claims filed by individuals and businesses for loss of income, BP has paid just 3,438 claims; 54 percent, or 4,031 claims, were pending.

As of May 29, only $22.5 million had been paid on 6,997 claims; 51 percent remain pending, at least one for as long as 33 days. The majority of paid claims are property damage; only one of 118 bodily injury claims has been paid.

"Without more detailed data about the status of these claims, where they are in the claims process and why they have not been resolved, it is difficult to get a clear analysis of the current claims situation, including how many people have been paid for more than one month and if any people are submitting multiple claims," said Nichols.

Of 37 claims categories ranging from Loss of Income for shrimpers, crabbers, oyster processors and fishermen to loss of rental property income and damage to animals and property, 26 categories have 70 percent or more of unpaid claims. In 17 business categories, 71 percent of claims are still pending. For commercial loss of income, 57 percent of claims are unpaid. Less than 25 percent of business interruption claims have been paid.

Eysink said, "Many businesses already have begun to close or are teetering on the edge of having to close because of the oil spill. BP committed to paying them enough to stay open and keep their employees on the payroll, but that is not happening. BP needs to live up to its commitments that it will pay for the losses that result from the spill."
Nichols concluded, "The longer it takes for claims to be paid, in many cases, means the longer that families must wait to fill their pantries, pay the rent or mortgage, fill gas tanks and pay utility bills," said Nichols. "The state has done everything in its power, from mobile outreach centers where citizens can access information on employment, food stamps and other resources, to teaming with non-profits to provide immediate aid like food and household commodities. Now it is BP's turn to step up and allow the state to ensure that its citizens can support themselves by releasing vital information to ensure folks are being adequately taken care of in their claims process."

http://emergency.louisiana.gov/Releases/06042010-requests.html

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Re: Gulf attorneys general send letters to companies in oil spill

Governor Jindal Designates Additional $5 million of BP Grant to Attorney General

BATON ROUGE (June 23, 2010) -

Today, Governor Bobby Jindal announced that he is designating another $5 million - for a total of $10 million - of the $25 million block grant provided by BP to Attorney General Buddy Caldwells office to support expenses incurred as a result of the BP oil spill. The Governor previously designated $5 million to the Attorney General in May.

Governor Jindal said, In addition to the $5 million we provided in May, these new funds will help support the Attorney General's expenses that have been incurred as a result of the BP spill. We will continue to work closely with the Attorney General to assess their needs and ensure he has the resources needed to respond to the spill."

Louisiana Attorney General Buddy Caldwell said, "We're very appreciative of the Governor providing additional funding to the Attorney General's office to help us pursue our efforts to protect the citizens of the state of Louisiana and its precious resources."

http://emergency.louisiana.gov/Releases/06232010-designates.html

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Criminal charges being considered against BP in Gulf oil rig tragedy

Criminal charges being considered against BP in Gulf oil rig tragedy

Published: Sunday, September 05, 2010, 6:15 AM


David Hammer, The Times-Picayune

Several investigations of the Deepwater Horizon disaster will seek to determine if systemic issues or individual error caused the catastrophe.

The Justice Department is considering criminal charges and civil penalties. If gross negligence is found, fines for the nearly 5 million barrels of oil spilled would balloon from a ceiling of around $5 billion to as much as $18 billion. BP could be found criminally liable as a corporation, and individual employees, three of whom have already invoked their Fifth Amendment rights against self-incrimination, could also be prosecuted.

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http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/09/criminal_charges_being_conside.html

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Re: Criminal charges being considered against BP in Gulf oil rig tragedy

Companies accuse government of bungling Gulf oil spill evidence

Published: Thursday, September 16, 2010, 3:13 PM Updated: Thursday, September 16, 2010, 3:19 PM

The Associated Press




Ted Jackson, The Times-PicauneThe the BP blowout preventerv is lashed to a barge docked at the NASA Michoud Assembly Facility in eastern New Orleans.

...The enormous, 380-ton blowout preventer that failed to stop the Gulf oil spill is sitting on a pier at a NASA facility in New Orleans but can't be moved inside a nearby hangar because the sheer weight of the device would destroy the road leading to the shelter. The device was raised from the sea floor Sept. 4 and could provide important clues about what happened in the disaster.<!-- -->
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Michael Underhill, the Justice Department's attorney in the civil lawsuit, told U.S. District Judge Carl Barbier that a steel pad needed to be put in place to make sure the device doesn't collapse the dock where it's sitting, according to court records. A hearing on how experts will examine the device was set for Thursday.

The companies being sued are upset over the government's plans to preserve and test the blowout preventer. They complained unsuccessfully to the judge earlier this month about the government shipping the device to the NASA facility, which they said is not equipped to house or test it.

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http://www.nola.com/news/gulf-oil-spill/index.ssf/2010/09/companies_accuse_government_of.html

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Re: Criminal charges being considered against BP in Gulf oil rig tragedy

Mexico could join suits over BP oil spill-attorney

Thu Sep 30, 2010 12:21am GMT

The lawsuits are believed to be the first by foreign governments against the petroleum giant BP and its contractors in the aftermath of April's Deepwater Horizon rig explosion and ensuing oil spill, Serna said.

More than 300 civil lawsuits have already been filed in the United States by out-of-work rig workers, fishermen and hotel workers, and that number is expected to increase.

Mexico's federal government has been studying the viability of a legal claim against BP, the environment minister told Reuters in an interview in June, adding that the remnants of the oil spill could hit Mexico's shores next month. [ID:nN10229727]

As of August, the government of Mexico had spent about $35 million monitoring the spill, according to media reports.

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http://af.reuters.com/article/energyOilNews/idAFN2924552420100930?pageNumber=2&virtualBrandChannel=0

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Re: Criminal charges being considered against BP in Gulf oil rig tragedy

Judge postpones trial in Gulf oil spill cases

NEW ORLEANS A federal judge agreed Wednesday to postpone a trial designed to assign percentages of fault to the companies sued over the massive Gulf oil spill.
U.S. District Judge Carl Barbier rescheduled the start of the trial for Feb. 27, 2012, about four months later than the original trial date.

Halliburton Energy Services, Cameron International and other companies had asked for more time to prepare for a trial on the case's "limitation and liability allocation issues."

Barbier presides over more than 300 consolidated lawsuits spawned by the April 20 explosion on the Deepwater Horizon, which killed 11 workers and triggered the spill.

Testing on a key piece of evidence -- the rig's failed blowout preventer -- isn't likely to be completed until February 2011, Barbier noted in Wednesday's order.

"While the court intends to expedite this complex litigation to the extent possible, it appears to the court that the defendants' motion has merit, and that there is good cause to reset the limitation trial date," the judge wrote.

The trial, which will be held without a jury, is expected to last roughly eight weeks. Issues related to damages will be tried separately.

[...]

http://www.businessweek.com/ap/financialnews/D9IMRH7O0.htm

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Re: Criminal charges being considered against BP in Gulf oil rig tragedy

<SMALL>October 11, 2010, 2:09 PM ET</SMALL>
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Judge picks lawyers to lead Gulf oil spill litigation

By Dionne Searcey

Louisiana federal Judge Carl Barbier has made his picks for the lawyers who will lead the Gulf oil spill litigation in New Orleans.

Among the list: Louisiana attorney Calvin Fayard, Jr., Alabama attorney Rhon E. Jones, a former U.S. Secretary of Agriculture Michael Epsy, multidistrict litigation and Exxon oil spill veteran Elizabeth Cabraser, Dallas attorney Scott Summy of Baron and Budd and Brian Barr of Levin Papantonio in Pensacola, Florida and nine others.

They join Steve Herman and James Roy as the plaintiffs? executive committee. The lawyers will coordinate discovery and other pre-trial issues, and will earn the biggest cut of fees from the dozens of other lawyers who didn?t make the cut.

The oil spill litigation is turning out to be far less of a boon for attorneys than expected back in the bad old days when oil was still spewing out of the well. Kenneth Feinberg and his $20 billion BP fund has ensured that. He?s promising faster payouts than the litigation will offer, and anyone who takes a final claim can?t sue BP.

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http://blogs.wsj.com/law/2010/10/11/judge-picks-lawyers-to-lead-gulf-oil-spill-litigation/