STOCK MARKET WATCH -- Friday, 15 June 2012

[Demeter]

8. BP Owes $192 Billion for Gulf Oil Disaster, Not $15 Billion Settlement It's Seeking

http://www.huffingtonpost.com/antonia-juhasz/bp-oil-settlement_b_1583520.html

On Friday, the Financial Times reported that BP is hoping to reach an agreement with U.S. authorities which would require it to pay under $15 billion to settle all criminal and civil penalties arising from the 2010 Gulf oil disaster. The Department of Justice is reportedly seeking $20 to $25 billion. Negotiations between the DOJ and BP are accelerating and "an agreement could be reached before the Democratic party's convention in September," the FT reported.

While $15 billion sounds like a lot of money -- and it is -- it is a far cry from what BP owes for the many costs associated with the largest offshore oil spill in history. To date, a full accounting of exactly what BP should owe for its crimes in the Gulf has not been made public. Such an accounting is vital if we are to ensure that justice and restoration are delivered to the Gulf Coast and that such a catastrophe never occurs again.

A straightforward application of just the most pertinent U.S. laws yields a fine of $192 billion. (For simplicity sake, I only address BP's fines.)

Sound high? Here's why it's not.

Seaman's Manslaughter Statute = $2.75 - $5.5 million

Eleven men died aboard the Deepwater Horizon: Gordon Jones, Dewey Revette, Jason Anderson, Shane Roshto, Stephen Curtis, Blair Manuel, Karl Kleppinger, Adam Weise, Don Clark, Roy Kemp, and Aaron Dale Burkeen. Title 18 Section 1115 of the U.S. Criminal Code, the "Seaman's Manslaughter Statute," holds companies, executives, managers, and employees of vessels liable for fines and imprisonment for deaths occurring on their rigs. Simple negligence (not intent) is enough to secure a conviction. The conclusions of numerous critical investigations make negligence a forgone conclusion in this case. Criminal penalties include up to 10 years imprisonment per violation and fines. Individual fine: $250,000 per violation x 11 = $2.75 million. Company fine: $500,000 x 11 = $5.5 million.


Clean Water Act: $30.5 billion

AND THE BILL CONTINUES....AT LINK