US Judge Dismisses Obstruction Charge Against Former BP Executive

Deepwater Horizon Gulf of Mexico Oil Spill

A federal judge has dismissed a criminal charge against a former BP PLC executive that alleged he tried to obstruct a Congressional investigation into the Deepwater Horizon incident by lying about the amount of oil flowing from the well.

Prosecutors said the executive, David Rainey, lied about the rate of oil leaking from a blown-out well in the Gulf of Mexico to members of the House Energy and Commerce Committee during a May 4, 2010 closed-door meeting and in his responses to a May 14 letter sent by Rep. Ed Markey (D-Mass.). The blow-out took place in April 2010, resulting in 11 deaths and in the worst offshore oil spill in U.S. history.

Mr. Rainey said in both instances the estimated flow was about 5,000 barrels per day but internal BP documents from the time showed the company believed the rate was likely much higher.

In a ruling Monday, U.S. Southern District of Louisiana Judge Kurt Engelhardt agreed with Mr. Rainey's attorneys that the meeting and the letter didn't constitute a formal Congressional inquiry, and dismissed the charge.

The flow rate issue is sensitive because civil fines that BP will have to pay under the U.S. Clean Water Act are based in part on the number of barrels spilled. The final government estimate put the rate at between 53,000 and 62,000 barrels of oil a day, for a total of about 4.9 million barrels spilled. A judge's ruling earlier this year cut that top spill size to 4.1 million barrels after giving BP credit for the oil it successfully siphoned from the well. That could mean fines ranging from $4.5 billion to $17.6 billion based on BP's degree of culpability for the accident, but the company has argued the fines would likely be well below $5 billion.

BP agreed to plead guilty to obstruction of Congress for Mr. Rainey's conduct as part of a $4.5 billion criminal settlement with the Justice Department announced in November.

A second charge, that Mr. Rainey lied to investigators during a 2011 interview about how he calculated the spill rate, still stands. He could face up to 5 years in prison if convicted.


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Copyright (c) 2012 Dow Jones & Company, Inc.


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