Finance & Investing
News Services
Newsletters
Get free industry updates via email.
Daily News
Weekly News
Equipment Updates
Weekly Job Register
Monthly Event Guide
Our privacy
pledge.


advertisement

BP Wins US Appeals Court Reprieve Over Some Gulf Spill Payments

change text size

Deepwater Horizon Gulf of Mexico Oil Spill

BP Wins US Appeals Court Reprieve Over Some Gulf Spill Payments

Reuters

Dec 2 (Reuters) - BP Plc won a legal reprieve in its effort to avoid payments to those whose losses were not traceable to the 2010 Gulf of Mexico oil spill, potentially sparing the oil company of extra costs.

BP had agreed in 2012 to make payments to those who suffered economic losses as a result of the largest U.S. offshore oil spill.

The company, however, complained that the payout formula worked out by settlement administrator Patrick Juneau was too generous and compensates people and businesses that were not harmed.

In March, U.S. District Judge Carl Barbier approved Juneau's evaluation methods. BP contested this approval.

On Monday, a divided 5th U.S. Circuit Court of Appeals in New Orleans said the district court erred by approving Juneau's formula.

"This court's expressing its views through two different opinions may have created interpretive difficulties on the remand, but the district court erred by not considering the arguments on causation," according to the ruling.

The appeals court halted further payments to the claimants who did not suffer economic loss or property damage because of the spill, pending final disposition of related appeals.

BP originally projected that the settlement would cost $7.8 billion, but in July boosted its estimate to $9.6 billion. As of Monday, about $3.78 billion has been paid out, according to Juneau's claims website.

The case is BP Exploration & Production Inc v. Deepwater Horizon Court-Supervised Settlement Program et al, 5th U.S. Circuit Court of Appeals, No. 13-30315.

Copyright 2014 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Post a Comment Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies

Deepwater Horizon Images
Coffer Dam Enters the Water Building Pollution Containment Chambers U.S. Air Force aerial spray Horizon Listing Heavily (Apr 22)
Macondo Cofferdam Structure Development Driller III - Drilling Relief Well Deepwater Horizon Sinking (Apr 22) Deepwater Horizon Sinking (Apr 22)
71 more images view image library

From the Career Center
Jobs that may interest you
Expeditor
Expertise: Logistics Coordinator, Materials Management
Location: Houston, TX
 
HSE Project Engineer - Seamless Pipe Mill Construction
Expertise: Civil Construction, HSE Manager / Advisor, Safety Engineering
Location: Bay City, TX
 
Senior EH&S Representative, Air Quality
Expertise: Environmental Engineer
Location: Houston, TX
 
search for more jobs