U.S. Judge Rejects BP Bid to Oust Gulf Spill Claims Chief
Nov 10 (Reuters) - BP Plc has failed to persuade a federal judge to oust the administrator overseeing payouts to businesses and individuals claiming damages arising from the 2010 Gulf of Mexico oil spill.
U.S. District Judge Carl Barbier in New Orleans on Monday rejected several arguments by the London-based oil company to remove the claims administrator, Patrick Juneau.
BP claimed that Juneau had a conflict of interest because he previously advised Louisiana over claims, made misleading statements about that work, and improperly sped up claims of people represented by the Plaintiffs' Steering Committee.
In a four-page order, Barbier said it was "beyond cavil" that BP knew of Juneau's prior consulting work for Louisiana. The judge also said BP's arguments were "mostly a regurgitation of old issues or complaints."
As to the only "new" issue, processing claims by PSC clients, Barbier said Juneau had discretion to review claims out of order, and there was no evidence he acted improperly.
BP spokesman Geoff Morrell in a statement said the company "strongly disagrees" with Barbier's decision and may appeal.
"Simply put, it is unacceptable for the claims program to continue operating as it has been - inefficiently, secretively, and marred by corruption, fraud, and conflicts of interest," he said.
The decision is a fresh setback to BP's effort to curb costs from the April 20, 2010 explosion of the Deepwater Horizon rig, which led to 11 deaths and the largest U.S. offshore oil spill.
BP has accused Juneau of awarding excessive payouts, including to claimants who were not harmed by the spill. It has asked the U.S. Supreme Court to review his methods.
Last month, BP estimated that its settlement with the PSC would cost $9.7 billion, but that this sum would likely go "significantly higher."
It also faces a January trial over whether it should pay a potential $18 billion in fines for violating the U.S. Clean Water Act.
Through Monday, Juneau has paid out $4.24 billion to 52,577 economic and property damages claimants.
The case is In re: Oil Spill by the Oil Rig "Deepwater Horizon" in the Gulf of Mexico, on April 20, 2010, U.S. District Court, Eastern District of Louisiana, No. 10-md-02179.
(Reporting by Jonathan Stempel in New York; Editing by Tom Brown)
WHAT DO YOU THINK?
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.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- Blockchain Demands Attention in Oil and Gas
- Macquarie Sees USA Oil Production Exiting 2024 at 14MM Barrels Per Day
- CNPC Opens Sea-Land Oil Storage and Transport Facility in Bangladesh
- Oman Sees Increasing Ship-to-Ship Transfers of Russian Oil Bound for India
- US Govt Makes Record Investment of $6B for Industrial Decarbonization
- Perenco Still Searching for Missing Person After Platform Incident
- Eni, Fincantieri, RINA Ink Deal on Maritime Decarbonization
- Oil Falls as US Inventories Increase
- Czech Utility CEZ Bucks Weaker Prices, Demand to Log Record Annual Profit
- Ithaca Energy Studies Deal for Eni's UK Upstream Assets
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call
- India Halts Russia Oil Supplies From Sanctioned Tanker Giant
- DOI Announces Proposal for Second GOM Offshore Wind Auction
- Centcom, Dryad Outline Recent Moves Around Red Sea Region
- PetroChina Set to Receive Venezuelan Oil
- Czech Conglomerate to Buy Major Stake in Gasnet for $917MM
- US DOE Offers $44MM in Funding to Boost Clean Power Distribution
- Oil Settles Lower as Stronger Dollar Offsets Tighter Market
- UK Grid Operator Receives Aid to Advance Rural Decarbonization
- Chinese Mega Company Makes Major Oilfield Discovery
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Another Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Vessel Sinks in Red Sea After Missile Strike
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension
- Equinor Makes Discovery in North Sea
- Standard Chartered Reiterates $94 Brent Call