The Deepwater Horizon oil rig on fire April 21, 2010, a day after it exploded in the Gulf of Mexico.
The Associated Press
NEW ORLEANS (AP) - A U.S. judge on Tuesday approved an agreement for
British oil giant BP PLC to plead guilty to manslaughter and other
charges and pay a record $4 billion in criminal penalties for the
company's role in the 2010 oil disaster in the Gulf of Mexico.
More
than 200 million gallons of oil spewed in the three months before BP's
blown-out Macondo well could be capped. It was one of the worst
environmental disasters in U.S. history.
BP agreed in November to
plead guilty to charges involving the deaths of 11 workers in the
drilling rig explosion that started the spill and for lying to Congress
about the size of the spill. The company could have withdrawn from the
agreement if U.S. District Judge Sarah Vance had rejected it.
Neither the Justice Department nor BP presented arguments to the judge before her decision.
Vance
said the plea deal was "just punishment" considering the risks of
litigation for BP and the alternatives to the settlement. She told
victims' relatives who were in court that she read their "truly
gut-wrenching" written statements and factored their words into her
decision.
"I've heard and I truly understand your feelings and the losses you suffered," she said.
She said she also believes BP executives should have personally apologized to family members.
"I think BP should have done that out of basic humanity," she said.
The
deal doesn't resolve the federal government's civil claims against BP.
The company could pay billions more in penalties for environmental
damage.
A series of government investigations have blamed the
April 20, 2010, blowout on time-saving, cost-cutting decisions by BP and
its partners on the drilling project.
BP separately agreed to a
settlement with lawyers for Gulf Coast residents and businesses who
claim the spill cost them money. BP estimates the deal with private
attorneys will cost the company roughly $7.8 billion.
For the
criminal settlement, BP agreed to pay nearly $1.3 billion in fines. The
largest previous corporate criminal penalty assessed by the Justice
Department was a $1.2 billion fine against drug maker Pfizer in 2009.
The
criminal settlement also includes payments of nearly $2.4 billion to
the National Fish and Wildlife Foundation and $350 million to the
National Academy of Sciences.
In a court filing before the
hearing, attorneys for BP and the Justice Department argued that the
plea agreement imposes "severe corporate punishment" and will deter BP
and other deep-water drilling companies from allowing another disaster
to occur.
The Justice Department has reached a separate settlement
with rig owner Transocean Ltd. that resolves the government's civil and
criminal claims over the Swiss-based company's role in the disaster.
Transocean
agreed to plead guilty to a misdemeanor charge of violating the Clean
Water Act and pay $1.4 billion in civil and criminal penalties. Another
U.S. district judge has scheduled a Feb. 14 hearing to decide whether to
accept that criminal settlement. A different judge will decide whether
to accept Transocean's civil settlement.
Many relatives of rig
workers who died in the blast submitted written statements that were
critical of BP's deal. Gordon Jones' family members said BP's sentence
should include a personal, face-to-face apology to the 28-year-old's
widow and children by BP executives. A brother of Jones also had urged
Vance to consider stiffer penalties that prohibit or limit the company's
ability to operate in U.S. waters.
Vance, however, said she
couldn't get involved in plea negotiations and only could impose a
sentence that adheres to the agreed-upon terms if she accepted it.
Four
current or former BP employees have been indicted on separate criminal
charges. BP rig supervisors Robert Kaluza and Donald Vidrine are charged
with manslaughter, accused of repeatedly disregarding abnormal
high-pressure readings that should have been glaring indications of
trouble just before the blowout.
David Rainey, BP's former vice
president of exploration for the Gulf of Mexico, was charged with
withholding information from Congress about the amount of oil that was
gushing from the well.
Former BP engineer Kurt Mix was charged with deleting text messages about the company's spill response.