BP could face massive fines under Clean Water Act

[Cees Binkhorst]

REPLY TO: D66 at nic.surfnet.nl

Dan zal Obama wel met een eigen variant van Actio Pauliana komen? ;)

Groet / Cees

On 06/13/2010 08:30 PM, w.t. jouwstra wrote:
> Cees,
>
> Ik ga er vanuit dat de BP allang een SPV heeft ingericht voor het geval de
> schadeclaims uit de hand gaan lopen.
>
> Groet,
>
> Tjerk
>
> -----Oorspronkelijk bericht-----
> Van: owner-d66 at nic.surfnet.nl [mailto:owner-d66 at nic.surfnet.nl] Namens Cees
> Binkhorst
> Verzonden: vrijdag 11 juni 2010 21:55
> Aan: Discussielijst over D66
> Onderwerp: BP could face massive fines under Clean Water Act
>
> REPLY TO: D66 at nic.surfnet.nl
>
> Twee verhalen samenvatten:
> 50.000 barrels m.i.v. 3 juni tot pakweg eind september = 6 miljoen barrels
> 19.000 barrels period 20 april-2june = 817.000 barrels
> basic fine is $1,100 per barrel
> gross negligence fine is $4,300 a barrel
> Clean Water Act fine may total $29,3 miljard negligence or $7,5miljard
> basic fine.
>
> BP zal niet staan juichen, maar gaat er toch niet bankroet door.
>
> Groet / Cees
>
> PS. Als dit soort zaken bij de rechter komt is het eind van het liedje
> toch vaak een substantiele vermindering.
> PPS. Wat zou zo'n houding van Obama&Co. betekenen voor de relatie met
> andere oliemaatschappijen? Die gaan toch waarschijnlijk liever ergens
> anders werken?
>
> Coast Guard Adjusts After Spill Estimate Rises Sharply
> http://www.nytimes.com/2010/06/12/us/12spill.html
> By LIZ ROBBINS
> Published: June 11, 2010
>
> The Coast Guard moved on Friday to cope with new, much larger estimates
> of the rate that oil is gushing from the damaged well in the Gulf of
> Mexico, and to press BP, the oil company responsible for the well, to
> adapt its plans to process the oil while continuing to try to cap the well.
>
> “We’re still dealing with the flow estimate, and we’re trying to refine
> those numbers,” Adm. Thad W. Allen said in a news conference on Friday
> morning. Referring to BP’s proposals for handling the oil, Admiral Allen
> said, “We’re reconciling to see if the plan they have given us meets the
> requirements.”
>
> A government panel of scientists released findings on Thursday saying
> that before the stricken well’s riser pipe was cut on June 3, a step
> needed to fit a containment cap over the leak, crude oil was being
> released at a rate of 25,000 to 30,000 barrels a day. That range was a
> substantial increase from the panel’s previous estimate of 12,000 to
> 19,000 barrels daily, which in turn far exceeded the early 5,000-barrel
> figure that BP and the Coast Guard used for weeks after the accident.
>
> Admiral Allen said that BP’s latest assessment included a plan to handle
> between 40,000 and 50,000 barrels a day of recovered oil, taking account
> of the possibility that cutting the riser pipe increased the flow rate,
> as BP officials warned it could.
>
> Admiral Allen said that the next step for the team of scientists would
> be to put sensors at the seabed to more accurately measure the pressure
> and verify the volume coming from the well.
>
> For now, the Coast Guard has two vessels at the scene of the stricken
> well, about 50 miles off the Louisiana coast, to collect oil from the
> containment cap and process it. One, the Discoverer Enterprise, can
> handle up to 18,000 barrels a day, Admiral Allen said, while the other,
> the Q4000, will be able by next week to process up to 10,000 barrels daily.
>
> Between them, they could almost manage the top end of the new range of
> estimates, if the cap succeeds in capturing all the gushing oil, though
> some scientists think the true flow rate may be even higher.
>
> The Coast Guard has asked BP to bring in another vessel that could
> process another 10,000 barrels of oil a day, so the capacity may reach
> 38,000 barrels a day by the end of June.
>
> In July, BP plans to replace these three vessels and its current
> structure with a system that would both provide more capacity - up to
> 50,000 barrels a day - and be more easily disconnected in case of a
> hurricane or other severe weather.
>
> So far, the government has spent $130 million to $140 million on the
> cleanup costs, drawn from the Oil Spill Liability Trust Fund, Admiral
> Allen said on Friday; that figure excludes what BP has spent, he said.
>
> BP has spent $1.4 billion thus far in cleanup and compensation, Raymond
> Dempsey, the Vice President of Strategy for BP America, told a Senate
> hearing on Thursday. The question of trust between the Obama
> administration and BP, and specifically its chief executive, Tony
> Hayward, was raised yet again in Friday’s news conference.
>
> “We have to have a cooperative, productive relationship for this thing
> to work moving forward,” the admiral said. “When I talk to him and ask
> for answers, I get them. You could characterize that as trust,
> partnership, cooperation, collaboration, or whatever. But this has to be
> a unified effort moving forward if we’re going to get this thing solved.”
>
> For days, President Obama’s advisers have fended off questions about why
> he has not spoken directly with Mr. Hayward. Admiral Allen wrote on
> Thursday to the chairman of BP’s board, Carl-Henric Svanberg, requesting
> that he and “any appropriate officials from BP” meet with administration
> officials next Wednesday in Washington. Mr. Obama would participate in
> part of the meeting, he wrote.
>
> On Friday, Admiral Allen said that BP had responded positively but had
> not said specifically whether Mr. Hayward himself would take part. “We
> want it to be a very focused meeting,” the admiral said. “We want to
> come out with some measurable outcomes related to advancing the issues
> both BP and the administration have.”
>
> Administration officials suggested that they had no immediate plans to
> directly block BP from paying its quarterly dividend in July, even as
> the White House and its allies continued to press the company to make
> paying spill-related claims its top financial priority.
>
> Nancy Pelosi, the House speaker, told reporters that BP should not pay
> stockholders a dividend until the company had reimbursed small-business
> owners along the gulf for their loss claims. Representative Edward J.
> Markey, Democrat of Massachusetts and the chairman of one committee
> investigating the spill, suggested that the government would take action
> to block the payments if necessary.
>
> “This company, I think, will stay solvent,” Mr. Markey said. “And we’re
> going to make sure that the shareholders wait until the victims are paid
> first.”
>
> A BP executive said the company could eventually decide to alter future
> dividends, either by halting or cutting them, deferring them, or paying
> them in shares, but no decision would need to be made until late July.
> The executive, who spoke on the condition of anonymity because the
> company had not made a public announcement about the deliberations over
> the dividend, added that the situation was very fluid.
> =================================================
> BP could face massive fines under Clean Water Act
> http://www.mcclatchydc.com/2010/06/04/95376/bp-could-face-massive-fines-
> under.html
> Posted on Friday, June 4, 2010
>
>    WASHINGTON - If the Obama administration is serious about holding BP
> and others responsible for the Gulf of Mexico oil spill, it can start
> with the federal Clean Water Act, which could allow the federal
> government to collect as much as $4.7 billion in civil fines just for
> the oil that's spilled so far.
>
> Even if the courts allow the fines, however, there are no guarantees
> that the money would go to the cleanup and economic recovery of the Gulf
> Coast, according to legal experts.
>
> Though other laws could come into play, the Clean Water Act may provide
> the best avenue for legal action. After the 1989 Exxon Valdez spill in
> Alaska, the law was beefed up to include harsh civil and criminal
> penalties for oil spills.
>
> Since 1985, one general discharge permit has covered all offshore oil
> operations in the Gulf; individual site-by-site discharge permits aren't
> issued. A company that wants to operate in the Gulf applies for coverage
> under the general permit.
>
> The permit covers everything from drilling fluids to bilge water, but
> there are only passing references to oil discharges such as those in a
> spill. The permit bars the discharge of "free oil," but its emphasis is
> on other pollutants.
>
> Even so, the permit could become the underpinning for lawsuits because,
> among other things, it bars discharges of benzene, naphthalene, arsenic,
> mercury and other toxic chemicals that could be found in the crude oil.
>
> In addition, the permit discourages the use of dispersants because they
> can "disperse and emulsify oil, thereby increasing the toxicity." BP
> already has used thousands of gallons of dispersants.
>
> "Failure to comply with the permit is a violation of the Clean Water
> Act," said Tracy Hester, the director of the University of Houston's
> Environment, Energy and Natural Resources Center. "It would be the
> foundation of any enforcement action. There are tons of lawyers looking
> at this."
>
> Attorney General Eric Holder visited the Gulf Coast last week and said
> the Obama administration was prepared to pursue legal action - civil and
> criminal - against those responsible for the spill.
>
> Environmental groups want to keep the pressure on Holder to act. They've
> notified BP that they intend to file several lawsuits under the Clean
> Water Act, which allows citizen lawsuits and requires 60 days' notice of
> the intent to sue.
>
> In a certified letter to Andrew Inglis, the chief executive of BP
> Exploration and Production, three environmental groups charged that the
> company violated the discharge permit.
>
> "The general permit does not authorize the discharge of oil from this
> pipe or any other sources at the rig," Joel Waltzer, a New Orleans
> attorney for the Gulf Restoration Network, the Louisiana Environmental
> Action Network and Environment America, said in the letter to Inglis.
>
> The groups also allege that BP violated the permit by failing to
> properly "operate and maintain" the rig at all times and failing to
> install flow measurement devices to track the flow of oil from the pipe.
>
> "Obviously this has been a violation of the permit," Waltzer said in a
> phone interview.
>
> Waltzer said he was surprised that a single blanket permit covered all
> oil drilling operations in the Gulf.
>
> "If you stuck something the size of the Deepwater Horizon on land, it
> would definitely require its own permit," Waltzer said, adding that even
> though the permit was updated regularly it didn't envision ultra-deep
> wells such as the one the Deepwater Horizon was drilling or the
> possibility of a massive oil spill.
>
> Waltzer said he still hoped that the Environmental Protection Agency,
> the Coast Guard and the Justice Department would take the lead in
> pursing legal action.
>
> "This is a backstop," Waltzer said of the groups' notice to sue. "If
> they drop the ball, we will pick it up."
>
> The Center for Biological Diversity also has notified BP and Transocean
> Ltd., which owned the Deepwater Horizon, of its plan to sue under the
> Clean Water Act. In its letter, the Tucson, Ariz.-based group alleged
> that BP had violated the oil spill provision in the law and provisions
> of the discharge permit.
>
> "The government probe is a start, but it has taken far too long to get
> rolling," said Miyoko Sakashita, oceans director for the Center for
> Biological Diversity.
>
> EPA officials referred questions about possible legal action under the
> Clean Water Act to the Justice Department.
>
> "We are looking for possible violations of the law," Andrew Ames, a
> Justice Department spokesman, said in an e-mail, adding that he couldn't
> discuss the timing of a possible case. "Each case is unique."
>
> The Clean Water Act allows the U.S. to seek civil fines for every drop
> of oil that's spilled into the nation's navigable waters. Under the act,
> the basic fine is $1,100 per barrel spilled.
>
> If a judge finds that the spill was a result of gross negligence, the
> fines can rise to $4,300 a barrel. Gross negligence has been defined as
> highly reckless disregard.
>
> The civil fines would be on top of any criminal fines. BP also owes
> economic damages, which are capped at $75 million. The company has said
> it will pay all "legitimate" economic claims it receives even if they
> exceed the cap.
>
> Some experts have estimated that BP could face up to $10 billion in
> liabilities.
>
> "Who knows how this will play out?" said Oliver Houck, a Tulane
> University law professor who specializes in environmental law.
>
> Houck said BP and others faced exposure from the families of the 11 oil
> rig workers who were killed and possible administrative, civil and
> criminal fines along with reimbursing the government for the cost of the
> response to the spill.
>
> If the government does collect civil fines, Houck said, he's not sure
> where the money would go.
>
> "I don't know if it goes in a compulsory fund or not," he said. "I doubt
> it."
>
> The University of Houston's Hester agreed.
>
> "The question is where do the penalties go?" Hester said. "Usually they
> go to the Treasury. There is nothing that says they have to go to
> cleanup costs."
>
> Other laws that could come into play include the Oil Pollution Act, the
> Endangered Species Act, the Marine Mammal Protection Act and the
> Migratory Bird Treaty Act.
>
> MORE FROM MCCLATCHY
>
> BP, feds could make millions from runaway well's oil
>
> Obama orders firms to change drill plans that mimic BP's
>
> What Congress was told Thursday about the oil spill
>
> Complete coverage of the oil spill
>
> Follow the latest politics news at McClatchy's Planet Washington
> McClatchy Newspapers 2010
>
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> Comments: 12      Showing:
>
>       * [@Nyx.AdditionalAuthorInfo@]
>         johnpatcase wrote on 06/06/2010 11:51:22 PM:
>
>         Congress took a 10-day break to take care of business. The
> business of Congress is to get elected, nothing else matters.
>
>         The Dems ‘feel’ bad that they can not seem to help job creation.
> But look at what they have done, they have just stopped work on oil rigs
> in the Gulf. They have just killed tens of thousands of good jobs in LA
> &  TX.
>
>         Voters will remember the Dems stupidity in November. The Dems do
> not have a clue.
>         Recommend (2) Report abuse
>       * [@Nyx.AdditionalAuthorInfo@]
>         cindy_mccain wrote on 06/06/2010 02:22:38 PM:
>
>         I love clean water just like a clean "Bud" in the afternoon.
>         Recommend (1) Report abuse
>       * [@Nyx.AdditionalAuthorInfo@]
>         mehrenst wrote on 06/06/2010 02:14:28 PM:
>
>         The opening 6 words of this story says it all, "If the Obama
> administration is serious".
>
>         So far I see little to indicate that President Obama is serious
> about anything. It started when he let health care languish, followed by
> his lack of leadership on financial reform. And now we continue to see a
> wandering of purpose in dealing with BP. Let's face it, there is little
> that the Obama administration can do about stopping up the volcano of
> spewing oil coming from BP's disaster. However;
>
>         #1. Why has it taken so long for the DOJ to get seriously involved?
>
>         #2. Where are the restraining orders to protect information
> contained in BP's file cabinets and data storage systems?
>
>         #3. Where is the subpoena demanding that BP produce all documents
> relating to the operation of the Deepwater Horizon, including data files
> and/or video feeds form the cameras monitoring the rig.
>
>         #4. Why is there no attempt to protect the assets of the United
> States by revoking the other leases help by BP until they can
> demonstrate they are capable and responsible?
>
>         Deepwater Horizon, while technically a vessel on the high seas,
> was operating in the U.S. economic zone and should be subject to U.S. laws.
>
>         There is too much talk and not enough action. President Obama
> needs to understand that We The People need to see a decisiveness in our
> Chief Executive and less discussion in meetings about how much a
> particular action will upset "business" or contributors.
>         Recommend (2) Report abuse
>       * [@Nyx.AdditionalAuthorInfo@]
>         allenabq wrote on 06/06/2010 10:13:15 AM:
>
>         @johnpatcase
>
>         Republican "First Responders":
>
>         "Where's the oil? I don't see any."
>
>         "The ocean will just absorb it."
>
>         "Accidents happen."
>
>         "Environmentalists probably sabotaged the rig to gain sympathy
> for their cause."
>
>         "We need to expand oil drilling! Drill, baby, drill!"
>
>         And last but not least...
>
>         "I ♥ BP!"
>         Recommend (4) Report abuse
>       * [@Nyx.AdditionalAuthorInfo@]
>         commercial wrote on 06/06/2010 05:44:50 AM:
>
>         Massive fines?
>         What about jail? Our right wing Supreme court has ruled that
> corporations are persons; so they need to go to jail. In other words,
> some people at the top need to go to jail and the corporation liquidated
> for this country and the workers benefit.
>
>         If it is still in business, then the system fails and
> corporations are not treated as persons by the courts. The Supreme court
> is a joke. It does not represent the people, it represents the
> corporations against the people.
>         Recommend (6) Report abuse
>       * [@Nyx.AdditionalAuthorInfo@]
>         ssatmo wrote on 06/05/2010 09:11:10 AM:
>
>         BP should withhold the 10 billion dollars planned dividend pay
> out and 50 million dollars public relation image repair and commit this
> funds for clean up effort and compensation to those fishermen who lost
> their livelihood ( if BP posses ethical sense) as well as the family of
> those workers who lost their lives for these profit.
>         Recommend (7) Report abuse
>       * [@Nyx.AdditionalAuthorInfo@]
>         ypochris wrote on 06/04/2010 07:48:53 PM:
>
>         CptSnark,
>
>         Ten billion is the current shareholder dividend, not an amount
> that is going to drive BP into bankruptcy.
>
>         Unfortunately.
>         Recommend (5) Report abuse
>       * [@Nyx.AdditionalAuthorInfo@]
>         viking51 wrote on 06/04/2010 07:41:30 PM:
>
>         johnpatcase,
>
>         Your comment is silly, not clever or funny. Yawn.
>
>
> Read more:
> http://www.mcclatchydc.com/2010/06/04/95376/bp-could-face-massive-fines-
> under.html#ixzz0qZefhBcw
>
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