BP faces extra 60 billion in legal costs as US loses patience with Gulf clean-up

[onestepforward]

http://www.guardian.co.uk/environment/2010/may/26/bp-extra-60bn-legal-costs

The oil disaster unfolding in the Gulf of Mexico could present BP with much higher costs than previously thought as a result of US government penalties of up to $60bn (£40bn), according to City analysts.

The penalties are in addition to BP's already huge bill for the clean-up mission, which stood at $760m yesterday, and potentially unlimited damages payable by the company to fishermen and other affected local communities. BP also faces billions of dollars of lost earnings as a result of its damaged reputation in the US, which could result in it being barred from bidding for future contracts.

The Guardian has obtained a confidential briefing, from a top-level US environmental lawyer who specialises in oil industry litigation, to stockbroker Canaccord, assessing the financial impact of impending legal action on BP.

He warned that, under US law, BP is liable for $1,100 in civil penalties for each spilt barrel of oil and gas, to be paid to the US federal and affected state governments. If BP is found to have acted with gross negligence – and there is no evidence so far that it has – this fine would rise to $4,300 for each barrel.
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[bluestateguy]

1. I want this company driven into Chapter 7 bankruptcy and liquidation

So fine 'em as far as the eye can see.

[staceysdn]

3. gulf oil

this subject is so disheartening that I have reached out, no,
SHOUTED out, for people to please get involved. What is going
on with us as a society? Fire people, blame people, point
fingers-YES; but do something!!! put aside all of that for
now...and stop all off-shore drilling!!!

[TexasObserver]

2. The fines should be imposed and in the billions of dollars.

If the fines put BP out of business, it will be a lesson for other companies. If we want drillers to make ocean safety a higher priority, giving BP the death penalty for this outrage is one way to do it. BP naturally believes it will slide past all this. They have gotten away with so much for so long, they expect to be able to manipulate government and media.

[staceysdn]

4. so true

but the all-mighty dollar will stop it, and people that have
the money will continue to do what they always have...try to
make more

[AllenVanAllen]

6. It's going to be the biggest tort in American history.

BP is going to fight this for years, and I hope it drains them dry.

[JustABozoOnThisBus]

5. BP is too big to fail

we'll make them pay some token amount.

And we'll support their payment with our tax dollars. Their executives will receive bonuses for guiding the company through this annoyance.

:hi: