----- Forwarded by Robbie Wilbur/Admin/DEQ on 01/03/2013 12:51 PM -----
From: "U.S. EPA" <usaepa@govdelivery.com>
To: robbie_wilbur@deq.state.ms.us,
Date: 01/03/2013 12:40 PM
Subject: EPA News Release: Transocean Agrees to Plead Guilty to
Environmental Crime and Enter Civil Settlement to Resolve U.S.
Clean Water Act Penalty Claims from Deepwater Horizon
Incident / Transocean to pay record $1 billion in civil
penalties and $400 million in criminal fines
CONTACT:
Stacy Kika
Kika.stacy@epa.gov
202-564-0906
202-564-4355
FOR IMMEDIATE RELEASE
January 3, 2013
Transocean Agrees to Plead Guilty to Environmental Crime and Enter Civil Settlement to
Resolve U.S. Clean Water Act Penalty Claims from Deepwater Horizon Incident
Transocean to pay record $1 billion in civil penalties and $400 million in criminal
fines
WASHINGTON – Transocean Deepwater Inc. has agreed to plead guilty to violating the
Clean Water Act (CWA) and to pay a total of $1.4 billion in civil and criminal fines
and penalties, for its conduct in relation to the Deepwater Horizon disaster, the
Department of Justice announced today. The criminal information, and a proposed partial
civil consent decree to resolve the U.S. government's civil penalty claims against
Transocean Deepwater Inc. and related entities were filed today in U.S. District Court
in the Eastern District of Louisiana.
Transocean Deepwater Inc. has signed a cooperation and guilty plea agreement with the
government, also filed today, admitting its criminal conduct. As part of the plea
agreement, Transocean Deepwater Inc. has agreed, subject to the court's approval, to
pay $400 million in criminal fines and penalties and to continue its on-going
cooperation in the government's criminal investigation. In addition, pursuant to the
terms of a proposed partial civil consent decree also lodged with the court today,
Transocean Ocean Holdings LLC, Transocean Offshore Deepwater Drilling Inc., Transocean
Deepwater Inc. and Triton Asset Leasing GMBH have agreed to pay an additional $1
billion to resolve federal Clean Water Act civil penalty claims for the massive,
three-month-long oil spill at the Macondo Well and the Transocean drilling rig
Deepwater Horizon. Under the civil settlement, the Transocean defendants also must
implement court-enforceable measures to improve the operational safety and emergency
response capabilities at all their drilling rigs working in waters of the United
States.
"This resolution of criminal allegations and civil claims against Transocean brings us
one significant step closer to justice for the human, environmental and economic
devastation wrought by the Deepwater Horizon disaster," said Attorney General Eric
Holder. "This agreement holds Transocean criminally accountable for its conduct and
provides nearly a billion dollars in criminal and civil penalties for the benefit of
the Gulf states. I am particularly grateful today to the many Justice Department
personnel and federal investigative agency partners for the hard work that led to
today's resolution and their continuing pursuit of justice for the people of the Gulf."
"Today's settlement and plea agreement is an important step toward holding Transocean
and those responsible for the Deepwater Horizon disaster accountable," said Cynthia
Giles, assistant administrator for the U.S. Environmental Protection Agency's (EPA)
Office of Enforcement and Compliance Assurance. "EPA will continue to work with DOJ and
its federal partners to vigorously pursue the government's claims against all
responsible parties and ensure that we are taking every possible step to restore and
protect the Gulf Coast ecosystem."
"Today's announced settlement will aid the Gulf region's recovery from the Deepwater
Horizon oil spill and require Transocean to take important steps that will help guard
against such incidents happening in the future," said Acting Associate Attorney General
Tony West. "This resolution is the culmination of the tremendous efforts of many
attorneys and staff in the Justice Department's Criminal, Civil and Environment and
Natural Resources Divisions – dedicated public servants whose hard work continues on
behalf of the American people."
"Transocean's rig crew accepted the direction of BP well site leaders to proceed in the
face of clear danger signs — at a tragic cost to many of them," said Lanny A. Breuer,
assistant attorney general for the Justice Department's Criminal Division.
"Transocean's agreement to plead guilty to a federal crime, and to pay a total of $1.4
billion in criminal and civil penalties, appropriately reflects its role in the
Deepwater Horizon disaster."
"The development and exploration of a domestic source of energy is vitally important,
and it can and must be done in a responsible and sound manner. This unprecedented
settlement under the Clean Water Act demonstrates that companies will be held fully
accountable for their conduct and share responsibility for compliance with the laws
that protect the public and the environment from harm," said Ignacia S. Moreno,
assistant attorney general for the Justice Department's Environment and Natural
Resources Division. "This settlement will provide immediate relief and benefits to the
people of the five Gulf states, and requires Transocean to implement significant safety
measures, as well as stringent auditing and monitoring to reduce the risk of any future
disasters."
According to court documents, on April 20, 2010, while stationed at the Macondo well
site in the Gulf of Mexico, the Deepwater Horizon rig experienced an uncontrolled
blowout and related explosions and fire, which resulted in the deaths of 11 rig workers
and the largest oil spill in U.S. history. In agreeing to plead guilty, Transocean
Deepwater Inc. has admitted that members of its crew onboard the Deepwater Horizon,
acting at the direction of BP's "Well Site Leaders" or "company men," were negligent in
failing fully to investigate clear indications that the Macondo well was not secure and
that oil and gas were flowing into the well.
The criminal resolution is structured to directly benefit the Gulf region. Under the
order presented to the court, $150 million of the $400 million criminal recovery is
dedicated to acquiring, restoring, preserving and conserving – in consultation with
appropriate state and other resource managers – the marine and coastal environments,
ecosystems and bird and wildlife habitat in the Gulf of Mexico and bordering states
harmed by the Deepwater Horizon oil spill. This portion of the criminal recovery will
also be directed to significant barrier island restoration and/or river diversion off
the coast of Louisiana to further benefit and improve coastal wetlands affected by the
oil spill. An additional $150 million will be used to fund improved oil spill
prevention and response efforts in the Gulf through research, development, education
and training.
The civil settlement secures $1 billion in civil penalties for violations of the CWA, a
record amount that significantly exceeds last year's $70 million civil penalty paid by
MOEX Offshore 2007 LLC, a 10 percent partner with BP in the Macondo well venture. The
unprecedented $1 billion civil penalty is subject to the Resources and Ecosystems
Sustainability, Tourist Opportunities and Revived Economies of the Gulf Coast States
Act of 2012 (Restore Act), which provides that 80 percent of the penalty will be to be
used to fund projects in and for the Gulf states for the environmental and economic
benefit of the region. This civil resolution reserves claims for natural resource
damages and clean-up costs.
Under the civil settlement, the Transocean defendants must also observe various
court-enforceable strictures in its drilling operations, aimed at reducing the chances
of another blowout and discharge of oil and at improving emergency response
capabilities. Examples of these requirements include certifications of maintenance and
repair of blowout preventers before each new drilling job, consideration of process
safety risks, and personnel training related to oil spills and responses to other
emergencies. These measures apply to all rigs operated or owned by the Transocean
defendants in all U.S. waters and will be in place for at least five years.
The guilty plea agreement and criminal charge announced today are part of the ongoing
criminal investigation by the Deepwater Horizon Task Force into matters related to the
April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is
supervised by Assistant Attorney General Breuer and led by Deputy Assistant Attorney
General John D. Buretta, who serves as the director of the task force. The task force
includes prosecutors from the Criminal Division and the Environment and Natural
Resources Division of the Department of Justice; the U.S. Attorney's Office for the
Eastern District of Louisiana, as well as other U.S. Attorneys' Offices; and
investigating agents from the FBI, EPA, Department of the Interior, National Oceanic
and Atmospheric Administration Office of Law Enforcement, U.S. Coast Guard, U.S. Fish
and Wildlife Service and the Louisiana Department of Environmental Quality.
The civil resolution announced today is part of the ongoing litigation against
defendants BP Exploration and Production Inc., the Transocean defendants, and Anadarko
Petroleum Corporation (among others) for civil penalties, injunctive relief, and a
declaration of unlimited liability for removal costs and damages under the Oil
Pollution Act. The civil enforcement effort is supervised by Assistant Attorney General
Moreno for the Environment and Natural Resources Division and Deputy Assistant Attorney
General Brian Hauck of the Civil Division. Numerous federal agencies have contributed
immeasurably to these enforcement and settlement efforts, including the EPA, the U.S.
Coast Guard, the National Oceanic and Atmospheric Administration, the Department of the
Interior and the Department of Agriculture.
The criminal case against Transocean is being prosecuted by Deepwater Horizon Task
Force Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors
Richard R. Pickens II, Scott M. Cullen, Colin Black and Rohan Virginkar. Numerous
Environment Division and Civil Division lawyers are pursuing the civil enforcement
action, led by Steve O'Rourke and R. Michael Underhill.
An information is merely a charge and a defendant is presumed innocent unless and until
proven guilty beyond a reasonable doubt.
The proposed civil settlement is subject to a public comment period and final court
approval.
More information: http://www.epa.gov/enforcement/water/cases/transocean.html
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