1.4.13
Oil Spill
Feds, Transocean reach $1.4B deal over Gulf spill
Judge must still approve deal with Justice Department
By MICHAEL KUNZELMAN — Associated Press
NEW ORLEANS -- The Justice Department reached a $1.4 billion settlement
Thursday with Transocean Ltd., the owner of the drilling rig that sank
after an explosion killed 11 workers and spawned the massive 2010 oil spill
in the Gulf of Mexico.
http://www.sunherald.com/2013/01/03/4386738/feds-transocean-reach-14b-deal.html
Transocean's $1.4B oil spill deal will help Gulf
By MICHAEL KUNZELMAN — Associated Press
NEW ORLEANS — A $1.4 billion settlement between the Justice Department and
Deepwater Horizon rig owner Transocean Ltd. will pump hundreds of millions
of dollars into projects designed to help the Gulf Coast recover from the
nation's largest offshore oil spill.
http://www.sunherald.com/2013/01/03/4385706/feds-nearing-deal-with-transocean.html
Rig Owner Will Settle With U.S. in Gulf Spill
NY Times
By JOHN SCHWARTZ
The driller whose floating Deepwater Horizon oil rig blew out in 2010,
causing a massive oil spill, has agreed to settle civil and criminal claims
with the federal government for $1.4 billion, the Justice Department
announced Thursday.
http://www.nytimes.com/2013/01/04/business/energy-environment/transocean-settles-with-us-over-oil-spill-in-gulf-of-mexico.html?ref=earth&_r=0&pagewanted=print
Transocean set to pay $1.4 billion for role in 2010 Deepwater Horizon
disaster
Washington Post
By Brad Plumer,
The owner of the drilling rig that exploded and led to the massive 2010 oil
spill in the Gulf of Mexico will pay $1.4 billion in criminal and civil
penalties, the Justice Department said Thursday.
http://www.washingtonpost.com/business/economy/transocean-set-to-pay-14-billion-for-role-in-2010-deepwater-horizon-disaster/2013/01/03/cdd9ca0a-55d6-11e2-8b9e-dd8773594efc_story.html
Transocean Is Set to Pay $1.4 Billion In Gulf Spill
Wall Street Journal
By TOM FOWLER
Offshore driller Transocean Ltd. RIGN.VX +3.41% will pay $1.4 billion to
settle all federal civil and criminal claims relating to the 2010
Deepwater Horizon accident in the Gulf of Mexico, the U.S. Department of
Justice said.
http://online.wsj.com/article/SB10001424127887324374004578219533349270970.html
Transocean to pay $1.4 billion in civil, criminal fines for 2010 Gulf spill
The Hill
By Zack Colman - 01/03/13 05:22 PM ET
Transocean Deepwater Inc. will pay $1.4 billion in civil and criminal
penalties for its role in the 2010 Gulf of Mexico oil spill, the Justice
Department announced Thursday.
http://thehill.com/blogs/e2-wire/e2-wire/275425-transocean-to-pay-14-billion-in-fines-for-2010-gulf-spill
Transocean agrees to plead guilty, pay $1.4 billion in fines over 2010 Gulf
spill
By NOLA.com | The Times-Picayune
on January 03, 2013 at 4:33 PM, updated January 03, 2013 at 8:24 PM
Transocean Ltd., the owner of the ill-fated Deepwater Horizon rig that was
leased to BP when its Macondo well erupted off the Louisiana coast in 2010,
has agreed to pay $1.4 billion in civil and criminal fines and penalties
for its role in the massive oil spill, one of the worst environmental
disasters in U.S. history, the company and the U.S. Department of Justice
announced Thursday.
http://www.nola.com/news/gulf-oil-spill/index.ssf/2013/01/transocean_agrees_to_plead_gui.html
Bentley on latest Gulf oil spill settlement: Not enough
By The Associated Press
on January 04, 2013 at 8:01 AM
The $1.4 billion settlement between the Justice Department and Deepwater
Horizon rig owner Transocean Ltd. will pump hundreds of millions of dollars
into projects designed to help the Gulf Coast recover from the nation's
largest offshore oil spill.
http://blog.al.com/wire/2013/01/bentley_on_latest_gulf_oil_spi.html#incart_river
State News
Caledonia signs lease to allow fracking
Commercial Dispatch
January 3, 2013 10:22:40 AM
Sarah Fowler - sfowler@cdispatch.com
The Caledonia Board of Alderman signed a lease Wednesday night allowing
Fletcher Petroleum Corp. to begin the hydraulic fracturing process --
commonly referred to as "fracking" -- on a small parcel of town-owned land.
http://www.cdispatch.com/news/article.asp?aid=21323
Sewer and water repairs to benefit town
Bolivar Commercial
by Rory Doyle
01.03.13 - 03:55 pm
Drew residents received positive news about plans for sewer and water
improvements at Wednesday's board of aldermen meeting.
http://www.bolivarcom.com/view/full_story/21305575/article-Sewer-and-water-repairs-to-benefit-town?instance=homethirdleft
Cochran to lead GOP on Ag Committee
Miss. senator says he'll work to quickly advance new farm bill in Congress
Clarion Ledger
WASHINGTON — Sen. Thad Cochran was named Thursday as top Republican on the
Agriculture, Nutrition and Forestry Committee, a key position as Congress
debates a new farm bill.
http://www.clarionledger.com/article/20130104/NEWS01/301040022/Cochran-lead-GOP-Ag-Committee
National News
Floods blamed for 16 pipeline spills over past two decades
By The Associated Press
January 04, 2013 at 12:52 AM
BILLINGS, Mont. (AP) — Pipeline spills caused by flooding and riverbed
erosion dumped 2.4 million gallons of crude oil and other hazardous liquids
into U.S. waterways over the past two decades, according to a new report
from federal regulators.
http://blog.al.com/wire/2013/01/floods_blamed_for_16_pipeline.html#incart_river
Federal judge rules EPA overstepped authority trying to regulate water as
pollutant in Virginia
Published January 04, 2013
FoxNews.com
a
Virginia officials scored a key victory Thursday in their battle with the
Environmental Protection Agency over what EPA critics describe as a land
takeover.
http://www.foxnews.com/politics/2013/01/03/virginia-judge-rules-epa-overstepped-authority-trying-to-regulate-water-as/
Fracking can be done safely in New York state: dept report
Reuters
Thu, Jan 3 2013
By Peter Rudegeair
(Reuters) - The natural gas drilling process known as fracking would not be
a danger to public health in New York state so long as proper safeguards
were put into place, according to a health department report that
environmentalists fear could help lift a moratorium on the controversial
technique.
http://www.reuters.com/article/2013/01/03/us-usa-fracking-newyork-documents-idUSBRE9020RT20130103
Drilling For Facts Under The 'Promised Land' Fiction
NPR
by JEFF BRADY
January 04, 2013 3:28 AM
There is plenty in the movie Promised Land that will prompt energy industry
insiders to roll their eyes. But the overall issues explored in the film,
which is being widely released in theaters Friday, are very real.
http://www.npr.org/2013/01/04/168562019/drilling-for-facts-under-the-promised-land-fiction
Press Releases
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
