The Department of Justice (DOJ) last Wednesday filed a civil lawsuit against BP Exploration and Production Inc. and several other energy-related companies for their part in the fatal explosion aboard the Deepwater Horizon rig last April, which turned out to be one of the worst environmental disasters in U.S. history. The lawsuit could be the beginning of what may be a protracted legal battle over the disaster, which spewed millions of barrels of oil into the Gulf of Mexico over a five-month period.

In June the federal government launched criminal and civil probes into the well blowout, which led to an explosion aboard the Deepwater Horizon rig and a subsequent oil spill off the southern coast of Louisiana. The rig had been leased by BP plc from Transocean Ltd. for work on the Macondo well (see NGI, April 26).

The lawsuit, which was filed in U.S. District Court in the Eastern District of Louisiana, asks the court to declare the energy defendants “jointly and severally liable” for all removal costs and damages beyond the $75 million cap under the U.S. Oil Pollution Act (OPA), with the exception of Transocean’s insurers, QBE Underwriting Ltd./Lloyd’s Syndicate. QBE Underwriting Ltd./Lloyd’s is one of the largest managing agents operating within the Lloyd’s insurance market. The complaint also seeks civil penalties for violations of the Clean Water Act (CWA).

Specifically it asks that BP and the other energy companies be subject to a civil penalty of $4,300 for each barrel of oil spilled.

Named as defendants in the lawsuit are BP Exploration and Production; Anadarko Exploration and Production LP and Anadarko Petroleum Corp.; Mitsui & Co. Ltd. subsidiary MOEX Offshore; Swiss-based Triton Asset Leasing GMBH; Transocean Holdings LLC, Transocean Offshore Deepwater Drilling Inc., Transocean Deepwater Inc.; and Transocean’s insurers.

In the complaint, the DOJ alleges that the defendants violated federal safety and operational regulations, including failing to:

“Each defendant [other than Lloyd’s and QBE] caused and/or contributed to the Deepwater Horizon spill by failing to assure well control of the Macondo well,” which ultimately blew and caused the explosion, the DOJ complaint alleged.

QBE/Lloyd’s can be held liable only up to the amount of insurance policy coverage under the OPA and is not being sued under the CWA, according to DOJ.

“Investigation of other potential claims, ongoing administrative proceedings, assessment of damage amounts and additional removal actions continue. Therefore the United States reserves its rights in full to amend this complaint by, among other things, adding new claims and new defendants,” the complaint said.

The lawsuit will become part of the multi-district litigation now pending before Judge Carl J. Barbier in the same court.

©Copyright 2010Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.