Mitsui Offshore Exploration of Japan, which held a 10% stake in the Macondo well that blew out in the deepwater Gulf of Mexico in April 2010, has paid $90 million to U.S. officials in penalties and environmental restoration fees, making it the first company of those involved in the massive oil spill to settle.

The deal, reached earlier this month with the U.S. Department of Justice and the five states affected by the spill, generated rumors that BP plc, which operated and owned 65% of the well, may settle claims before a federal trial in New Orleans begins next week. Anadarko Petroleum Corp. owned a 25% stake in Macondo.

BP CEO Bob Dudley earlier this month said the company was “prepared to settle if we can do so on fair and reasonable terms. But equally, if this is not possible, we are preparing vigorously for trial” (see Daily GPI, Feb. 8).

The Mitsui Ltd. subsidiary agreed to pay $70 million in civil penalties under the U.S. Clean Water Act and paid $20 million for environmental restoration along the Gulf Coast. Of the total $45 million was paid to the federal government and $25 million is to be divided among Alabama, Florida, Louisiana, Mississippi and Texas. That means that half of the total settlement goes directly to the Gulf Coast region.

The Mitsui settlement is a “landmark” settlement and “an important step — but only a first step toward achieving accountability and protecting the future of the Gulf ecosystem,” said U.S. Attorney General Eric Holder. “The Department of Justice has not wavered in its commitment to hold all responsible parties fully accountable for what stands as the largest oil spill in U.S. history.”

An estimated four million bbl of oil spilled into the deepwater after the well exploded, which destroyed the Deepwater Horizon rig and killed 11 men. Assuming Mitsui’s 10% ownership in Macondo, the federal penalty equaled a fine of about $175/bbl. The maximum penalty that could have be imposed under federal guidelines for gross negligence is $4,300/bbl.

Mitsui said in a court filing it “lacked any authority to control the activities associated with the Deepwater Horizon mobile offshore drilling unit and had no involvement in the events leading up to the…incident.” It also denied having any liability from the incident.

Last May Mitsui agreed to pay BP $1.1 billion to cover its share of the cost to compensate businesses and individuals impacted by the spill (see Daily GPI, May 23, 2011). However, the agreement did not cover federal penalties or punitive damages.

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