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Friday, December 17, 2010

Obama administration continues to BP, others on the Gulf of spill (tiscali.co.uk)

By Jeremy Pelofsky and James Vicini

WASHINGTON (Reuters) - Obama administration on Wednesday launched a legal battle against BP S.a. and its partners by them in the worst oil spill coast in the history of the United States, which could corporations billions of dollars.

The trial seeks damages of wells, Anadarko Petroleum Corp owners and Mitsui & co. Ltd. <8031.t>Unit MOEX and well driller Transocean Ltd. and its insurer QBE Underwriting/Lloyd Union 1036, part of the Lloyd's, London, for their roles in the disaster of the Gulf of the Mexico.

"Civil action today marks a vital step forward, it is not a final step," American Eric Holder said journalists during a press conference.

"Both our criminal and civil investigations are continuing and our work to ensure that American taxpayers are not forced to bear the costs of restoration of the Gulf - region and its economy - will", he said.

The combination, the first Government after the explosion on 20 April aboard the drilling rig in which 11 workers died, was filed in a Federal Court in New Orleans, considering private against BP and others for the spill prosecutions.

BP, which returned to profitability in the third quarter of 2010, started the sale of goods and raise a massive warchest to pay for the damage caused by the oil spill, which estimated the concern of oil could reach as much as 40 billion (£ 25.7 billion).

Oil company said Wednesday it was weighing sale activities of Canadian natural gas liquids.

In response to the prosecution, BP said that it was "only a statement of the allegations made by the Government and is not in any way constitute any finding of responsibility or any judicial decision that the allegations have merit.

The company said "BP answer allegations of Government in a timely manner and would continue to cooperate with Government and inquiries, investigations".

REGULATION IS A POSSIBILITY.

Legal experts have stated that they expect the two parties to settle finally but it could take years. In comparison, Exxon XOM.N > settled Government claims about the spill from her Valdez Alaska tanker in 1991, two years after the oil has hit the coast.

The trial against BP and others warned that "the extent of potential injury, destruction, loss and loss of services is not yet fully known and may not be fully known for many years."

Shares in companies in the trial fell in the wake of the prosecution.

Trimmed losses at the beginning to close their low stocks, BP decreased by 1.3% to $43,86 and Anadarko Petroleum down 2.3 67.41% $. Halliburton, which has not been appointed in combination, closed session lows, down 3.1 39.79% $.

Horizon depth eruption of the drilling rig paid approximately 4.9 million barrels of oil for several months. He fouled station of beaches and fishing leads hundreds of lawsuits on the loss of income and wages.

"It's about obtaining a fair deal for the region, which has undergone enormous consequences of this catastrophe," said Lisa Jackson, head of the environmental protection agency.

Further accused of breach security and regulations operating companies in the period leading up to the disaster, including keeping them well under control, do not use the safest and best available technologies drilling and fault to maintain a continuous monitoring of the wells.

The Government claims the companies violated sanitation Act the United States and the Oil Pollution Act, but the prosecution does not request a specific amount for damages.

For every barrel of oil in the Gulf of the Mexico, there may be a fine up to $4,300 if negligence is found. Which would be tantamount to a fine of at least $ 21 billion. If no negligence is found, the fine can be up to $1,100 per barrel or almost $ 5.4 billion.

It will be up to the judge weigh the evidence before the Court to determine whether the defendants have been grossly negligent in their conduct, said an official of the Ministry of justice.

The Department of justice can also find additional fines for harm to animals protected by the endangered species Act and the Migratory Bird Treaty Act, among other environmental laws.

The trial was not appointed Halliburton, who made the well cementing or International Cameron which hardware, but the Department of justice officials clearly more defendants and charges may be added later.

BP HAS ASSUMED THE RESPONSIBILITY

BP has assumed responsibility for the cleanup, but questioned estimates of the Government of the amount of oil is out of the wells. BP condominiums with Anadarko and MOEX Macondo.

After the trial has filed, said partners the responsibility and blame squarely on BP.

Anadarko said he was not responsible for the decisions and operation for the shaft and thus BP should be held accountable. Transocean, drilled the well tried also pin the blame on BP.

"The responsibility for hydrocarbons emitted by a good lie solely with its owner and the operator," Transocean said in a statement, adding that he was "compensated in this matter."

BP has estimated that it can cost as much as $ 40 billion to pay for the spill, including cleaning and sanctions. The London firm of oil was selling many assets to raise as much as $ 30 billion to cover these costs.

The Department of justice has asked a federal judge in New Orleans supervising litigation hold corporations, with the exception of the Lloyd's unlimited damage beyond the ceiling of 75 million dollars under the oil pollution Act.

Louisiana Judge Carl Barber has been supervised hundreds of lawsuits private involving thousands of applicants against BP and its partners. It has status arguments for Friday.

A lawyer for individuals in BP on the spill said that new trial by the administration of the Obama would not jeopardize their efforts.

"We look forward to continued cooperation with the u.s. Government in pursuit of justice for the victims of the tragedy of the horizon of depth," said Steve Herman counsel. "(I) think that it shows momentum and confidence in the procedure of the Court as we approach the trial in February 2012.

(Additional by Kristen Hays and Anna Driver in Houston and Tom HALs in Wilmington;) (Editing by Todd Eastham)

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