11/15/2012

BP reaches settlement with DOJ over Gulf oil spill, officials say

Lee Celano / Reuters, file

A hard hat from an oil worker lies in oil from the Deepwater Horizon oil spill on East Grand Terre Island, Louisiana in this June 8, 2010 photo.

By Ian Johnston, NBC News

Oil giant BP has reached a settlement with the Department of Justice over the explosion of the Deepwater Horizon rig and the massive oil spill in the Gulf of Mexico in 2010, officials told NBC News' Pete Williams on Thursday.

The settlement will include a large fine and criminal charges, the officials said.

Earlier, in a statement posted on its website, the company said the talks included claims made against BP by the Securities & Exchange Commission.

A BP spokesman declined to comment further when asked to do so by NBC News.

The website statement said the "proposed resolutions" were "not expected to cover federal civil claims" and others.

These included:

  • Clean Water Act claims;
  • Federal and state Natural Resource Damage Assessment claims;
  • Some private civil claims and private securities claims;
  • State economic loss claims.

The talks are separate from a March settlement whereby BP agreed to pay plaintiffs $7.8 billion for damages.

Gerald Herbert / AP

The April 20, 2010, explosion aboard the Deepwater Horizon rig triggered a summer of oil spills, cleanup, lost jobs and plenty of frustration. View select images from the disaster.

It is expected that the settlement of remaining criminal and civil claims over the 2010 spill could run into billions of dollars. Eleven workers on the Deepwater Horizon were killed in the explosion that led to the spill.

But Gulf Coast lawmakers from both parties last month expressed concern the terms will send most of the money to the federal government instead of the affected states.

"The Obama administration could be cutting a deal that allows BP to write off much of the fines as a tax deduction," Rep. Jo Bonner, R-Ala., said in a statement in October. "What's more, the bulk of the penalty collected by the federal government would essentially be walled off from local control to be doled out as the administration sees fit."

PhotoBlog: Cat Island pelicans see habitat shrinking 2 years after Gulf spill
Read coverage of the spill from 2010

Archival video: The people of the Gulf Coast have survived hurricanes, but 128 days after the BP oil spill disaster, they're struggling to see a way forward. NBC's Anne Thompson reports.

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