Appeals court upholds earlier decision to impose billion-dollar fines on BP, Anadarko over oil spill

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Yesterday, the US Court of Appeals in New Orleans upheld a lower-court decision, which paved the way for the US government to seek a maximum fine for the massive oil spill involving BP Plc and Anadarko Petroleum Corp in the Gulf of Mexico in 2010, Bloomberg reported. The London-based oil company could now be fined $18 billion if found to be grossly negligent for its actions surrounding one of the biggest environmental disasters to date. Anadarko, on the other hand, could face a maximum penalty of $4.6 billion for the fact that it has a one-fourth interest in the well that caused the oil spill.

US District Judge Carl Barbier, who had made the initial decision, is tasked to determine the size of the fines, which will be based on several factors like the degree of the company's fault and attempts made to fix the damage. His decision on whether BP was grossly negligent on the oil spill under the US Clear Water Act is reportedly pending. However, Barbier had already clarified that Anadarko will be excluded from trial evidence against BP alleging fault for the oil spill.

In April of the said year, the Macondo well exploded and killed 11 workers in the process. The oil spill tha overflowed into the Gulf of Mexico was dubbed the worst in US history. The oil spill had caused several claimants to file lawsuits in the thousands against BP and its contractors. Transocean Ltd is said to be the owner of the drilling rig, while Halliburton Co provided cementing services for the project.

In an email, US Justice Department spokesman Wyn Hornbuckle said to Bloomberg about the appeals court decision, "We're pleased with the court's decision, which affirms Judge Barbier's ruling that BP and Anadarko are liable as owners of the Macondo well. We hope the court's decision will be one more step toward reaching a just conclusion for the American people."

Anadarko spokesman John Christiansen said in a separate email to the news agency that the company is currently reviewing its options following the ruling. Bloomberg said BP spokesman Geoff Morrel refused to comment on the decision.

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US Court of Appeals, BP Plc
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