2015 Fall Meeting of the

Maritime Law Association of the U.S.

Marine Ecology and Maritime Criminal Law Committee

Deepwater Horizon / Macondo Well Update

Sean Houseal
Womble Carlyle Sandridge & Rice, LLP
5 Exchange Street
Charleston, SC 29401
shouseal@wcsr.com

Deepwater Horizon Relevant

Timeline

2010,

April 20
Dec. 15

Blowout / Explosion at Macondo Well

U.S. files civil complaint in E.D. Louisiana

2011,

2012, March 2 Class Action settlements announced between private individuals

and BP

April 21

Nov. 15
remedial order)

BP agrees to pay $1 Billion for NRD early restoration projects

BP Criminal Plea Agreement with U.S. announced ($4 Billion total, +

2013,
Jan. 3
criminal)

2014,
Sept. 4 Court rules on Phase One trial, finding BP grossly negligent &
wilful in its misconduct

2015,
Jan. 15 District Court rules on Phase Two trial, finding a discharge of
3.19 million barrels oil

Transocean settlements announced ($1.4 Billion total, civil and

Feb. 2

Phase Three of trial is completed

July 3

Agreement in principle between BP and the U.S. is announced

Oct. 5

resolve all federal

U.S. lodges Consent Decree with BP, the terms of which would
and state claims against BP arising from the incident

60-day public comment period is underway

Proposed Consent
Decree
October 5, 2015
U.S. lodges Consent Decree with BP arising from
the 2010 Deepwater Horizon oil spill
The proposed settlement agreement would
resolve all pending federal and state claims
against BP arising from the incident
Public has 60 days in which to submit comments
to U.S. DOJ on the proposed CD, in accordance
with 28 C.F.R. 50.7. Comment period ends
12/4/15

Terms of Proposed
Settlement

Settlement exceeds $20 Billion - Largest settlement amount with

a single entity in U.S. history - In addition to the $44B BP has
incurred in cleanup costs & legal fees

BP has agreed to pay a $5.5 Billion penalty to resolve civil

claims under the Clean Water Act, plus interest (CD paras. 10
14)

BP has agreed to pay $8.1 Billion to resolve Natural Resource

Damages claims under the Oil Pollution Act (CD paras. 15 17,
19)

BP has reached a related, parallel agreement with 5 Gulf states

(Alabama, Florida, Louisiana, Mississippi and Texas) to pay up to
$5.9 Billion to the 5 Gulf states, and up to $1Billion to local
governments to resolve Economic Damages claims
4

CWA Civil Penalty of $5.5 Billion

BP has agreed to pay a $5.5 Billion penalty, plus
interest, to resolve civil claims under the Clean Water Act,
plus interest (CD paras. 10 14)
Largest civil penalty in history of environmental law (U.S. DOJ)
Penalty is subject to the RESTORE Act, which allocates 80% to
environmental restoration, economic recovery projects, and
tourism and seafood promotion in the 5 Gulf states
Remainder of the civil penalties under the CWA will be paid to
the Oil Spill Liability Trust Fund in accordance with OPA90
Penalty also resolves claims related to incidents of noncompliance that Dept. of Interiors Bureau of Safety and
Environmental Enforcement issued to BP concerning the well

$8.1 Billion in Natural Resource

Damages
$8.1 Billion to resolve Natural Resource Damages claims
under the Oil Pollution Act (CD paras. 15 17, 19)
The $8.1B includes the $1B that BP had previously
committed to pay for early restoration projects
Designated federal and state NRD Trustees have agreed
to an allocation of the funds among 5 different restoration
goals designed to restore Gulf of Mexico natural resources
injured by the spill
13 restoration categories set forth at p. 3 of the Fact Sheet
Draft Natural Resources Damages Assessment and Restoration
Plan is available for public review

Up to $5.9 Billion to the 5 Gulf states

for Economic Damages claims
BP has reached a related, parallel
agreement with the 5 Gulf states
(Alabama, Florida, Louisiana, Mississippi
and Texas) to pay $4.9 Billion to the 5
Gulf states to resolve economic damages
claims
BP will pay up to an additional $1 Billion
to local governments to resolve Economic
Damages claims

$350 Million in NRD Assessment

Costs
In addition, BP will pay $350 Million
to federal, state, and local
governments for their Natural
Resource Damage assessment costs

Up to $700M for Unknown Injury

and Adaptive Management
BP will pay up to $700 Million to address
natural resource conditions that are
presently unknown but may be discovered
in the future, and for monitoring, adapting,
supplementing, or replacing earlier
restoration projects as needed
This amount is comprised of $232M, plus
accrued interest on the $8.1 Billion payment
(CD Para. 21)

$250M to reimburse the

U.S. for response costs, lost
royalties, and to resolve an
FCA investigation
BP will pay an additional $250 Million in
reimbursement costs to the United States for
its response costs, lost royalties on oil, and to
resolve a False Claims Act investigation (CD
Paras. 22 24)

Injunctive Relief
BPs 2012 criminal guilty plea imposed comprehensive
measures upon BP to improve BPs drilling and safety
protocols and corporate ethics. BP also entered into an
agreement with EPA, imposing additional measures on BP
to resolve the specter of debarment and suspension from
further commercial dealings with the federal government.
In entering into the CD, BP is acknowledging that it is in
compliance with these comprehensive measures.
BP has agreed to publish reports on a publically accessible
website, documenting its progress
(CD paras. 34 38, and Appendices 4, 5, 6 and 11)

Next Steps
During the 60-day public comment period, federal
and state trustees plan to hold public meetings in
each of the 5 Gulf states and in Washington, D.C.
to provide a forum for discussion and to provide
further opportunity for public input regarding the
terms of the CD and DARP
After the close of the 60-day public comment
period, the Trustees will consider the input
received, and will determine whether to seek court
approval of the CD

DOJ Link/Resources
http://www.justice.gov/enrd/deepwater-horizon
Provides copy of Proposed Consent Decree
Documents, including:
Consent Decree
Summary of Consent Decree
Fact Sheet on Consent Decree
Deepwater Horizon/Macondo Well Timeline
Federal Register Notice inviting public comment on
Consent Decree

NOAA Link for Additional

Information on Draft DARP/PEIS
Full text of the Draft PDARP/PEIS is available at www.gulfspillrestoration.noaa.gov
Comments on the Draft PDARP/PEIS must be received on or before December 4, 2015

The 13 proposed restoration types are:

1. Wetlands, coastal, and nearshore habitats
2. Habitat projects on federally managed lands
3. Nutrient reduction
4. Water quality
5. Fish and water column invertebrates
6. Sturgeon
7. Submerged aquatic vegetation
8. Oysters
9. Sea turtles
10. Marine mammals
11. Birds
12. Mesophotic and benthic (lowlight and ocean floor) communities
13. Provide and enhance recreational opportunities

Thank You!
Questions / Comments / Discussion

Sean Houseal
Womble Carlyle Sandridge & Rice, LLP
5 Exchange Street
Charleston, SC 29401
(843) 720-4622
shouseal@wcsr.com