BP's felony plea agreement to settle manslaughter, obstruction and securities charges for a historic $4.5 billion, and an indictment that could send three employees to prison for decades, was a one-two punch by the government that puts an exclamation point on the deadly 2010 Gulf of Mexico rig blast and oil spill.
A criminal complaint filed Thursday by the Justice Department singled out BP well-site leaders Donald Vidrine and Robert Kaluza for the failure of a pressure test on BP's blown-out Macondo well.
The complaint said the ?negligent conduct of defendant BP? through the actions of the two men ?proximately caused the death of? 11 rig workers.
A former BP executive, David Rainey, also was charged for allegedly providing government officials estimates of how much oil was spilling that were much lower than what the company actually knew at the time.
A former BP engineer previously was charged with obstruction for allegedly deleting text messages about the spill flow rate.
In the nation's worst-ever oil spill, BP's well blew out a mile beneath the sea off Louisiana on April 20, 2010, spewing nearly 4.9 million barrels of crude, according to government estimates that BP has disputed.
The workers were killed when the Deepwater Horizon exploded and sank 50 miles offshore.
The Justice Department said its criminal probe isn't over, but it's unclear whether it might reach other BP executives including former CEO Tony Hayward.
BP's partners on the project ? Deepwater Horizon rig owner Transocean and cement contractor Halliburton ? also could face criminal and civil fines.
Under a deal with U.S. prosecutors, BP agreed as a company to plead guilty to 11 felony counts of seaman's manslaughter ? misconduct or neglect by ships' officers leading to death on the high seas ? relating to the rig workers' deaths.
It also will plead guilty to one misdemeanor count under the Clean Water Act; one misdemeanor count under the Migratory Bird Treaty Act; and one felony count of obstruction of Congress.
The plea deal requires federal court approval.
BP agreed to serve five years' probation and take additional actions to enhance the safety of drilling operations in the Gulf, under the eyes of two monitors that are to be appointed.
Probation for BP essentially means it could face further sanctions if it commits any crimes while under supervision.
BP also agreed to pay $525 million to settle Securities and Exchange Commission violations stemming from the disaster.
The SEC charged that in three filings with the commission, BP understated the range of possible rates at which oil was flowing into the Gulf, information that could inform investors' decisions about buying or selling BP stock.
BP chief Bob Dudley said BP accepted responsibility for its actions.
It faces the prospect of billions of dollars more in civil fines based on the amount of oil that spilled, and its public image could suffer further damage from additional disclosures or charges.
A trial set for February would address the civil allegations if BP and the government can't reach a settlement before then.
The flow rate and total amount spilled, which underpin much of the disaster and its aftermath, are central to calculation of fines under the Clean Water Act.
The government's estimate would translate to a fine of up to $21 billion if BP were found to be grossly negligent.
Vidrine attorney Robert Habans criticized the indictment of his client.
?It is a failure of justice to blame this event on him,? Habans said.
Kaluza attorney Shaun Clarke said he was stunned by the manslaughter charges.
?The government is trying to sell the fiction that the deaths of 11 men and the worst environmental disaster in our nation's history was caused because two guys working on a rig misinterpreted a test,? Clarke said.
Rainey, a former BP vice president in charge of exploration in the Gulf of Mexico, is charged with obstruction of Congress and making false statements to law enforcement officials for allegedly understating the amount of oil that was flowing from the well.
A lawyer for Rainey couldn't be reached for comment.
The total penalty was the largest in U.S. history. The previous largest was the $1.2 billion Pfizer agreed to pay in 2009 for fraudulent marketing of drugs.
Source: http://www.mysanantonio.com/news/article/4-5-billion-fine-in-Gulf-oil-spill-4042516.php
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