WSJ: BP, Justice Dept. near deal over Gulf spill

BP and the Justice Department are close to a "broad" settlement of the oil giant's civil and criminal liabilities stemming from the 2010 Deepwater Horizon spill disaster, the Wall Street Journal quotes people familiar with the talks as saying.

Talks have been going on for months, but momentum has picked up over the last two weeks, the paper says, adding that there are still "substantial" differences and there's still a chance the deal could "fizzle."

An agreement would resolve BP's largest remaining liability from the rig explosion that left 11 workers dead and set off the worst offshore oil spill ever in the U.S.

Billions of dollars that would go to the five states directly affected by the spill are in play in the negotiations.

BP reached an accord totaling roughly $7.8 billion in March to resolve its liability with what Reuters calls a "wide-ranging group that represents condominium owners, fishermen, hoteliers, restaurant owners and others who say their livelihood was damaged by the spill."

BP declined to comment to the Journal, and both BP and the Justice Department declined to comment to Reuters.

The newspaper says BP could be liable for $5.4 billion-$21 billion in civil penalties under the Clean Water Act alone as things stand now.

"The Justice Department has been talking tough in recent court filings," the Journal says. "U.S. attorneys accused BP of gross negligence in the rig explosion in an Aug. 31 filing in a civil case, in which the company has proposed a $7.8 billion settlement with a contingent of private plaintiffs.

"BP has taken a charge of $37.2 billion that it estimates is the maximum cost related to the accident, while pledging to raise $38 billion from asset sales by the end of 2013. The company has raised about $35 billion since the disaster," the newspaper says.

[jdahunt]

Wow...you just don't know how to quit spewing liberals stupidiness....lol

Vote republican if you want jobs
Vote republican if you are tired of the government wasting your money
Vote Democrate if you hate your country
Vote Democrate if you sleep all day and watch Oprah instead of working.

[anotherfinemess]

Hey Msimamaji,
The spill occurred during Obama's administration, the very people who told the public that the oil has magically disappeared and that Gulf food is safe to eat. Unfortunately, there have been recent findings of oil sheen, droplets and impacted food sources, and experts are extremely concerned about the effects of the miraculous dispersants. And who can forget the photos of Obama with his daughters, swimming in the Gulf that summer, and the president telling us -- just WEEKS after the spill - that the FOOD WAS SAFE TO EAT.

Yes, I'm voting Republican. Mitt Romney is a man of intelligence AND INTEGRITY. We sorely need a leader like THAT to restore this country to its founding principles, and someone who will not risk our safety and health by LYING.

[jtdev1]

7.8 Billion? LOLLLLLLLLLLLLLLLLLLL

What is this? 1/2 a week's profit?


Give Me A Break! that is less than a slap on the wrist.

[msimamaji]

If we turn this country over to the Republicans, the deal will "fall apart."

That is the big reason the Koch Brothers are spending millions of dollars to put the GOP in power.

[jdahunt]

Are you as loony as your post is???

You can't give us one credible factual reason why the Koch brothers would care about this.

Get off the liberal kool-aid its destroying your brain cells.

[WJBradley]

BP should have no say in the cost to recover from the damage they have caused through their criminal behaviour which created this mess. They should just pay the bill. I'm sure however that they will buy their way out of responsibility from their actions from the Justice for Sale Department.

[msimamaji]

Vote Republican, and the oil companies will be free to poison the environment as much as they want.

Incidentally, unless we do something about global climate change, the Mississippi delta, including New Orleans, is toast.