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What charges will BP face from the oil spill? - ThinSkull Blog
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Thu Jun 17, 2010 Post by Randall Ryder Even though BP has agreed to set aside $20 billion in an escrow fund for those affected by the oil spill, that would not prevent the United States Department of Justice from pursuing criminal or civil charges. The $20 billion, which allegedly will be put aside over a number of years, is in addition to a $100 million dollar pledge to help unemployed oil rig workers. According to a recent article, the daily civil fine could be $280 million dollars for escaping oil. At the same time, criminal penalties would be even more massive. According to some estimates, the total legal cost to BP could end up closer to $63 billion dollars (which would include criminal penalties). It is unclear whether the Department of Justice will seek anything harsher than misdemeanor charges. Under federal environmental laws, the standard of proof for misdemeanors is essentially a negligence claim. Meeting that burden can establish misdemeanor penalties under the Clean Water Act. The main problem with higher level charges is the burden of proof, the Department of Justice would likely need to prove BP was aware its actions would lead to this type of disaster. As outraged as the public is, it would difficult, if not impossible, to establish that level of culpability. Other charges could be based on either the Endangered Species Act, or the Migratory Bird Treaty Act, because of the impact the spill has had on local wildlife. Analysts also agree that any criminal charges are unlikely to lead to jail time for any members of BP, as the company, not individuals, will face the charges. This does not mean, however, that BP will not face harsh repercussions for what transpired. Criminal charges could also lead to the government backing out of any contracts with BP, or temporarily banning any future contracts with the company. Given the immense of damage caused, and the fact that oil is still seeping out, it seems impossible to put a price tag on the damage, and what it would cost to clean up the effected areas. Not only is the region suffering current economic harm, it is unclear how long it will take before the area can be returned to "pre-spill" conditions, if at all. Theoretically, individuals with standing would also be able to bring their own claims against BP for damages they have suffered as a result of the spill. What do you think? Will BP survive the ramifications? What sorts of charges should they face?
With Criminal Charges, Costs to BP Could Soar | The New York Times
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