BP will pay $4.5 billion to US and plead guilty to felony misconduct in the Deepwater Horizon disaster

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BP to pay record fine for 2010 spill: sources

By Chris Baltimore and David Ingram
HOUSTON/WASHINGTON | Thu Nov 15, 2012 8:23am EST

HOUSTON/WASHINGTON (Reuters) - BP Plc is expected to pay a record U.S. criminal penalty and plead guilty to criminal misconduct in the 2010 Deepwater Horizon disaster through a plea deal reached with the Department of Justice that may be announced as soon as Thursday, according to sources familiar with discussions.

Three sources, who spoke to Reuters on condition of anonymity, said BP would plead guilty in exchange for a waiver of future prosecution on the charges.

BP confirmed it was in "advanced discussions" with the Department of Justice (DoJ) and the Securities & Exchange Commission (SEC).

The talks were about "proposed resolutions of all U.S. federal government criminal and SEC claims against BP in connection with the Deepwater Horizon incident," it said in a statement on Thursday, but added that no final agreements had been reached.

The discussion do not cover federal civil claims, both BP and the sources said.
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http://www.reuters.com/article/2012/11/15/us-bp-spill-plea-idUSBRE8AE08F20121115

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BP to pay record fine for 2010 spill - Two BP employees expected to face manslaughter charges

BP employees expected to face manslaughter, BP to pay record penalty

wwltv.com
Posted on November 15, 2012 at 5:21 AM
Updated today at 7:37 AM

NEW ORLEANS - Two BP employees are expected to face manslaughter charges in the 2010 disaster, and BP is expected to plead guilty to criminal misconduct in the 2010 Deepwater Horizon disaster, according to a report.

The decision is tied to a plea agreement that includes a record criminal penalty payment the oil giant reached with the U.S. Department of Justice, the report said. The company booked provisions of $38 billion to cover its liabilities in the spill, but BP said the final cost remains uncertain.

According to a statement on BP's website, the company and the Department of Justice and Security and Exchange Commission are in advanced discussions, but no final agreements have been reached yet.

The official announcement is expected to come Thursday.

...

http://www.wwltv.com/news/local/BP-expected-to-plead-guilty-to-criminal-misconduct-pay-record-penalty-179455901.html

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Re: BP to pay record fine for 2010 spill - Two BP employees expected to face manslaughter charges

Statement About Proposed Resolutions of US Federal Government Criminal and SEC Claims Against BP in Connection with the Deepwater Horizon Incident

Release date: 15 November 2012

BP confirms that it is in advanced discussions with the United States Department of Justice (DoJ) and the Securities & Exchange Commission (SEC) regarding proposed resolutions of all US federal government criminal and SEC claims against BP in connection with the Deepwater Horizon incident. No final agreements have yet been reached and any resolutions, if agreed, would be subject to federal court approvals in the United States.

The proposed resolutions are not expected to cover federal civil claims, including Clean Water Act claims, federal and state Natural Resource Damages claims; private civil claims in MDL 2179 that were not covered by the PSC settlement, private securities claims pending in MDL 2185 or state economic loss claims.

A further announcement will be made if and when final agreements are reached. Until final agreements are reached, there can be no certainty any such resolutions will be entered into.

http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7080462

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Re: BP to pay record fine for 2010 spill - Two BP employees expected to face manslaughter charges

15 November 2012 Last updated at 07:41 ET

BP to get record US criminal fine over Deepwater disaster

BP is set to receive a record fine of between $3bn and $5bn (?1.9bn-?3.2bn) to settle criminal charges related to the 2010 Deepwater Horizon disaster, the BBC has learnt.

It will be the biggest criminal penalty in US history, BBC business editor Robert Peston says.

The settlement with the Department of Justice involves BP pleading guilty to criminal charges.

It is thought that up to four BP staff may be arrested, Robert Peston says.

Details of the settlement are expected to be confirmed by the Washington-based Department of Justice later.

Earlier, BP said it was in "advanced discussions" with US agencies about settling criminal and other claims.

...

http://www.bbc.co.uk/news/business-20336898

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BP will pay $4.5 billion to US and plead guilty to felony misconduct in the Deepwater Horizon disaster

UPDATE 1-BP to pay $4.5 to U.S. in oil spill plea deal

By Chris Baltimore and David Ingram

HOUSTON/WASHINGTON, Nov 15 (Reuters) - BP Plc will pay a $4 billion penalty and plead guilty to felony misconduct in the Deepwater Horizon disaster that caused the worst offshore oil spill in the country's history, the company said on Thursday.

The company will also pay $525 million to settle securities claims with U.S. regulators. In aggregate BP said it will pay $4.5 billion over six years for the various resolutions.

BP's penalties for the April, 2010, explosion on the Deepwater Horizon rig in the Gulf of Mexico in which 11 workers died, and subsequent leak from the Macondo oil well, will far exceed the previous record for largest criminal penalty in U.S. history.

More...

http://www.reuters.com/article/2012/11/15/bp-spill-idUSL5E8MFEDD20121115

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Re: BP will pay $4.5 billion to US and plead guilty to felony misconduct in the Deepwater Horizon disaster

BP Announces Resolution of All Criminal and Securities Claims by U.S. Government Against Company Relating to Deepwater Horizon Accident

Release date: 15 November 2012
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• Resolution of all criminal claims with Department of Justice includes $4 billion paid in installments over a period of five years
• Resolution of all securities claims with Securities and Exchange Commission includes $525 million paid in installments over a period of three years
• Existing $38.1 billion charge against income to increase by approximately $3.85 billion
• BP is prepared to vigorously defend itself against remaining civil claims

BP today announced that it has reached agreement with the United States government, subject to court approval, to resolve all federal criminal charges and all claims by the Securities and Exchange Commission (SEC) against the company stemming from the Deepwater Horizon accident, oil spill, and response.

?All of us at BP deeply regret the tragic loss of life caused by the Deepwater Horizon accident as well as the impact of the spill on the Gulf coast region,? said Bob Dudley, BP?s Group Chief Executive. ?From the outset, we stepped up by responding to the spill, paying legitimate claims and funding restoration efforts in the Gulf. We apologize for our role in the accident, and as today?s resolution with the U.S. government further reflects, we have accepted responsibility for our actions.?

In eliminating the possibility of any further federal criminal charges against the company based on the accident, BP has taken another significant step forward in removing legal uncertainty and can now focus more fully on defending itself against all remaining civil claims.

?We believe this resolution is in the best interest of BP and its shareholders,? said Carl-Henric Svanberg, BP?s Chairman. ?It removes two significant legal risks and allows us to vigorously defend the company against the remaining civil claims.?
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Terms of resolution

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As part of the resolution, BP has agreed to plead guilty to 11 felony counts of Misconduct or Neglect of Ships Officers relating to the loss of 11 lives; 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. This resolution is subject to U.S. federal court approval.

Thirteen of the 14 criminal charges pertain to the accident itself and are based on the negligent misinterpretation of the negative pressure test conducted on board the Deepwater Horizon. BP acknowledged this misinterpretation more than two years ago when it released its internal investigation report. Today?s agreement is consistent with BP?s position in the ongoing civil litigation that this was an accident resulting from multiple causes, involving multiple parties, as found by other official investigations. The remaining criminal count pertains to two BP communications made to a member of Congress during the spill response about flow rate estimates. As part of its resolution of criminal claims with the U.S. government, BP will pay $4 billion, including $1.256 billion in criminal fines, in installments over a period of five years. BP has also agreed to a term of five years? probation.

Under the resolution with the Department of Justice (DOJ), a total of $2.394 billion will be paid to the National Fish & Wildlife Foundation (NFWF) over a period of five years. In addition, $350 million will be paid to the National Academy of Sciences (NAS) over a period of five years.
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Pursuant to the terms of the plea agreement, BP has also agreed to take additional actions, enforceable by the court, to further enhance the safety of drilling operations in the Gulf of Mexico. These requirements relate to BP?s risk management processes, such as third-party auditing and verification, training, and well control equipment and processes such as blowout preventers and cementing. In addition, BP has agreed to several initiatives with academia and regulators to develop new technologies related to deepwater drilling safety.

The resolution also provides for the appointment of two monitors, both with terms of four years. A process safety monitor will review, evaluate and provide recommendations for the improvement of BP?s process safety and risk management procedures concerning deepwater drilling in the Gulf of Mexico. An ethics monitor will review and provide recommendations for the improvement of BP?s Code of Conduct and its implementation and enforcement.

Under U.S. law, companies convicted of certain criminal acts can be debarred from contracting with the federal government. BP has not been advised of the intention of any federal agency to suspend or debar the company in connection with this plea agreement. BP will continue to work cooperatively with the debarment authority.
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In its resolution with the SEC, BP has resolved the Commission?s Deepwater Horizon-related claims against the company under Sections 10(b) and 13(a) of the Securities Exchange Act of 1934 and the associated rules. BP has agreed to a civil penalty of $525 million, payable in three installments over a period of three years, and has consented to the entry of an injunction prohibiting it from violating certain U.S. securities laws and regulations. The SEC?s claims are premised on oil flow rate estimates contained in three reports provided by BP to the SEC during a one-week period (on April 29 and 30 and May 4, 2010), within the first 14 days after the accident. This resolution is subject to U.S. federal court approval.

?Since the spill, we have worked hard to rebuild confidence in the company,? said Mr. Dudley. ?We take seriously not only our commitment to safety and operational excellence but also our communications with stakeholders, including the public, the government and our investors.?
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Financial implications of resolution

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The aggregate amount of the resolution is approximately $4.5 billion, with payments scheduled over a period of six years. As of the end of September 2012, BP?s financial statements recorded a charge taken against pre-tax income in relation to the accident and oil spill of $38.1 billion. This charge included $525 million provided for the SEC settlement. Today?s resolution is expected to result in an increase of approximately $3.85 billion to the $38.1 billion charge taken against income as of the end of September. BP?s financial statements as of the end of December 2012 will reflect this additional charge, as well as any other adjustments arising during the fourth quarter. It is anticipated that the cash outflows can be met within BP?s current financial framework. A summary payment schedule is attached to this release. ...

Full text:

http://www.bp.com/genericarticle.do?categoryId=2012968&contentId=7080497

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Re: BP will pay $4.5 billion to US and plead guilty to felony misconduct in the Deepwater Horizon disaster

Grand jury indicts BP officials for roles in Deepwater Horizon disaster

wwltv.com
Posted on November 15, 2012 at 12:32 PM
Updated today at 1:02 PM

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David Hammer / Eyewitness News

A federal grand jury has charged two BP company officials with 11 counts of involuntary manslaughter and 11 counts of seaman's manslaughter for their role in the Deepwater Horizon rig accident that killed 11 workers in 2010 and set off the worst offshore oil spill in U.S. history.

Robert Kaluza and Donald Vidrine were the two BP "company men" stationed on the rig. The indictment alleges that they were "grossly negligent" in misinterpreting the results of a key test shortly before the well blew out. Kaluza's attorney declined comment until after the Justice Department announces the charges and Vidrine's lawyer has not returned our call.(See indictment)

Kaluza and Vidrine were also charged with a violation of the Clean Water Act.

Separately, a former BP vice president, David Rainey, has been charged with obstruction of Congress and false statements for manipulating estimates of the amount of oil spilled, withholding the company?s truly scientific estimates and causing BP to stand by an estimate that was 12 times smaller than the real amount of oil coming out of BP?s well.

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http://www.wwltv.com/news/Grand-jury-indictment-179521481.html

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Re: BP will pay $4.5 billion to US and plead guilty to felony misconduct in the Deepwater Horizon disaster

Department of Justice
Office of Public Affairs
FOR IMMEDIATE RELEASE
Thursday, November 15, 2012

BP Exploration and Production Inc. Agrees to Plead Guilty to Felony Manslaughter, Environmental Crimes and Obstruction of Congress Surrounding Deepwater Horizon Incident

BP Agrees to Pay a Record $4 Billion in Criminal Fines and Penalties Two Highest-Ranking BP Supervisors on Deepwater Horizon Oil Rig Charged with Manslaughter and Former Senior BP Executive Charged with Obstruction of Congress

BP Exploration and Production Inc. (BP) has agreed to plead guilty to felony manslaughter, environmental crimes and obstruction of Congress and pay a record $4 billion in criminal fines and penalties for its conduct leading to the 2010 Deepwater Horizon disaster that killed 11 people and caused the largest environmental disaster in U.S. history, Attorney General Eric Holder announced today. The 14-count information, filed today in U.S. District Court in the Eastern District of Louisiana, charges BP with 11 counts of felony manslaughter, one count of felony obstruction of Congress, and violations of the Clean Water and Migratory Bird Treaty Acts.

BP has signed a guilty plea agreement with the government, also filed today, admitting to its criminal conduct. As part of its guilty plea, BP has agreed, subject to the Court?s approval, to pay $4 billion in criminal fines and penalties ? the largest criminal resolution in United States history.

?The $4 billion in penalties and fines is the single largest criminal resolution in the history of the United States and constitutes a major achievement toward fulfilling a promise that the Justice Department made nearly two years ago to respond to the consequences of this epic environmental disaster and seek justice on behalf of its victims,? said Attorney General Holder. ?We specifically structured this resolution to ensure that more than half of the proceeds directly benefit the Gulf Coast region so that residents can continue to recover and rebuild.?

?The explosion of the rig was a disaster that resulted from BP?s culture of privileging profit over prudence,? said Assistant Attorney General Lanny A. Breuer of the Justice Department?s Criminal Division. ?We hope that BP's acknowledgment of its misconduct ? through its agreement to plead guilty to 11 counts of felony manslaughter ? brings some measure of justice to the family members of the people who died onboard the rig.?

?The oil spill was catastrophicfor the environment, but by hiding its severity BP also harmed another constituency ? its own shareholders and the investing public who are entitled to transparency, accuracy and completeness of company information, particularly in times of crisis,? said Robert Khuzami, Director of the U.S. Securities and Exchange Commission?s (SEC) Division of Enforcement. ?Good corporate citizenship and responsible crisis management means that a company can?t hide critical information simply because it fears the backlash.?

In addition to the resolution of charges against BP, Robert M. Kaluza, 62, of Henderson, Nev., and Donald J. Vidrine, 65, of Lafayette, La. ? the highest-ranking BP supervisors onboard the Deepwater Horizon on April 20, 2010 ? are alleged to have engaged in negligent and grossly negligent conduct in a 23-count indictment charging violations of the federal involuntary manslaughter and seaman?s manslaughter statutes and the Clean Water Act. David I. Rainey, 58, of Houston ? a former BP executive who served as a Deputy Incident Commander and BP?s second-highest ranking representative at Unified Command during the spill response ? is charged with obstruction of Congress and making false statements to law enforcement officials. A grand jury in the Eastern District of Louisiana returned the indictments against Kaluza, Vidrine and Rainey, which were unsealed today.

According to court documents, on April 20, 2010, while stationed at the Macondo well site in the Gulf of Mexico, the Deepwater Horizon rig experienced an uncontrolled blowout and related explosions. In agreeing to plead guilty, BP has admitted that the two highest-ranking BP supervisors onboard the Deepwater Horizon, known as BP?s ?Well Site Leaders? or ?company men,? negligently caused the deaths of 11 men and the resulting oil spill. The information details that, on the evening of April 20, the two supervisors, Kaluza and Vidrine, observed clear indications that the Macondo well was not secure and that oil and gas were flowing into the well. Despite this, BP?s well site leaders chose not to take obvious and appropriate steps to prevent the blowout. As a result of their conduct, control of the Macondo well was lost, resulting in catastrophe.

Kaluza and Vidrine each are charged with 11 felony counts of seaman?s manslaughter, 11 felony counts of involuntary manslaughter and one violation of the Clean Water Act. If convicted, Kaluza and Vidrine each face a maximum potential penalty of 10 years in prison on each seaman?s manslaughter count, up to eight years in prison on each involuntary manslaughter count, and up to a year in prison on the Clean Water Act count.

The information charging BP further details that the company, through senior executive Rainey, obstructed an inquiry by the U.S. Congress into the amount of oil being discharged into the Gulf while the spill was ongoing. As part of its plea agreement, BP has admitted that, through Rainey, it withheld documents and provided false and misleading information in response to the U.S. House of Representatives? request for flow-rate information. Among other things, BP admitted that Rainey manipulated internal estimates to understate the amount of oil flowing from the well and withheld data that contradicted BP?s public estimate of 5,000 barrels of oil per day. BP has also admitted that, at the same time Rainey was preparing his manipulated estimates, BP?s internal engineering response teams were using sophisticated methods that generated significantly higher estimates. The Flow Rate Technical Group, consisting of government and independent scientists, later concluded that more than 60,000 barrels per day were leaking into the Gulf during the relevant time, contrary to BP?s representations to Congress.

Rainey is charged with one count of obstruction of Congress, and one count of making false statements to law enforcement officials. If convicted, Rainey faces a maximum potential penalty of five years in prison on each count.

The criminal resolution is structured such that more than half of the proceeds will directly benefit the Gulf region. Pursuant to an order presented to the Court, approximately $2.4 billion of the $4.0 billion criminal recovery is dedicated to acquiring, restoring, preserving and conserving ? in consultation with appropriate state and other resource managers ? the marine and coastal environments, ecosystems and bird and wildlife habitat in the Gulf of Mexico and bordering states harmed by the Deepwater Horizon oil spill. This portion of the criminal recovery will also be directed to significant barrier island restoration and/or river diversion off the coast of Louisiana to further benefit and improve coastal wetlands affected by the oil spill. An additional $350 million will be used to fund improved oil spill prevention and response efforts in the Gulf through research, development, education and training.

In addition to the historic $4 billion in criminal fines and penalties, BP has agreed as part of its guilty plea to retain a process safety and risk management monitor and an independent auditor, who will oversee BP?s process safety, risk management and drilling equipment maintenance with respect to deepwater drilling in the Gulf of Mexico. BP is also required to retain an ethics monitor to improve BP?s code of conduct for the purpose of seeking to ensure BP?s future candor with the United States government.

The United States continues to pursue a civil action to recover civil penalties under the Clean Water Act and hold BP and other defendants liable for natural resource damages under the Oil Pollution Act. A trial on liability matters is scheduled to begin in February 2013, during which the United States will seek to establish that the spill was caused by BP?s gross negligence. BP could face billions of dollars of additional exposure in the civil lawsuit.

The guilty plea agreement and charges announced today are part of the ongoing criminal investigation by the Deepwater Horizon Task Force into matters related to the April 2010 Gulf oil spill. The Deepwater Horizon Task Force, based in New Orleans, is supervised by Assistant Attorney General Breuer and led by Deputy Assistant Attorney General John D. Buretta, who serves as the director of the task force. The task force includes prosecutors from the Criminal Division and Environment and Natural Resources Division of the Department of Justice; the U.S. Attorney?s Office for the Eastern District of Louisiana, as well as other U.S. Attorneys? Offices; and investigating agents from the FBI, Environmental Protection Agency, Department of Interior, National Oceanic and Atmospheric Administration Office of Law Enforcement, U.S. Coast Guard, U.S. Fish and Wildlife Service and the Louisiana Department of Environmental Quality.

Today, the SEC simultaneously resolved civil securities fraud charges with BP in a $525 million settlement. The Justice Department also acknowledges and expresses its appreciation for the significant assistance provided by the SEC?s Division of Enforcement.

These cases are being prosecuted by Deepwater Horizon Task Force Deputy Directors Derek A. Cohen and Avi Gesser, and task force prosecutors Richard R. Pickens II, Scott M. Cullen, Colin Black, Edward Kang and Rohan Virginkar.

An indictment or information is merely a charge and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.

http://www.justice.gov/opa/pr/2012/November/12-ag-1369.html

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Attorney General Eric Holder Speaks at the BP Press Conference

New Orleans ~ Thursday, November 15, 2012

Good afternoon. I?m honored to join with Associate Attorney General Tony West; Assistant Attorney General Lanny Breuer, of the Justice Department?s Criminal Division; Director Robert Khuzami, of the Securities and Exchange Commission?s Division of Enforcement; John Buretta, head of the Deepwater Horizon Task Force; and many of the Task Force?s members ? in announcing the latest steps forward in our ongoing efforts to achieve justice for those whose lives, and livelihoods, were impacted by the largest environmental disaster in our nation?s history ? and to hold accountable those who bore responsibility for this tragedy.

Today, in U.S. District Court here in the Eastern District of Louisiana, the Department filed a 14-count information charging BP with 11 counts of felony manslaughter, one count of felony obstruction of Congress, and violations of the Clean Water and Migratory Bird Treaty Acts in connection with the Deepwater Horizon oil spill that began in April 2010. BP has agreed to plead guilty to all 14 criminal charges ? admitting responsibility for the deaths of 11 people and the events that led to an unprecedented environmental catastrophe. The company also has agreed to pay $4 billion in fines and penalties.

This marks both the single largest criminal fine ? more than $1.25 billion ? and the single largest total criminal resolution ? $4 billion ? in the history of the United States. It stands as a testament to the hard work of countless investigators, attorneys, support staff members, and other personnel ? from the Deepwater Horizon Task Force and a range of federal, state, and local agencies ? who have worked tirelessly to advance a complex and wide-ranging investigation that began even before the oil well was capped. And it constitutes a major achievement toward fulfilling a promise that I made here in New Orleans, along with my colleagues, nearly two years ago: to engage with our partners and counterparts to determine the causes of this disaster; to respond to its consequences; to seek justice on behalf of its victims; and to enable Gulf Coast residents to continue to recover and rebuild.

To this end, under the terms of the agreement we announce today, about $2.4 billion of the criminal recovery funds will be dedicated to environmental restoration, preservation, and conservation efforts throughout this region ? including barrier-island creation and river diversion projects right here in Louisiana. An additional $350 million will aid in the development of state-of-the art oil spill prevention and response technologies, education, research, and training. And more than $1 billion will go to the U.S. Coast Guard?s Oil Spill Liability Trust Fund, to be available for cleanup ? and compensation for those affected by ? oil spills in the Gulf and throughout the United States.

As part of its guilty plea, BP will retain a monitor ? for four years ? who will oversee safety, risk management and equipment maintenance in relation to deepwater drilling in the Gulf, as well as an independent auditor who will conduct annual reviews to ensure compliance with the terms of this agreement. The company will also hire an ethics monitor to improve its code of conduct and foster robust cooperation with the government.

There can be no question that this historic announcement represents a critical step forward ? and underscores the Justice Department?s determination to stand with Gulf Coast communities. In February, this same commitment led the Department to reach a partial settlement ? totaling $90 million ? with MOEX Offshore, related to that company?s Clean Water Act liability for the Deepwater Horizon disaster. Approximately $45 million of this total will go directly to the Gulf, in the form of penalties or expedited environmental projects.

But our work is far from over. In the trips that my colleagues and I have made to the Gulf Coast since the Deepwater Horizon spill, we?ve seen the damage ? to lives and businesses, as well as coastal areas and wetlands ? that this tragedy has inflicted. We understand the tremendous costs, both economic and environmental, that have been associated with this disaster. And we?ve been inspired by the resilience displayed by each and every Gulf Coast resident who?s been affected.

That?s why I want to be absolutely clear that today?s resolution does not mark the end of our efforts. In fact, our criminal investigation remains ongoing ? and we?ll continue to follow all credible leads and pursue any charges that are warranted.

In fact, in addition to the charges filed against BP, a federal grand jury returned an indictment charging the two highest-ranking BP supervisors who were on board the Deepwater Horizon on the day of the explosion with 23 criminal counts ? including 11 counts of seaman?s manslaughter, 11 counts of involuntary manslaughter, and alleged violations of the Clean Water Act. The grand jury also charged a former BP executive ? who served as a deputy incident commander and BP?s second-highest ranking representative at Unified Command during the spill response ? with hiding information from Congress and allegedly lying to law enforcement officials.

These and other matters remain open, including a separate civil action that?s pending in federal court here in New Orleans. We?re looking forward to the trial ? which is scheduled to begin in February of next year ? in which we intend to prove that BP was grossly negligent in causing the oil spill. In that lawsuit, we are seeking civil penalties and a judgment that BP and others are liable for removal costs and natural resource damages ? exposure that could amount to billions of dollars. Though we have been unable to date to resolve the civil case, we remain as determined as ever to hold those responsible accountable. In addition, my colleagues and I are firmly committed to combating oil-spill fraud by investigating and prosecuting those who attempt to reap criminal profits from such a terrible tragedy.

Once again, I want to thank each of the Task Force members, Justice Department leaders, local officials, critical agency partners, and Gulf Coast residents who have contributed to this work and made today?s historic announcement possible. And now, I?d like to turn things over to another key leader ? Assistant Attorney General Lanny Breuer ? who will provide additional details about today?s action.

http://www.justice.gov/iso/opa/ag/speeches/2012/ag-speech-121115.html

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Assistant Attorney General Lanny A. Breuer Speaks at the BP Press Conference

NEW ORLEANS ~ Thursday, November 15, 2012

Thank you, Attorney General Holder.
In April of 2010, the nation witnessed an unimaginable tragedy, when the Deepwater Horizon oil rig exploded in the Gulf of Mexico. Eleven people onboard the rig died, and oil began pouring out of the Macondo well, and onto the sea floor, for months, causing immense damage to the Gulf region and to our ecosystem.

The communities here in New Orleans, and around the Gulf, have waited patiently for justice to be done. Today, their wait is over.

The Deepwater Horizon Task Force filed a 14-count information and guilty plea agreement, in New Orleans federal court earlier today. The information charges BP Exploration and Production Inc. with 11 counts of felony manslaughter; violations of environmental laws, including the Clean Water Act and Migratory Bird Act; and obstruction of Congress. BP has agreed to plead guilty to each of these 14 counts and to pay the highest criminal fine in U.S. history.

Perhaps the greatest tragedy is that the deaths of the 11 men onboard the Deepwater Horizon could have been avoided. The explosion of the rig was a disaster that resulted from BP?s culture of privileging profit over prudence; and we allege that BP?s most senior decisionmakers onboard the Deepwater Horizon negligently caused the explosion. We hope that today?s acknowledgement by BP of its misconduct ? through its agreement to plead guilty to 11 counts of felony manslaughter ? brings some measure of justice to the family members of the people who died onboard the rig.

As the oil spill continued, BP made a tragic situation worse: it began misleading Congress and the American people about how much oil was pouring out of the Macondo well. As BP now admits, in responding to Congress, the company lied and withheld documents, in order to make it seem as though less damage was being done to the environment than was actually occurring. Acknowledging those lies, BP has agreed to plead guilty to felony obstruction of Congress.

Make no mistake: While the company is guilty, individuals committed these crimes. And we have also unsealed today a 23-count indictment charging BP?s two highest-ranking supervisors onboard the Deepwater Horizon with manslaughter and violation of the Clean Water Act. The indictment charges these two BP well site leaders with negligence, and gross-negligence, on the evening of April 20, 2010. In the face of glaring red flags indicating that the well was not secure, both men allegedly failed to take appropriate action to prevent the blowout.

A separate indictment was also unsealed today charging a former senior BP executive, David Rainey, with obstructing a congressional investigation and making false statements to law enforcement officials. The indictment alleges that Rainey, on behalf of BP, intentionally underestimated the amount of oil flowing from the Macondo well. Rainey allegedly cherry-picked pages from documents, withheld other documents altogether and lied to Congress and others in order to make the spill appear less catastrophic than it was.

The Attorney General stood near here when the Department first opened its criminal investigation into the oil spill and promised that we would thoroughly investigate and hold to account those responsible for this horrible tragedy. Today, we have begun doing exactly that; and tomorrow, and in the months to come, the Deepwater Horizon Task Force will continue its tireless pursuit of justice in this matter.

I would like to personally thank Task Force Director John Buretta, who has done an absolutely remarkable job leading this investigation, as well as the many fine prosecutors from the Criminal Division, Environment and Natural Resources Division and U.S. Attorney community, and the many talented federal and state law enforcement agents, who have worked so hard, for so long, to develop these cases. I would also like to thank our colleagues at the Securities and Exchange Commission for their important parallel investigation.
Thank you.

http://www.justice.gov/criminal/pr/speeches/2012/crm-speech-121115.html