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Minority partner to pay $90 million over oil spill

NEW ORLEANS — A minority partner in BP's blown-out well in the Gulf of Mexico agreed Friday to pay $90 million in a settlement with the federal government and gulf states over the 2010 oil spill. It includes the largest civil penalty ever recovered under the federal Clean Water Act.

MOEX Offshore owned a 10 percent interest in the Macondo well, about 50 miles off the Louisiana coast. The well blew out in April 2010, destroying the BP-leased rig Deepwater Horizon, killing 11 men and resulting in the nation's worst offshore oil spill.

The agreement, filed in U.S. District Court in New Orleans, calls for MOEX to pay $45 million in civil penalties to the federal government and $25 million to the gulf states affected by the spill. The company also agreed to pay $20 million for coastal protection projects.

Louisiana's share of the civil penalties is $6.75 million. Alabama, Florida and Mississippi will each get $5 million, while Texas gets $3.25 million.

The Justice Department said the agreement is the largest civil penalty ever recovered under the clean water law that was enacted in 1972.

"The Department of Justice has not wavered in its commitment to hold all responsible parties fully accountable for what stands as the largest oil spill in U.S. history," said Attorney General Eric Holder in a statement.

MOEX is the first company involved in the disaster to settle with the federal government over the spill. The federal government also sued BP, rig owner Transocean Ltd. and another minority partner in the well, Anadarko Petroleum Corp.

A federal trial in New Orleans designed to determine the causes of the blowout that spewed millions of gallons of oil into the gulf is scheduled to start Feb. 27.

BP, the majority owner of the well, has been in talks with the federal and state governments and plaintiffs' attorneys to settle tens of thousands of claims before the trial. BP faces billions of dollars in fines and penalties, so any deal it reaches would dwarf the MOEX settlement.

In May 2011, MOEX Offshore agreed to pay BP more than $1 billion to settle all claims between the companies.

Minority partner to pay $90 million over oil spill 02/17/12 [Last modified: Friday, February 17, 2012 9:57pm]
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