Judge rejects BP challenge to penalty regulations

Judge Carl Barbier Orders BP May Face Clean Water Act Maximum Penalty of $4,300 per Gallon

Rejecting a BP challenge to the rule-making authority of the Environmental Protection Agency District Judge Carl Barbier yesterday ruled the BP may be penalized $4,300/gallon for the 2010 Gulf of Mexico oil spill.  In the matter of Deepwater Horizon [Case 2:10-md-02179-CJB-SS ED LA.] "the Court finds that the EPA’s regulation, 40 C.F.R. § 19.4 (2010),
adjusting the civil penalty in 33 U.S.C. § 1321(b)(7)(D) is valid and that the maximum CWA civil
penalty that may be imposed against BPXP is $4,300 per barrel of oil discharged.

"For similar
reasons, the Court finds that the highest maximum civil penalty that may be imposed against
Anadarko Petroleum Corporation under 33 U.S.C. § 1321(b)(7)(A) is $1,100 per barrel.4
In light
of these conclusions and the fact that the parties agree that the Coast Guard incorrectly adjusted the
CWA civil penalty, the Court does not address whether the penalties in subsection (b)(7) were also
within the Coast Guard’s jurisdiction for purposes of the Inflation Adjustment Act."



The judge has not yet ruled how much BP will be penalized.  The company has argued that its clean-up efforts, responsiveness, and falling oil prices should mitigate the penalties to be assessed. - gwc







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