A federal judge OK’d an agreement today for BP PLC to plead guilty to manslaughter and other charges and pay a record $4 billion in criminal penalties for the company’s role in the 2010 oil disaster in the Gulf of Mexico.
Before she ruled, U.S. District Judge Sarah Vance heard testimony from relatives of 11 workers who died when BP’s blown-out Macondo well triggered an explosion on the Deepwater Horizon drilling rig and started the spill.
BP agreed in November to plead guilty to charges involving the workers’ deaths and for lying to Congress about the size of the spill from its broken well, which spewed more than 200 million gallons of oil. Much of it ended up in the Gulf and soiled the shorelines of several states. The company could have withdrawn from the agreement if Vance had rejected it.
Neither the Justice Department nor BP presented arguments to the judge before her decision in New Orleans.
Vance said the plea deal was “just punishment” considering the risks of litigation for BP and the alternatives to the settlement. She told victims’ relatives who were in court that she read their “truly gut-wrenching” written statements and factored their words into her decision.
“I’ve heard and I truly understand your feelings and the losses you suffered,” she said.
She said she also believes BP executives should have personally apologized to family members.
“I think BP should have done that out of basic humanity,” she said.
The deal doesn’t resolve the federal government’s civil claims against BP. The company could pay billions more in penalties for environmental damage.
BP separately agreed to a settlement with lawyers for Gulf Coast residents and businesses who claim the spill cost them money. BP estimates the deal with private attorneys will cost the company roughly $7.8 billion.
For the criminal settlement, BP agreed to pay nearly $1.3 billion in fines. The largest previous corporate criminal penalty assessed by the Justice Department was a $1.2 billion fine against drug maker Pfizer in 2009.
The criminal settlement also includes payments of nearly $2.4 billion to the National Fish and Wildlife Foundation and $350 million to the National Academy of Sciences.
The Justice Department reached a separate settlement with rig owner Transocean Ltd. that resolves the government’s civil and criminal claims over the Swiss-based company’s role in the disaster.
Transocean agreed to plead guilty to a misdemeanor charge of violating the Clean Water Act and pay $1.4 billion in civil and criminal penalties. U.S. District Judge Jane Triche Milazzo has scheduled a Feb. 14 hearing to decide whether to accept that criminal settlement. A different judge will decide whether to accept Transocean’s civil settlement.
Four current or former BP employees face indictments on separate criminal charges. BP rig supervisors Robert Kaluza and Donald Vidrine face manslaughter charges, accused of repeatedly disregarding abnormal high-pressure readings that should have been glaring indications of trouble just before the blowout.
David Rainey, BP’s former vice president of exploration for the Gulf of Mexico, faces charges of withholding information from Congress about the amount of oil that gushed from the well.
Former BP engineer Kurt Mix faces charges of deleting text messages about the company’s spill response.