News: Page (1) of 1 - 02/17/12 Email this story to a friend. email article Print this page (Article printing at page facebook

Minority partner to pay $90 million over oil spill

Minority partner MOEX to pay $90 million in settlement over BP oil spill in the Gulf By The Associated Press

NEW ORLEANS (AP) ' 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 2007 LLC owned 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.

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 said in a statement. "This landmark settlement is an important step ' but only a first step ' toward achieving accountability and protecting the future of the Gulf ecosystem by funding critical habitat preservation projects."

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.

MOEX Offshore, a wholly owned subsidiary of MOEX USA Corp. and unit of Japanese trading house Mitsui & Co., no longer owns any share of the lease for the Macondo well.

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

The federal government's $45 million share of the civil penalties will go toward replenishing the Oil Spill Liability Trust Fund, which covers the cost of cleanup and damage from future spills.

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.

MOEX officials could not immediately be reached for comment.

Page: 1

Related Keywords:Gulf Oil Spill-Litigation,National governments,Government and politics,Environmental concerns,Environment,Environment and nature,Accidents,Accidents and disasters,General news


Our Privacy Policy --- @ Copyright, 2015 Digital Media Online, All Rights Reserved