A federal judge ruled Thursday that BP PLC is liable for spilling just over 3 million barrels of crude into the Gulf of Mexico in the 2010 Deepwater Horizon disaster, 24% less than federal prosecutors had claimed.
The ruling means that BP faces a maximum penalty of $13.7 billion under the U.S. Clean Water Act, down from the $18 billion sought by the Justice Department.
The decision by Judge Carl Barbier surprised analysts following the case, coming days before BP is set to appear in his court for a related trial on how much it should pay for each barrel spilled. That tranche of the complex case, which begins on Tuesday, will determine the total fine under the Clean Water Act.
Thursday’s decision narrows the range of penalties BP could face, which could make a settlement more feasible, said Tom Claps, a legal analyst for Susquehanna Financial Group. But the judge is "not giving the parties a lot of time to sit down” to negotiate, he added.
The ruling on Thursday concluded that 4 million barrels of oil spilled into the Gulf, and that after taking into account the crude that was skimmed off the surface, BP is liable for a fine on 3.19 million barrels.
BP had argued it should be liable for 2.45 million barrels, while federal prosecutors claimed a fine should be based on 4.2 million barrels.
An expanded version of this report appears on WSJ.com
(www.marketwatch.com)
