BP's Strategy to Limit Liability in Regard to Its Gulf Oil Gusher

tal Amount of Oil Released to Date: 4,455,000 barrels
Amount of Oil Recovered by BP to Date (via Containment Cap): 771,100 barrels
Oily Water Recovered: 694,286 barrels of oily water = 69,429 barrels of oil
Oil Consumed by Controlled Burns: 237,857 barrels
Total Amount of Unrecovered Oil in Gulf of Mexico to Date: 3,376,614 barrels

Currently, the official release rate of oil from the Deepwater Horizon blowout is estimated to be 35,000 to 60,000 barrels per day. Unofficial credible estimates indicate that 80,000 to 100,000 barrels of oil may be spewing from the damaged well each day. Two vessels, the Q4000 and the Discoverer Enterprise, are collecting approximately 25,000 barrels of oil per day. The U.S. Coast Guard (USCG) expects BP's third containment vessel, the Helix Producer, to increase total collection capacity to approximately 53,000 barrels of oil per day.

Under the Clean Water Act (CWA), BP faces fines of up to $4,300 for each barrel spilled. Furthermore, pursuant to Section 2702 of the Oil Pollution Act of 1990 (OPA 90), BP may be required to pay royalties (18.75%) owed to the federal government for the oil gushing from the well.

BP owns 65 percent of the Deepwater Horizon well, Anadarko owns 25 percent, and Mitsui owns 10 percent. Under OPA 90, responsible parties and guarantors are jointly and severally liable for the costs incurred. In this incident, BP has been named the responsible party. Pursuant to OPA 90, a "responsible party" means, in the case of an offshore facility, the lessee or permittee of the area in which the facility is located. Under the definition of responsible party in OPA 90, the fact that Anadarko and Mitsui are also "lessees," may relate to the potential liability of Anadarko and Mitsui. However, the role of Anadarko and Mitsui as solely financial partners rather than operators of the well is a key issue. Passive investors like Anadarko and Mitsui would normally be required to pay their pro rata share of liability unless it is possible to prove gross negligence on the part of BP.

Adopted from: http://www.rightsidenews.com/2010071310985/energy-and-environment/bps-strategy-to-limit-liability-in-regard-to-its-gulf-oil-gusher.html