Full Answer
How much did BP pay in Deepwater Horizon settlement?
The U.S. Justice Department touted its historic settlement with BP over charges related to the Deepwater Horizon disaster in 2010. BP will be forced to pay $20.8 billion, the largest settlement ever reached with a single entity.
What happened to the appeal deadline for the Deepwater Horizon settlement?
The appeal deadline passed on December 2, 2018. No appeals were filed and the initial distribution to Old Class members, consisting of all individuals and entities that have received a payment from the DHEPDS Court Supervised Settlement Program for compensatory losses associated with the Deepwater Horizon Spill, began on December 17, 2018.
What was the economic impact of the Deepwater Horizon explosion?
Explosion triggered economic, environmental devastation, and a legal battle. Clean Water Act, RESTORE Act, Oil Pollution Act and criminal statutes lead to $20.8B settlement, largest in U.S. history. On April 20, 2010, the Deepwater Horizon oil rig exploded off the Gulf Coast, killing 11 people and injuring 17.
Who are the companies involved in the Deepwater Horizon case?
There are four Transocean corporate entities that were involved in the drilling and operation of the Deepwater Horizon and that are covered by this settlement: Transocean Deepwater Inc., Transocean Offshore Deepwater Drilling Inc., Transocean Holdings LLC, and Triton Asset Leasing GmbH (“the Transocean Defendants”).
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How much did Deepwater Horizon victims get?
It was largely settled when a Federal District judge approved the largest environmental damage settlement in United States history – $20.8 billion – on April 4, 2016.
Is BP still paying for Deepwater Horizon?
Total BP money paid out pushing $60 billion It'll cost $6.4 million, but the city has that sum covered, thanks to their settlement with BP Oil. Almost 10 years since the Deepwater Horizon disaster in the Gulf of Mexico and five years from the settlement was announced, BP oil money is still coming to Tampa Bay.
How much did the BP oil spill cost taxpayers?
$10 billionBP oil spill to cost U.S. taxpayer almost $10 billion | Reuters.
Who was liable for Deepwater Horizon?
On Jan. 29, 2013, BP Exploration and Production Inc. pleaded guilty to illegal conduct leading to and after the 2010 Deepwater Horizon disaster, and was sentenced to pay $4 billion in criminal fines, penalties and restitution, including $2.4 billion for natural resource restoration.
Did anyone from BP go to jail for Deepwater Horizon?
(Reuters) - A former BP Plc BP. L rig supervisor who pleaded guilty to a misdemeanor charge in the 2010 Gulf of Mexico oil spill was sentenced to 10 months of probation on Wednesday, concluding a federal criminal case in which no one received prison time over the disaster.
Is the Deepwater Horizon well still leaking?
One oil well off the southeastern coast of Louisiana, owned by Taylor Energy, has been leaking since 2004, spilling between 300 and 700 barrels per day. The well's reserves could keep it leaking for the next 100 years if it isn't capped, meaning it will one day eclipse the Deepwater Horizon spill in terms of volume.
Could Deepwater Horizon been prevented?
A culture of tighter safety and more experienced regulators might have prevented the BP Deepwater Horizon leak. But equipment modifications and new technology will be needed to minimize the risk of such deepwater oil leaks.
Is there still oil in the Gulf of Mexico?
Since the first offshore rig was built off the coast of Louisiana in 1938, the Gulf of Mexico has been a reliable source of domestic oil. Its deep trove of reservoirs is responsible for about 14% of the U.S.'s crude production, second only to the country's prolific shale fields.
How did they clean up the Deepwater Horizon oil spill?
In the case of the Deepwater Horizon oil spill, clean-up workers treated the oil with over 1.4 million gallons of various chemical dispersants. Typically such large amounts are sprayed over the open ocean from an airplane or helicopter.
How much did the families get from BP?
On Feb. 15, 2018, the Mexican government agreed to the $25.5 million payout from BP, in return for settling their lawsuit, clearing the transnational energy giant of all damages to Mexican waters.
How much did BP pay the families of Deepwater Horizon?
As of July 1, more than 260,000 private parties had submitted claims, and the company had paid nearly $12 billion to more than 130,000 unique claimants, according to the Deepwater Horizon Claims Center.
How much did BP sue for Deepwater Horizon?
On November 14, 2012, BP and the US Department of Justice reached a settlement under which BP agreed to pay $4.5 billion in fines and other payments, the largest of its kind in US history. BP also agreed to plead guilty to 11 felony counts related to the deaths of the 11 workers.
Did BP take responsibility oil spill?
In 2012, BP agreed to accept criminal responsibility for the disaster and agreed to pay $4.5bn to the US government, thus settling its criminal liability in the spill.
How much did the Deepwater Horizon cost BP?
$61.6 billion dollarsIn July 2016, BP announced Deepwater Horizon's total cost was $61.6 billion dollars. According to Reuters, however, as of September, the British oil and gas company has paid $63.4 billion in legal fees and cleanup costs.
Where is Donald Vidrine now?
Donald J. Vidrine, who faced prosecution as one of two BP supervisors on the Deepwater Horizon oil drilling rig that exploded in the Gulf of Mexico in 2010, died on Saturday at his home in Baton Rouge, La.
Is the BP oil spill still a problem today?
The BP oil continues polluting the gulf even today, according to recently released findings by scientists from the University of South Florida's College of Marine Sciences. It's still affecting fish and other marine species.
How much did BP pay for the Deepwater Horizon?
Justice Department touted its historic settlement with BP over charges related to the Deepwater Horizon disaster in 2010. BP will be forced to pay $20.8 billion, the largest settlement ever reached with a single entity.
Is BP's oil spill tax deductible?
Similarly, the $32 billion that BP spent to clean up the Gulf area following the massive oil spill was also tax deductible, costing U.S. taxpayers $10 billion. Obviously, BP will do everything within its power to pay as little as possible.
Can BP deduct settlements?
It appears that BP will be able to deduct quite a bit of its settlement with the U.S. government.
Is a historical settlement a penalty?
Due to quirks in the tax code, the “historic” settlement is not as significant a penalty as the U.S. government is making it out to be. It is normal for companies to deduct the business costs. Even litigation costs are often tax deductible. Violations of law, however, are often in murky territory. Sometimes there needs to be explicit language in settlements that bars companies from writing off penalties paid to the government.
Can BP write off $20.8 billion?
Wood points out in Forbes. Only $5.5 billion out of the $20.8 billion total is not eligible for a tax de duction, as those charges stem from a Clean Water Act violation.
Will BP write off the Justice Department settlement?
Obviously, BP will do everything within its power to pay as little as possible. So, the fact that it will write off a significant portion of its settlement with the Justice Department is the fault of the U.S. tax code. Changes to the code would be needed to prevent companies from deducting penalties.
What are the two groups included in the HESI/Transocean Settlements?
There are two groups included in the HESI/Transocean Settlements, the New Class that settled its punitive damage claims and the Old Class that received a settlement for claims assigned to it pursuant to Exhibit 31 of the Deepwater Horizon Economic and Property Damages Settlement (DHEPDS) Agreement. It is possible to be a member of one or both Classes.
When will non-real property be paid?
Any non-Real Property claims that are still subject to appeal or Court-review will be paid only after all due process rights have expired or been waived.
What is the IRS Form 1099 for 2020?
If you received payment (s) of $600 or more for Old Class assigned claims payments for reportable claim types during calendar year 2020, you will be sent an IRS Form 1099 reflecting the total of those reportable awards. Wetlands Real Property, Coastal Real Property, Oyster Leaseholder, Real Property Sales, and Vessel Physical Damage are not automatically included in the reportable amount per the IRS requirements – you must consult with your tax adviser to determine if these payments are taxable.
What is the amount of punitive damages on a 1099?
If you received a payment (s) of $600 or more for New Class punitive damages claims during calendar year 2020, the full amount of those punitive damages payments will be included on your IRS Form 1099. All New Class awards, regardless of claim type, are reportable as all proceeds of the New Class are for punitive damages. Please consult your tax adviser if you have questions about the tax consequences of receiving punitive damages payments.
When did the Settlements Program start mailing postcards?
The Settlements Program began mailing postcards on 11/20/2020 to claimants who were sent a payment by check but have not cashed the check or for whom the check was returned undeliverable. For undeliverable checks the Settlements Program attempted to locate a new address, but cannot reissue the check to that new address until it is confirmed by the Claimant and proof of the address change is provided to the Settlements Program.
Can a settlement program issue a 1099?
Please note, the Settlements Program is only able to issue a Form 1099 to a single recipient for each claim, so in instances where proceeds were split after distribution was made, the parties must choose one recipient for the Form 1099.
Who owns the Deepwater Horizon?
At the time of the explosion and sinking of the Deepwater Horizon oil rig into the Gulf of Mexico in April 2010, Transocean owned and operated the Deepwater Horizon, including the blow-out preventer and riser. BP Exploration and Production, Inc. (“BP”) contracted with Transocean for the operation of the Deepwater Horizon to drill the Macondo Well. (For more information on the 2010 Deepwater Horizon oil spill, see EPA Response to BP Spill in the Gulf). There are four Transocean corporate entities that were involved in the drilling and operation of the Deepwater Horizon and that are covered by this settlement: Transocean Deepwater Inc., Transocean Offshore Deepwater Drilling Inc., Transocean Holdings LLC, and Triton Asset Leasing GmbH (“the Transocean Defendants”).
Why is the Transocean settlement important?
The injunctive relief required by the settlement to improve the safety of Transocean's oil drilling practices and to enhance its oil spill preparedness and response are designed both to prevent the likelihood of a future oil spill, and to minimize the adverse effects of a spill if it should happen. Oil spills are known to cause both immediate and long-term harm to human health and ecosystems. Oil prevents oxygen in water and can suffocate wildlife.
What was the Transocean settlement?
(Washington, DC - January 3, 2013) - According to the terms of the settlement, Transocean will pay a $1 billion civil penalty to resolve alleged violations of the Clean Water Act resulting from the discharge of oil into the Gulf of Mexico from the loss of the Deepwater Horizon and the April 20, ...
What happened to BP Exploration and Production?
agreed to plead guilty to felony manslaughter, environmental crimes and obstruction of Congress and pay a record $4 billion in criminal fines and penalties for its conduct leading to the 2010 Deepwater Horizon disaster.
How much did Transocean pay?
Civil Penalty. As part of the settlement, the Transocean Defendants have agreed to pay a $1 billion civil penalty. Pursuant to the RESTORE Act, 80% of this amount is directed toward Gulf restoration-related activities.
When did Transocean pay the $400 million fine?
On January 3, 2013, the Transocean Defendants agreed to plead guilty to criminal charges and pay a $400 million criminal fine in connection with the blowout of the Macondo Well and sinking of the Deepwater Horizon (PDF) (33 pp, 12MB).
Does oil emulsion damage fish?
Oil prevents oxygen in water and can suffocate wildlife. Oil emulsions may stick to the gills of fish or coat and destroy algae or other plankton. Floating oil may reduce water exposure to the circulation of oxygen and, in conjunction with emulsified oil, interfere with photosynthesis.