Deepwater Horizon Update Houseal PPT 5

7/25/2019 Deepwater Horizon Update Houseal PPT 5

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2015 Fall Meeting of theMaritime Law Association of the U.S.

Marine Ecology and Maritime Criminal Law Committee

Deepwater Horizon / Macondo Well Update

Sean Houseal

Womble Carlyle Sandridge & Rice, LLP

5 Ec!ange StreetC!arleston, SC "#$%

s!ouseal'(csr)com



ee!water "ori#on $ele%ant&imeline

• "%%, *pril "% + lo(out - Eplosion at Macondo Well

.ec) 5 + U)S) /les ci0il complaint in E).) Louisiana

• "%, *pril " + P agrees to pay 1 illion 2or 3R. early restoration pro4ects

• "%", Marc! " + Class *ction settlements announced bet(een pri0ate indi0idualsand P

3o0) 5 + P Criminal Plea *greement (it! U)S) announced 1$ illion total, 6remedial order7

• "%8, 9an) 8 + :ransocean settlements announced 1)$ illion total, ci0il andcriminal7

• "%$, Sept) $ + Court rules on P!ase ;ne trial, /nding P grossly negligent &(il2ul in its misconduct

•

"%5, 9an) 5 + .istrict Court rules on P!ase :(o trial, /nding a disc!arge o28)# million barrels oil

<eb) " + P!ase :!ree o2 trial is completed

9uly 8 + *greement in principle bet(een P and t!e U)S) is announced

;ct) 5 + U)S) lodges Consent .ecree (it! P, t!e terms o2 (!ic! (ouldresol0e all 2ederal and state claims against P arising 2rom t!e incident

=%>day public comment period is under(ay"



'ro!osed Consentecree

• ;ctober 5, "%5

– U)S) lodges Consent .ecree (it! P arising 2romt!e "%% .eep(ater Hori?on oil spill

–

:!e proposed settlement agreement (ouldresol0e all pending 2ederal and state claimsagainst P arising 2rom t!e incident

– Public !as =% days in (!ic! to submit commentsto U)S) .;9 on t!e proposed C., in accordance(it! "@ C)<)R) 5%)A) Comment period ends"-$-5

8



&erms of 'ro!osedSettlement

• Settlement eceeds (20 )illion > Largest settlement amount (it!a single entity in U)S) !istory > Bn addition to t!e 1$$ P !asincurred in cleanup costs & legal 2ees

• P !as agreed to pay a (5.5 )illion penalty to resol0e ci0il

claims under t!e Clean Water *ct, plus interest C. paras) % +$7

• P !as agreed to pay (*.1 )illion to resol0e 3atural Resource.amages claims under t!e ;il Pollution *ct C. paras) 5 + A,

#7

• P !as reac!ed a related, parallel agreement (it! 5 ul2 states*labama, <lorida, Louisiana, Mississippi and :eas7 to pay up to(5.+ )illion to t!e 5 ul2 states, and up to (1)illion to localgo0ernments to resol0e Economic .amages claims

$



C,A Ci%il 'enalty of (5.5 )illion

• P !as agreed to pay a (5.5 )illion penalty, plusinterest, to resol0e ci0il claims under t!e Clean Water *ct,plus interest C. paras) % + $7 – Largest ci0il penalty in !istory o2 en0ironmental la( U)S) .;97

–

Penalty is sub4ect to t!e RES:;RE *ct, (!ic! allocates @%D toen0ironmental restoration, economic reco0ery pro4ects, andtourism and sea2ood promotion in t!e 5 ul2 states

– Remainder o2 t!e ci0il penalties under t!e CW* (ill be paid tot!e ;il Spill Liability :rust <und in accordance (it! ;P*#%

– Penalty also resol0es claims related to incidents o2 non>

compliance t!at .ept) o2 Bnteriors ureau o2 Sa2ety andEn0ironmental En2orcement issued to P concerning t!e (ell

5



(*.1 )illion in -atral $esorceamages

• (*.1 )illion to resol0e 3atural Resource .amages claimsunder t!e ;il Pollution *ct C. paras) 5 + A, #7

• :!e 1@) includes t!e 1 t!at P !ad pre0iouslycommitted to pay 2or early restoration pro4ects

• .esignated 2ederal and state 3R. :rustees !a0e agreedto an allocation o2 t!e 2unds among 5 diFerent restorationgoals designed to restore ul2 o2 Meico natural resourcesin4ured by t!e spill

– 8 restoration categories set 2ort! at p) 8 o2 t!e <act S!eet

– .ra2t 3atural Resources .amages *ssessment and RestorationPlan is a0ailable 2or public re0ie(

=



U! to (5.+ )illion to the 5 /lf statesfor Economic amages claims

• P !as reac!ed a related, parallelagreement (it! t!e 5 ul2 states*labama, <lorida, Louisiana, Mississippi

and :eas7 to pay (.+ )illion to t!e 5ul2 states to resol0e economic damagesclaims

• P (ill pay up to an additional (1 )illion

to local go0ernments to resol0e Economic.amages claims

A



(50 Million in -$ AssessmentCosts

• Bn addition, P (ill pay 185% Millionto 2ederal, state, and localgo0ernments 2or t!eir 3atural

Resource .amage assessment costs

@



U! to (00M for Un3nown 4nryand Ada!ti%e Management

• P (ill pay up to 1A%% Million to addressnatural resource conditions t!at arepresently unGno(n but may be disco0ered

in t!e 2uture, and 2or monitoring, adapting,supplementing, or replacing earlierrestoration pro4ects as needed

– :!is amount is comprised o2 1"8"M, plus

accrued interest on t!e 1@) illion paymentC. Para) "7

#



(250M to reim6rse the

U.S. for res!onse costs7 lostroyalties7 and to resol%e an

FCA in%estigation

• P (ill pay an additional 1"5% Million in

reimbursement costs to t!e United States 2orits response costs, lost royalties on oil, and to

resol0e a <alse Claims *ct in0estigation C.Paras) "" + "$7



• Ps "%" criminal guilty plea imposed compre!ensi0emeasures upon P to impro0e Ps drilling and sa2etyprotocols and corporate et!ics) P also entered into anagreement (it! EP*, imposing additional measures on Pto resol0e t!e specter o2 debarment and suspension 2rom2urt!er commercial dealings (it! t!e 2ederal go0ernment)

• Bn entering into t!e C., P is acGno(ledging t!at it is incompliance (it! t!ese compre!ensi0e measures)

• P !as agreed to publis! reports on a publically accessible

(ebsite, documenting its progress• C. paras) 8$ + 8@, and *ppendices $, 5, = and 7

4nncti%e $elief



• .uring t!e =%>day public comment period, 2ederaland state trustees plan to !old public meetings ineac! o2 t!e 5 ul2 states and in Was!ington, .)C)to pro0ide a 2orum 2or discussion and to pro0ide

2urt!er opportunity 2or public input regarding t!eterms o2 t!e C. and .*RP

• *2ter t!e close o2 t!e =%>day public commentperiod, t!e :rustees (ill consider t!e input

recei0ed, and (ill determine (!et!er to seeG courtappro0al o2 t!e C.

-e8t Ste!s



• !ttp--((()4ustice)go0-enrd-deep(ater>!ori?on

• Pro0ides copy o2 Proposed Consent .ecree.ocuments, including –

Consent .ecree – Summary o2 Consent .ecree

– <act S!eet on Consent .ecree

– .eep(ater Hori?on-Macondo Well :imeline

–

<ederal Register 3otice in0iting public comment onConsent .ecree

9: Lin3;$esorces



• <ull tet o2 t!e .ra2t P.*RP-PEBS is a0ailable at ((()gul2spillrestoration)noaa)go0

–Comments on t!e .ra2t P.*RP-PEBS must be recei0ed on or be2ore .ecember $, "%5

• :!e 8 proposed restoration types are

) Wetlands, coastal, and nears!ore !abitats") Habitat pro4ects on 2ederally managed lands

8) 3utrient reduction$) Water Iuality5) <is! and (ater column in0ertebrates=) SturgeonA) Submerged aIuatic 0egetation@) ;ysters#) Sea turtles%) Marine mammals) irds") Mesop!otic and bent!ic lo(lig!t and ocean Joor7 communities8) Pro0ide and en!ance recreational opportunities

-9AA Lin3 for Additional4nformation on raft A$';'E4S



&han3 <o=

Kuestions - Comments - .iscussion

Sean Houseal

Womble Carlyle Sandridge & Rice, LLP

5 Ec!ange Street

C!arleston, SC "#$%@$87 A"%>$=""

s!ouseal'(csr)com

Deepwater Horizon Update Houseal PPT 5

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