Transocean LLC today admitted criminal conduct in its handling of the Deepwater Horizon oil-rig disaster in the Gulf of Mexico and agreed to pay $1.4 billion in criminal and civil fines.
The civil portion—$1 billion—is by far the largest sum paid for violations of the Clean Water Act. The criminal plea, in which Transocean admits negligence "in failing fully to investigate clear indications that the Macondo well was not secure" includes a $400 million fine.
"This agreement holds Transocean criminally accountable for its conduct and provides nearly a billion dollars in criminal and civil penalties for the benefit of the Gulf states," said Attorney General Eric Holder.
Of the $1 billion civil penalty, 80 percent must be spent "in projects in and for the Gulf states for the environmental and economic benefit of the region," according to an EPA press release that announced the settlement this morning.
Of the $400 million criminal penalty, $150 million will go toward "acquiring, restoring, preserving and conserving… marine and coastal environments, ecosystems and bird and wildlife habitat in the Gulf of Mexico and bordering states harmed by the Deepwater Horizon oil spill." Another $150 million will go toward research to improve drilling safety.
Transocean built and staffed the Deepwater Horizon. It was leased by BP. Eleven people were killed, including nine Transocean employees, in the April 20 explosion and collapse of the rig, which gushed crude oil into the Gulf of Mexico for 86 days.
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