BP to appeal ruling on oil spill settlement requirements

26 December 2013 20:52 Source:ICIS News

HOUSTON (ICIS)--BP on Thursday said that it plans to appeal a ruling issued this week by a US district judge that left in place the previously agreed-to requirements for proving damages in regard to the 2010 Deepwater Horizon oil spill in the Gulf of Mexico.

BP had asked Judge Carl Barbier to change the requirements for businesses seeking to recover money from the Court Supervised Settlement Program (CSSP).

Currently, certain businesses can file for presumed losses resulting from the disaster, a framework for the programme that BP had previously agreed to.

In response to allegations of fraudulent claims in the programme, BP sought for a change to requiring direct proof of damages from the oil spill.

Barbier denied the change on Tuesday.

“Awarding money to claimants with losses that were not caused by the spill is contrary to the language of the settlement and violates established principles of class action law,” said Geoff Morrell, senior vice president of US Communications & External Affairs for BP. “BP intends to seek appropriate appellate remedies to correct this error.”

BP has said the settlement with businesses and individuals has ballooned up to $9.2bn (€6.7bn) in costs and could go higher.

($1 = €0.73)

By Jeremy Pafford