November 15, 2012

BP and DOJ Reportedly Reach Settlement on Deepwater Horizon Disaster

<a href="http://www.flickr.com/photos/skytruth/4543311558/sizes/m/in/photostream/">Skytruth</a>/Flickr

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The Department of Justice, the Securities & Exchange Commission, and BP have reportedly reached a settlement agreement over the criminal charges related to the 2010 Deepwater Horizon spill, with the oil giant agreeing to pay $4.5 billion in fines.

The Washington Post reports that the BP will pay $4 billion over five years to settle with the DOJ, and another $525 million to settle SEC complaints:

“We believe this resolution is in the best interest of BP and its shareholders,” said Carl-Henric Svanberg, BP’s Chairman. “It removes two significant legal risks and allows us to vigorously defend the company against the remaining civil claims.”

To reach the settlement, the company pleaded guilty to a handful of criminal complaints:

BP agreed to plead guilty to 11 felony counts of misconduct or neglect of ships’ officers relating to the loss of 11 lives on the drilling rig that caught fire and sank; one misdemeanor count under the Clean Water Act; one misdemeanor count under the Migratory Bird Treaty Act; and one felony count of obstruction of Congress.

BP could still face enormous civil penalties for Clean Water Act violations based on the number of gallons of oil released, and for damage to natural resources. The settlement with the DOJ and SEC does not include a deal with cleanup workers and local residents impacted by the spill and does nothing to end private lawsuits filed by investors.

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WHO DOESN’T LOVE A POSITIVE STORY—OR TWO?

“Great journalism really does make a difference in this world: it can even save kids.”

That’s what a civil rights lawyer wrote to Julia Lurie, the day after her major investigation into a psychiatric hospital chain that uses foster children as “cash cows” published, letting her know he was using her findings that same day in a hearing to keep a child out of one of the facilities we investigated.

That’s awesome. As is the fact that Julia, who spent a full year reporting this challenging story, promptly heard from a Senate committee that will use her work in their own investigation of Universal Health Services. There’s no doubt her revelations will continue to have a big impact in the months and years to come.

Like another story about Mother Jones’ real-world impact.

This one, a multiyear investigation, published in 2021, exposed conditions in sugar work camps in the Dominican Republic owned by Central Romana—the conglomerate behind brands like C&H and Domino, whose product ends up in our Hershey bars and other sweets. A year ago, the Biden administration banned sugar imports from Central Romana. And just recently, we learned of a previously undisclosed investigation from the Department of Homeland Security, looking into working conditions at Central Romana. How big of a deal is this?

“This could be the first time a corporation would be held criminally liable for forced labor in their own supply chains,” according to a retired special agent we talked to.

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And it is only because Mother Jones is funded primarily by donations from readers that we can mount ambitious, yearlong—or more—investigations like these two stories that are making waves.

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