| NEW ORLEANS
NEW ORLEANS Oct 1 Dithering and indecision at
BP Plc delayed the capping of its Macondo well and
worsened the extent of the 2010 Gulf of Mexico oil spill,
according to allegations by plaintiffs' lawyers at trial on
Tuesday that the British company denied.
On day two of the second phase of a trial in New Orleans
over billions of dollars in potential fines, witnesses said they
were surprised when BP abandoned one proposed method of plugging
the well, which would have put a new blowout preventer on top of
a similar device.
"It was BP's decision," said Robert Turlak, an engineer from
Transocean Ltd who worked on the well-capping team. "We
were so close, we'd come a long way ... We had the equipment
It eventually took 87 days to plug the well as a series of
different capping methods were tried. By then, millions of
barrels of oil had escaped into the sea and fouled coastlines in
the worst offshore spill in U.S. history.
BP lawyer Paul Collier fended off allegations of
indecisiveness, saying the company carefully assessed hazards
and discussed how to mitigate risks associated with numerous
He also said BP's well-capping team had a mantra of "don't
make things worse."
Lawyers for the plaintiffs - which include people affected
by the spill, the U.S. government and Gulf states, and former
contractors Transocean and Halliburton Co - have sought
to show that BP's estimates on the size of the leak were
unsubstantiated and complicated its efforts to cap the well.
At one point after the April 2010 spill, BP touted the
chances of stopping with leak with a so-called top kill that
pumped heavyweight drilling mud into the well. But that did not
work - frustrating U.S. officials at the time.
"I believed the words (BP Senior Vice President) Kent Wells
used, that this is a slam dunk," former U.S. Energy Secretary
Steven Chu said in a videotaped deposition played in court on
Monday about the top kill. After that, "we began to be much more
critical about what BP planned to do," Chu said.
Eventually, a "capping stack" that took weeks to build was
used to shut the well. Capping stacks have since become crucial
pieces of equipment standing by for emergencies in the Gulf.
BP has insisted its response after the blowout that killed
11 men was fully consistent with U.S. standards and that it
never misrepresented the amount of oil spewing from the well.
SIZE OF SPILL IN FOCUS
The second phase of the trial in U.S. District Court in New
Orleans, expected to last a month, covers how much oil spewed
from the well and whether efforts to stop it were adequate.
Internal company emails presented at the trial on Monday
showed BP saying publicly after the spill that 5,000 barrels of
oil a day were leaking into the ocean when it knew up to 100,000
barrels a day could have been leaking.
In the costliest scenario the fines under the Clean Water
Act could reach nearly $18 billion - an amount beyond the $42
billion BP has set aside for clean-up, compensation and damages.
The first phase of the trial, which wrapped up in April,
looked at dividing blame among BP and its contractors;
Transocean owned the drilling rig and Halliburton did cement
work on the well.
The U.S. government says 4.9 million barrels were spilled,
while BP says 3.26 million barrels leaked. Both those totals
include 810,000 barrels that were collected during clean-up that
the judge has agreed to exclude.
BP shares have lost a third of their value since the
disaster, partly because of uncertainty over future fines.
The company has shed about $39 billion in assets to cover
most of its provisions, but damages could rise.
Under the Clean Water Act, negligence can be punished with a
maximum fine of $1,100 for each barrel of oil spilled; a gross
negligence verdict carries a potential $4,300 per barrel fine.
If the court judged the spill to have been 4.09 million
barrels - the government estimate less oil recovered - the price
of negligence could reach $4.5 billion. Gross negligence could
run to $17.6 billion.
Moody's Investors Service said on Tuesday that BP's credit
ratings could tolerate a moderate penalty under the Clean Water
Act but warned that "a severe penalty resulting from a finding
of gross negligence could change the equation."
Judge Carl Barbier has said he will not assign penalties for
BP until the third phase of the trial, expected early next year.
The case is In re: Oil Spill by the Oil Rig "Deepwater
Horizon" in the Gulf of Mexico, on April 20, 2010, U.S. District
Court, Eastern District of Louisiana, No. 10-md-02179.