The owners and operators of the Macondo Well and the drilling rig Deepwater Horizon allowed millions of barrels of oil to escape into the Gulf of Mexico.
MOEX Offshore has agreed to settle its liability in the Deepwater Horizon oil spill with the United States for $90 million, the Department of Justice said today. MOEX Offshore was a 10% owner of the lease for the Macondo Well at the time of the explosion and sinking of the Deepwater Horizon oil-drilling platform into the Gulf of Mexico in April 2010.
The terms of today’s settlement do not affect the potential liability of – or recoveries from – other parties involved in the Deepwater Horizon oil spill, Justice said in a release.
As part of the settlement, MOEX will spend $20 million for land acquisition projects in several Gulf States that will preserve in perpetuity habitat and resources important to water quality. MOEX has also agreed to pay $70 million in civil penalties, of which, $45 million will go to the United States. This is the largest civil penalty ever recovered under the Clean Water Act.
“The Department of Justice has not wavered in its commitment to hold all responsible parties fully accountable for what stands as the largest oil spill in U.S. history,” said Attorney General Eric Holder. “This landmark settlement is an important step – but only a first step – toward achieving accountability and protecting the future of the Gulf ecosystem by funding critical habitat preservation projects.”
The penalty money will go toward replenishing the Oil Spill Liability Trust Fund, where by law it will be available to pay for response actions, cleanup and damages caused by future spills. The remaining penalty will go to Gulf States that participate in the settlement. Those states will receive penalty payments as follows: $6.75 million to Louisiana, $5 million each to Alabama, Florida and Mississippi, and $3.25 million to Texas.
The proposed settlement, lodged in the U.S. District Court for the Eastern District of Louisiana, is subject to a 30-day comment period and final court approval.
