State Bar of Law Environmental Section Summer 2010

Inside This Crisis in the : Issue: The Deepwater Horizon Oil Spill & The Oil Pollution Act

By Holly P. Cole, Esq., Andrea L. Pawlak, Esq., Jennifer L. Pennington, Esq. and Crisis in the Gulf of Jared Sawyer1 Mexico ...... 1 The Deepwater Horizon Oil Spill: With only a 60-70 percent estimated success OSAH Reporter...... 6 rate, this plan also failed. With this last failure, n April 20, 2010, the Deepwater BP began more desperate methods, including Horizon oil rig exploded at Canyon soliciting suggestions for stopping the spill on its HSRA Rule Changes Block 252 off the coast of Louisiana. website. BP is now digging a relief well with an OThe explosion killed 11 workers and injured Result in Lower expected finish date in August 2010. Hundreds many others. Oil began gushing into the ocean Risk Reduction of lawsuits have already been filed against the when the blowout preventer (“BOP”), which Standards, Greater parties involved. was intended to prevent the release of oil in Cost in Cleanup...... 7 such an explosion, failed. The list of potentially An internal BP memorandum shows key responsible parties includes BP, PLC (“BP”), sensors and tests indicated a problem with Interbasin Transfers of Transocean, Ltd. (“Transocean”), Halliburton the pressure within the well leading up to the 6 Water...... 10 and Cameron International (“Cameron”). BP blow-out. The BOP, manufactured in 2001, leased the Deepwater Horizon from rig owner was retrofitted for the Deepwater Horizon.7 and operator, Transocean.2 Halliburton cemented Transocean had a safety report done in 2001 Georgia General the well’s base but has claimed that it merely on the BOP which showed 260 possible failure Assembly 2010: followed BP’s instructions in doing so.3 Cameron scenarios with the equipment.8 The BOP was Environmental Issues made the blowout preventer (“BOP”), the “steel installed anyway. BP has acknowledged a series Wrap-Up...... 15 monsters” which are supposed to “guard the of troubling actions taken by the company. For mouth of wells,” for the Deepwater Horizon.4 In instance, BP used a riskier method to seal the 9 addition, the Minerals Management Service has well before the blast for financial reasons. BP’s Counting Down to come under sharp criticism for its lax regulatory CEO, Tony Hayward, has agreed that it is an 2012: Update on policies, including letting “industry officials “entirely fair criticism” to say that BP does not the Tri-State fill out their own inspection sheets,” accepting have the tools to handle a deepwater oil leak.10 Water Wars...... 17 “gifts, like tickets to sports events and pricey dinners, from oil companies, and, “[i]n at least The Oil Pollution Act of 1990: one case, an investigator may have conducted an In the aftermath of the Exxon Valdez oil 2010 Environmental inspection while tripping on meth.”5 spill, Congress passed the Federal Oil Pollution Law Section Since the explosion, BP has tried a number Act of 1990 (“OPA”), 33 U.S.C.A. § 2701 et Officers...... 24 of unsuccessful maneuvers to stop the flow of seq., which establishes a federal cause of action for the recovery of oil spill cleanup costs and the oil. First, a dome-like object was lowered 11 to try to cover the cracked pipe. The plan was compensation to those injured by such spills. abandoned after the dome crystallized. Next, The OPA “represents Congress’s attempt to William Sapp a long tube was placed into the pipe in an provide a comprehensive framework in the area of marine oil pollution.”12 It does so by Chair attempt to siphon some oil to waiting surface tankers. According to BP, the siphoning was imposing strict liability on parties responsible for Adam Sowatzka vessels or facilities from which oil is discharged met with minor success but large volumes of oil 13 Editor continued to spill. Then, a procedure known as for po