2012 Annual Convention Materials

2012 Annual Convention Materials

IN DEEP WATER – THE PLAINTIFF’S JOURNEY TO LEGAL RECOVERY FROM THE BP OIL SPILL CLE Credit: 1.0 Thursday, June 7, 2012 9:40 a.m. - 10:40 a.m. Carroll-Ford Room Galt House Hotel Louisville, Kentucky 1 A NOTE CONCERNING THE PROGRAM MATERIALS The materials included in this Kentucky Bar Association Continuing Legal Education handbook are intended to provide current and accurate information about the subject matter covered. No representation or warranty is made concerning the application of the legal or other principles discussed by the instructors to any specific fact situation, nor is any prediction made concerning how any particular judge or jury will interpret or apply such principles. The proper interpretation or application of the principles discussed is a matter for the considered judgment of the individual legal practitioner. The faculty and staff of this Kentucky Bar Association CLE program disclaim liability therefore. Attorneys using these materials, or information otherwise conveyed during the program, in dealing with a specific legal matter have a duty to research original and current sources of authority. Printed by: Kanet Pol & Bridges 7107 Shona Drive Cincinnati, Ohio 45237 Kentucky Bar Association 2 TABLE OF CONTENTS The Presenter .................................................................................................................. i The Deep Water Horizon Incident and Aftermath ............................................................ 1 Pleading – In Re: Oil Spill by the Oil Rig “Deepwater Horizon” in the Gulf of Mexico, on April 20, 2010................................................................................... 15 3 4 THE PRESENTERS Conrad S.P. “Duke” Williams Williams Law Group, LLC 909 Poydras Street, Suite 1650 New Orleans, Louisiana 70112 (958) 876-7595 CONRAD S.P. “DUKE” WILLIAMS is the founder of Williams Law Group, LLC in New Orleans, Louisiana, and practices in the areas of maritime law, offshore injury claims, FELA claims, oil and gas drilling injuries, catastrophic injuries, trucking accidents, transportation litigation, multi-district litigation, pharmaceutical litigation, environmental law claims, commercial litigation, insurance subrogation, admiralty litigation and toxic tort litigation. He received his B.A. and J.D. from Loyola University, where he was a member and Chair of the Loyola Moot Court Board. Mr. Williams is admitted to practice before the United States District Court for the Eastern, Western and Middle Districts of Louisiana, the United States Court of Appeals for the Fifth and Eleventh Districts and the United States Supreme Court. He is a member of the New Orleans, Terrebonne Parish, Louisiana, American and Federal Bar Associations, Louisiana Bar Foundation, Louisiana and American Associations of Justice, Montana Trial Lawyers Association, Maritime Law Association of the United States, Southeastern Admiralty Law Institute, St. Thomas More Inns of Court and the A.P. Tureaud Inns of Court. Mr. Williams served as an officer and aviator in the United States Navy, 1975-81. i ii THE DEEPWATER HORIZON INCIDENT AND AFTERMATH Duke Williams __________________________ Marine Casualty of Epic Proportions __________________________ ___________________________ _________________________ __________________________ __________________________ __________________________ __________________________ Toll Included Eleven Dead __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ 1 __________________________ The Spill and Clean-up Caused Severe Environmental Damage __________________________ • 210 million gallons of oil spilled __________________________ • 1.8 million gallons of chemical dispersant applied throughout __________________________ the Gulf • Thousands of oiled birds, sea turtles, and other mammals __________________________ recovered • Oil infiltrated delicate estuaries __________________________ and wetlands, and caused serious harm to deep sea corals __________________________ __________________________ Extensive Property Damage __________________________ • Oil and chemical contamination of real __________________________ property • Diminution of real property value along __________________________ the Coast • Loss of Deepwater __________________________ Horizon rig itself, valued at approximately $300 __________________________ million __________________________ __________________________ Economic Loss __________________________ • Losses Incurred By Broad Spectrum of Businesses/Individuals, Including: __________________________ • Seafood/Commercial Fishing – Total Seafood catch dropped 22% in 2010 __________________________ – Certain industries saw higher loss; oyster sales down 35% in 2011; finfish sales down 22% • Economic Loss to Commercial and Recreational __________________________ Businesses (restaurants, retailers, etc.) • Loss to Tourism Industry __________________________ • Estimated at $7.6 billion loss for 2010 alone __________________________ 2 __________________________ Human Health Impacts __________________________ • Coastal residents and Clean-up Workers were __________________________ exposed to oil and chemical dispersants • Tens of thousands __________________________ experienced acute illness, breathing difficulties, and/or __________________________ skin rashes • Others developed chronic __________________________ illness that persists to this day __________________________ __________________________ Liability to Federal/State/Local Governments __________________________ Liability to US government under Clean __________________________ Water Act: potentially in excess of $17 billion __________________________ Liability to state and local governments of affected __________________________ Gulf states for diminution in property value, loss of tax revenue, clean-up __________________________ costs, and cost of restoring damaged ecosystems __________________________ __________________________ The Injured Parties __________________________ Plaintiff Parties: __________________________ • Personal Injury and Wrongful Death Claimants __________________________ • Affected Individuals and Businesses • The Federal Government – liability under the __________________________ Clean Water Act, the Natural Resource Damage Assessment, and various __________________________ governmental regulations __________________________ 3 __________________________ The Injured Parties States of Louisiana, Alabama, Mississippi, Florida, and Texas __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ __________________________ The Injured Parties Local Communities Across the Gulf __________________________ __________________________ __________________________ __________________________ __________________________ Photo: Dauphin Island, Alabama __________________________ __________________________ The Responsible Parties __________________________ • British Petroleum (BP) • Biggest and Boldest __________________________ Player in Deepwater Gulf of Mexico exploration and production __________________________ • Leading producer of oil and natural gas in USA __________________________ • Over 80,000 employees worldwide __________________________ • $239 billion in revenue in 2009 __________________________ 4 __________________________ The Responsible Parties __________________________ • Transocean – Second largest offshore __________________________ drilling contractor in the world (by market cap) – As of late 2009, __________________________ Transocean owned 136 mobile offshore drilling __________________________ platforms, including the Deepwater Horizon __________________________ – 2009 operating revenue well over $10 billion __________________________ __________________________ The Responsible Parties __________________________ • Halliburton – One of the largest oil field services __________________________ companies in the world – Provided engineering __________________________ services, materials, testing, mixing, and pumping for cementing __________________________ operations on Deepwater Horizon __________________________ – 2009 revenue of $14.675 billion __________________________ __________________________ The Responsible Parties __________________________ • Cameron International – Manufactured and __________________________ supplied the Deepwater Horizon’s __________________________ sub-sea emergency closure device known as a blowout preventer __________________________ (“BOP”) – 2009 revenue of $5.22 __________________________ billion __________________________ 5 __________________________ The Well: Mississippi Canyon Block 252 (the Macondo Prospect) __________________________ • Facts • Approx 40 miles off __________________________ Louisiana coast and 130 miles from New __________________________ Orleans • 9 square mile plot __________________________ • Estimated to contain 50 million barrels of producible oil __________________________ reserves __________________________ __________________________ The Well: Pressure Control Issues __________________________ • Pressure Control is Critical in Deepwater Drilling __________________________ • What is Pore Pressure? Pressure exerted by hydrocarbons in pore space of rock formation __________________________ • Why is Pore Pressure Important? If pore pressure exceeds the downward pressure __________________________

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