WASHINGTON – The Justice Department announced this week that
Transocean Deepwater has plead guilty to a violation of the Clean Water Act
(CWA) for its illegal conduct leading to the 2010 Deepwater Horizon disaster,
and was sentenced to pay $400 million in criminal fines and penalties.
The fines and penalties imposed on Transocean are the
second-largest environmental crime recovery in U.S. history – behind the $4
billion criminal sentence imposed on BP in connection with the same incident.
During the guilty plea proceeding, Transocean admitted that
members of its crew onboard the Deepwater Horizon, acting at the direction of
BP’s well site leaders, known as “company men,” were negligent in failing to
investigate fully clear indications that the Macondo well was not secure and
that oil and gas were flowing into the well.
A separate proposed civil consent decree - which resolves
the United States’ civil CWA penalty claims, imposes a record $1 billion civil
Clean Water Act penalty, and requires significant measures to improve performance
and prevent recurrence - is pending before U.S. District Judge Carl J. Barbier
of the Eastern District of Louisiana.
“Transocean’s guilty plea and sentencing are the latest
steps in the department’s ongoing efforts to seek justice on behalf of the
victims of the Deepwater Horizon disaster,” said Attorney General Eric Holder
in a statement. “Most of the $400 million criminal recovery – one of the
largest for an environmental crime in U.S. history – will go toward protecting,
restoring and rebuilding the Gulf Coast region.”
Transocean’s guilty plea was accepted, and the sentence was
imposed, by U.S. District Judge Jane Triche Milazzo of the Eastern District of
Louisiana. During the guilty plea and sentencing proceeding, Judge
Milazzo found, among other things, that the sentence appropriately reflects
Transocean’s role in the offense conduct, and that the criminal payments
directed to the National Academy of Sciences and National Fish and Wildlife
Foundation are appropriately designed to help remedy the harm to the Gulf of
Mexico caused by Transocean’s actions. The judge also noted that the
fines and five-year probationary period provide just punishment and adequate
deterrence.
Under the order entered by the court pursuant to the plea
agreement, $150 million of the $400 million criminal recovery is dedicated to
acquiring, restoring, preserving and conserving – in consultation with
appropriate state and other resource managers – the marine and coastal
environments, ecosystems and bird and wildlife habitat in the Gulf of Mexico
and bordering states harmed by the Deepwater Horizon oil spill. This portion of
the criminal recovery will also be directed to significant barrier island
restoration and/or river diversion off the coast of Louisiana to further
benefit and improve coastal wetlands affected by the spill. An additional $150
million will be used to fund improved oil spill prevention and response efforts
in the Gulf through research, development, education and training.
Transocean was also sentenced, according to the plea
agreement, to five years of probation – the maximum term of probation permitted
by law.