Quote:The contract makes it clear that BP is seeking to add scientists to the legal team that will fight the Natural Resources Damage Assessment lawsuit that the federal government will bring as a result of the Gulf oil spill.
The government also filed a NRDA suit after the Exxon Valdez spill.
In developing its case, the government will draw on the large amount of scientific research conducted by academic institutions along the Gulf. Many scientists being pursued by BP serve at those institutions.
I'm sure they're horribly worried about ending up like Exxon:
On March 24, 1989 at 4 minutes past midnight, the oil tanker Exxon Valdez struck a reef in Alaska's spectacular Prince William Sound. An environmental nightmare began that changed not only Prince William Sound, but the world. No longer would people blindly believe promises from corporations that their operations were completely safe.
A total of 11,000,000 gallons of Alaska North Slope crude oil leaked from the ruptured hull of the ship, impaled by the jagged rocks of Bligh Reef. Within two months, the oil had been driven along a path stretching 470 miles to the southwest (map).
The initial cleanup of the spill took three years, and the cost was over $2.1 billion. The death toll in terms of wildlife was staggering, the full impact may never be known. On October 8, 1991, an agreement was reached between the State of Alaska, the federal government, and Exxon on both criminal charges and civil damage claims.
* In settlement of civil charges, Exxon would pay the State of Alaska and the United States $900 million over a 10-year period. This money would be used for restoration and would be administered by six government Trustees; three federal, three state.
* In settlement of criminal charges, Exxon would pay a fine of $250 million. Two "restitution funds" of $50 million each were established, one under state control and one under federal authority. Against strong opposition from many Alaskans, $125 million of the balance was forgiven due to Exxon's cooperation during the cleanup, and upgraded safety procedures to prevent a reoccurrence. The remaining $25 million was divided between the Victims of Crime Act account ($13 million) and the North American Wetlands Conservation Fund ($12 million).
On September 16, 1994, a jury in federal court returned a $5 billion punitive damages verdict against Exxon. The company, however, has appealed several times since that time; on August 4, 1998, the Anchorage Daily News reported that:
Apparently, delay pays. Exxon is earning $90,000 an hour, about $2 millon a day or nearly $800 million a year, on the same $5 billion as long as the case drags on and the money stays in its coffers. As it stands now, if the appeals linger a couple of more years, Exxon will have earned enough interest alone to pay the $5 billion plus the accrued interest.
The $5 billion verdict was finally overturned by a panel of the 9th Circuit Court in November 2001.
Wed Jun 25, 2008 5:51pm EDT
WASHINGTON (Reuters) - The U.S. Supreme Court on Wednesday threw out the record $2.5 billion in punitive damages that Exxon Mobil Corp had been ordered to pay for the 1989 Exxon Valdez oil spill off Alaska, the nation's worst tanker spill.
By a 5-3 vote, the high court ruled that the punitive damages award should be slashed to a maximum amount equal to the total relevant compensatory damages of $507.5 million.
from what I hear, Exxon Mobil is now considering purchasing BP.