Gulf of Mexico

Fri, 2013-12-20 05:00Farron Cousins
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BP Attempts To Misdirect Public With Claims Of Fraud

Oil giant BP is again attempting to convince the public that the oil spill settlement process for their destruction of the Gulf of Mexico resulting from the 2010 Deepwater Horizon oil rig explosion and leak, is completely riddled with fraud.

The company filed a fraud lawsuit earlier this week to stop payments on the claim process while investigators look into the fraud allegations. According to BP, one of the law firms representing oil spill victims has been submitting and receiving payment for claimants who don’t actually exist. 

The specific payments that BP is hoping to stop come from the Seafood Compensation Fund, a fund that was set up to pay fishermen and others who rely on the seafood industry as their source of income. The company says that Louisiana attorney Mikal Watts has filed 648 claims on behalf of seafood industry workers, and that 8 of those have been verified as accurate with 17 more still pending approval. 

Watts’ attorney has fired back at BP, saying that Watts did nothing illegal during the spill process, and submitted the appropriate documentation for every spill claim that he has filed. BP insists that at least half of Watts’ clients don’t exist.

Mon, 2013-09-30 11:25Julie Dermansky
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Oil Blights Louisiana's Coast as Second Phase of BP Oil Spill Trial Begins

The toxic mess left in the wake of the BP Deepwater Horizon oil disaster continues to negatively impact Gulf Coast ecosystems as the second phase of the BP trial begins in New Orleans. 

Billions of dollars
are on the line in the trial following the explosion of the Macondo well that took 11 lives and damaged the Gulf Coast’s economic and environmental health.  

On September 27th, Plaquemines Parish Coastal Zone Director P.J. Hahn took a trip to survey some of the areas most devastated by the oil spill, including Bay Jimmy and Cat Bay. Oil remains in the marsh, and coastal erosion continues at an accelerated rate.  

Coastal erosion, a major environmental challenge even before the spill, became a bigger problem when oil washed onto the barrier islands, killing the roots of marsh grass and mangrove trees that helped to hold the land together.

Since the spill, Hahn has been documenting two barrier islands in Cat Bay that had active bird rookeries. The rookeries had been host to spoon bills, egrets and brown pelicans, the Louisiana state bird that only recently was taken off the endangered species list.

Mon, 2013-08-26 05:00Farron Cousins
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BP Launches Massive PR Campaign To Demonize Oil Spill Victims

BP, the oil giant that, along with Halliburton and Transocean, was responsible for the 2010 Deepwater Horizon oil rig explosion and oil leak in the Gulf of Mexico, is crying foul in the claims process of settlements for the victims of the spill.  The company has launched a massive public relations offensive to paint themselves as the victims in this situation.

According to The Hill, BP CEO Bob Dudley said recently that the entire claims process has been “absurd,” and that his company has been more than generous with their payments.  BP spokesperson Geoff Morrell said:  “While we remain committed to paying legitimate claims, we did not agree to pay for fictitious losses, or for claims that are based on fraud or tainted by corruption.”

While the overall PR war may appear to be aimed at the victims along the Gulf Coast, the real targets of BP’s campaign are trial lawyers.  They have even enlisted the help of the largest business lobby and strongest advocates for “tort reform”, the U.S. Chamber of Commerce.

The Hill reports that a recent ad placed by BP in The Washington Post quoted National Association of Manufacturers CEO Jay Timmons, saying, “Too often these days, the tort system is nothing more than a trial-lawyer bonanza, and that’s not fair to individuals seeking redress and no way to encourage investment in manufacturing to create tomorrow’s high-paying jobs.”

The reason that the company is trying to paint the claims process as plagued with fraud is that they had underestimated the amount of claims that they would have to pay out, and their settlement fund is quickly running dry.  This means that subsequent payments will have to come directly out of the company’s profits, a move that is not sitting well with shareholders who were promised that the price tag would not exceed $8 billion

Thu, 2013-08-08 14:31Farron Cousins
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BP Attacks Oil Spill Victims, Tries To Hide Criminal Past

In recent corporate public relations attempts, BP has tried to shift the public’s focus from its corporate wrongdoing and outright criminal behavior to criticizing BP's victims and their legal representatives. According to a privileged, plaintiff’s attorney work document, BP has dumped over $500 million into PR, attacking “judges, special masters, and claimants’ lawyers - trying to change the focus from its tragic track record of ignoring safety and deepwater despair.”

Thu, 2013-03-07 05:00Farron Cousins
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EPA Accused Of Blocking Scientific Advancement of Corexit In BP Cleanup

Oil Spill Eater International (OSEI), through the Gulf Oil Spill Remediation Conference group, issued a press release this week saying that the U.S. Environmental Protection Agency (EPA) effectively blocked or otherwise delayed scientific advancement in the cleanup of the 2010 Gulf of Mexico oil disaster by refusing to acknowledge the toxicity of the oil dispersant Corexit.

According to OSEI, the EPA is guilty of violations to the Clean Water Act because they knowingly used the toxic dispersant instead of opting for cleaner, less toxic methods of oil spill cleanup.

OSEI is actually not off base with their accusations.  Reports from late 2012 revealed that using oil dispersants like Corexit make oil spills less visible, but when combined with the oil, create a mixture that is 52 times more toxic than the oil itself.  The studies revealed that even in small amounts, the combination of oil and Corexit reduced the number of egg hatchings in small marine invertebrates by 50%.  These are small creatures like krill, shrimp, and other crustaceans that form the bottom of the oceanic food pyramid.

Those results were just from small doses of the mixture.  And as I wrote in 2011, the amount of Corexit dumped into the Gulf was anything but “small”:

Mon, 2013-02-04 11:06Guest
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The Baffling Response to Arctic Climate Change

By David Suzuki

The Arctic may seem like a distant place, just as the most extreme consequences of our wasteful use of fossil fuels may appear to be in some distant future. Both are closer than most of us realize.
 
The Arctic is a focal point for some of the most profound impacts of climate change. One of the world’s top ice experts, Peter Wadhams of Cambridge University, calls the situation a “global disaster,” suggesting ice is disappearing faster than predicted and could be gone within as few as four years.
 
“The main cause is simply global warming: as the climate has warmed there has been less ice growth during the winter and more ice melt during the summer,” he told the U.K.’s Guardian.
 
Over the past 30 years, permanent Arctic sea ice has shrunk to half its previous area and thickness. As it diminishes, global warming accelerates. This is due to a number of factors, including release of the potent greenhouse gas methane trapped under nearby permafrost, and because ice reflects the sun’s energy whereas oceans absorb it.

Thu, 2013-01-31 15:26Farron Cousins
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Record Fines For BP In Gulf Disaster Deal

After a ruling earlier this week by a federal judge in New Orleans, BP now holds the record for the largest criminal penalty in U.S. history.  The penalty, totaling $4 billion, is strictly related to the criminal conduct of the company that led to the 2010 Deepwater Horizon oil rig explosion and oil leak into the Gulf of Mexico.

As part of the deal, BP agreed to plead guilty to a total of 14 counts of criminal conduct, which includes charges of felony manslaughter. However, as CNN.com points out, the charges are against the company, not any individuals involved, so prison time for those responsible will not be part of the deal.

The $4 billion criminal penalty does not affect the settlement deals for the victims along the Gulf Coast, nor does it include any environmental fines for the company. Those are separate cases that are still being worked out, and will result in several billions more in financial penalties for the company.

Tue, 2013-01-22 17:54Carol Linnitt
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Approaching the Point of No Return: The World's Dirtiest Megaprojects We Must Avoid

Canada's tar sands are one of 14 energy megaprojects that are “in direct conflict with a livable climate.”

According to a new report released today by Greenpeace, the fossil fuel industry has plans for 14 new coal, oil and gas projects that will dangerously increase global warming emissions at a time when massive widespread reductions are necessary to avoid catastrophic climate change. In conjunction these projects make it very likely global temperature rise will increase beyond the 2 degrees Celsius threshold established by the international community to levels as high as 4 or even 6 degrees.

Wed, 2012-12-19 10:16Farron Cousins
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Group Sues Obama Administration Over Offshore Oil And Gas Leasing Program

A lawsuit has been filed against the Obama administration over the economic claims that the Bureau of Ocean Energy Management (BOEM) made in their 5-year plan to open up new areas around the United States to offshore oil and gas leasing.  The suit, filed by the Center for Sustainable Economy (CSE), says that the administration not only grossly exaggerated the economic benefits of increased energy exploration, but also that they failed to take all costs into account.

BOEM’s plan would lease a total of 15 new areas for exploration, including areas within the Gulf of Mexico, the Cook Inlet, Alaskan waters, and the Beaufort Sea.  But rather than focusing strictly on the environmental impact of the projects, CSE took an approach that tends to have better results in Washington – Economics.

The economic argument is very powerful, as CSE explains that the increased oil and gas exploration will cost the United States more than it will gain.  And according to federal laws (specifically Section 18 of the Outer Continental Shelf Lands Act), in order to grant permission for projects such as the leasing program, there must be a net public gain. 

For example, the best estimates for the amount of money to be made from oil and gas in these areas ranges from $1 to $2 billion per year.  However, these areas currently provide an economic boost of as much as $70 billion a year from fishing, tourism, and other activities, all of which could be decimated in the event of an oil spill.

Wed, 2012-12-12 12:05Farron Cousins
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Internal BP Emails Could Expose Extent Of Corporate Cover-Up Of Gulf Oil Disaster

Attorneys for Kurt Mix, a former engineer for BP, claim that a spate of previously unreleased emails will “exonerate” their client in the current criminal case being pursued against Mix. Mix is the first person in the wake of the Deepwater Horizon oil rig explosion and leak to be brought up on criminal charges for his role in the cover-up of the extent of the oil leak in the Gulf of Mexico.

Earlier this year, the U.S. Department of Justice formally charged Mix with obstruction of justice for allegedly destroying evidence, specifically text messages, relating to how much oil was flowing from the broken wellhead in the Gulf.  The amount of oil flowing into the Gulf waters determined the size of the fines that BP would face from the federal government, so the company could have benefited substantially from under-reporting the true volume of the flow rate.

The new emails that will be released during Mix’s criminal trial allegedly show that Mix repeatedly warned his superiors at BP that they were under-reporting the true scope of the spill to the government and the media, undermining the federal government’s case against Mix.  While these emails could show that Mix did the right thing in one arena, it is unlikely that it will “exonerate” him, as his attorneys claim.  After all, the charges against Mix are for deleting text messages related to the disaster, which were evidence.

The one thing that is almost guaranteed from these emails, assuming they exist in the form that Mix's attorneys are claiming, is that they could expose the cover-up by BP executives, and tell the story of how they intentionally misled everyone about the nature of their oil geyser. And given what we already know, it seems incredibly likely that the oil giant's leadership knew from the start how much oil was flowing from the broken wellhead.

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