Justice Official Says Transocean Was Wrong On Liability

Source: Dow Jones

WASHINGTON (Dow Jones) -- A Justice Department official said Tuesday that Transocean Ltd. (RIG) was wrong when it sought to limit its liability in connection with an oil spill that is spreading across the Gulf of Mexico.

On the question of whether Transocean may limit its liability, "we believe in the strongest possible terms" that "they cannot," U.S. Associate Attorney General Thomas Perrelli told Congress.

Sen. Ron Wyden (D, Ore.) said that "for a company that said it did nothing wrong, this company is working pretty hard to insulate itself from being held responsible."


Read more: http://online.wsj.com/article/BT-CO-20100525-709162.html?mod=WSJ_World_MIDDLEHeadlinesEurope

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US Interior Dept says higher offshore fines needed
Says should be no liability cap for deepwater spills

* Criminal penalties unchanged since 1978 (Recasts adding comments from Justice Dept official)

WASHINGTON, May 25 (Reuters) - The U.S. Interior Department on Tuesday said Congress should increase fines and prison sentences for individuals and energy companies violating federal laws covering offshore oil development.

Since the law was enacted in 1978, the criminal penalty has remained unchanged with no more than a $100,000 per day fine or imprisonment up to 10 years.

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Both Hayes and Thomas Perrelli, an associate attorney general at the U.S. Justice Department, also told a Senate Energy and Natural Resources Committee there should be no liability cap for oil companies involved in deepwater spills.

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Perrelli refused to say whether the Justice Department had found any negligence yet by BP or others involved in the current spill.

http://www.reuters.com/article/idUSN2512880820100525?type=marketsNews

Thanks for the thread, maddezmom.