Previously, we reported that BP was contesting the company’s potential Clean Water Act maximum per-barrel penalty calculation. We can now report that Judge Barbier has rejected this argument. That was an expected result. Judge Barbier wrote:
BPXP claims that [Clean Water Act] Section 1321 (b)(7) does not confer authority on the EPA or the Coast Guard to bring actions for civil penalties or make clear in any other way what agency has jurisdiction over the civil penalty.
According to Judge Barbier’s order, the EPA’s calculation was lawful because the Agency had proper authority over the Act and had permission to calculate for inflation. As we reported, the Federal Government’s maximum penalty rate of $4,300 per barrel was based on the Environmental Protection Agency’s (EPA) 2010 calculation of how much the $3,000 maximum penalty fine, as established in 1990, would be worth today. BP claimed that the EPA lacked authority to adjust the penalty for inflation and, as a result, the penalty should be capped at $3,000 per barrel.
Contact us today for a free legal consultation with an experienced attorney.
Fields marked *may be required for submission.
If you would like to subscribe to the Jere Beasley Report digital edition, simply visit our Subscriptions page and provide the necessary information or call us at 800-898-2034.
Attorney Advertising - Prior results do not guarantee a similar outcome.