US judge accepts guilty plea from Halliburton

2013-09-20 09:45
A bird is mired in oil on the beach at East Grand Terre Island along the Louisiana coast. (Charlie Riedel, AP, file)

A bird is mired in oil on the beach at East Grand Terre Island along the Louisiana coast. (Charlie Riedel, AP, file)

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New Orleans - A federal judge accepted a plea agreement that calls for Halliburton Energy Services to pay a $200 000 fine for destroying evidence after BP's 2010 oil spill in the Gulf of Mexico.

Halliburton pleaded guilty to a misdemeanour charge stemming from the deletion of data during a post-spill review of the cement job on BP's blown-out Macondo well.

The Houston-based company could have withdrawn its guilty plea if US District Judge Jane Triche Milazzo had rejected its deal with the Justice Department.

Milazzo said she believes the plea agreement is reasonable and agreed with prosecutors and the company that it "adequately reflects the seriousness of the offense".

The company was BP PLC's cement contractor on the drilling rig that exploded in the Gulf in April 2010, killing 11 workers.

Conditions

Unlike BP and rig owner Transocean, Halliburton has not been charged with a crime related to the causes of the disaster. The charge to which it agreed to plead guilty - a misdemeanour count of unauthorised destruction of evidence - involved a post-spill review of the cement job on BP's blown-out Macondo well.

The fine Halliburton agreed to pay is the statutory maximum for the charge. The deal announced in July also calls for Halliburton to be on probation for three years and to make a $55m contribution to the National Fish and Wildlife Foundation, but that payment was not a condition of the deal.

Halliburton won't face any other criminal charges in connection with the case, though individual employees could still be charged.

BP resolved a Justice Department criminal probe of its role in the Deepwater Horizon disaster when it pleaded guilty in January to manslaughter charges for the deaths of the rig workers and agreed to pay a record $4bn in penalties.

Transocean pleaded guilty in February to a misdemeanour charge of violating the Clean Water Act and agreed to pay $400m in criminal penalties.

In a court filing last week, Halliburton and prosecutors said their plea agreement imposes "fair, just, and appropriate corporate punishment" and reflects the company's "full, truthful and ongoing co-operation" with the government's spill probe.

Prosecutors said Halliburton's cement technology director in May 2010 directed a senior programme manager to run computer simulations on centralisers, which are used to keep the casing centred in the wellbore.

The results indicated there was little difference between using six or 21 centralisers. The data could have supported BP's decision to use the lower number.

The cement technology director allegedly instructed the programme manager to delete the results. The programme manager "felt uncomfortable" about the instruction but complied, according to prosecutors.

A different Halliburton employee also deleted data from a separate round of simulations at the direction of the cement technology director, who was acting without the authorisation of the company, prosecutors said.

Halliburton notified investigators from a Justice Department task force about the deletion of data.
Read more on:    bp  |  halliburton  |  us  |  environment  |  us oil slick

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