Gulf oil spill trial delayed for settlement talks

Feb 26, 2012 By HARRY R. WEBER and MICHAEL KUNZELMAN , Associated Press
In this Nov. 13, 2010, file photo, Nelda Winslette, grandmother of Deepwater Horizon oil rig floorhand Adam Weise, holds a painting of Weise in her home in Yorktown, Texas. Weise was one of 11 workers killed after the Deepwater Horizon exploded in the Gulf of Mexico in April 2010. Billions of dollars are on the line when a federal trial opens Monday, Feb. 27, 2012 over the reams of litigation spawned by the nation's worst offshore oil disaster, though those whose losses can't be repaid are hoping for something more elusive: justice for lost loved ones. (AP Photo/Patrick Semansky, File)

(AP) -- A judge is pushing back the federal trial over the nation's worst offshore oil disaster by a week, saying Sunday that BP PLC was making some progress in settlement talks with a committee overseeing scores of lawsuits, according to people close to the case.

Two people close to the case told The Associated Press the decision was made Sunday during a conference call between parties in the case and U.S. Carl Barbier. They spoke on condition of anonymity because they were not authorized to discuss the call.

They said the judge told those on the call that BP and the Plaintiffs' Steering Committee were "making some progress" in their settlement talks. The steering committee is overseeing lawsuits filed by individuals and businesses in the wake of the explosion on the Deepwater Horizon rig on April 20, 2010, in the . The blast killed 11 workers and led to 206 million gallons of oil spewing from the blown-out well, soiling miles of coastline.

However, the judge did not mention the status of settlement talks between other parties, nor did he mention any numbers being discussed, according to the people close to the case.

The brief order issued by Barbier on Sunday said only that the delay was granted "for reasons of judicial efficiency and to allow the parties to make further progress in their settlement discussions."

Among other things, the trial that is now set to begin March 5 is meant to determine the penalties that need to be paid by BP and other companies involved in the oil spill. Billions of dollars are at stake.

BP confirmed in a news release that the trial had been delayed. It said the oil giant and the Plaintiffs' Steering Committee were working to reach an agreement that would fairly compensate people and businesses affected by the Deepwater Horizon rig explosion and resulting spill.

Separately, BP has had discussions in recent days with the federal government and cement contractor Halliburton Energy Services Inc., according to several people close to the case.

If no settlement is ultimately reached, Barbier will preside over a three-phase trial that could last the better part of a year. The first phase is designed to identify the causes of the deadly blowout and to assign percentages of fault to the companies involved in the ill-fated drilling project.

Financial analysts estimate BP could wind up paying anywhere from $15 billion to $30 billion over the lawsuits, and BP's chief executive told a British newspaper that the company has set aside $40 million to deal with fines and costs associated with the spill. An AP analysis found that the company could conceivably face up to $52 billion in environmental fines and compensation if the judge determines the company was grossly negligent.

The trial may not yield major revelations about the causes of the disaster, but the outcome could bring much-needed relief for tens of thousands of people and businesses whose livelihoods were disrupted by the spill.

Relatives of the 11 killed in the Deepwater Horizon blast say they are hoping for something more elusive: justice for lost loved ones.

Sheryl Revette, whose husband, Dewey, was among the 11 killed when BP PLC's Macondo well blew out and triggered an explosion on the Deepwater Horizon drilling rig, doesn't have anything to gain financially from the trial. She wants an apology from the oil giant, something she said she hasn't received yet.

"I've never heard a word from them," said Revette, 48, of State Line, Miss. "But an apology isn't going to bring my husband back."

The decisions and actions that led to the explosion and spill already have been painstakingly investigated by the Coast Guard, federal regulators and a presidential commission. Their probes concluded BP, rig owner Transocean Ltd. and Halliburton deserve to share the blame for a string of risky decisions that were designed to save time and money.

The massive scope of the case - a maze of claims and counterclaims between the companies, federal and state governments and plaintiffs' attorneys - has elicited comparisons to the tobacco litigation of the 1990s.

Roughly 340 plaintiffs' lawyers have worked on the case. has spent millions of dollars on experts and law firms. More than 300 depositions have been taken. Millions of pages of legal briefs have been filed. One Justice Department lawyer said it would take him 210 years to read all the pages submitted into the record if he read 1,000 pages a day.

Barbier, a former president of the Louisiana Trial Lawyers Association and appointee of President Bill Clinton, has a reputation for speedy but fair trials. He will hear and decide the case without a jury. Each trial phase is expected to last two to three months, with breaks in between. Even if all parties settle their claims before or during the trial, it could take several months for claims to be paid.

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