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BP and Three Executives Facing Criminal Charges Over Oil Spill

New submitter SleazyRidr writes "Finally some news that will please a lot of the Slashdot crowd: a company has been charged with manslaughter! BP has been charged with manslaughter following the Macondo Incident. 'BP has agreed to pay $4.5 billion to settle the criminal charges and related Securities and Exchange Commission charges.' Two of the rig supervisors and a BP executive are also facing jail time. The supervisors are charged with 'failing to alert on-shore managers at the time they observed clear signs that the Macondo well was not secure and that oil and gas were flowing into the well,' and the supervisor is charged with 'obstruction of Congress and making false statements to law enforcement officials about the amount of oil flowing from the well.' Is this the start of companies being forced to take responsibility for their actions?"

43 of 238 comments (clear)

  1. Corporations are people by Toe,+The · · Score: 5, Insightful

    Who knew that could ever come back and bite them in the ass?

    1. Re:Corporations are people by MozeeToby · · Score: 3, Informative

      Oil is a fungible commodity. That is to say, oil of similar quality is worth the same regardless of whom it comes from. That is to say, they cannot raise prices because their competitors (of which there are many, many competitors in the crude oil industry) will eat them alive.

      And even ignoring all that, your statement implies that by raising prices they could increase their profit margins. Why wouldn't they be doing that before the fine was levied. That would be like someone at the boardroom meeting says "if we increase our prices by 10% we will see a $4.5 billion increase in profit", if it worked that way they would have done it already.

    2. Re:Corporations are people by Anonymous Coward · · Score: 4, Insightful

      Yea but that's not exactly a market in which competition is a thing. They'll just jointly raise prices, the others will make a bit more profit in the short-term for when it's their turn to pay for a major fuckup and the industry as a whole does business as usual.

    3. Re:Corporations are people by vlm · · Score: 5, Insightful

      Oh how I wish this wasn't posted AC...

      Thats exactly how an oligarchy works. Today, company A would love to raise prices to make more money, but B and C won't play along, so they can't. We now know for certain that company B will raise prices next week by X dollars. Therefore A and C will match and stash away the profit.

      Its not entirely bad, because its not so much a fine for BP as a reward via higher profits to all their competitors. If CEO compensation were related to profit (which it is not) then there would be intense pressure to not screw up and miss out on the fine platter of free profit.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    4. Re:Corporations are people by vlm · · Score: 2

      So, companies had their rights elevated to the rights of people.. But what would happen if people had their rights elevated to the rights of companies?
      I mean, manslaughter -> pay $4.5 billion, and walk free.

      Must be new, or young. search wikipedia for OJ Simpson

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    5. Re:Corporations are people by newcastlejon · · Score: 2

      They must sell a lot of petrol indeed.

      Most independent forecourts make between two and four pence profit on a litre of fuel – meaning a full tank only earns the petrol station between £1 and £2.

      Link is a bit outdated but I can't see how a garage's lot will have improved much in the past year. For the sake of those who live in other countries, a full tank of fuel here costs around the £50-60 mark (€60-75 or $80-100)

      --
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    6. Re:Corporations are people by Maxmin · · Score: 2, Informative

      I hate to spoil the fun, but oil companies don't "set" the price of oil. It's ultimately determined by futures contracts for delivery of the various crude oil products.

      Plus supply, demand, production rate, and other smaller factors.

      We now return you to your regularly scheduled conspiracy theory.

      --
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  2. Settle criminal charges? by SoupGuru · · Score: 3, Interesting

    You can settle criminal charges with a load of cash? That doesn't seem right to me.

    --
    What doesn't kill you only delays the inevitable
    1. Re:Settle criminal charges? by MaskedSlacker · · Score: 2

      You've never heard of Hollywood accounting have you...

    2. Re:Settle criminal charges? by vlm · · Score: 2

      A company's... ahem... "life" would be money. In jail, basically part of your lifespan is given up. It kinda makes sense that criminal charges would result in a fine.

      And by "kinda makes sense" I mean in the insane worlds of the judicial system and business.

      From a back dated way of looking at the balance sheet, that kinda makes sense. The problem is looking at historical balance sheets for BP I don't think it took them very long to accumulate $1B on the balance sheet, so you're only taking away a small part of the companies life.

      Now if you decided a human would go to prison for 10 years, and found a balance sheet from 10 years ago for BP and did the delta... of course this logic doesn't work so well with dying companies, HP or Kodak or places like that would be awarded a negative bill if they killed someone.

      You could model it on revenue... plus or minus work release laws a human can't earn raw revenue for 10 years, so take away 10 years of revenue. The problem with that is some companies are so leveraged up that the equivalent of a night in the drunk tank would bankrupt them, then again in that financial state they are the walking dead anyway. Hmm.

      --
      "Science flies us to the moon. Religion flies us into buildings." - Victor Stenger
    3. Re:Settle criminal charges? by Kergan · · Score: 2

      Then again, sentencing its executives makes a lot of sense too.

      There should be a fine and jail time for the execs who were responsible in the case of BP.

      The same for banksters, for that matter.

  3. Getting charged with... by Synerg1y · · Score: 2
    Doesn't mean conviction and punishment. The reason corporations tend to get fined rather than individuals getting charged is stuff like distributed responsibility and less than stellar organizational hierarchies & less than clear job responsibilities. Basically, it's like playing pin the tail on the donkey.

    A judge also may set bond conditions and other restrictions on the defendants, but the workers don't face arrest ahead of time, their lawyers said.

    Not your typical criminal manslaughter treatment.

  4. Not really by Safety+Cap · · Score: 5, Insightful

    When "BP" has to spend 180 days in prison like a regular person convicted of manslaughter then I'll believe it.

    Oh, and I'd want BP to be a registered felon, so no government jobs/contracts, no leaving the country and no crossing state lines without the court's okay.

    --
    Yeah, right.
    1. Re:Not really by Anonymous Coward · · Score: 2

      Well guess what--BP is currently banned from government contracts. Would you like to add another condition to justify your outrage?

    2. Re:Not really by MaskedSlacker · · Score: 4, Interesting

      When "BP" has to spend 180 days in prison like a regular person convicted of manslaughter then I'll believe it.

      I'd settle for a fine equal to 180 days gross revenue (effectively the same).

    3. Re:Not really by dave562 · · Score: 5, Informative

      You got your second wish. The EPA denied BP the right to bid on oil contracts.

      http://blog.chron.com/lorensteffy/2012/11/in-suspending-bp-epa-does-what-drilling-regulators-would-not/

    4. Re:Not really by ThatsMyNick · · Score: 2

      Too bad. Now BP has to create a proxy to submit bids for them.

    5. Re:Not really by jnmontario · · Score: 2
    6. Re:Not really by Pseudonym · · Score: 4, Insightful

      BP is a multinational company, just like every large company that you think is "an American company".

      --
      sub f{($f)=@_;print"$f(q{$f});";}f(q{sub f{($f)=@_;print"$f(q{$f});";}f});
    7. Re:Not really by shutdown+-p+now · · Score: 2

      Extending this analogy further, it would be gross expenses at the absolute minimum of remaining operable. In other words, minimal wage paid to a single guy who is the CEO. After all, when the government puts a guy in prison, it doesn't pay for his wife's bills or his car insurance.

    8. Re:Not really by Xest · · Score: 2

      Yes, the problem is that during the incident, Obama repeatedly referred to them as British Petroleum and exploited the situation for his own political gain by explicitly making it about "foreign" companies by resorting to what all politicians do when they need a popularity boost- resorting to populism and nationalism.

      Don't get me wrong, I'm glad Obama won the 2008 election, and I'm glad he won this latest one, but the whole BP incident is one of those few situations where as someone from the UK, I'd rather have seen a Republican running the show, because the Republicans at least do us in the UK the courtesy of giving us a bit of respect given that we've sacrificed 100s of our soldiers lives for Americas wars in the last 10 years.

      So yes you're absolutely right, it is as much an American company as anything, but that didn't change the fact Obama made it all about "us" vs. "them" as if there was some foreign element to it all.

  5. Re:Scapegoats by buchner.johannes · · Score: 5, Insightful

    The larger damage was not to manslaughter but to destroying a complete ecosystem - Privatizing profits and socializing losses in action. Companies trifle with natural resources because they know if it all fails, we will have to pull together to get out of it.

    On the same note, why can people put a price on a pirated mp3, but not on a long-term damaged ecosystem?

    --
    NB: The message above might reflect my opinion right now, but not necessarily tomorrow or next year.
  6. "Is this the start of companies being forced to.." by Gaygirlie · · Score: 3, Insightful

    "...take responsibility for their actions?"

    No. This is just to appeal to environmentalists and the general populace, and will be a very rare occurrence. I verily doubt you'll see a single company in the next 10 years being forced to "take responsibility."

  7. Re:Scapegoats by Anonymous Coward · · Score: 4, Funny

    It's escape goats, dude.

  8. Re:Scapegoats by operagost · · Score: 2, Insightful

    The ecosystem is not destroyed. The oil that entered the water is organic and constantly enters the oceans naturally. BP's negligence caused it to enter far more rapidly than the ecosystem could handle. This resulted in great immediate harm to sea life, but not permanent.

    --

    Gamingmuseum.com: Give your 3D accelerator a rest.
  9. So if we can hold the oil company accountable... by scorp1us · · Score: 4, Insightful

    Why can't we hold the financial industry accountable and start putting bankers in Federal pound-me-in-the-ass prisons?

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  10. Re:Stupid summary by Jeremy+Erwin · · Score: 4, Interesting

    A few states, such as Australia and the UK have such a thing as corporate manslaughter. Not every murderer acts on his own initiative, sometimes he has his employer's interests at heart. UK version

  11. Re:Scapegoats by GodfatherofSoul · · Score: 2

    But, people being held responsible nonetheless. The next time an edict comes down the "pipe" to start drilling without proper precautions, the folks on point are more likely to CYA and either get official clearance from above (absolving them of blame) or just outright refuse to follow orders.

    --
    I swear to God...I swear to God! That is NOT how you treat your human!
  12. Drop, meet Bucket by sl4shd0rk · · Score: 3, Interesting

    With over $150 Billion in equity* it's a laughable settlement considering the gross negligence BP should be cited for.

    [*] - http://www.bp.com/extendedsectiongenericarticle.do?categoryId=9021229&contentId=7039276

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    1. Re:Drop, meet Bucket by epp_b · · Score: 2

      Would be nice if us proles could get out of a manslaughter charge by relinquishing a mere 3% of our equity.

  13. That's Why You Drill in China by eldavojohn · · Score: 2

    They should have followed ConocoPhillips and their plans in China. Not only will they not face criminal charges, the government decided not to let the state controlled media report on it until it slipped out via a blog. Darn it! If only the government could control everything, we wouldn't have to worry about everyone else finding out about a little 320 square mile oil spill.

    --
    My work here is dung.
  14. Where's the apology? by Squirmy+McPhee · · Score: 3, Funny

    Has Rep. Joe Barton apologized to BP for this yet?

  15. You can now pay fines for manslaughter? by h4rr4r · · Score: 2

    Does this mean rich people can just kill the poor and pay fines now?

    Taking a life illegally should at least warrant some jail time.

  16. Re:Betteridge's law: no. by Anonymous Coward · · Score: 2, Insightful

    This presumes that board members, major investors, and the CEO were both aware of, and actively refusing to do something about safety and environmental concerns.

    In a company the size of BP, it's flatly unreasonable to expect that the board & CEO will be aware of every minor decision and safety concern anywhere in the company the moment it is raised. Now, if there is evidence that those people were negligent in responding to, addressing, or correcting issues that they were clearly informed of, then you'd have a good argument for "jail terms" for these people. Without it, the blame rests with the people who FAILED to raise those safety concerns, or ignored those safety concerns, when it was their job to care about and address them - i.e., the supervisors, and the executive being charged.

    This "string up the board" argument is as stupid as it is misguided. It plays well to the idiotic "Occupy Wall Street" crowd; thankfully it doesn't play as well to an educated judiciary.

  17. BP denied EPA contracts by dave562 · · Score: 4, Informative

    The more important and related story is that due to this, the EPA has suspended BP from any further contracts with the Federal government.

    http://blog.chron.com/lorensteffy/2012/11/in-suspending-bp-epa-does-what-drilling-regulators-would-not/

    I'm sure it will not be long before BP is crying about unions and regulation and it being too expensive to do business in America.

    1. Re:BP denied EPA contracts by Uberbah · · Score: 2

      As an investor, this has made me very wary of companies with too much exposure in the US, particularly ones that are seen as 'foreign' and are thus easy for politicians and the press to make an example of them as they have with BP, Audo, Toyota, Samsung, etc.

      So rather than invest in companies that don't have a worse safety rating than all their competitors - combined - you'd rather just invest in jurisdictions where they don't give a rats ass how many workers they kill or how many billions of dollars in damages they cause.

      Nice to know where your priorities are.

    2. Re:BP denied EPA contracts by Uberbah · · Score: 2

      I try and invest in large corporates (preferably with a London listing, for tax reasons) with a long track record of "not fucking up". Its pretty widely known that a really good way of "fucking up" is to be a non-US company with significant operations in the US. Between insane unions, opportunist politicians, incompetent regulators, frenzied media and a robustly patriotic culture you really don't want to be getting into that without the protection of a shell company to protect the parent and carry an "we are an American company" branding message.

      Now you're just insulting our intelligence as well as your own. BP is just one of a host of international oil companies, but only BP had a safety record that was worse than all of its competitors combined. What does that have to do with American unions, media culture, etc? Jack and shit, and Jack just left town.

  18. You can settle criminal charges now? by Sydin · · Score: 3, Insightful

    That's nice. So go right ahead and take up that manslaughter hobby you've always dreamed of! After all it was only what, 11 people killed? so $4.5 billion divided by 11: that means you can murder anybody you want for the low low price of only ~$409 million!. What are you waiting for!? ...I fucking hate this country.

    1. Re:You can settle criminal charges now? by LiquidAvatar · · Score: 2

      That's nice. So go right ahead and take up that manslaughter hobby you've always dreamed of! After all it was only what, 11 people killed? so $4.5 billion divided by 11: that means you can murder anybody you want for the low low price of only ~$409 million!. What are you waiting for!? ...I fucking hate this country.

      To be fair, they qualified for the bulk discount.

      --
      It is difficult to free fools from the chains they revere.
      -Voltaire
  19. Re:Scapegoats by MightyMartian · · Score: 4, Insightful

    This was falsified a long time ago. Natural seepage into the Gulf nowhere equals what was puking out of that damaged well. The ecosystem has not returned to normal, and with the added known of the dispersal chemicals, no one can actually say what is happening or how long it will take for the oil to be absorbed. But this belief that bacteria just magically eat oil and in turn leave behind no deleterious side effects is pretty much akin to claiming that women's reproductive systems magically expunge rapists' sperm.

    But you would have made a great member of the group at the beginning of Thank Your Smoking; the oil company representative who insists that oil spills just get eaten up by the ecosystem, and even vaguely hints that ecosystems actually benefit from it.

    Actually, what you're post reminds of is a great and sadly departed Seattle comedy show called Almost Live, where there was fantastic sketch featuring a pro-tobacco lobbyist who said bizarre things like "Three out of four chiropactors agree that not only does smoking not harm you, but in fact places a protective coating on the lungs!" You could have done the followup sketch; "Three out of four industry 'researchers' insist that only do oil spills not harm the environment, they in fact feed the bacteria and make the environment even better!"

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  20. Re:Scapegoats by MightyMartian · · Score: 2

    And you know this how? No researcher I know is claiming it has been removed.

    Sitting mixed with dispersants at the bottom of the Gulf of Mexico is no "removed".

    --
    The world's burning. Moped Jesus spotted on I50. Details at 11.
  21. Re:Double standards, Union Carbide , India Bhopal by MultiPak · · Score: 2

    In 1991, the local Bhopal authorities charged Anderson, who had retired in 1986, with manslaughter, a crime that carries a maximum penalty of 10 years in prison. He was declared a fugitive from justice by the Chief Judicial Magistrate of Bhopal on 1 February 1992 for failing to appear at the court hearings in a culpable homicide case in which he was named the chief defendant. Orders were passed to the Government of India to press for an extradition from the United States. The U.S. Supreme Court refused to hear an appeal of the decision of the lower federal courts in October 1993, meaning that victims of the Bhopal disaster could not seek damages in a US cour

  22. Re:Transoceans by Some+Bitch · · Score: 2

    1. BP does not stand for British Petroleum and hasn't since the late 90s when American Oil Company and British Petroleum merged to format BP AMOCO. The merged company later changed the name to BP, not short for anything.

    2. More BP stock is owned by US companies and individuals than British.

    BP is multinational, the HQ of the parent company might be in London but it's owned by Americans.