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The opa establishes liability for discharges of oil

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The OPA establishes liability for discharges of oil from vessels, onshore facilities, and offshore facilities into or upon the navigable waters of theUnited States. Under the OPA, the “responsible party” for the discharging vessel or facility is liable for removal and response costs as well as for damages,including recovery costs to contain and remove discharged oil and damages for injury to natural resources and real or personal property, lost revenues, lostprofits, and lost earning capacity. The cap on liability under the OPA is the full cost of removal of the discharged oil plus up to$75 millionfor damages,except that the$75 millioncap does not apply in the event the damage was proximately caused by gross negligence or the violation of certain federal safety,construction or operating standards. The OPA defines the set of responsible parties differently depending on whether the source of the discharge is a vessel oran offshore facility. Liability for vessels is imposed on owners and operators; liability for offshore facilities is imposed on the holder of the permit or lessee ofthe area in which the facility is located.The MBTA and the ESA provide penalties for injury and death to wildlife and bird species. The MBTA provides that violators are strictly liableand such violations are misdemeanor crimes subject to fines of up to$15,000per bird killed and imprisonment of up tosixmonths. The ESA provides forcivil penalties for knowing violations that can range up to$25,000per violation and, in the case of criminal penalties, up to$50,000per violation.In addition, federal law provides for a variety of fines and penalties, the most significant of which is the Alternative Fines Act. In lieu of the expressamount of the criminal fines that may be imposed under some of the statutes described above, the Alternative Fines Act provides for a fine in the amount oftwice the gross economic loss suffered by third parties, which amount, although difficult to estimate, is significant.67
On December 15, 2010, the DOJ filed a civil action seeking damages and injunctive relief against BP Exploration, Anadarko Petroleum Corporationand Anadarko E&P Company LP (together, Anadarko), which had an approximate25%interest in the Macondo well, certain subsidiaries of TransoceanLtd., and others for violations of the CWA and the OPA. The DOJ’s complaint seeks an action declaring that the defendants are strictly liable under the CWAas a result of harmful discharges of oil into the Gulf of Mexico and upon United States shorelines as a result of the Macondo well incident. The complaint alsoseeks an action declaring that the defendants are strictly liable under the OPA for the discharge of oil that has resulted in, among other things, injury to, lossof, loss of use of, or destruction of natural resources and resource services in and around the Gulf of Mexico and the adjoining United States shorelines andresulting in removal costs and damages to the United States far exceeding$75 million. BP Exploration has been designated, and has accepted the designation,as a responsible party for the pollution under the CWA and the OPA. Others have also been named as responsible parties, and all responsible parties may beheld jointly and severally liable for any damages under the OPA. A responsible party may make a claim for contribution against any other responsible party or

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Term
Fall
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U S Securities and Exchange Commission, Halliburton Company

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