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November 15, 2012

APNewsBreak: BP gets record fine in Gulf oil spill

NEW ORLEANS — Oil giant BP has agreed to pay the largest criminal penalty in U.S. history, totaling billions of dollars, for the 2010 oil spill in the Gulf of Mexico, a person familiar with the deal said Thursday.

The person, who spoke on condition of anonymity because they were not authorized to speak on the record about the deal, also said two BP employees face manslaughter charges over the death of 11 people in the explosion of the Deepwater Horizon oil rig that triggered the massive spill.

The person said BP will plead guilty to obstruction for lying to Congress about how much oil was pouring out of the ruptured well. The person declined to say exactly how much the fine in the billions of dollars would be.

BP made a net profit of $5.5 billion in the third quarter, it reported last month.

The largest previous corporate criminal penalty assessed by the Department of Justice was a $1.2 billion fine imposed on drug maker Pfizer in 2009.

London-based BP PLC said earlier Thursday it was in advanced talks with U.S. agencies. In a statement, BP said the proposed settlement would not include civil claims under the Clean Water Act and other legislation, pending private civil claims and state claims for economic loss.

The Deepwater Horizon rig, 50 miles off the Louisiana coast, sank after the April 20, 2010, explosion. The well on the sea floor spewed an estimated 206 million gallons of crude oil, soiling sensitive tidal estuaries and beaches, killing wildlife and shutting vast areas of the Gulf to commercial fishing.

Nelda Winslette's grandson Adam Weise, of Yorktown, Texas., was killed in the blast. She says somebody needs to be held accountable, even if it doesn't end her family's pain.

"It just bothers me so bad when I see the commercials on TV and they brag about how the Gulf is back, but they never say anything about the 11 lives that were lost. They want us to forget about it, but they don't know what they've done to the families that lost someone," she said.

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