Halliburton pleads guilty to destroying evidence after Gulf spill

[News_Editor]

WASHINGTON, D.C. (BNO NEWS) -- Oilfield services giant Halliburton will plead guilty to destroying evidence in connection with the 2010 Deepwater Horizon disaster and is willing to pay a $200,000 fine, the U.S. Justice Department announced on late Thursday. The ecological disaster was the worst U.S. oil spill in history.

A criminal information charging Halliburton with one count of destruction of evidence was filed in the U.S. District Court in the Eastern District of Louisiana earlier on Thursday. The company signed a cooperation and guilty plea agreement with the government in which Halliburton agrees to plead guilty and admit its criminal conduct, although it is still subject to court approval.

"As part of the plea agreement, Halliburton has further agreed, subject to the court's approval, to pay the maximum-available statutory fine, to be subject to three years of probation and to continue its cooperation in the government's ongoing criminal investigation," the justice department said in a statement. The maximum fine is $200,000.

Prosecutors also noted that Halliburton has made a voluntary contribution of $55 million to the National Fish and Wildlife Foundation, something that was not a condition for the plea agreement. The company said in its own statement that its voluntary contribution demonstrates its commitment to making a positive environmental impact in the world.

The disaster began on April 20, 2010, when BP's Deepwater Horizon oil platform experienced an uncontrolled blowout and exploded, killing eleven men and ultimately releasing an estimated 4.9 million barrels of oil into the Gulf of Mexico. BP was finally able to seal the well with cement 18,000 feet (5,486 meters) below the sea in September 2010.

According to court documents, Halliburton conducted its own review of various technical aspects of the Macondo well's design and construction and established an internal working group in May 2010 to examine the well blowout, including whether the number of centralizers used on the final production casing could have contributed to the blowout.

A production casing is a long, heavy metal pipe set across the area of the oil and natural gas reservoir, while centralizers are protruding metal collars affixed at various intervals on the outside of the casing and can help keep the casing centered in the wellbore away from the surrounding walls as it is lowered and placed in the well. Centralization can be significant to the quality of subsequent cementing around the bottom of the casing.

Prior to the blowout, Halliburton advised BP to use 21 centralizers in the Macondo well, but the oil giant opted to use six centralizers instead. Halliburton therefore directed employees to run two computer simulations of the Macondo well's final cementing job, using a 3D simulation program to compare the impact of using six versus 21 centralizers.

The results from Halliburton's Displace 3D simulation program, which was being developed to model fluid interfaces and their movement through the wellbore and annulus of a well, indicated that there was little difference between using six and 21 centralizers. The company then directed the Senior Program Manager for the Cement Product Line to destroy these results.

More than a year later, the oilfield services giant destroyed similar evidence in a second incident. Halliburton's Cementing Technology Director had asked another, more experienced, employee to run simulations again but the employee reached the same conclusion. The employee was then also directed to "get rid of" the simulations.

The U.S. Justice Department said their efforts to forensically recover the original destroyed Displace 3D computer simulations during ensuing civil litigation and federal criminal investigation by the Deepwater Horizon Task Force were unsuccessful. But in agreeing to plead guilty, the company has accepted criminal responsibility for destroying the evidence.

"The Department of Justice has agreed that it will not pursue further criminal prosecution of the company or its subsidiaries for any conduct relating to or arising out of the Macondo well incident," Halliburton said in a statement. "The Department of Justice acknowledged the company's significant and valuable cooperation during the course of its investigation, and the company has agreed to continue to cooperate with the Department of Justice in any ongoing investigation related to or arising from the incident."

(Copyright 2013 by BNO News B.V. All rights reserved. Info: [email protected].)

[cloudhopper]

Another corporate slap on the wrist from Eric Holder, the wall street lawyer appointed by Obama to be the attorney general. Plenty of time to criticize local jury verdicts while Obama fund raiser Jon Corzine remains uncharged in the theft of millions. Thailand has nothing on the US when it comes to corruption.

[geriatrickid]

Another corporate slap on the wrist from Eric Holder, the wall street lawyer appointed by Obama to be the attorney general. Plenty of time to criticize local jury verdicts while Obama fund raiser Jon Corzine remains uncharged in the theft of millions. Thailand has nothing on the US when it comes to corruption.

????

What do you think a maximum fine mean? What do you want the US government to do? Change the law and make it retroactive? Good luck on getting a GOP controlled House to pass such legislation.

The government can only enforce the laws in place. In case you forgot it is the GOP and some oil state Democrats that want to gut the EPA.

[cloudhopper]

Another corporate slap on the wrist from Eric Holder, the wall street lawyer appointed by Obama to be the attorney general. Plenty of time to criticize local jury verdicts while Obama fund raiser Jon Corzine remains uncharged in the theft of millions. Thailand has nothing on the US when it comes to corruption.

????

What do you think a maximum fine mean? What do you want the US government to do? Change the law and make it retroactive? Good luck on getting a GOP controlled House to pass such legislation.

The government can only enforce the laws in place. In case you forgot it is the GOP and some oil state Democrats that want to gut the EPA.

I want the US government to prosecute them criminally. Corzine and his ilk too.

"The Department of Justice has agreed that it will not pursue further criminal prosecution of the company or its subsidiaries for any conduct relating to or arising out of the Macondo well incident,"

The laws have been written by lobbyists for the 1% and made so by corrupt politicians in all political parties.

[jbrain]

Another corporate slap on the wrist from Eric Holder, the wall street lawyer appointed by Obama to be the attorney general. Plenty of time to criticize local jury verdicts while Obama fund raiser Jon Corzine remains uncharged in the theft of millions. Thailand has nothing on the US when it comes to corruption.

????

What do you think a maximum fine mean? What do you want the US government to do? Change the law and make it retroactive? Good luck on getting a GOP controlled House to pass such legislation.

The government can only enforce the laws in place. In case you forgot it is the GOP and some oil state Democrats that want to gut the EPA.

How about prosecute people responsible at the top of the food chain, who after all receive a multi million$ salary for reasons that they carry a high responsibility, so let them take up that responsibility now.

Of course Haliburton now laughs all the way to the bank, as the fine they have to pay is probably only a fraction of what they saved with their criminal actions.

[Wavefloater]

When governments are owned and operated by big business what do you expect? Of course the fines will be laughingly tiny. It's pretty much an invitation for big businesses to do anything they like without any worry about truly negative consequences. And believe me, circumventing or even just ignoring the laws then paying relatively puny fines is actually one of the strategies they employ.

I was recently watching a documentary on the incredibly immoral and evil pharmaceutical companies. It was amazing how these bastards will do anything to realize obscene profits, and they actually budget fines into the ledger. Typically, the fine is much less than 1% of the profits they made from harming and killing large numbers of people with their poisons.

[HeijoshinCool]

$200, 000.

Seems half the Thai Visa members who regularly post could afford a fine like that.

[Exsexyman]

Destroying evidence is surely a serious crime, if you or i did it we would go to prison. Will any of the bigwigs from Halliburton go to prison? Not a chance, that punishment is reserved for the 'Little Guys'. Halliburton have been ripping off taxpayers for years, getting extremely fat from the conflicts in Iraq and Afghanistan, on the backs of dead servicemen sent there under extremely dubious circumstances. Can we expect a statement from that nice Mr Cheney re this latest Halliburton scandal?

[NanLaew]

Wasn't Halliburton's 'sloping shoulders' disassociation from any direct responsibility mostly based on their claim that BP ignored their recommendation and went with an inferior, unsafe (and cheaper) solution with respect to these stabilizers? Then they ran tests that shot that theory in the foot so destroyed the evidence.

So, they pay the mandated maximum fine but importantly gain immunity from further criminal prosecution for being party to a sh!t job in the first place. Pretty much the same game as Transocean who's incredibly malfunctioning BOP was discounted as not playing any critical part in the disaster. Then Transocean awarded themselves bonuses for its 'best year in safety performance' later in 2010?

[metisdead]

Haliburton pleading guilty to destroying evidence after the Gulf of Mexico oil spill is on-topic to this thread, while Haliburton offers a settlement to the Nigerian government pushing Interpol for an arrest warrant to get their hand on a "certain person" is another topic altogether. Off topic post removed, stay on this topic.

[Johpa]

Another corporate slap on the wrist from Eric Holder, the wall street lawyer appointed by Obama to be the attorney general. Plenty of time to criticize local jury verdicts while Obama fund raiser Jon Corzine remains uncharged in the theft of millions. Thailand has nothing on the US when it comes to corruption.

Calling a $200,000 fine to a corporation like Haliburton a slap on the wrist is a gross exaggeration. It is more akin to something slightly less than a wag of the finger.

[midas]

$200, 000.

Seems half the Thai Visa members who regularly post could afford a fine like that.

A lawyer in Texas named John Wall, who has sued Halliburton many times , says when they lose they rarely pay more than $50,000 in damages

[F430murci]

$200, 000.

Seems half the Thai Visa members who regularly post could afford a fine like that.

A lawyer in Texas named John Wall, who has sued Halliburton many times , says when they lose they rarely pay more than $50,000 in damages

I filed one of the very first class action cases (maybe 2nd) days after incident. I also did the news rounds and was interviewed by various cable news networks and many local stations between Pensacola and Destin. I represented approximately 350 businesses (hotels, tourism gift shops, restaurants, seafood companies and etc.) and some commercial shrimpers and fisherman throughout the Gulf Coast.

I don't have enough time to go through the absolute environmental disaster, dead spots in ocean, mutated shrimp and people getting sick. I ended up in the hospital with a serious lung infection after surfing surrounded by tar balls in July or August of 2010.

I know divers that indicate everything is covered a few miles off coast of Pensacola and Destin. One can only imagine what is may be like closer to spill.

I had really hoped that Bama would have been tougher on the oil companies and also put some measures in place to keep gas prices in check which are artificially inflated by speculators and the markets. Nope, he is in their back pocket as much as Bush was . . .

Interesting how forum for a lot of this stuff ended up in Houston, oil country . . . instead of forum where damages occurred . . . Fines and etc. are pathetic, understated, and regulatory sanctions have not even been pursued for blatant violations that I don't even want to get into . . . Money talks and bs walks.

[NanLaew]

$200, 000.

Seems half the Thai Visa members who regularly post could afford a fine like that.

A lawyer in Texas named John Wall, who has sued Halliburton many times , says when they lose they rarely pay more than $50,000 in damages

I filed one of the very first class action cases (maybe 2nd) days after incident. I also did the news rounds and was interviewed by various cable news networks and many local stations between Pensacola and Destin. I represented approximately 350 businesses (hotels, tourism gift shops, restaurants, seafood companies and etc.) and some commercial shrimpers and fisherman throughout the Gulf Coast.

I don't have enough time to go through the absolute environmental disaster, dead spots in ocean, mutated shrimp and people getting sick. I ended up in the hospital with a serious lung infection after surfing surrounded by tar balls in July or August of 2010.

I know divers that indicate everything is covered a few miles off coast of Pensacola and Destin. One can only imagine what is may be like closer to spill.

I had really hoped that Bama would have been tougher on the oil companies and also put some measures in place to keep gas prices in check which are artificially inflated by speculators and the markets. Nope, he is in their back pocket as much as Bush was . . .

Interesting how forum for a lot of this stuff ended up in Houston, oil country . . . instead of forum where damages occurred . . . Fines and etc. are pathetic, understated, and regulatory sanctions have not even been pursued for blatant violations that I don't even want to get into . . . Money talks and bs walks.

Was your class action suit solely against BP or did it cover Halliburton, Transocean and others?

Do you consider that BP are being fairly penalised?

[F430murci]

$200, 000.

Seems half the Thai Visa members who regularly post could afford a fine like that.

A lawyer in Texas named John Wall, who has sued Halliburton many times , says when they lose they rarely pay more than $50,000 in damages

I filed one of the very first class action cases (maybe 2nd) days after incident. I also did the news rounds and was interviewed by various cable news networks and many local stations between Pensacola and Destin. I represented approximately 350 businesses (hotels, tourism gift shops, restaurants, seafood companies and etc.) and some commercial shrimpers and fisherman throughout the Gulf Coast.

I don't have enough time to go through the absolute environmental disaster, dead spots in ocean, mutated shrimp and people getting sick. I ended up in the hospital with a serious lung infection after surfing surrounded by tar balls in July or August of 2010.

I know divers that indicate everything is covered a few miles off coast of Pensacola and Destin. One can only imagine what is may be like closer to spill.

I had really hoped that Bama would have been tougher on the oil companies and also put some measures in place to keep gas prices in check which are artificially inflated by speculators and the markets. Nope, he is in their back pocket as much as Bush was . . .

Interesting how forum for a lot of this stuff ended up in Houston, oil country . . . instead of forum where damages occurred . . . Fines and etc. are pathetic, understated, and regulatory sanctions have not even been pursued for blatant violations that I don't even want to get into . . . Money talks and bs walks.

Was your class action suit solely against BP or did it cover Halliburton, Transocean and others?

Do you consider that BP are being fairly penalised?

I and everyone i knew of sued all 3. Fairly penalized is a difficult proposition. How do you fairly penalize for an ecological disaster of that proportion, especially when no one really knows the long term impact of corexit or the 8527a version with 2-butyl.

In my opinion, BP stepped up the plate a heck of a lot more than Transocean and Haliburton, but BP had very little choice do to economic concerns, boycotts and future drilling rights.

Edited July 27, 2013 by F430murci

[midas]

A lawyer in Texas named John Wall, who has sued Halliburton many times , says when they lose they rarely pay more than $50,000 in damages

I filed one of the very first class action cases (maybe 2nd) days after incident. I also did the news rounds and was interviewed by various cable news networks and many local stations between Pensacola and Destin. I represented approximately 350 businesses (hotels, tourism gift shops, restaurants, seafood companies and etc.) and some commercial shrimpers and fisherman throughout the Gulf Coast.

I don't have enough time to go through the absolute environmental disaster, dead spots in ocean, mutated shrimp and people getting sick. I ended up in the hospital with a serious lung infection after surfing surrounded by tar balls in July or August of 2010.

I know divers that indicate everything is covered a few miles off coast of Pensacola and Destin. One can only imagine what is may be like closer to spill.

I had really hoped that Bama would have been tougher on the oil companies and also put some measures in place to keep gas prices in check which are artificially inflated by speculators and the markets. Nope, he is in their back pocket as much as Bush was . . .

Interesting how forum for a lot of this stuff ended up in Houston, oil country . . . instead of forum where damages occurred . . . Fines and etc. are pathetic, understated, and regulatory sanctions have not even been pursued for blatant violations that I don't even want to get into . . . Money talks and bs walks.

Was your class action suit solely against BP or did it cover Halliburton, Transocean and others?

Do you consider that BP are being fairly penalised?

I and everyone i knew of sued all 3. Fairly penalized is a difficult proposition. How do you fairly penalize for an ecological disaster of that proportion, especially when no one really knows the long term impact of corexit or the 8527a version with 2-butyl.

In my opinion, BP stepped up the plate a heck of a lot more than Transocean and Haliburton, but BP had very little choice do to economic concerns, boycotts and future drilling rights.

why couldn't the assessment of damages be based on monitoring the effects of these chemicals over a period of years instead of rushing to get a settlement now? Why couldn't they have been made to pay something now but with the provision that if the after-effects show much more serious consequences in say five or 10 years time they would be penalised even more?

[NanLaew]

why couldn't the assessment of damages be based on monitoring the effects of these chemicals over a period of years instead of rushing to get a settlement now? Why couldn't they have been made to pay something now but with the provision that if the after-effects show much more serious consequences in say five or 10 years time they would be penalised even more?

That would be sensible but in reality, who saves for a rainy day? Certainly not the recipients of the ongoing, federally mandated cash grab in the Gulf of Mexico.

[midas]

The alternative media tried to tell you that the chemicals added to the Gulf of Mexico to hide all of the oil were super toxic, and that there was a giant cover-up where BP used the government as a sock puppet. Now it's gone mainstream ... 60 Minutes – Australia tells the tale:

When petroleum giant BP spilled millions of litres of crude oil into the Gulf of Mexico three years ago, it was the worst ever offshore oil disaster.

To try and break up that massive slick, vast quantities of chemical dispersant was sprayed on the spill.

It seemed to work: the oil disappeared.

But people started getting sick and then people started dying.

Now, this environmental disaster has become a health catastrophe.

The dispersant, when mixed with the oil, increases in toxicity by 52 times. This sickly, invisible toxin, still lurks in the water and absorbs straight into peoples' skin.

In this special 60 Minutes investigation, we reveal the same chemical dispersants have been sprayed on the Great Barrier Reef and off the north west coast of Australia.

They're still approved for use and our authorities are clueless as to how deadly they are

WATCH part 1 and 2 of " Crude Solution "

http://sixtyminutes.ninemsn.com.au/article.aspx?id=8706910

[Richard W]

Of course Haliburton now laughs all the way to the bank, as the fine they have to pay is probably only a fraction of what they saved with their criminal actions.

What have Haliburton saved by destroying evidence? It seems to me that the intended victim of this attempt to pervert the course of justice was BP.