Middle East

Taylor Energy, Federal Reserve Board Reach $ 475 Million Settlement

Oil company Taylor Energy Co LLC has transferred a $ 432 million cleanup trust account to the U.S. government to settle a lawsuit on its role in the longest oil spill in U.S. history under a proposed deal in New Orleans. Agreed to pay an additional $ 43 million to. Federal Court of Justice on Wednesday.

New Orleans company and federal authorities have submitted a proposal Consent decree To resolve claims arising from the 2004 incident in which Hurricane Ivan collapsed one of Taylor’s offshore drilling platforms in the Gulf of Mexico. The resulting oil leak has continued since then, according to a statement from the Ministry of Justice.

Taylor disclaims any liability as part of the contract, subject to final court approval. The lawyer did not immediately respond to the request for comment.

The settlement “represents an important down payment to address the effects of the longest-running oil spill in US history,” Nicole Rubuff, director of the National Oceanic and Atmospheric Administration’s State Oceanic Administration, said in a statement. rice field.

The collapse of the platform in 2004 damaged about 20 wells. In 2007, the federal government ordered the company to close and abandon the leaked well, and in 2008 signed a trust agreement with Taylor to fund the rest of the work.

Under the proposed transaction, Taylor hands over the entire amount of the funds to the Ministry of Interior.

The Consent Decree also requires Taylor to pay more than $ 43 million in fines and funds to clean up the oil pollution associated with the case and offset the oil damage done to natural resources such as fish. ..

This amount represents the value of the company’s remaining assets to be liquidated, according to a DOJ statement.

According to the statement, $ 16.5 million in funding to compensate for damage to natural resources will be shared between Louisiana and the federal government.

The contract also states that it will withdraw three proceedings against the United States in federal court, including those seeking repayment of the costs Taylor incurred for cleanup.

Taylor exists today only as the organization responsible for responding to oil spills, according to its website.

Most of the leaked oil has been captured by the United States Coast Guard through contractors since mid-2019, according to a DOJ statement.

The case was US-V. Louisiana, US District Court, No. 2: 20-This is Taylor Energy Co LLC which is cv-02910.

For the United States: US Department of Justice Rebecca Diaz

For Taylor Energy Co: Jones Walker’s Carl Rosenblum

https://www.oedigital.com/news/493068-taylor-energy-u-s-feds-reach-475m-settlement-in-longest-running-offshore-oil-spill Taylor Energy, Federal Reserve Board Reach $ 475 Million Settlement

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