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Gulf of Mexico leak: BP shares hit over legal move

BP shares have fallen after the US said it was suing the oil giant for alleged

violations of federal safety laws over the Gulf of Mexico oil spill.

The lawsuit asks BP and and eight other firms be held liable without limitation

for all clean-up and damage costs.

The Deepwater Horizon drilling rig explosion in April killed 11 workers and

spilled millions of barrels of oil over several months.

BP's shares in London dipped 2.5% in early trading.

BBC business editor Robert Peston said that drop had taken the edge off a

recent strong run in BP shares.

But he added: "Investors plainly believe that the nature of the Department of

Justice's case against BP hasn't increased potential liabilities for the

company in a fundamental way."

BP said that it would respond to the claims later, adding the action did not

constitute "any finding of liability or any judicial finding that the

allegations have merit".

Start Quote

If BP were found to be grossly negligent, the costs for BP of the debacle could

rise very significantly indeed

End Quote

image of Robert Peston Robert Peston Business editor, BBC News

The oil leak became the worst environmental disaster in US history.

And BP has set aside $39.9bn ( 25bn) to cover the costs stemming from the

disaster.

But our business editor said that if BP were found to be grossly negligent, the

costs it faced could rise significantly.

It could potentially add almost $16bn to the penalties BP would have to pay

under the US Clean Water Act, he said.

And it would make it "perhaps impossible" for BP to recover costs it is

incurring in the clean up and restitution from its co-owners of the Macondo

Well, Anadarko and Mitsui, he added.

Precautions

The lawsuit charges the companies under the US Clean Water Act and Oil

Pollution Act.

US Attorney General Eric Holder said the complaint alleged that "violations of

safety and operational regulations" caused the explosion on 20 April.

The companies named in the lawsuit are BP Exploration and Production Inc,

Anadarko Exploration & Production LP, Anadarko Petroleum Corporation, MOEX

Offshore 2007 LLC, Triton Asset Leasing GMBH, Transocean Holdings LLC,

Transocean Offshore Deepwater Drilling Inc, Transocean Deepwater Inc and

insurer QBE Underwriting Ltd/Lloyd's Syndicate 1036.

The key accusations are:

in the period leading up to the 20 April explosion

the well's conditions

necessary to ensure the safety and protection of personnel, equipment, natural

resources and the environment

"We intend to prove that these defendants are responsible for government

removal costs, economic losses and environmental damages without limitation,"

Mr Holder said.

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US Attorney General Eric Holder outlines the government's plans

"As investigations continue, we will not hesitate to take whatever steps

necessary to hold accountable those responsible for this spill."

BP said it would continue to co-operate with government inquiries and fulfil

its commitments to clean up spilt oil in the Gulf.

Halliburton, the company that cemented the Macondo well, and Cameron

International, which provided equipment for the well, was not targeted in the

lawsuit.

Transocean disputed the charges brought by the government, saying that it

should not be held liable for the actions of others.

"No drilling contractor has ever been held liable for discharges from a well

under the Oil Pollution Act of 1990," the company said in a statement.

"The responsibility for hydrocarbons discharged from a well lies solely with

its owner and operator."