I was reading Bloomberg as I noticed the Dow dropped -268 points and gold went up. (not that I have any moolah, just watching trends)
Then I saw this:
June 29 (Bloomberg) -- The U.S. Justice Department told BP Plc, Transocean Ltd. and three other companies associated with the Gulf of Mexico oil spill to provide the government with advance notice before depleting assets that could cover judgments against them.
The letters, dated June 23 and provided to Bloomberg News in response to a Freedom of Information Act request, also went to Anadarko Petroleum Corp., HalliburtonCo. and Moex USA Corp., and described “significant” potential liability.
Each letter said the U.S. has a “compelling interest” to ensure the companies don’t “deplete those assets that would be available to satisfy a judgment” should they be sued by the U.S. and ordered to pay damages. The Justice Department letter to Transocean called the company’s $1 billion stock dividend program “troubling.”
Attorney General Eric Holder has said the American people won’t pay for cleanup costs for the biggest U.S. spill on record and that the government will take the steps needed to ensure those responsible cover the expenses. The Justice Department is conducting civil and criminal investigations into the spill.
The letters ask for 30 days notice of events including disbursements, sales, restructuring and acquisitions.
Gushing Oil
London-based BP is the operator of the well pouring crude oil into the Gulf of Mexico; Anadarko, based in The Woodlands, Texas, owns 25 percent of the well. Transocean, based in Geneva, owned the Deepwater Horizon rig that exploded in an April 20 accident that killed 11 workers and sent oil gushing. Halliburton, based in Houston, provided drilling services. Mitsui & Co., based in Tokyo, owns a majority stake in Moex, which holds a 10 percent stake in the well.
The letter to Transocean said the government has learned that it plans to make cash disbursements that “could deplete its ability to satisfy debts to the United States.” The letter said the company approved a more than $3 billion stock repurchase program and announced a $1 billion stock dividend program.
“We find troubling the fact that Transocean approved this dividend payment on May 14, 2010, after the events of April 20 and at a time when Transocean was surely aware of the potential liability it faces,” according to the letter, signed by Tony West, the assistant attorney general in charge of the department’s civil division.
Declining to Comment
Guy Cantwell, a Transocean spokesman, declined to comment. A voicemail message left with BP’s media department wasn’t immediately returned. Halliburton spokeswoman Teresa Wong said the company is evaluating the letter and has no additional comment.
Michael W. Robinson, a senior vice president at Washington- based Levick Strategic Communications LLC, which represents Moex, wasn’t able to immediately comment.
Also released today in response to the Bloomberg News request are letters telling Anadarko and Hyundai Heavy Industries Co., based in Ulsan, South Korea, to preserve information related to the spill. Hyundai built the Deepwater Horizon rig.
The department also released similar letters to BP, Halliburton and Transocean. Bloomberg News previously reported that those letters had been sent.
The May letters say that the “knowing destruction of records even in anticipation of a federal investigation could result in obstruction of justice.”
BP agreed with President Barack Obama to deposit $20 billion in an independently managed account to cover cleanup costs and compensation claims.
To contact the reporter on this story: Justin Blum in Washington at
jblum4@bloomberg.net http://noir.bloomberg.com/apps/news?pid=20601087&sid=aeVRSWEn6RNU&pos=5
Tue Jun 29, 2010 3:53 pm
