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Will BP Cheat Oil Rig Dead?

Surviving relatives of the 11 workers who loss their lives when the Deepwater Horizon oil rig blew out and sank on April 22, could wind up with as little as $1,000 from BP, as liabilities are severely limited under a 90-year-old maritime law, Death of the High Seas Act.

BP Chairman, Carl-Henric Svanberg

altnet.org: After a BP refinery in Texas exploded in 2005, killing 15 workers and injuring scores more, the oil giant paid $1.6 billion in settlements to employees and their families. But the families of the workers killed on BP’s Deepwater Horizon rig in the Gulf of Mexico probably won’t receive a similar windfall. That’s because the Deepwater rig is legally considered an ocean-going vessel, and was more three nautical miles offshore at the time of the accident. As a result, the families of the dead workers can only sue BP and its contractors under a 90-year-old maritime law, the Death on the High Seas Act, which severely limits liability. In some cases, BP could get away with shelling out sums as paltry as $1,000.

Gordon Jones, a mud engineer killed on the Deepwater rig, left behind a pregnant wife who had quit her job to stay home with their two-year-old son. But thanks to DOHSA, the most BP could owe them is the equivalent of Gordon’s salary over his working life, minus what he would have paid out in taxes and personal expenses. So if Gordon made $60,000 a year for the next 30 years, BP could owe the family less than a million dollars.

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