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Ex-BP engineer arrested for destroying Gulf leak evidence
by Staff Writers
Washington (AFP) April 24, 2012


US authorities made their first arrest Tuesday in the 2010 Deepwater Horizon disaster, charging an ex-BP engineer with destroying evidence tied to the country's largest-ever environmental disaster.

The Justice Department said it had charged drilling engineer Kurt Mix, 50, with two criminal counts of obstruction of justice for trying to destroy hundreds of text messages on his iPhone that related to the incident

The messages, some of which investigators recovered, showed BP knew that the leak was more than three times larger than its official estimates and that its "Top Kill" effort to plug the well at the end of May 2010 was failing.

Mix, of Katy, Texas, is the first person to be charged in the April 2 0, 2010, disaster that killed 11 men and sent millions of barrels of oil leaking into the Gulf of Mexico, killing sealife and coating shores popular with tourists.

The messages Mix allegedly attempted to wipe from his iPhone came from the weeks after the Macondo well blowout, when BP sought to halt the subsea leak.

The charges say Mix was part of BP staff trying to estimate the amount of oil flowing from the well for the Top Kill effort aimed at halting it.

According to the charges, he sent hundreds of "real time" messages to a BP supervisor on the flow of the well and progress of the operation.

BP , based in Britain, had reported at the time that the well was leaking about 5,000 barrels a day of crude oil.

The messages allegedly give a different picture.

"Too much flowrate -- over 15,000," said one message Mix sent on May 26, the first day of the operation.

Even before the operation commenced, the Justice Department said, "Mix and other engineers had concluded internally that Top Kill was unlikely to succeed if the flow rate was greater than 15,000 barrels of oil per day."

The effort in fact did fail and the well flowed for 10 weeks more until a new effort plugged it on August 4, after 4.9 million barrels of oil had polluted the Gulf of Mexico waters.

US authorities said Mix had been under instructions from BP to retain all communications.

However, it said, as investigations were launched into the disaster, on two instances in mid-August 2010 and then again in October, he deleted strings of text messages relating to the Top Kill operation.

"By the time Mix deleted those texts, he had received numerous legal hold notices requiring him to preserve such data and had been communicating with a criminal defense lawyer in connection with the pending grand jury investigation of the Deepwater Horizon disaster," the department said.

In a statement BP said it was coorperating with the investigation and that the company "had clear policies requiring preservation of evidence in this case."

Mix faces up to 20 years in prison and a fine of up to $250,000 on each count if convicted.

"The Deepwater Horizon Task Force is continuing its investigation into the explosion and will hold accountable those who violated the law in connection with the largest environmental disaster in US history," US Attorney General Eric Holder said in a statement.

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BP files US suit against Argentina-based Bridas
London (AFP) April 24, 2012 - BP has filed US legal proceedings over a dispute with Argentina-based energy firm Bridas Corporation linked to the collapse of a deal worth $7.1 billion, the British energy giant said Tuesday.

BP in late 2010 agreed to sell a 60-percent stake in Pan American Energy (PAE) to Bridas as part of asset sales to pay for the Gulf of Mexico oil spill.

Alongside that deal, both sides agreed to terminate an area of mutual interest (AMI) agreement, common in the oil industry, which restricted either side from developing its own interests in the region without the other.

BP paid Bridas the agreed $700 million to terminate the AMI. However after Bridas pulled out of the PAE transaction last November, it returned the $700 million to BP.

The British company said in a statement on Tuesday that Bridas is now requesting to be repaid the $700 million, while demanding that the AMI is not legally terminated. BP on the other hand wants the AMI termination to remain.

"BP is seeking confirmation from the US Federal Court that the PAE share purchase agreement (SPA) and related agreements with Bridas were valid, and that termination of the agreement of mutual interest (AMI) thereunder also remains valid," it said.

"BP paid Bridas $700 million as required under the SPA for a permanent termination of the PAE AMI and a mutual release; it was returned by Bridas claiming that the AMI was not terminated and that the mutual release was not effective.

"Bridas now wants both the $700 million to be paid to it, while stating that the AMI remains in force and the mutual release is not effective -- a completely inconsistent position.

"Bridas is seeking to have it both ways -- this leaves BP no option but to ask the court to confirm that the AMI is permanently terminated and that the mutual release is effective."

Bridas is owned 50 percent by CNOOC International, the international arm of China National Offshore Oil Company, and 50 percent by Bridas Energy Holdings, which is owned by Argentina's Bulgheroni family.



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Philippines sees gas in China-claimed reef
Manila (AFP) April 24, 2012
The Philippines said Tuesday it was hoping to help secure its energy future by developing a natural gas field in an area of the South China Sea also claimed by China. The comments come amid high tension with China over territorial disputes in the South China Sea and with Manila and Beijing locked in a standoff over the Scarborough Shoal. Energy Secretary Rene Almendras expressed optimism ... read more


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