Gulf News reported that US judge rules rig owner spared from paying damage claims but not exempt from punitive damages civil penalties

The rig owner involved in drilling the ill fated well that blew out in the Gulf of Mexico and spewed more than 757 million liters of oil will not have to pay many pollution claims because it was shielded in a contract with well owner BP.

The ruling comes as BP, the US southern states affected by the disaster and the federal government is discussing a settlement over America's largest offshore oil spill.

BP, Transocean and Halliburton have been sparring over who was at fault for causing the blowout. The out of control well was capped in July 2010. Federal investigators have said that BP bears ultimate responsibility for the spill but has faulted all three companies to some degree.

Thursday’s decision may have spared Transocean from having to pay potentially billions of dollars in damage claims. However, US District Judge Carl Barbier said that the driller still is not exempt from paying punitive damages and civil penalties that arise from the April 20th 2010 blowout 160 kilometers off the Louisiana coast. Those penalties could amount to billions of dollars. Law experts were split over who is a clear cut winner.

BP has been pursuing agreements with multiple parties to reach settlements that would make an upcoming trial involving hundreds of spill lawsuits in New Orleans unnecessary or at least resolve as many of the issues as possible.

Mr Luther Strange general of Alabama Attorney said that the Justice Department also is involved, working with the states to create an outline for a settlement that would resolve their potentially multibillion dollar claims against BP and the other companies involved in the disaster.

Mr Strange said that Justice led a meeting last week in Washington among the US states in an effort to formulate an agreement that would satisfy government and state claims, including penalties and fines. He also indicated if there is a settlement that officials are discussing what to do with the USD 20 billion fund set up by BP to pay victims.

He said that a federal magistrate judge has been asked to expedite settlement discussions. The Louisiana attorney general's office said in a statement to the AP that it is in settlement discussions with BP, which would not comment on any deals in the works.

(Sourced from gulfnews.com)