Developing

YOUR FRIENDS' ACTIVITY

    CORRECTED-ANALYSIS-US gov't attack on BP shows it ready for court battle

    (Corrects name of professor in fourth paragraph)

    * US lawyers show no equivocation in new court filing

    -professor

    * Colorful BP emails reference 'chaos,' Village People music

    group

    By David Ingram

    WASHINGTON, Sept 5 (Reuters) - In accusing BP Plc of

    gross negligence and willful misconduct over the 2010 Deepwater

    Horizon oil spill, the U.S. Justice Department has shown that it

    is prepared for a bruising court struggle with the London-based

    oil giant.

    Government lawyers used unusually blunt language in

    describing the conduct of BP and its executives in a court

    filing on Friday, saying that it "would not be tolerated in a

    middling size company manufacturing dry goods for sale in a

    suburban mall."

    While settlement talks are still possible, and some saw

    political overtones to the timing of the Justice Department's

    statements ahead of this week's Democratic National Convention,

    most legal experts said the stinging accusations suggested that

    the government felt it could win a case in front of a jury and

    make BP suffer.

    The government's sharpened language is characteristic of a

    case where gross negligence is the central issue, said Martha

    Judy, a law professor at Vermont Law School who specializes in

    environmental liability. The government needs to pull out

    outrageous examples of BP's conduct if it wants to show the

    company was not just negligent but grossly so, she said.

    "The point they're trying to persuade the judge of is that

    this is so beyond unreasonable, it is ridiculous and perhaps

    even reckless or intentional," Judy said.

    The Aug. 31 court filing reiterated the government's

    long-held position that BP committed gross negligence, a

    position that could nearly quadruple civil damages under the

    Clean Water Act to $21 billion if a federal judge agrees.

    While not introducing any new facts, the 39-page brief was

    sprinkled with tart language about what it called BP's

    "cherry-picked assertions" and "culture of corporate

    recklessness." It accused Transocean Ltd of gross

    negligence, too. A Transocean spokesman declined to comment.

    "I read it as the government being profoundly confident in

    the merits of its case, a confidence that they will ultimately

    prevail in a finding of gross negligence," said Blaine LeCesne,

    a law professor at Loyola University in New Orleans.

    BP contests the allegation, and in a statement responding to

    the Justice Department on Tuesday said it "looks forward to

    presenting evidence on this issue" at a trial scheduled to begin

    in January 2013 in New Orleans. The company had no further

    comment on Wednesday.

    The U.S. government and BP are engaged in talks to settle

    civil and potential criminal liability, though neither side will

    comment on the status of negotiations. LeCesne said the Justice

    Department's filing firmly signals that it is ready for trial.

    "The lines have been drawn, and they are preparing for

    battle," LeCesne said. "Unless there is a significant about-face

    in BP's perspective this case is going to trial."

    The filing comes more than two years after the disaster that

    struck on April 20, 2010 when a surge of methane gas known to

    rig hands as a "kick" sparked an explosion aboard the Deepwater

    Horizon rig as it was drilling the mile (1.6 km)-deep Macondo

    252 well off Louisiana's coast. The rig sank two days later.

    The well spewed 4.9 million barrels of oil into the Gulf of

    Mexico for 87 straight days, unleashing a torrent of oil that

    fouled the shorelines of four Gulf Coast states and eclipsed the

    1989 Exxon Valdez spill in Alaska in severity.

    PROVING RECKLESSNESS

    A Justice Department spokesman declined to comment on

    Wednesday.

    To illustrate the idea that BP was grossly negligent leading

    up to the 2010 oil spill, Justice Department lawyers highlighted

    internal BP emails that, while previously public, remain

    colorful and potentially embarrassing.

    For example, in an email to his boss, BP team leader John

    Guide wrote that the Macondo drilling team was "flying by the

    seat of our pants."

    "Everybody wants to do the right thing, but this huge level

    of paranoia from engineering leadership is driving chaos," Guide

    wrote in the email, which government lawyers quoted near the

    front of their latest brief.

    Houston-based David Sims responded by email that they should

    speak later because he was on his way to dance practice. "We're

    dancing to the Village People," Sims wrote.

    GETTING BUSY AGAIN

    An internal BP investigation after the oil spill did not

    mention the existence of the emails, which should have been a

    "clarion cry of impending disaster," government lawyers wrote.

    Justice Department lawyers were not required to file the

    brief. They did so voluntarily in a matter the government is not

    a party to, a $7.8 billion settlement BP reached with

    individuals and businesses.

    The department was concerned that, in approving that

    settlement, U.S. District Judge Carl Barbier could make a ruling

    about negligence that would later hurt the government's

    position, government lawyers wrote.

    The government's brief got the attention of analysts at the

    financial services firm Raymond James & Associates, which said

    its timing was meant to make an impact before the Democratic

    National Convention in Charlotte.

    "After several quiet months on the legal front, the DOJ is

    getting busy again, and the political overtones seem readily

    apparent," the analysts wrote.

    (Editing by Chris Baltimore and Richard Chang; Desking by Vicki

    Allen)