Cain Burdeau: BP Faces Billions in Fines as Spill Trial Nears

On the cusp of trial over the catastrophic 2010 oil spill in the Gulf of Mexico, phalanxes of lawyers, executives and public officials have spent the waning days in settlement talks. Holed up in small groups inside law offices, war rooms and hotel suites in New Orleans and Washington, they are trying to put a number on what BP and its partners in the doomed Macondo well project should pay to make up for the worst offshore spill in US history. It is a complex equation, and the answer is proving elusive. The federal government, Gulf states, plaintiffs' attorneys, BP PLC rig owner Transocean Ltd. and cementer Halliburton Energy Services Inc. have been in simultaneous and separate negotiations in New Orleans, according to a person with direct knowledge of the talks, and others who had been briefed on them. Trial is set for Monday, and by Friday, no deal had been reached, several people familiar with the negotiations told The Associated Press on condition of anonymity. The biggest stumbling block appeared to be the sheer size and sprawling uncertainty over the unprecedented dollar amounts at stake. Financial analysts estimate BP's potential settlement payout at $15 billion in the weeks after the explosion to account for all its costs, including cleanup, compensating businesses, and paying fines and ecological damage. "This one is off the charts in terms of size and significance," said Eric Schaeffer, the director of the Environmental Protection Agency's Office of Regulatory Enforcement. BP has to weigh its chances of getting off cheaper by piecing together a sweeping settlement or put its fate in the handsof one man, a federal judge who will hear testimony in lieu of a jury.