BP Whistleblower Could Receive Billions

By Sarah Pierce

(LEGAFI) -- A federal judge has refused to dismiss a $30 billion qui tam whistleblower lawsuit that claims BP stole $10 billion worth of oil and gas from the U.S. government by submitting false documents about operations at its Atlantis rig. Under qui tam provisions, the whistleblower stands to receive as much as $7.5 billion if funds are recovered.

The BP whistleblower lawsuit is asking that BP be banned from drilling for and producing oil and gas at its Atlantis facility until BP corrects its alleged lack of compliance with various federal environmental and safety regulations. It is also seeking to recover billions of dollars in oil and gas revenue from BP, alleging that BP unlawfully acquired that revenue by falsely certifying to the Department of the Interior that BP was in compliance with various federal regulations. The government issued five leases to BP for the land underlying Atlantis, granting it the exclusive right to drill for and produce oil and gas, provided that BP complied with regulations and constructed structures that complied with health, safety and environmental requirements.

BP whistleblower Kenneth Abbott, a former BP project control supervisor, and consumer-advocacy group Food & Water Watch accuse BP of violating the False Claims Act and the Outer Continental Shelf Land Act by knowingly submitting false compliance certifications to the U.S. DOI for its Atlantis rig’s operations.

BP tried to dismiss the case by claiming the plaintiffs lack evidence of the allegedly fraudulent certification or of a false claim for money and property, but the court denied BP’s motion, saying “BP’s right to extract oil and gas from the OCS is predicated upon its compliance with its leases’ contractual provisions." It also said Abbott’s allegations, if taken as true, state violations of the False Claims Act.

Under the False Claims Act, the government can recover $30 billion in treble damages plus civil penalties. Qui tam provisions would entitle Abbott to as much as 25 percent of any funds recovered from the whistleblower lawsuit.