TPT May 2012

showed that the bainite phase in steel is formed through a process of “diffusionless” and not "diffusional” transformation. Unlike the earlier version of steel in the roadbed of the “Chunnel” – utilised by 17 million people a year – Prof Bhadeshia’s steel is without any carbide content but is rich in silicon. Oil and gas The Deepwater Horizon settlement: BP saves itself time and negative publicity and gets money to the plaintiffs promptly The announcement on 2 March of a proposed $7.8bn deal in the BP civil trial does not spell the end of the case. The proposed settlement between the British oil and gas giant and the group of lawyers leading the litigation for individual and business plaintiffs will shut down the current claims process and create a new fund, administered by the court. It will draw on money set aside by BP within the $20bn escrow fund that was being used to pay claims of economic loss and other expenses. The blowout of the Macondo well in the Gulf of Mexico in April 2010 destroyed the Deepwater Horizon drilling rig, on lease to BP. The explosion and fire killed 11 workers, spilled an estimated 200 million gallons of oil, and disrupted lives and businesses. The settlement agreement would apply to tens of thousands of victims across the

Gulf Coast region but does not resolve lawsuits with federal, state and local governments or address environmental damage. Those other claims could total up to $25bn. What the tentative settlement does do is demonstrate a willingness on the part of BP to pay a huge sum to resolve issues related to the spill. It won prompt praise from Kenneth R Feinberg, the administrator of BP’s compensation fund, who called it “good news” and said, “It avoids a lengthy, complex trial and uncertain appeals.” The deal also mitigates the potential financial damages faced by BP. At one time it seemed conceivable that the company’s spill-related costs could reach $200bn. Now, lawyers and industry analysts place the estimate at less than a quarter of that. Perhaps most important of all, to BP, the settlement sends an important signal: to investors, Gulf Coast states, and US regulators – notably those federal officials who control access to oil reserves that are critically important to the company’s future. BP also looks good in comparison with Exxon, the US oil company which took 20 years to settle the case of the Valdez , a tanker which ran aground in Prince William Sound, Alaska, in 1989. That spill was the largest ever in US waters until the Deepwater Horizon event. › To some observers, the BP settlement was a disappointment. If the case had gone to trial, presumably decisions and mistakes that led to the disaster would have been examined in detail. Dorothy Fabian , Features Editor (USA)

83

www.read-tpt.com

M ay 2012