BP had appealed that the maximum fine limit should be set at $3,000 for each barrel as per the country’s Clean Water Act. However, the federal government had claimed that the firm has to pay a fine of $4,300 for each barrel.
US District Judge Carl Barbier in New Orleans agreed with the federal government.
BP claimed that the Clean Water Act in 1990 had set the maximum limit of the fine at $3,000 per barrel in cases of "gross negligence" or "willful misconduct", reported Reuters.
However, the judge ruled in favour of the federal government, claiming that the U.S. Environmental Protection Agency could increase the maximum to account for inflation.
If BP’s plea had been accepted, it would have had to pay a maximum fine of $9.57bn.
Setting a penalty is the final step of the civil case, which is overseen by Barbier.
The explosion of the Macondo oil well in the Gulf of Mexico on 20 April 2010 killed 11 workers and spilled 3.19 million of oil, thereby making it the largest US offshore oil spill.
The company spokesman Geoff Morrell was quoted by Reuters as saying that the company does not agree with the court’s verdict and is exploring legal options.
Earlier, the US judge ruled that the company had acted with gross negligence or willful misconduct.
So far, BP has incurred over $42bn of costs for the 2010 spill. The costs incurred were for cleanup, compensation to victims, and penalties, reported the news agency.
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Image: Oil washes ashore the coast in Louisiana, the US. Photo: Courtesy of Governor Jindal’s office/Louisiana GOHSEP.
