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Energy & Environment

BP Loses Two Rulings on Spill Suits

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Photo courtesy U.S. Coast Guard
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Fire boat response crews battle the blazing remnants of the off shore oil rig Deepwater Horizon April 21, 2010.

A federal judge has dealt oil giant BP a pair of setbacks in its efforts to shield itself from billions of dollars in damage claims related to last year's oil spill in the Gulf of Mexico.

Today, a judge ruled that BP is not covered under insurance policies worth $750 million held by the owner of the Deepwater Horizon, Transocean Ltd.

The Deepwater Horizon oil rig exploded on April 20, 2010. 11 people were killed in the explosion. Millions of gallons spilled from the BP-operated well in following months, making for the worst offshore oil spill in U.S. history.

The judge ruled earlier this week that the states of Alabama and Louisiana can pursue damages from BP and other companies involved in the drilling operation.

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