The RESTORE Act (the Resources and Ecosystems Sustainability, Tourist Opportunities, and Revived Economies of the Gulf Coast States Act ) is a United States federal statute that was signed into law by President Barack Obama on July 6, 2012. It was enacted by the 112th United States Congress as an amendment of the Moving Ahead for Progress in the 21st Century Act (MAP-21), a transportation bill that included many other provisions. The act was in response to the Deepwater Horizon oil spill that occurred on April 20, 2010, which caused significant environmental, ecological, and economic damage to the U.S. Gulf Coast .
38-547: On April 20, 2010, the Deepwater Horizon , an oil rig located in the Gulf of Mexico that was owned by Transocean and drilling for British Petroleum ( BP ) exploded, killing 11 workers and injuring 16. The rig burned for over a day before it sank into the gulf on April 22, 2010. Following the explosion, the seafloor oil gusher flowed for 87 days, spilling an estimated 4.9 million barrels (780,000 m) of oil into
76-507: A spar or tension leg platform (TLP). A marine drilling riser has a large diameter, low pressure main tube with external auxiliary lines that include high pressure choke and kill lines for circulating fluids to the subsea blowout preventer (BOP), and usually power and control lines for the BOP. The design and operation of marine drilling risers is complex, and the requirement for high reliability means an extensive amount of engineering analysis
114-538: A crucial part in cement slurry mix and support decisions. These decisions became a focus for investigations of the explosion on the rig that month. Deepwater Horizon was built for R&B Falcon (which later became part of Transocean ) by Hyundai Heavy Industries in Ulsan , South Korea. Construction started in December 1998, the keel was laid on 21 March 2000, and the rig was delivered on 23 February 2001, after
152-624: A device known as a blind shear ram , was activated but failed to plug the well. Ten workers were presumed killed by the initial explosion: Jason Anderson, 35, of Midfield, Texas; Donald Clark, 49, of Newellton, Louisiana; Stephen Ray Curtis, 40, of Georgetown, Louisiana; Gordon Jones, 28, of Baton Rouge, Louisiana; Roy Wyatt Kemp, 27, Jonesville, Louisiana; Karl Kleppinger Jr., 38, Natchez, Mississippi; Keith Blair Manuel, 56, of Gonzales, Louisiana; Dewey Revette, 48, of State Line, Mississippi; Shane Roshto, 22, Liberty, Mississippi; Adam Weise, 24, Yorktown, Texas. An eleventh
190-484: A large percentage of legal claims against them by paying $ 1.1 billion into a trust by way of three installments during two years. On 4 September 2014, U.S. District Judge Carl Barbier ruled BP was guilty of gross negligence and willful misconduct by the Clean Water Act (CWA). He described BP's actions as "reckless", while he said Transocean's and Halliburton's actions were "negligent". He apportioned 67% of
228-410: Is a conduit that provides a temporary extension of a subsea oil well to a surface drilling facility. Drilling risers are categorised into two types: marine drilling risers used with subsea blowout preventer (BOP) and generally used by floating drilling vessels; and tie-back drilling risers used with a surface BOP and generally deployed from fixed platforms or very stable floating platforms like
266-501: Is cited by lawyers, academics and journalists as an example of ecocide . The biographical disaster movie Deepwater Horizon , released in 2016, depicts the events of the 2010 Deepwater Horizon explosion and subsequent oil spill. The movie is based on "Deepwater Horizon's Final Hours", an article published in The New York Times . Additional references explaining events Marine riser A drilling riser
304-411: Is required. When used in water depths greater than about 20 meters, the marine drilling riser has to be tensioned to maintain stability. A marine riser tensioner located on the drilling platform provides a near constant tension force adequate to maintain the stability of the riser in the offshore environment. The level of tension required is related to the weight of the riser equipment, the buoyancy of
342-711: The BP company. On April 20, 2010, while drilling in the Gulf of Mexico at the Macondo Prospect , a blowout caused an explosion on the rig that killed 11 crewmen and ignited a fireball visible from 40 miles (64 km) away. The fire was inextinguishable and, two days later, on April 22, the Horizon collapsed, leaving the well gushing at the seabed and becoming the largest marine oil spill in history . Built in 2001 in South Korea by Hyundai Heavy Industries ,
380-513: The Deepwater Horizon of US$ 401 million about 5 May 2010. Financial analysts noted that the insurance recovery was likely to be more than the value of the rig (although not necessarily its replacement value) and any liabilities – the latter estimated at as much as US$ 200 million . Litigation, ultimate assessment of damage, and the scope of final insurance recovery were all unknown as of June 2010 , with analysts reporting that
418-502: The United States of America . According to an Associated Press investigation, certain safety documentation and emergency procedure information, including documentation for the exact incident that later occurred, was absent. The exact number of required monthly inspections performed varied over time; the inspections were performed as required for the first 40 months, but after that about 25% of inspections were omitted, although
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#1732802090121456-474: The Deepwater Horizon as an industry model for safety". According to AP's investigation "its record was so exemplary, according to MMS officials, that the rig was never on inspectors' informal 'watch list' for problem rigs". At 7:45 p.m. CDT on 20 April 2010, during the final phases of drilling the exploratory well off the gulf of Mexico, a geyser of seawater erupted from the marine riser onto
494-672: The Senate passed the RESTORE Act as an amendment to the transportation bill 76-22. On June 29, 2012, both the House and Senate passed the full transportation bill by votes of 373-52 and 74-19, respectively. On July 6, 2012, President Barack Obama signed the transportation bill, including the RESTORE Act, into law. Deepwater Horizon Deepwater Horizon was an ultra-deepwater, dynamically positioned , semi-submersible offshore drilling rig owned by Transocean and operated by
532-519: The acquisition of R&B Falcon by Transocean. Until 29 December 2004 the rig was registered in the Republic of Panama . Transocean, through its Steinhausen, Switzerland subsidiary Triton Asset Leasing GmbH, operated the rig under the Marshallese flag of convenience . The rig was leased to BP by a three-year contract for deployment in the Gulf of Mexico after construction. The lease
570-565: The aftermath was of unprecedented scale and complexity compared to previous disasters which themselves took many years to resolve. A July 2010 analysis by the Financial Times of the aftermath cited legal sources as saying that "at some point the scale of the litigation becomes so large that it really is novel", that "the situation is likely to be complicated further because the variety of probable cases means it will be hard to aggregate them into so-called class actions " and that there
608-667: The bill, and that twenty percent will go to the Oil Spill Liability Trust Fund , which is managed by the U.S. Coast Guard and available primarily for oil spill related emergency response efforts. The eighty percent that will go to the Gulf Coast Restoration Trust Fund will be allocated as follows: On July 21, 2011, Senators Mary Landrieu (D-La.) and Richard Shelby (R-Ala.) introduced the RESTORE Act with support from environmental and business organizations. On March 14, 2012,
646-648: The blame for the spill to BP, 30% to Transocean, and 3% to Halliburton. BP issued a statement strongly disagreeing with the finding, and saying the court's decision would be appealed. On 8 December 2014, The US Supreme Court rejected BP's legal challenge to a compensation deal for the 2010 Gulf of Mexico oil spill. The settlement agreement had no maximum, but BP initially estimated that it would pay about $ 7.8bn (£6.1bn) to compensate victims. As of 2018, approximately 390,000 claims for compensations had been filled, with around $ 65bn paid in settlements; thousands of claims were still outstanding. The Deepwater Horizon oil spill
684-482: The blowout preventer) and the other in 2003 (pollution). A sixth citation in 2007 related to non- grounded electrical equipment was later withdrawn when the equipment was determined to be compliant with regulations. Overall the Deepwater Horizon 's safety record was "strong" according to a drilling consultant reviewing the information. In 2009 the Minerals Management Service "herald[ed]
722-509: The coast of Louisiana. During its operational lifetime, the rig was actively in operation for 93% of the time it was in service (2,896 of 3,131 days). The remainder partly was time spent moving between sites. The Minerals Management Service (renamed on 18 June 2010 to the Bureau of Ocean Energy Management, Regulation and Enforcement , or Bureau of Ocean Energy (BOE)) is the regulatory and inspecting body for offshore oil drilling and rigs in
760-413: The design, selection, operation and maintenance of marine riser systems for floating drilling operations. Its purpose is to serve as a reference for designers, for those who select system components, and for those who use and maintain this equipment. It relies on basic engineering principles and the accumulated experience of offshore operators, contractors, and manufacturers. A tie-back riser can be either
798-473: The gulf. The spill resulted in widespread damage to the environment and ecology of the gulf coast states, as well as subsequent economic damage to their tourism and fishing industries. BP settled with the Department of Justice for a record-high $ 4.525 billion in fines, however further legal proceedings are ongoing. In September 2014, a U.S. district judge issued a ruling that BP was mostly responsible for
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#1732802090121836-410: The investigation notes this is partly expected, since there are circumstances such as weather and movement which preclude an inspection. Reports of the last three inspections for 2010 were provided by Freedom of Information legislation . Each of these inspections had taken two hours or less. During its lifetime the rig received 5 citations for non-compliance, 4 of which were in 2002 (safety, including
874-483: The prospect jointly owned by BP (65%), Anadarko Petroleum (25%) and MOEX Offshore 2007 (10%). Deepwater Horizon was still working on the Macondo site on 20 April 2010, when a violent explosion occurred resulting in destruction of the rig and the subsequent oil spill. This oil spill has been recorded as the largest offshore spill to occur to date, resulting in 40 miles (64 km) of coastal pollution. The well
912-623: The rig was commissioned by R&B Falcon (a later asset of Transocean), registered in Majuro , and leased to BP from 2001 until September 2013. In September 2009, the rig drilled the deepest oil well in history at a vertical depth of 35,050 ft (10,683 m) and measured depth of 35,055 ft (10,685 m) in the Tiber Oil Field at Keathley Canyon block 102, approximately 250 miles (400 km) southeast of Houston , in 4,132 feet (1,259 m) of water. Deepwater Horizon
950-499: The rig was specified as "official registration number of 29273-PEXT-1, IMO number of 8764597, with gross tonnage of 32,588 and net tonnage of 9,778" and the transfer value as US$ 340 million . As of 2010 , the rig was insured for US$ 560 million covering the replacement cost and wreckage removal. Deepwater Horizon worked on wells in the Atlantis (BP 56%, BHP 44%) and Thunder Horse (BP 75%, ExxonMobil 25%) oil fields . It
988-592: The rig was upgraded with "e-drill", a drill monitoring system whereby technical personnel based in Houston , Texas, received real-time drilling data from the rig and transmitted maintenance and troubleshooting information. Advanced systems had a major role in the rig's operation, from pressure and drill monitoring technology, to automated shutoff systems and modelling systems for cementing . The OptiCem cement modelling system, used by Halliburton in April 2010, played
1026-436: The rig, shooting 70 metres (230 ft) into the air. This was followed soon by the eruption of a slushy combination of drilling mud , methane gas , and water. The gas component of the slushy material quickly transitioned into a fully gaseous state and then ignited into a series of explosions and then a firestorm. An attempt was made to activate the blowout preventer , but it failed. The final defense to prevent an oil spill,
1064-410: The riser, the forces from waves and currents, the weight of the internal fluids, and an adequate allowance for equipment failures. To reduce the amount of tension required to maintain stability of the riser, buoyancy modules, known in the industry as 'buoyancy cakes', are added to the riser joints to make them close to neutrally buoyant when submerged. The international standard ISO 13624-1:2009 covers
1102-465: The spill, which could result in as much as $ 18 billion in additional penalties under the Clean Water Act . The purpose of the RESTORE Act is to direct the allocation of civil penalties paid after July 6, 2012 under the Clean Water Act. It directs that eighty percent of the money collected will go the Gulf Coast Restoration Trust Fund in the U.S. Treasury Department , a trust fund created under
1140-675: The well. The resultant oil spill continued until 15 July when it was closed by a cap. Relief wells were used to permanently seal the well, which was declared "effectively dead" on 19 September 2010. NOAA established the Gulf Spill Restoration project, administered by the Deep Water Horizon National Resource Damage Assessment Trustees, to help to restore much of the coastline. Transocean received an early partial insurance settlement for total loss of
1178-633: Was "no way to put this in historical context because we have never faced anything like this before". As with the Exxon Valdez disaster , litigation was being discussed in terms of a 20-year timescale. In January 2013, Transocean agreed to pay US$ 1.4 billion for violations of the US Clean Water Act. BP had earlier agreed to pay $ 2.4 billion but was liable to additional penalties that could range from $ 5 billion to $ 20 billion. In September 2014, Halliburton agreed to settle
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1216-413: Was a fifth-generation, RBS-8D design (i.e. model type), deepwater, dynamically positioned , column-stabilized, semi-submersible mobile offshore drilling unit , designed to drill subsea wells for oil exploration and production using an 18.75 in (476 mm), 15,000 psi (100,000 kPa) blowout preventer , and a 21 in (530 mm) outside diameter marine riser . Deepwater Horizon
1254-433: Was crane operator Aaron Dale Burkeen, 37, Philadelphia, Mississippi, who died in the subsequent fire. The rig was evacuated, with injured workers airlifted to medical facilities. After approximately 36 hours, Deepwater Horizon sank on 22 April 2010. The remains of the rig were located resting on the seafloor approximately 1,500 metres (4,900 ft) deep at that location, and about 400 metres (1,300 ft) northwest of
1292-546: Was described at times as a "lucky" and "celebrated" rig, and in 2007 was still described as "one of the most powerful rigs in the world". In 2006, it discovered oil in the Kaskida oil field and, in 2009, the "giant" Tiber oil field . The well in the Tiber field had a true vertical depth of 35,050 ft (10,683 m) and a measured depth of 35,055 ft (10,685 m), below 4,132 ft (1,259 m) of water. The well
1330-491: Was in the final stages of completion after cement had been emplaced for its last casing string. The exploratory work had been described as "concluded" with permission having been requested already from MMS to terminate operations at the Macondo site. The rig was scheduled to move to its next roles as semi-permanent production platforms, initially at the Tiber site followed by a return to the Kaskida field, an oil dome 50 miles off
1368-404: Was renewed in 2004 for a year, 2005 for five years, and 2009 for three years covering 2010 to 2013. The last contract was worth $ 544 million, or $ 496,800 a day, for a "bare rig", with crew, gear and support vessels estimated to cost the same. According to R&B Falcon's filings to SEC in 2001, the transfer document between R&B Falcon and Transocean was dated 17 August 2001, and
1406-603: Was the deepest oil well in the world and more than 5,000 feet (1,500 m) farther below the seabed than the rig's official drilling specification stated on the company's fleet list. In February 2010, Deepwater Horizon commenced drilling an exploratory well at the Macondo Prospect ( Mississippi Canyon Block 252), about 41 miles (66 km) off the southeast coast of Louisiana , at a water depth of approximately 5,000 feet (1,500 m). The Macondo prospect exploration rights had been acquired by BP in 2009, with
1444-598: Was the second semi-submersible rig constructed of a class of two, although Deepwater Nautilus , its predecessor, is not dynamically positioned. The rig was 396 by 256 ft (121 by 78 m) and capable of operating in waters as deep as 8,000 feet (2,400 m), to a maximum drill depth of 30,000 ft (9,100 m). In 2010 it was one of approximately 200 deepwater offshore rigs capable of drilling in waters deeper than 5,000 ft (1,500 m). Its American Bureau of Shipping (ABS) class notations were "A1, Column Stabilized Drilling Unit, AMS, ACCU, DPS-3". In 2002,
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