Halliburton 2011 Annual Report Download - page 41

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In addition, federal law provides for a variety of fines and penalties, the most significant of which
is the Alternative Fines Act. In lieu of the express amount of the criminal fines that may be imposed under
some of the statutes described above, the Alternative Fines Act provides for a fine in the amount of twice
the gross economic loss suffered by third parties, which amount, although difficult to estimate, is
significant.
On December 15, 2010, the DOJ filed a civil action seeking damages and injunctive relief against
BP Exploration, Anadarko Petroleum Corporation and Anadarko E&P Company LP (together, Anadarko),
who had an approximate 25% interest in the Macondo well, certain subsidiaries of Transocean Ltd., and
others for violations of the CWA and the OPA. The DOJ’ s complaint seeks an action declaring that the
defendants are strictly liable under the CWA as a result of harmful discharges of oil into the Gulf of
Mexico and upon United States shorelines as a result of the Macondo well incident. The complaint also
seeks an action declaring that the defendants are strictly liable under the OPA for the discharge of oil that
has resulted in, among other things, injury to, loss of, loss of use of, or destruction of natural resources and
resource services in and around the Gulf of Mexico and the adjoining United States shorelines and resulting
in removal costs and damages to the United States far exceeding $75 million. BP Exploration has been
designated, and has accepted the designation, as a responsible party for the pollution under the CWA and
the OPA. Others have also been named as responsible parties, and all responsible parties may be held
jointly and severally liable for any damages under the OPA. A responsible party may make a claim for
contribution against any other responsible party or against third parties it alleges contributed to or caused
the oil spill. In connection with the proceedings discussed below under “Litigation,” in April 2011 BP
Exploration filed a claim against us for contribution with respect to liabilities incurred by BP Exploration
under the OPA or another law and requested a judgment that the DOJ assert its claims for OPA financial
liability directly against us.
We have not been named as a responsible party under the CWA or the OPA in the DOJ civil
action, and we do not believe we are a responsible party under the CWA or the OPA. While we are not
included in the DOJ’ s civil complaint, there can be no assurance that the DOJ or other federal or state
governmental authorities will not bring an action, whether civil or criminal, against us under the CWA, the
OPA, and/or other statutes or regulations. In connection with the DOJ’ s filing of the civil action, it
announced that its criminal and civil investigations are continuing and that it will employ efforts to hold
accountable those who are responsible for the incident.
A federal grand jury has been convened in Louisiana to investigate potential criminal conduct in
connection with the Macondo well incident. We are cooperating fully with the DOJ’ s criminal
investigation. As of February 16, 2012, the DOJ has not commenced any criminal proceedings against us.
We cannot predict the status or outcome of the DOJ’ s criminal investigation or estimate the potential
impact the investigation may have on us or our liability assessment, all of which may change as the
investigation progresses.
In June 2010, we received a letter from the DOJ requesting thirty days advance notice of any event
that may involve substantial transfers of cash or other corporate assets outside of the ordinary course of
business. We conveyed our interest in briefing the DOJ on the services we provided on the Deepwater
Horizon but indicated that we would not bind ourselves to the DOJ request.
We have had and expect to continue to have discussions with the DOJ regarding the Macondo
well incident and associated pre-incident and post-incident conduct.