BP proposes Gulf spill accord terms, trial delay

(Reuters) - BP (BP..LO)Plc has reached settlements to resolve billions of dollars of claims from the 2010 Gulf of Mexico oil spill, and asked a U.S. judge for a long delay in any trial over remaining disputes stemming from the disaster.

The London-based oil company still expects under Wednesday's settlements to pay $7.8 billion to resolve economic, property and medical claims by more than 100,000 individuals and businesses, though there is no cap. Such a payout would be one of the largest class-action settlements in U.S. history.

While BP and the plaintiffs' lawyers have "markedly different opinions" regarding the strength of their cases, neither confidently expects "a complete victory" in litigation that could easily last 10 years, they said in papers filed on Wednesday with the federal court in New Orleans.

The settlement is "more than fair, reasonable and adequate", they said.

This Friday is the two-year anniversary of the explosion of the Deepwater Horizon drilling rig, which killed 11 workers and triggered the largest U.S. offshore oil spill, after BP's Macondo well ruptured.

"BP made a commitment to help economic and environmental restoration efforts in the Gulf Coast," Chief Executive Bob Dudley said in a statement. "This settlement provides the framework for us to continue delivering on that promise, offering those affected full and fair compensation, without waiting for the outcome of a lengthy trial process."

In a separate statement, Stephen Herman and James Roy, lawyers on the so-called Plaintiffs' Steering Committee, said the settlement holds BP "fully accountable".

BP still faces tens of billions of dollars of potential claims from the U.S. government; Gulf states; and drilling partners Transocean Ltd, which owned the rig, and Halliburton Co, which provided cementing services.

The company's potential liability for violating the federal Clean Water Act alone could reach as high as $17.6 billion upon a finding of gross negligence. BP has already taken a $37.2 billion charge for the spill.

BP shares closed down 6.5 pence at 448.1 pence in London, Reuters data shows.

$600 MILLION LEGAL BILL

About 109,000 condominium owners, hotel and resort operators, restaurateurs, shrimpers and others may be eligible to recover on economic and property claims, court papers show.

The medical settlement covers people who claimed illness from exposure to oil or chemical dispersants, and includes clean-up workers and residents of beachfront or wetlands areas near the water. About 16,000 plaintiffs have submitted claims, court papers show.

Those ineligible to recover include financial institutions, casinos, people claiming hardship from an Obama administration moratorium on deepwater drilling, and some private plaintiffs in Florida and Texas.

Lawyers for the plaintiffs are seeking as much as $600 million to cover fees and costs, including a $75 million interim award. These sums are separate from any amounts paid to spill victims, settlement papers show.

U.S. District Judge Carl Barbier is scheduled to consider preliminary approval of the accords around November 8, with final approval to come later. That suggests any trial on remaining issues would not begin until well into 2013, if not later.

Barbier is expected to meet with the parties behind closed doors on May 3 to discuss how the case should proceed.

90 MILLION PAGES

Wednesday's settlements follow depositions of 311 witnesses, and the production of about 90 million pages of documents and about 20 terabytes of data.

Prior to the settlement, lawyer Kenneth Feinberg had paid out $6.1 billion to spill victims who submitted claims under BP's $20 billion Gulf Coast Claims Facility.

BP expects the $7.8 billion payment to come from that trust. Claimants with final offers from Feinberg can receive 60 percent of their money now, and if eligible under the new program may receive the remaining 40 percent or seek higher awards.

One of Wednesday's settlements awards $2.3 billion to commercial fishermen, seafood boat captains and others for damage related to shrimp, oysters, blue crab and other species.

It also includes $57 million to "promote the Gulf Coast", including tourism and the seafood industry.

Last week, Florida Attorney General Pam Bondi asked Barbier to delay preliminary approval to allow stakeholders to review the "fairness and rationale" behind the accords, including whether they were fair to Florida claimants.

Jennifer Meale, a spokeswoman for Bondi, said her office is reviewing the settlements. Wyn Hornbuckle, a U.S. Department of Justice spokesman, declined to comment. Spokespeople for other Gulf states, Halliburton and Transocean had no immediate comment or did not immediately respond to requests for comment.

The case is In re: Oil Spill by the Oil Rig "Deepwater Horizon" in the Gulf of Mexico, on April 20, 2010, U.S. District Court, Eastern District of Louisiana, No. 10-md-02179.

(Reporting By Jonathan Stempel in New York; Editing by Dale Hudson and Gerald E. McCormick)

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