BP 2010 Annual Report Download - page 132
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Please find page 132 of the 2010 BP annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Additionalinformationforshareholders
Adividendreinvestmentplan(DRIP)wasinplaceforthefourth-quarter
dividendpaidinMarch2010,allowingholdersofBPordinarysharesto
electtoreinvestthenetcashdividendinsharespurchasedontheLondon
StockExchange.FollowingshareholderapprovalatBP’sAGMon15April
2010,aScripDividendProgramme(Programme)wasintroducedandthe
DRIPwaswithdrawn.TheProgrammeenablesBPordinaryshareholders
andADSholderstoelecttoreceivenewfullypaidordinarysharesinBP(or
ADSsinthecaseofADSholders)insteadofcash.Theoperationofthe
Programmeisalwayssubjecttothedirectors’decisiontomakethescrip
offeravailableinrespectofanyparticulardividend.Shouldthedirectors
decidenottoofferthescripinrespectofanyparticulardividend,cashwill
automaticallybepaidinstead.
Futuredividendswillbedependentonfutureearnings,thenancial
conditionofthegroup,theRiskfactorssetoutonpages27-32andother
mattersthatmayaffectthebusinessofthegroupsetoutinOurstrategy
onpages19-20andinLiquidityandcapitalresourcesonpage64.
Legalproceedings
Proceedings and investigations relating to the
Gulf of Mexico oil spill
BPp.l.c.,BPExploration&ProductionInc.(BPE&P)andvariousotherBP
entities(collectivelyreferredtoasBP)areamongthecompaniesnamedas
defendantsinmorethan400privatecivillawsuitsresultingfromthe
20April2010explosionsandreonthesemi-submersiblerigDeepwater
Horizonandresultingoilspill(theIncident)andfurtheractionsarelikelyto
bebrought.BPE&PisleaseoperatorofMississippiCanyon,Block252in
theGulfofMexico,wheretheDeepwaterHorizonwasdeployedatthe
timeoftheIncident,andholdsa65%workinginterest.Theotherworking
interestownersareAnadarkoPetroleumCompanyandMOEXOffshore
2007LLC.TheDeepwaterHorizon,whichwasownedandoperatedby
certainafliatesofTransocean,Ltd.(Transocean),sankon22April2010.
Thependinglawsuitsand/orclaimsarisingfromtheIncidenthavebeen
broughtinUSfederalandstatecourts.Plaintiffsincludeindividuals,
corporationsandgovernmentalentitiesandmanyofthelawsuitspurportto
beclassactions.Thelawsuitsassert,amongothers,claimsforpersonal
injuryinconnectionwiththeIncidentitselfandtheresponsetoit,and
wrongfuldeath,commercialoreconomicinjury,breachofcontractand
violationsofstatutes.Thelawsuitsseekvariousremediesincluding
compensationtoinjuredworkersandfamiliesofdeceasedworkers,
recoveryforcommerciallossesandpropertydamage,claimsfor
environmentaldamage,remediationcosts,injunctiverelief,trebledamages
andpunitivedamages.Purportedclassesofclaimantsincluderesidentsof
thestatesofLouisiana,Mississippi,Alabama,Florida,Texas,Tennessee,
Kentucky,GeorgiaandSouthCarolina,propertyownersandrentalagents,
shermenandpersonsdependentontheshingindustry,charterboat
ownersanddeckhands,marinaowners,gasolinedistributors,shipping
interests,restaurantandhotelownersandotherswhoarepropertyand/or
businessownersallegedtohavesufferedeconomicloss.Shareholder
derivativelawsuitshavealsobeenledinUSfederalandstatecourts
againstvariouscurrentandformerofcersanddirectorsofBPalleging,
amongotherthings,breachofduciaryduty,grossmismanagement,
abuseofcontrolandwasteofcorporateassets.Purportedclassaction
lawsuitshavealsobeenledinUSfederalcourtsagainstBPentitiesand
variouscurrentandformerofcersanddirectorsallegingsecuritiesfraud
claimsandviolationsoftheEmployeeRetirementIncomeSecurityAct
(ERISA).Inaddition,BPhasbeennamedinseverallawsuitsallegingclaims
undertheRacketeer-InuencedandCorruptOrganizationsAct(RICO).In
August2010,manyofthelawsuitspendinginfederalcourtwere
consolidatedbytheFederalJudicialPanelonMultidistrictLitigationinto
twomulti-districtlitigationproceedings,oneinfederalcourtinHoustonfor
thesecurities,derivativeandERISAcasesandanotherinfederalcourtin
NewOrleansfortheremainingcases.SincelateSeptember,mostofthe
DeepwaterHorizonrelatedcaseshavebeenpendingbeforethesecourts.
On18February2011,certainTransoceanafliatesledathirdparty
complaintagainstBP,theUSgovernment,andothercorporationsinvolvedin
theIncident,therebynamingthoseentitiesasformalpartiesinTransocean’s
LimitationofLiabilityactionpendinginfederalcourtinNewOrleans.
UnderOPA90,BPE&Phasbeendesignatedasoneofthe‘responsible
parties’fortheoilspillresultingfromtheIncident.Accordingly,BPE&Pis
oneofthepartiesthattheUSgovernmentallegesisnanciallyresponsible
fortheclean-upofthespillandforeconomicdamagesasprovidedbyOPA
90.Inaddition,pursuanttoOPA90,theUSCoastGuardhasrequested
reimbursementfromBPandtheotherresponsiblepartiesforitscostsof
respondingtotheIncident,andBPhaspaidallamountssobilledtodate.
ContinuingrequestsforcostreimbursementareexpectedfromtheUS
CoastGuardandothergovernmentalauthorities.Inaddition,BPis
participatingwithfederalandstatetrusteesinaco-operativeassessment
ofpotentialnaturalresourcedamagesassociatedwiththespill.Under
OPA90,theUSgovernmentallegesthatBPE&Pisoneoftheparties
nanciallyresponsibleforpayingthereasonableassessmentcostsincurred
bythesetrusteesaswellasnaturalresourcedamagesthatresultfromthe
Incident.
BPE&PhasestablishedandcommittedtofundtheDeepwater
HorizonOilSpillTrust,a$20-billiontrustfundtopaycostsandsatisfy
legitimateclaims.BPE&Pcontributed$5billiontothetrustfundin2010.
Thiswillbesupplementedbyadditionalpaymentsof$1.25billionper
quarteruntilatotalof$20billionhasbeenpaidintothetrustfund.While
thetrustfundisbuilding,BPE&Phaspledgedcollateralconsistingofan
overridingroyaltyinterestinoilandgasproductionfromcertainassetsin
theGulfofMexicosufcientatanytimetosecurethedifferencebetween
theamountdepositedasofthatdateand$20billion.Theestablishmentof
thistrustdoesnotrepresentacaponBP’sliabilities,andBPdoesnot
admittoaliabilityofthisamount.Thetrustfundwillpayclaims
administeredbytheGCCF,stateandlocalgovernmentclaimsresolvedby
BP,naljudgments,settlements,stateandlocalresponsecosts,and
naturalresourcedamagesandrelatedcosts.Paymentsfromthetrustfund
willbemadeuponadjudicationorresolutionofclaimsorthenal
determinationofothercostscoveredbytheaccount.Therewillbeasunset
onthetrustfund,andfunds,ifany,remainingoncetheclaimsprocesshas
beencompletedwillreverttoBPE&P.
BPissubjecttoanumberofinvestigationsrelatedtotheIncident
bynumerousagenciesoftheUSgovernment.On27April2010,theUS
CoastGuardandtheMineralsManagementService(renamedtheBureau
ofOceanEnergyManagement,RegulationandEnforcementinJune2010)
convenedajointinvestigationoftheIncidentbyestablishingaMarine
BoardofInvestigationaimedatdeterminingthecausesoftheIncidentand
recommendingsafetyimprovements.BPwasdesignatedasoneofseveral
PartiesinInterestintheinvestigation.
On21May2010,PresidentObamasignedanexecutiveorder
establishingtheNationalCommissionontheBPDeepwaterHorizonOil
SpillandOffshoreDrilling(NationalCommission)toexamineandreporton,
withinsixmonthsofthedateoftheCommission’srstmeeting,the
relevantfactsandcircumstancesconcerningthecausesoftheGulfof
Mexicooilspillincidentanddevelopoptionsforguardingagainst,and
mitigatingtheimpactof,oilspillsassociatedwithoffshoredrilling,taking
intoconsiderationtheenvironmental,publichealth,andeconomiceffects
ofsuchoptions.On11January2011,theNationalCommissionpublished
itsnalreportonthecausesoftheIncidentanditsrecommendationsfor
policyandregulatorychangesforoffshoredrilling.On17February2011,
theNationalCommission’sChiefCounselpublishedaseparatereporton
hisinvestigationthatprovidesadditionalinformationaboutthecausesof
theIncident.
130BPAnnualReportandForm20-F2010