Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

BP may owe for spilled oil

By Steve Hargreaves, Senior writer

NEW YORK (CNNMoney.com) -- BP will have to pay the U.S. government royalties on oil that spilled into the Gulf of Mexico if it is found that "negligence or regulatory violations" contributed to the accident, according to a government statement Thursday.

U.S. regulators are investigating what caused the April accident, but the findings aren't expected for several months.

All oil companies pay royalties on oil produced from wells on government land or water.

BP is currently paying royalties on the oil that it is collecting and selling from its damaged well. BP is donating proceeds from those sales to a wildlife fund.

Based on the oil BP has collected as of last week, current oil prices, and the 18.75% royalty rate on the well, BP has paid about $8 million to the government.

But the well is estimated to be leaking up to 60,000 barrels a day. If the company was charged for that full amount, it would owe another $65 million.

BP has set up a payment plan with the government where it has promised at least $20 billion to pay for damages caused by the spill.

BP officials did not immediately respond to a request for comment. To top of page

Search for Jobs

Index Last Change % Change
Dow 18,161.19 -8.49 -0.05%
Nasdaq 5,190.10 -25.87 -0.50%
S&P 500 2,126.41 -6.63 -0.31%
Treasuries 1.84 0.00 0.11%
Data as of 7:41pm ET
Company Price Change % Change
Bank of America Corp... 16.68 -0.23 -1.36%
General Electric Co 29.22 0.59 2.06%
Chesapeake Energy Co... 5.79 -0.29 -4.77%
Apple Inc 113.72 -0.76 -0.66%
Ford Motor Co 11.72 -0.02 -0.17%
Data as of 4:15pm ET


Founder of social media campaign against Thanksgiving shopping says consumer backlash has retailers starting to close on the holiday. More

Alex Simon believes Chipotle fired him for speaking up about the company's 'shady practices.' He's trying to join a lawsuit with 10,000 other workers suing the company for cheating them out of wages. More

Soylent, the Silicon Valley food tech startup, touts itself as the world's 'easiest nutritional food.' But it's actually making some people sick. More

You can contribute as much as $18,000 to your 401(k) in 2017, and as much as $5,500 to your IRA or Roth IRA. These limits are unchanged compared to last year. More