$1.4 Billion in Fines for Rig Owner in Gulf Oil Spill

NEW ORLEANS (KTLA) — The company that owns the rig which caused 2010′s massive Gulf oil spill has reached a settlement with the federal government.

Transocean Ltd. will pay $1.4 billion in fines.

The company was responsible for the Deepwater Horizon rig, which exploded then sank in the Gulf of Mexico.

Eleven workers were killed, and millions of gallons of oil were spilled into the water.

Transocean will pay $1 billion in civil penalties, and another $400 million in criminal penalties.

Much of the $1.4 billion will fund environmental restoration projects and spill-prevention research and training.

British Petroleum PLC, which leased the rig from Transocean, has already agreed to pay a record $4.5 billion in penalties.

BP also pleaded guilty to manslaughter and other criminal charges related to the spill.