By Jonathan Stempel
Nov 10 (Reuters) - BP Plc has failed to persuade afederal judge to oust the administrator overseeing payouts tobusinesses and individuals claiming damages arising from the2010 Gulf of Mexico oil spill.
U.S. District Judge Carl Barbier in New Orleans on Mondayrejected several arguments by the London-based oil company toremove the claims administrator, Patrick Juneau.
BP claimed that Juneau had a conflict of interest because hepreviously advised Louisiana over claims, made misleadingstatements about that work, and improperly sped up claims ofpeople represented by the Plaintiffs' Steering Committee.
In a four-page order, Barbier said it was "beyond cavil"that BP knew of Juneau's prior consulting work for Louisiana.The judge also said BP's arguments were "mostly a regurgitationof old issues or complaints."
As to the only "new" issue, processing claims by PSCclients, Barbier said Juneau had discretion to review claims outof order, and there was no evidence he acted improperly.
BP spokesman Geoff Morrell in a statement said the company"strongly disagrees" with Barbier's decision and may appeal.
"Simply put, it is unacceptable for the claims program tocontinue operating as it has been - inefficiently, secretively,and marred by corruption, fraud, and conflicts of interest," hesaid.
The decision is a fresh setback to BP's effort to curb costsfrom the April 20, 2010 explosion of the Deepwater Horizon rig,which led to 11 deaths and the largest U.S. offshore oil spill.
BP has accused Juneau of awarding excessive payouts,including to claimants who were not harmed by the spill. It hasasked the U.S. Supreme Court to review his methods.
Last month, BP estimated that its settlement with the PSCwould cost $9.7 billion, but that this sum would likely go"significantly higher."
It also faces a January trial over whether it should pay apotential $18 billion in fines for violating the U.S. CleanWater Act.
Through Monday, Juneau has paid out $4.24 billion to 52,577economic and property damages claimants.
The case is In re: Oil Spill by the Oil Rig "DeepwaterHorizon" in the Gulf of Mexico, on April 20, 2010, U.S. DistrictCourt, Eastern District of Louisiana, No. 10-md-02179. (Reporting by Jonathan Stempel in New York; Editing by TomBrown)