Feb 23 (Reuters) - The U.S. government and Gulf Coast statesare considering offering BP Plc a deal under which itpays $16 billion to settle civil suits stemming from the deadly2010 Deepwater Horizon explosion and oil spill, the Wall StreetJournal reported on Friday.
The deal would cover the company's potential penalties underthe Clean Water Act and payments under the Natural ResourcesDamage Assessment, the newspaper said, citing sources familiarwith the discussions.
It was unclear if the deal has been formally offered to BP.The U.S. Justice Department declined to comment.
A settlement could avert a bruising courtroom battle overthe worst ever U.S. offshore oil spill slated to start on Mondayin New Orleans, although the trial may begin as the terms of thedeal are hammered out.
A settlement would also put a solid number on BP's costsunder the Clean Water Act, which range from $4.5 billion to$17.5 billion, as well as potential natural resources damageassessments to the states under the Oil Pollution Act.
"BP doesn't talk about possible offers or negotiations, butI can tell you we are ready for trial and looking forward to theopportunity to present our case starting Monday," BP spokesmanGeoff Morrell said when contacted by Reuters.
BP has spent or committed $37 billion on cleanup,restoration, payouts, settlements and fines. That includes anestimated $8.5 billion deal with most plaintiffs and a record$4.5 billion in penalties, and a guilty plea to 14 criminalcounts to resolve criminal charges from the Justice Departmentand civil claims from the U.S. Securities and ExchangeCommission.
BP has said it would settle on "reasonable terms," but wasprepared to go to trial if the demands were "excessive and notbased on reality."
BP (BP.)
