An offshore oil-rig operator need not cover BP for undersea pollution tied to the 2010 Deepwater Horizon explosion, the Texas Supreme Court ruled.
Though BP’s drilling contract with Transocean, the rig operator, contained additional-insured language, the court ruled 8-1 Friday that BP is insured only for above-surface pollution, not for pollution underwater, under Texas law.
Deepwater Horizon exploded and sank off the coast of Louisiana in April 2010. The explosion killed 11 crewmembers and dumped millions of gallons of oil in the Gulf of Mexico over a three-month period.
BP sought coverage after the explosion saddled it with “myriad” claims for personal injury, economic and environmental damages, according to the high court’s ruling.