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This April 21, 2010, file photo shows the Deepwater Horizon oil rig burning after an explosion in the Gulf of Mexico, off the southeast tip of Louisiana. (AP Photo/Gerald Herbert, File)

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Coverage of the Gulf Oil Spill

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Judge: BP contract shielded Transocean in spill

Transocean still not exempt from punitive damages

Updated: Thursday, 26 Jan 2012, 5:52 PM EST
Published : Thursday, 26 Jan 2012, 5:33 PM EST

CAIN BURDEAU,Associated Press

NEW ORLEANS (AP) — A federal judge has ruled that the rig owner involved in drilling the ill-fated well that blew out in the Gulf of Mexico was shielded by its contract with BP from having to pay many pollution claims in the nation's largest offshore oil spill.

U.S. District Judge Carl Barbier ruled Thursday, however, that Transocean Ltd. is not exempt from paying punitive damages and civil penalties that arise from the April 20, 2010, blowout 100 miles off the Louisiana coast.

He also says Transocean is responsible for claims that are directly related to pollution caused by its rig.

Alabama Attorney General Luther Strange tells The Associated Press that the Justice Department is working with the states to create an outline for a settlement. A trial on the spill is set for next month.

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