Judge: BP Contract Shielded Halliburton in Spill

A federal judge has ruled that Halliburton can avoid paying most of the pollution claims that resulted from the catastrophic 2010 Gulf oil spill because it was shielded in a contract with well-owner BP.

 Still, U.S. District Judge Carl Barbier said Tuesday that Halliburton is not exempt from paying punitive damages and civil penalties that arise from the April 20, 2010, blowout off the Louisiana coast. Those penalties could amount to billions of dollars.

Houston-based Halliburton supplied cement for the ill-fated Macondo well that blew in the Gulf of Mexico.

The judge also said Halliburton's indemnity could be voided if the company is found to have defrauded BP. He did not rule on BP's allegations that Halliburton committed fraud by declaring the cement safe to use.