NU Online News Service, Dec. 17, 3:18 p.m.EST

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The U.S. Justice Department this week issued a civil lawsuitagainst BP and eight other companies, including QBE UnderwritingLtd., seeking unspecified penalties under the Clean Water Act.

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The U.S. complaint is the latest of hundreds of lawsuits againstBP.

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In the complaint, the plaintiff, the United States of America,alleges the U.S. has sustained "and will continue to sustain,significant costs and damages" from the Deepwater Horizon spill andthat "the Defendants are responsible and strictly liable forunlimited removal costs and damages under the Oil Pollution Act of1990."

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It is estimated that close to 5 million barrels of oil leakedinto the Gulf after the Deepwater Horizon drilling rig explosion,April 20.

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Defendants named in this action are BP Exploration &Production Inc.; Anadarko Exploration & Production LP; AnadarkoPetroleum Corporation; MOEX Offshore 2007 LLC; Triton Asset LeasingGmbH; Transocean Holdings LLC; Transocean Offshore DeepwaterDrilling Inc.; Transocean Deepwater Inc.; and QBE UnderwritingLtd., Lloyd's Syndicate 1036.

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The Complaint maintains that the uncontrolled Macondo Well eventon April 20, 2010 and uncontrolled blowout of oil and methane gaswere not prevented by the defendants. In violation of federalregulations, each defendant (other than the QBE Lloyd's syndicate)failed to take necessary precautions to keep the Macondo Well undercontrol.

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For QBE, the complaint notes that because QBE Underwriting Ltd.,Lloyd's Syndicate 1036 has provided evidence of financialresponsibility and certain guarantees pertaining to one or more ofthe Transocean Defendants and Deepwater Horizon,the U.S. may bringthis action directly against the Lloyd's syndicate.

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For the other defendants, the complaint state they caused and/orcontributed to the Deepwater Horizon Spill by failing to assurecontrol of the Macondo Well through actions, corporate actions,and/or corporate practices of disregarding federal regulations, asevidenced by various safety and other audits of Deepwater Horizon,according to the complaint.

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The amount of damages and the extent of injuries sustained bythe United States, including to natural resources and wildlife, asa result of the Deepwater Horizon Spill are not yet fully known,but far exceed $75 million, the complaint says.

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In a separate action, ACE American Insurance Company filed acomplaint in the U.S. District Court Southern District of Texas,Houston division, against M-I, L.L.C.

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The suit declares that no coverage exists under the ACE Policyfor any claims against M-I arising out of the Deepwater HorizonIncident.

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ACE said in the complaint that because BP is an additionalinsured under the ACE Policy, the Watercraft Exclusion operates toexclude coverage under the ACE policy for all losses arising out ofthe Deepwater Horizon Incident.

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ACE maintains the Watercraft Exclusion does not apply to bodilyinjury or property damage arising out of the "ownership,maintenance, use or entrustment to others of any watercraft ownedor operated by or rented or loaned to any insured. Use includesoperation and loading and unloading."

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