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Environmental whistleblowers' options while waiting for the gold standard

Deepwater Horizon explosion

My colleague, Lindsey Williams, is today's guest blogger on Bridge the GulfBridge the Gulf is a citizen journalism project dedicated to saving communities on the Gulf Coast. Today, Lindsey is marking the one-year anniversary of the day the Deepwater Horizon oil well was finally capped.  Yet, the rights of environmental whistleblowers have not budged an inch toward encouraging employees to come forward with information that could prevent another environmental disaster. One effort at providing "gold standard" whistleblower protections to health and safety whistleblowers passed the House of Representatives last year, but failed to garner action in the Senate. While we wait, Lindsey's blog entry today points to the federal False Claims Act (FCA) as an attractive remedy for those environmental whistleblowers who have information about their company's fraud against the government.

As Bridge the Gulf explains, "in the past year, thousands of BP clean-up workers have joined the ranks of others in the oil, gas, and chemical industry who see safety and environmental abuses with shocking regularity." Continuing:

BP clean-up workers are barred from speaking to the press, told they would be fired for wearing respirators and other safety gear, and now many are now facing illness and even death from toxic exposure. But many still fear the repercussions of speaking out.

Lindsey Williams is the Advocacy Director of the National Whsitleblowers Center (NWC). The full text of her blog post follows in the continuation of this blog entry.

Whistleblower protections still needed, one year after BP capped the well
Fri, 2011-07-15 12:43

Editor's note: Today, a guest blogger explains some of the legal obstacles and opportunities for whistleblowers in the BP disaster. Lindsey Williams of the National Whistleblowers Center describes how a law signed by Abraham Lincoln could be used to protect whistleblowers on the Gulf Coast, and make negligent corporations pay.

The timing is fitting: it is one year after BP finally stopped the flow of crude oil from its deepwater well. And in the past year, thousands of BP clean-up workers have joined the ranks of others in the oil, gas, and chemical industry who see safety and environmental abuses with shocking regularity.

BP clean-up workers are barred from speaking to the press, told they would be fired for wearing respirators and other safety gear, and now many are now facing illness and even death from toxic exposure. But many still fear the repercussions of speaking out.

By Lindsey M. Williams, National Whistleblowers Center

As President Obama said during his campaign “workers are the eyes and ears of enforcement.” They are the ones who see companies dump toxic chemicals into the water, misuse oil rigs in ways that ruin the blow-out preventer (BOP) or ignore fire hazards. Employees who witness blatant disregard for environmental and safety regulators every day must be encouraged to report these violations and must be protected when they do.

However, the environmental statutes are painfully out-of-date when it comes to their whistleblower provisions. Eight federal environmental and safety laws still have a 30-day statute of limitations. In the real world, this means that by the time most employees contact the National Whistleblowers Center (NWC) or another attorney, it is too late for them to file a case. What’s even worse is that one year after BP shut off the gusher of oil into the Gulf, Congress still has not passed whistleblower provisions for any of the laws that govern offshore drilling (mainly the Outer Continental Shelf Act, the Oil Pollution Act of 1990 and the Endangered Species Act).

Additionally, Congress has not passed amendments to the Whistleblower Protection Enhancement Act that will protect and encourage federal employees to speak up for safety and compliance.

This all sounds pretty doom and gloom, but all hope is not lost for these whistleblowers. They may be able to achieve whistleblower protection under the strongest whistleblower law in the United States – the False Claims Act (FCA).

The FCA was signed into law in 1863 by President Abraham Lincoln to detect and deter fraud against the federal government. In a June 15, 2010 letter, the National Whistleblowers Center (NWC) explained how environmental organizations and whistleblowers can use the FCA to go after environmental violators. For example, the government could use the FCA to go after BP for “misrepresentations about its safety and emergency response procedures in order to operate under leases from the United States and profit from offshore drilling.” Assistant Attorney General Tony West responded to the NWC’s letter and confirmed that the U.S. Department of Justice was "considering all avenues of redress against the potentially responsible parties."

Environmental groups and whistleblowers can also use this law. The FCA allows the “relator” (i.e. whistleblower) to file the case on behalf of the federal government. This means that one does not need the government to intervene in order to proceed with the case.

Why is the NWC encouraging the use of the FCA to go after environmental violations? There are four reasons. First, treble damages (i.e. triple damages) are levied against the defendant. The company will have to pay the government and taxpayers three times the amount of the fraud they committed. Second, the whistleblower receives as a reward 15 to 30% of whatever the government recovers. Third, the company often enters into a complex agreement that prevents them from committing similar violations in the future. Fourth, large FCA decisions will have a deterrent effect on other companies whose operations could damage the environment.

So, what’s next? Environmental and community groups can learn about the FCA and assist the NWC in educating the public about their rights. The NWC has advocated for environmental and nuclear whistleblowers since 1988, but we cannot do it alone. We need to work together to protect the people who put their careers on the line to enforce this country’s environmental laws.

The NWC held a training seminar on this topic last year in Washington, DC and we hope to hold another one soon. Please subscribe to our Action Alert Network if you would like to learn more about this seminar and become involved in protecting whistleblowers.

Related Whistleblower Protection Blog posts:

* DOJ answers NWC call for FCA action on oil spill (July 22, 2010)
* Justice Department Considering Using False Claims Act to Recover Losses in Deepwater Horizon Disaster (July 26, 2010)
* House Oil Spill Response Bill includes gold standard whistleblower protection (July 27, 2010)

Related Bridge The Gulf posts:

* Workplace deaths raise questions about OSHA experiment in self-regulation
* My father, the whistleblower

 

House Oil Spill Response Bill includes gold standard whistleblower protection

Deepwater Horizon explosionHouse Speaker Nancy Pelosi has announced plans to bring the Oil Spill Response Bill to the House floor for passage. The Washington Independent is reporting that the bill will include the Offshore Oil and Gas Worker Whistleblower Protection Act of 2010, which, “provides whistleblower and anti-retaliation protections to workers on the Outer Continental Shelf” and “protects worker safety by improving federal agency coordination.” The text of this bill is available here. From my read, it includes most of what we call the "gold standard" protections for whistleblowers.  It will protect oil and gas workers when the raise concerns about compliance with the Outer Continental Shelf Lands Act, or any concerns about illness, injury or unsafe conditions. It would protect reports made in the course of performing duties, and protect refusals to violate the law. It would provide a right of action through the Department of Labor, a 180-day statute of limitations, a contributing factor standard for proving causation, and a "clear and convincing evidence" burden for employers who claim they would have fired the whistleblower even if protected activity was not considered. If the Department of Labor has not issued a final order within 300 days, whistleblowers could go to U.S. District Court and ask for a trial by jury. One provision that is missing (but was added to SOX in the Dodd-Frank Act) is a provision specifically barring enforcement of pre-dispute arbitration agreements.  It does provide that, "The rights and remedies in this section may not be waived by any agreement, policy, form, or condition of employment," but this might not be enough to keep courts from enforcing arbitration agreements, as they are keen to do. It would be a good day for oil and gas workers, and for everyone who cares about the environment we leave for future generations, if this bill would pass.  It would be an even better day if the House adds the Dodd-Frank anti-arbitration language.

Justice Department Considering Using False Claims Act to Recover Losses in Deepwater Horizon Disaster

FCA Legal Actions Could Result in BP Paying Treble Damages To United States Taxpayers

 
Washington, D.C. July 26, 2010.  Assistant Attorney General Tony West confirmed that the U.S. Department of Justice was "considering all avenues of redress against the potentially responsible parties," according to a letter released today by the National Whistleblower Center. The letter specifically mentions the False Claims Act ("FCA").  The letter is in response to a letter from NWC urging the government to use the FCA to hold responsible parties accountable for losses suffered by the taxpayers as a result of the Deepwater Horizon disaster.
In a letter to the Executive Director of the National Whistleblower Center, Assistant Attorney General West praised the "important contributions" of whistleblowers (referred to as "relators under the FCA) "in assisting the United States" in recovering "taxpayer funds."  West stated:
 
This public-private partnership has proved a successful tool for the recovery of public funds and for rewarding relators who bring allegations of fraud to the government.  Indeed, since January 2009 more then $3.6 billion was obtained under the Act's qui tam provisions, and relators were awarded more than $497 million for their efforts in helping government pursue these recoveries.
 
The FCA was originally signed into law by President Abraham Lincoln, and was recently strengthened by Congress in 2009 and 2010.  The law covers corporations that obtain oil and gas leases from the United States, and provides for the payment of treble damages if a company violates the FCA.  Qualified whistleblowers that provide original information concerning such violations are entitled to mandatory monetary rewards between 15% and 30% of any monies recovered by the United States pursuant to an FCA case. 
 
Stephen M. Kohn, the Executive Director of the National Whistleblower Center praised Assistant Attorney General West's response: 
 
It is not enough to simply slap BP on the wrist by making them pay fine and clean up costs. BP owes U.S. taxpayers treble damages, and they must be made to pay up.
 
The FCA is powerful tool, protecting and rewarding employees who expose violations of environmental law and government lease agreements.  Under the FCA, every corporation involved in drilling under a federal government lease can be held accountable to the taxpayers for treble damages if they violate the terms of those leases or if they made false statements to obtain a lease.  This liability stretches beyond the Deepwater Horizon disaster. Workers, who risk their jobs and careers to expose violations of leasing obligations, including violations of safety and environmental standards, are entitled to significant monetary rewards if their claims are covered under the FCA. We are encouraged that the Justice Department is considering using the FCA as one of its legal tools for protecting Americans from economic and environmental disaster in the Gulf Coast.
 
 
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DOJ answers NWC call for FCA action on oil spill

Last month, we posted here our letter to the U.S. Department of Justice calling on them to exercise their power under the False Claims Act (FCA) to hold oil companies accountable for misleading the government and the American people about their ability to clean up oil spills. Deepwater Horizon explosionToday we received an answer. Assistant Attorney General Tony West has written to us to say, "that the Department of Justice is dedicated to recovering any losses it sustains as a result of the oil spill, and is considering all avenues for redress against the potentially responsible parties." Mr. West's letter goes on to express the Department's appreciation of the False Claims Act and the role whistleblowers play in helping the government recover funds fraudulently obtained:

The Deparment appreciates the important contributions of relators in assisting the United States to recover taxpayer funds under the False Claims Act's qui tam provisions. This public-private partnership has proved a successful tool for the recovery of public funds and for rewarding relators who bring allegations of fraud to the government. Indeed, since January 2009, more than $3.6 bilion was obtained under the Act's qui tam provisions, and relators were awarded more than $497 million for their efforts in helping the government pursue these recoveries.

Whistleblower Bobby Maxwell tells CNN about slipshod MMS inspections

Last month, CNN's Special Investigations Unit released a story about Bobby Maxwell's experience as an inspector for the U.S. Department of Interior's Minerals Management Service (MMS). Deepwater Horizon explosionThe main point of the story is how MMS was infused with a "culture of corruption," and its slipshod inspections missed opportunities to prevent the Deepwater Horizon explosion. The story also mentions that Maxwell is in the fifth year of a whistleblower lawsuit against Kerr-McGee. In that case, Maxwell won a $7.5 million dollar verdict against Kerr-McGee. After a judge threw out the verdict, he appealed. In 2008, the U.S. Court of Appeals for the Tenth Circuit agreed that Maxwell had a right to pursue his fraud case and reinstated the verdict. No doubt, Maxwell's status as a wistleblower, especially a whistleblower who has won his case, empowered him to speak out about the dangers of MMS' alignment with the oil companies instead of with the environment.  No doubt, Maxwell raised his concerns years ago, but no one was listening until 11 workers lost their lives and the ecology of the Gulf of Mexico was ruined by this disaster. Maxell's story makes obvious how we would all benefit from giving our federal employees strong whistleblower protections. To me, this is the reason why our Senators must scrap the poison pills in their current version of the Whistleblower Protection Enhancement Act (WPEA), S. 372, and adopt the strong House version, HR 1507. Follow this link for more information about helping environmental whistleblowers.