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Texas Supreme Court To Rule In BP Insurance Case

State of Texas

The U.S. 5th Circuit Court has asked that the Texas Supreme Court make a ruling on whether oil giant BP had adequate insurance coverage prior to the Deepwater Horizon oil spill.

Osler McCarthy, a staff attorney for public information at the Texas Supreme Court, said that when BP asked its  insurance company, to pay up, its insurer told them they weren't covered.

McCarthy said the court will be examining if the primary coverage was enough for BP to be covered for the pollution damage to the Texas Coast or if the company should have purchased additional umbrella policies.

"But what the Texas Supreme Court is doing, and has to do, is decide what Texas law says and then the federal court will apply that to resolve the federal lawsuit," McCarthy said.

The 2010 Deepwater Horizon oil spill dumped more than 200 million gallons of crude oil into the Gulf of Mexico for 87 days, making it the largest oil spill in U.S. history.