BP in March reached an estimated $7.8 billion deal to resolve its liability with plaintiffs, a wide-ranging group that represents condominium owners, fishermen, hoteliers, restaurant owners and others who say their livelihood was damaged by the spill.

A settlement with the Justice Department would resolve BP's biggest remaining liability from the rig explosion that killed 11 workers and led to the worst offshore oil spill in U.S. history.

BP could be liable for between $5.4 billion and $21 billion in civil penalties under the Clean Water Act alone, depending on whether it were found to be grossly negligent, which it has denied, the paper said (link.reuters.com/nef33t).

Both BP and Justice Department declined to comment to Reuters when contacted about the Journal report.

(Reporting by Sakthi Prasad in Bangalore; Editing by Ken Wills)

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