US Govt Sues BP America

BP America, BPXA may be fined $500m for repeated violations

The U.S. government has reportedly filed a civil lawsuit against BP Exploration (Alaska) Inc (BPXA) for violating U.S. clean air and water laws, according to the U.S. Justice Department.

BPXA is accused of illegally discharging at least 260,000 gallons (~ 1 million liters) of crude oil “from its pipelines in Prudhoe Bay onto the North Slope of Alaska during two major oil spills in the spring and summer of 2006.” Reuters reporetd.

According to the suit, BPXA also failed to employ proper spill prevention measures as stipulated by the Clean Water Act.

BP America Tower shadows the Fountain of Eternal Life in downtown Cleveland, Ohio. Image source: outdoor webshots. Image may be subject to copyright.

“We have taken significant steps to ensure that our operations are safe and reliable, and protect the environment,” said a spokesman at BPXA, a wholly owned subsidiary of BP America, a part of UK’s BP Plc.

The lawsuit filed by DOJ on behalf of DOT and EPA seeks

• An injunction against future violation by BPXA, requiring the company to take appropriate action to prevent spills
• Damages caused by the spills
• Maximum possible punitive damages allowed by the law

“The state of Alaska also filed a lawsuit against BP on Tuesday, relating to the 2006 oil spill, but did not specify a proposed fine, ” said the report.

Since 1999, BP America has been found guilty on various negligence charges, or forced to settle for repeated violations including,

• Pipeline spill in violation of the Clean Water Act 2007
• Fatal fire in 2005 at BP refinery in Texas City
• Propane-market manipulations by BP futures traders in 2004
• Illegally dumping hazardous waste at its Endicott oil field on the North Slope in 1999

The company has been forced to pay in damages, fines and settlements a total of about $27m so far.

Related Links:

• Another Day, Another Oil Spill in Alaska
• Chevron should pay $27 billion in compensation
• This’s Got to Be the Year of Radioactive, Chemical and Oil Spills, Too!
• Large spill at Canada’s oil sands terminal
• Australia hit by another man-made disaster
• Exxon Valdez Disaster
• Prudhoe Bay Pipeline Spills
• BP’s Texas City Refinery