BP Criminal Fines & Safety Upgrades For Air Violations Approach $500 Million
BP Products North America has agreed to pay a total criminal fine of more than $60 million for violations of federal environmental regulations in Texas and Alaska. In addition to the penalty, the company will spend approximately $400 million on safety upgrades and improvements to prevent future chemical releases and spills.
BP will pay $50 million for an explosion in 2005 that killed 15 people and injured more than 170 others at its Texas City refinery. BP will also pay a $12 million fine for spilling 200,000 gallons of crude oil onto the Alaskan tundra and onto a frozen lake in March 2006.
This is the largest criminal fine ever assessed against a corporation for Clean Air Act violations and the first criminal prosecution of the requirement that refineries and chemical plants take steps to prevent accidental releases.
In addition to the $50 million fine, the company pleaded guilty to a felony violation of the Clean Air Act and will serve three years of probation for the Texas City incident. BP is also required to complete a facility-wide study of its safety valves and renovate its flare system to prevent excess emissions at an estimated cost of $265 million.
For the Alaska spill, BP pleaded guilty to one misdemeanor of the Clean Water Act and will serve three years probation, pay $4 million to the National Fish and Wildlife Foundation to support research and activities on the North Slope, and pay $4 million in restitution to the State of Alaska. BP is required to replace 16 miles of pipeline at an estimated cost of $150 million.
Energy Manager News
- ERC: Electricity Price Trends for the Week Ending June 26
- Final Energy Conservation Standards for Packaged Terminal Air Conditioners Mirror ASHRAE/IES Standard 90.1-2013
- Seeley International Acquires Coolerado
- Joule Assets Becomes Demand Response Provider in Texas
- Excalibur Energy Becomes Preferred Supplier for Facilities Management Firm
- Product Warranty Covers Both Insulated Roof Panels, Solar PV
- Combining Solar with Ground Heat Pump Is Energy, Cost Efficient
- Current Clamps Measure Energy for Small Businesses