Nov. 9, 2007—BP Products North America recently agreed to pay a total criminal fine of more than $60 million for violations of federal environmental regulations in Texas and Alaska, according to the US Environmental Protection Agency (EPA). In addition to the penalty, the company will spend approximately $400 million on safety upgrades and improvements to prevent future chemical releases and spills.
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, according to EPA.
BP will pay $50 million for a catastrophic 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.
In addition to the fines, the company is required to complete a facility-wide study of its safety valves and to renovate its flare system to prevent excess emissions, at an estimated cost of $265 million, at the Texas City refinery. In Alaska, BP is also required to replace 16 miles of pipeline, at an estimated cost of $150 million.
More information on EPA’s Criminal Enforcement program is available online.
