[Local_activists] Public Citizen: Cost of Doing Business: BPs $730 million in fines/settlements + 2 criminal convictions
Raging Grannie (Wanda B)
wsb70 at comcast.net
Sat May 8 14:46:43 PDT 2010
Have to ask - do the fines fit the crimes? Are
they any more than slaps on the wrist, especially
given the accumulation of violations? Then ask
shouldn't "three strikes and you're out" apply
here? What are the other oil companies getting
away with? Be sure to watch video at the end.
Cost of Doing Business: BPs $730 million in
fines/settlements + 2 criminal convictions
by Tyson Slocum
BP is a London-based oil company with the worst
safety and environmental record of any oil
company operating in America. In just the last
few years, BP has pled guilty to two crimes and
paid over $730 million in fines and settlements
to the US government, state governments and civil
lawsuit judgements for environmental crimes,
willful neglect of worker safety rules, and
penalties for manipulating energy markets.
WORKER SAFETY $215 million in penalties/settlements
BP paid the two largest fines in OSSHA history
million foor willful negligence that led to the
deaths of 15 workers and injured 170 others in a
March 2005 refinery explosion in Texas.
o In September 2005, OSHA cited BP for 296
"Egregious Willful Violationsâ and other
violations associated with the explosion, fining
BP $21.36 million and entering into a settlement
agreement under which BP agreed to corrective
actions to eliminate hazards similar to those
that caused the explosion. In October 2009, OSHA
determined that BP was in non-compliance with the
settlement agreement, finding 270
ânotifications of failure to abate" and 439 new
willful violations, resulting in the $87.43
million fine. The U.S. Chemical Safety & Hazard
in 2007 that "The Texas City disaster was caused
by organizational and safety deficiencies at all
levels of the BP Corporation. Warning signs of a
possible disaster were present for several years,
but company officials did not intervene
effectively to prevent it." This followed an
fine against BP for $63,000 for violations at the
same facility. In December 2009, a Texas jury
million award against BP on behalf of workers
injured in 2007 at the texas city refinery while
making repairs after the 2005 blast.
Just last month,
paid $3 million fine to OSHA for 42 willful
safety violations at one of its refineries in
Ohio. This follows a
million fine BP paid for safety & health
violations at this refinery in April 2006.
In September 2001,
fined BP $141,000 after an explosion killed 3
workers at BPs Clanton Road facility.
In October 2007, the Minerals Management Service
BP $41,000 for various safety violations.
In October 2006, the Minerals Management Service
BP $25,000 because "operations were not performed
in a safe and workmanlike manner. While making an
assessment of the unsafe conditions on the
platform that needed repairing, the construction
crew did not barricade a 3'4" x 3'4" opening in
the stairway landing. Later, one of the crew
members was injured when he fell through the open
hole approximately 20 and into the Gulf of Mexico."
Inn July 2004,
paid a $190,000 penalty to MMS for safety violations that resulted in a fire.
In February 2004, MMS fined
$25,000 because "The Rig's Gas Detection System
was bypassed with ongoing drilling operations being conducted."
In November 2003,
fined BP $25,000 for violations that resulted in
an oil rig crane falling into the Gulf of Mexico.
In July 2003, MMS fined BP $20,000 because
subsurface safety valve was "blocked out of service."
In January 2003,
was fined $70,000 by MMS for a faulty fire water
system. Also that month, BP was fined $80,000 by
MMS for bypassing
for the Pressure Safety High/Low for four producing wells."
In January 2002,
fined BP $20,000 for a safety violation.
In May 2002,
fined BP $23,000 for a workplace safety violation
that resulted in a worker having his hand injured from an electrical shock.
In September 2002,
fined BP $39,000 for missing 13 monthly tests of an "oil low level sensor."
In February 2001,
fined BP $20,000 for workplace violations
resulting in serious injury to an employee.
ENVIRONMENTAL VIOLATIONS $$153 million in
penalties/settlements, plus a guilty plea to an
environmental felony and one criminal misdemeanor.
In October 2007, BP agreed to pay a
million fine and plead guilty to a felony
violation of the Clean Air Act and will serve
three years of probation for the Texas City
refinery explosion. Additionally, the EPA
required BP to
$785,662 to resolve Emergency Planning and
Community Right-to-Know Act violations at its
Texas City refinery in March 2009. In 2006, the
Commission on Environmental Quality fined BP
$130,625 for unlawful releases of harmful
pollutants at its Texas City refinery.
In October 2007,
plead guilty to one misdemeanor of the Clean
Water Act, agreed to serve three years probation,
pay $4 million to the National Fish and Wildlife
Foundation to support research and activities on
the North Slope, pay $4 million in restitution to
the State of Alaska and a $12 million fine for
spilling 200,000 gallons of crude oil onto the
Alaskan tundra in March 2006. Investigators
determined the leak was caused by a build up of
sediment in the pipe, and that BP failed to
properly inspect or clean the pipeline, which is
required by law to prevent pipeline corrosion.
The investigation revealed that in 2004, the
company became aware of increased corrosion in
the pipeline. In March 2009, the Department of
Justice filed a civil lawsuit against BP for
comply in a timely manner with a Corrective
Action Order" involving this oil spill.
In May 2002, the Alaska Department of
Environmental Conservation required
to pay a $150,000 fine for pipeline leaks.
In February 2009,
paid a $12 million civil penalty for
ânoncompliance with a 2001 consent decree and
Clean Air Act regulations requiring strict
controls on benzene . . . generated during
petroleum refiningâ at BPs Texas City refinery.
In March 2005, the
Coast Air Quality Management District forced BP
to pay a $25 million penalty and $6 million in
past emissions fees for air quality rule violations at BPs Carson refinery.
In October 2006, BP paid a civil penalty of
$900,000 for producing and distributing gasoline
that failed to meet Clean Air Act standards.
In October 2007,
paid a $6,350 fine for failing to perform
adequate corrosion protection inspections at
three underground gasoline storage tanks. In June
Department of Environmental Quality fined BP
$869,150 for leaking underground gasoline storage tanks.
In May 2005,
paid a $58,687 fine to settle allegations it
violated the Clean Air Act at its Whiting,
November 2007, the EPA cited BP for numerous
Clean Air Act violations at its Whiting
this notice of violation in October 2008. In
June 2009, the EPA
additional allegations of Clean Air Act violations at the same refinery.
In Juune 2005,
paid a civil penalty of $115,138 for violations
of the Clean Water Act, Safe Drinking Water Act
and Oil Pollution Act on the Lander and Winkleman
Dome Oil Fields in Fremont County, Wyoming within
the boundaries of the Wind River Indian
Reservation of the Eastern Shoshone and Northern Arapaho Tribes.
In August 2005,
paid a civil penalty of $28,360 for violating
EPA's gasoline detergent additive regulations.
In February 2000,
paid $22 million to settle criminal and civil
charges arising from illegally discharged waste
oil and hazardous substances at the companyâs
North Slope drilling operations. BP was also
placed on 5-year probation and was required âto
establish a nationwide environmental management
system designed to prevent future
violations.âbut even the citizenry do not watch
to see if the company is adhering to its' 'probation'---sigh...
In February 1995,
paid $3.9 million to settle charges related to a
tanker accident that spilled 400,000 gallons of
oil into California's coastal waters.
In March 1999,
paid $1.75 million to settle allegations it
violated the Clean Air Act at its Toledo, Ohio refinery.
In January 2001,
paid $10 million to resolve allegations it
violated the Clean Air Act at 8 of its refineries.
BP was one of several oil companies found to have
contaminated drinking water with MTBE.
companies collectively were required to pay
$423,963,564.67 in March 2008. It is unknown what
share of this settlement BP was required to pay.
PRICE-GOUGING CONSUMERS/TAXPAYERS: $363 million in penalties/settlements
â¢ In October 2007,
paid $303 million to settle allegations it
manipulated the US propane market. The feds might
still be investigating BPs broader role in
manipulating crude oil markets: in a filing with
and Exchange Commission on August 9, 2007, BP
revealed that âThe US Commodity Futures Trading
Commission and the US Department of Justice are
currently investigating various aspects of BPâs
commodity trading activities, including crude oil
trading and storage activities, in the US since 1999.â
the Federal Energy Regulatory Commission fined BP
a total of $21 million for manipulating the
California electricity market, Enron-style.
In October 2007, FERC ordered BP to pay
$7 million civil penalty for engaging in
anti-competitative practices with its operation of natural gas pipelines.
In April 2000, the Department of Justice forced
BP to pay
million "to resolve claims under the False Claims
Act and administrative claims that the
corporation underpaid royalties due for oil
produced on federal and Indian leases since 1988."
legally escaped paying $172,508,633 in royalties to
US taxpayers on leases it operates in the Gulf of Mexico.
In July 1997,,
oil traders were found to have colluded with two
other firms to fix the price of commissions.
Tyson Slocum is Director of Public Citizen's Energy Program
The problem of oil much bigger than carbon
The addictions are both to oil AND money, and
they are based in our form of economy. People
are forced into the addiction by the system. Some
have found ways to extricate themselves. The
majority have not. Knowledge of the facts should
strongly motivate us to reduce energy use to a
minimum and to find alternative economic modes as
well, as with Transition Town plans.
If we do not do the impossible, we shall be
faced with the unthinkable. social philosopher Murray Bookchin
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