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Selected History of BP Consumer, Environmental<br />

and Workplace Safety Violations<br />

April 2010<br />

March 2010<br />

September 2009<br />

April 2009<br />

March 2009<br />

February 2009<br />

August 2007<br />

July 2007<br />

June 2007<br />

Deepwater Horizon platform collapses, Gulf Coast disaster.<br />

Ohio BP Refinery Fined Again for Workplace Safety Violations:<br />

BP’s Ohio refinery was cited for proposed fines of more than $3<br />

million for allegations of 42 willful violations and 20 serious<br />

violations of U.S. workplace safety standards. 1<br />

BP Receives $87 Million in Penalties for Unaddressed Worker<br />

Safety Violations at Texas City Refinery: The U.S. Occupational<br />

Safety and Health Administration levied $87.4 million in penalties<br />

for allegedly failing to implement workplace safety improvements<br />

under a settlement after the 2005 Texas City refinery explosion. Four<br />

more workers died at the refinery after the explosion. In 2009, OSHA<br />

found 270 uncorrected workplace safety violations and 439 new<br />

workplace safety violations. 2<br />

BP-Chartered Helicopter Crash Kills 16 in North Sea: A BPchartered<br />

helicopter departing a BP North Sea oil rig crashed killing<br />

both pilots and 14 passengers in the worst United Kingdom<br />

helicopter accident in more than two decades. 3<br />

BP Workplace Safety Guilty Plea Finalized by U.S. Courts: U.S.<br />

Federal Court approved BP’s guilty plea and $50 million criminal<br />

fine for a criminal workplace safety charge related to the Texas City<br />

Refinery disaster. BP America Chairman and President Bob Malone<br />

noted that, “If our approach to process safety and risk management<br />

had been more disciplined and comprehensive, this tragedy could<br />

have been prevented.” 4<br />

BP Agreed to Pay Nearly $180 million in Fines to Correct 8-Year<br />

Old Texas City Refinery Air Pollution Violations: BP agreed to<br />

pay almost $180 million for failing to bring the refinery into<br />

compliance with air pollution rules under a 2001 consent decree to<br />

correct U.S. Clean Air Act violations. 5<br />

BP Settles Another Fine for Underpaying for Oil Leases and<br />

Royalties: BP paid a $35 million to settle a class action lawsuit<br />

(without admitting wrongdoing) for underpaying landowners for the<br />

right to drill oil on their land. 6<br />

BP Pays $18 million to Settle Enron-Era Electricity Sales Scam:<br />

BP paid an $18 million settlement with California utilities and<br />

officials for overcharging consumers for electricity during<br />

California’s 2000 and 2001 energy crisis. 7<br />

BP Fined for Leaking Michigan Gas Station Tanks: Michigan<br />

fined BP $869,000 for failing to clean up leaking gas station tanks<br />

years after the leaks were brought to BP’s attention. 8


2007 BP Dedicated $2 Billion to Pay for Fines, Lawsuits Resulting<br />

from Deadly 2005 Texas City Refinery Explosion: BP set aside<br />

$2.125 billion to pay for civil cases brought by the families of the<br />

victims and survivors of the Texas City refinery disaster. 9<br />

December 2006<br />

September 2006<br />

BP Evacuates North Sea Platform After Collision: BP evacuated a<br />

North Sea platform after a supply boat collided with the platform’s<br />

support legs, possibly compromising the structural integrity of the<br />

platform. 10<br />

U.S. Congressional Hearing Reveals Climate of Fear Prevents BP<br />

Employees from Bringing Problems to Corporate Leadership: A<br />

report commissioned from the Vinson & Elkins law firm found that<br />

the atmosphere at BP “chills” reporting concerns about BP<br />

operations. 11 One worker was threatened with firing for allegedly<br />

filing a complaint that corrosion inspection staff was cut by 25<br />

percent. 12<br />

September 2006 BP Pays $900,000 Air Pollution Fine: BP paid a $900,000<br />

settlement with the U.S. Environmental Protection Agency for<br />

emitting volatile organic compounds from its gasoline stations. 13<br />

April 2006<br />

March 2006<br />

July 2005<br />

March 2005<br />

BP Fined $2.4 Million in Worker Safety Fines for Ohio Refinery:<br />

U.S. inspectors fined BP $2.4 million for workplace safety violations<br />

in a Ohio refinery similar to problems that contributed to the Texas<br />

City refinery explosion. 14<br />

BP Leak Biggest Spill on Alaska’s North Slope: A corroded<br />

pipeline leaked 267,000 gallons of crude oil at BP’s Prudhoe Bay<br />

facility, a leak Alaska regulators rated “the largest spill of crude on<br />

the North Slope.” 15 In August, BP shut down Prudhoe Bay after a<br />

second pipeline corrosion caused a second, smaller leak. 16 BP<br />

ultimately paid $20 million in fines and restitution and admitted “BP<br />

Exploration Alaska failed to take necessary actions to prevent the<br />

March 2006 pipeline spill.” 17 In 2009, BP agreed to pay $1.7 million<br />

in fines to the state of Alaska for oil spill containment violations on<br />

Alaska’s North Slope. 18 By 2010, U.S. authorities still sought<br />

millions of dollars to remedy alleged water and air pollution<br />

violations and for failing to meet promised deadlines to prevent<br />

future spills. 19<br />

Hurricane Significantly Damages BP’s Thunder Horse Deep Sea<br />

Platform in Gulf of Mexico: Hurricane Dennis struck and<br />

destabilized the giant Thunder Horse in 2005. 20 BP found that<br />

incorrectly installed ballast piping caused a 30-degree list that dipped<br />

the platform into the Gulf. 21 In 2006, BP found additional problems<br />

with key subsea equipment in the underwater manifolds and<br />

compression systems. 22<br />

Texas City Refinery Explosion and Fire Kills 15 Workers,<br />

Injures More than 170: An explosion and fire at the BP Texas City<br />

refinery killed 15 workers and injured more than 170. 23 The<br />

explosion occurred after monitoring alarm systems failed to alert the<br />

plant that the octane-boosting unit overfilled with highly combustible


chemicals and vapors. 24 The U.S. Chemical Safety Board (CSB)<br />

attributed the explosion to BP’s disinterest in safety procedures; the<br />

CSB president stated “we were absolutely terrified that such a culture<br />

could exist at BP.” 25 The Texas City blast was the worst industrial<br />

accident in the United States in fifteen years. 26 The Texas City and<br />

other U.S.-based BP workplace fatalities accounted for more than<br />

one-fourth of U.S. refinery workplace fatalities between 1995 and<br />

2005 and were ten times higher than fatalities at Exxon facilities. 27<br />

November 2004<br />

July 2004<br />

BP Fined £200,000 for North Sea Gas Leak: BP was fined<br />

£200,000 for a 2002 gas leak on a North Sea platform that was the<br />

result of pipeline corrosion the UK prosecutor called “an accident<br />

waiting to happen.” 28<br />

BP Fined £25,000 for North Sea Diesel Spill: BP was fined<br />

£25,000 for leaking 6.5 tonnes of diesel fuel from a supply ship<br />

refueling a drilling platform. 29<br />

2003- 2004 BP Admits it Manipulated Propane Prices, Pays $300 Million in<br />

Fines, Charges: BP paid $303.5 million in fines, penalties and<br />

restitution to settle the charges that BP generated a $20 million profit<br />

from manipulating propane market and artificially driving up<br />

propane prices for consumers. 30<br />

July 2002<br />

December 2001<br />

October 2001<br />

March 2001<br />

January 2001<br />

June 2000<br />

June 2000<br />

BP Settles U.S. Suit Over Leaking Fuel Storage Tanks: BP paid a<br />

$46 million settlement to after its Arco subsidiary ignored a<br />

requirement to improve leaking underground fuel storage tanks at 59<br />

gas stations for a decade. 31<br />

BP Spill in Luton, England Takes 9 Years to Resolve: A 2001 BP<br />

gas station spill leaked 40,000 liters of gasoline. Although BP was<br />

fined £60,000 and cleaned up half the spill, the full cleanup was not<br />

fully completed until 2010. 32<br />

BP Fined for North Sea Workers’ Exposure to Gas Leaks: BP<br />

was fined more than £200,000 for North Sea gas platform workers’<br />

exposure to gas leaks for four years on an Amoco gas platform. 33 (BP<br />

subsequently merged with Amoco.)<br />

Explosions at Georgia State BP Plastics Plant Kill 3 Workers:<br />

Explosions killed 3 workers shutting down plastics production<br />

operation when leaking liquefied polymers caught fire. 34<br />

BP Spends $600 million to Resolve Clean Air Act Violations: BP<br />

Amoco agreed to spend approximately $600 million to resolve Clean<br />

Air Act violations at eight refineries and pay an additional $10<br />

million in civil penalties. 35<br />

BP Spills Heating Oil into the River Tweed: BP Fuels was fined<br />

£15,000 and spent £200,000 to clean-up after polluting a tributary of<br />

the River Tweed with home heating oil. 36<br />

Two BP Grangemouth, Scotland Refinery Safety Breaches within<br />

Days: BP was fined $1.43 million when a ruptured steam line<br />

threatened the safety of local residents and a flammable gas leak


three days later caused employees to “run for their lives” when about<br />

9 tonnes of flammable vapor exploded. 37 (BP has since sold<br />

Grangemouth.)<br />

April 2000<br />

February 2000<br />

May 1999<br />

March 1999<br />

October 1998<br />

April 1994<br />

July 1991<br />

October 1990<br />

March 1988<br />

February 1985<br />

BP Underpaid Royalties on Federal and Indian Lands: BP<br />

Amoco agreed to pay $32 million to settle claims that it underpaid<br />

royalties to the U.S. government on oil leases on federal and Indian<br />

land. 38<br />

BP Pays Total $22 Million over Hazardous Materials Dumping:<br />

BP Exploration (Alaska) Inc. agreed to pay $15.5 million in fines and<br />

$6.5 million in civil penalties for failing to immediately report<br />

hazardous materials dumped at a North Slope oil field. 39<br />

BP Given Maximum Fine for North Sea Explosion: BP<br />

Exploration received the maximum £20,000 fine for an explosion and<br />

fire on a North Sea gas platform after BP admitted breaching health<br />

and safety regulations. 40<br />

BP Pays $1.75 million for Ohio Air Pollution: BP Oil Company<br />

paid $1.75 million under a consent decree for its alleged illegal air<br />

pollutant discharges and reporting violations at its Ohio refinery. 41<br />

BP Given Record Fine for Manipulating Trades on the UK Oil<br />

Commodity Market: BP was fined a record £125,000 by the<br />

London-based International Petroleum Exchange (IPE) for<br />

manipulating the price of 500 diesel and home heating oil commodity<br />

contracts and failing to cooperate with the exchange’s investigation. 42<br />

BP Fined over Fire at Grangemouth Plant: BP Chemicals was<br />

fined £200,000 for a fire at its Grangemouth plant that killed one<br />

worker and seriously burned three others. BP also was ordered to pay<br />

each injured worker £10,000. 43<br />

BP Assessed Record Workplace Safety Fine for Fatal Refinery<br />

Explosion: BP was fined a record $135,000 for violations leading to<br />

fatal explosion at a Washington state refinery that killed one worker<br />

and injured six others. 44 Additionally, BP Oil Co. settled a lawsuit<br />

brought by the family of the worker who was killed for $4.3<br />

million. 45<br />

BP Fined $2.3 Million for 6 years of <strong>Water</strong> Pollution: BP Oil<br />

Corp was fined $2.3 million for discharging pollutants for 6 years<br />

into the Delaware River from its Pennsylvania refinery. In addition,<br />

BP Oil spent more than $25 million to build a new treatment<br />

system. 46<br />

BP Given Then-record Fine after Grangemouth Explosions: BP<br />

was fined a record £750,000 after three workers were killed in two<br />

separate explosions at the Grangemouth refinery. The first explosion<br />

occurred after workers reported a chemical leak but returned to work<br />

after a BP employee claimed it was safe. 47<br />

BP Fined for North Sea Fire on Site of Prior Blowout: BP was<br />

fined £15,000 for safety violations after gas was released from an oil


well-bore hole ignited a North Sea fire. Previous drilling had<br />

encountered a blow-out close to the site, and seismic tests had shown<br />

the potential of shallow gas-bearing sands in the area of the<br />

platform. 48<br />

Notes:<br />

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!<br />

1 U.S. Occupational!Health and Safety Administration. Press Release. “U.S. Labor Department’s OSHA Proposes More than $3<br />

Million in Fines to BP-Husky Refinery Near Toledo, Ohio.” March 8, 2010.<br />

2<br />

U.S. Department of Labor. "Fact Sheet on BP 2009 Monitoring Inspection." Occupational Safety & Health Administration.<br />

October 29, 2009.<br />

3 Milmo, Cahal. "BP suspends link with helicopter firm after crash." (London) The Independent. April 2, 2009.<br />

4 BP America, Inc Press Release. “BP America announces resolution of Texas City, Alaska, propane trading, law enforcement<br />

investigations.” October 25, 2007; British Petroleum. U.S. Securities and Exchange Commission filing 20-F, 2009.<br />

5 US Environmental Protection Agency. “BP Products to pay nearly $180 million to settle Clean Air violations at Texas City<br />

Refinery.” February 19, 2009.<br />

6 Laura Dichter et. al v. BP America Production Company. Case No. D-0101-CV-200001620, State of New Mexico, First<br />

Judicial District. Notice of Settlement. August 15, 2007.<br />

7 “U.S. FERC approves $18 mln BP-California settlement.” Reuters. July 6, 2007.<br />

8 Lam, Tina. “BP is fined for leaking underground tanks.” Detroit Free Press. June 2, 2007.<br />

9 British Petroleum. U.S. Securities and Exchange Commission filing 20-F. 2007 and 2008.<br />

10 “Alert on oil platform after collision.” (Aberdeen) Press and Journal. December 14, 2006.<br />

11 Davidson, Paul. “Congressmen slam BP executives at Alaskan oil leak hearing.” USA Today. September 7, 2006.<br />

12 Mauer, Richard. “BP was warned of intimidation.” Anchorage Daily News. October 3, 2007.<br />

13 US Environmental Protection Agency. “BP, Shell Pay $1.5 Million in Penalties for Auto Gas Violations Threatening Public<br />

Health.” October 5, 2006.<br />

14 U.S. Occupational Health and Safety Administration. Press Release. “OSHA Fines BP $2.4 Million for Safety and Health<br />

Violations.” April 25, 2006.<br />

15 “Alaska hit by ‘massive’ oil spill.” BBC. March 11, 2006.<br />

16 BP. Press Release. “BP to shutdown Prudhoe Bay Oil Field.” August 7, 2006.<br />

17 BP Statement on Settlements. “BP America Announces Resolution of Texas City, Alaska, Propane Trading Law Enforcement<br />

Investigations.” October 25, 2007.<br />

18 Alaska Department of Law and Alaska Department of Environmental Conservation. Press Release. “State Reaches Settlement<br />

with BP Exploration (Alaska) Inc.” September 22, 2009.<br />

19 Loy, Wesley. “Federal regulators, BP work on settlement for ’06 spills.” Anchorage Daily News. May 23, 2010.<br />

20 Andrew, Kelly. “Delays at Thunder Horse add to BP’s woes.” The Oil Daily. September 19, 2006.<br />

21 Greising, David. “Troubles run deep on Gulf oil platform.” Chicago Tribune. May 28, 2007.<br />

22 “New Thunder Horse Woes.” International Petroleum Finance. June 1, 2006.<br />

23 U.S. Occupational Health and Safety Administration. Press Release. “OSHA Fines BP $2.4 Million for Safety and Health<br />

Violations.” April 25, 2006.<br />

24 Porretto, John and Dan Caterinicchia. “Probe of BP plant blast cites oversight.” Associated Press.<br />

25 “Poor BP safety standards at root of refinery blast.” Birmingham (UK) Post. March 20, 2007.<br />

26 Porretto, John and Dan Caterinicchia. “Probe of BP plant blast cites oversight.” Associated Press.<br />

27 Olsen, Lise. “BP refinery deaths top industry in U.S.” Houston Chronicle. May 16, 2005.<br />

28 Barry, Maggie. “Gas Leak: BP Fined.” Daily Mirror. November 17, 2004.<br />

29 Innes, John. “Diesel spill in sea costs BP £25,000.” Scotsman. December 6, 2005.<br />

30 U.S. Commodity Futures Trading Commission. Press Release. “U.S. Commodity Futures Trading Commission Charges BP<br />

Products of North America, Inc. with Cornering the Propane Market and Manipulating the Price of Propane.” June 28, 2006; BP<br />

Statement on Settlements. “BP America Announces Resolution of Texas City, Alaska, Propane Trading Law Enforcement<br />

Investigations.” October 25, 2007.<br />

31 Carrell, Severin. “BP pays $46m settlement after breaching US anti-pollution laws.” The Independent. July 7, 2002.<br />

32 “One fuel spill BP need worry about no longer.” Luton Today. May 14, 2010.<br />

33 The Scotsman. “BP fined more than GBP 200,000.” October 13, 2001.<br />

34 Edwards, Johnny. “Three die in fatal explosion at Augusta, Ga. BP Amoco Polymers Plant.” Augusta Chronicle. March 14,<br />

2001.<br />

35 US Environmental Protection Agency press release. “EPA finalizes agreement with petroleum refinery.” January 19, 2001.<br />

36 The Scotsman. “BP fined 15,000 pounds over river pollution.” June 14, 2000.<br />

37 “Grangemouth incidents scar BP.” The Oil Daily. January 23, 2002.<br />

38 Sniffen, Michael J. “BP Amoco to Resolve Royalties Case.” Associated Press. April 11, 2000.<br />

39 Speiss, Ben. “BP settles for $15.5 million; company also faces probation in dumping of toxic waste.” Anchorage Daily News.<br />

February 2, 2000.<br />

40 The Herald (Glasgow). “Maximum fine for oil firm over gas explosion.” May 11, 1999.<br />

41 US Environmental Protection Agency press release. “BP Oil must monitor flaring of gases at Toledo refinery.” March 15,<br />

1999.<br />

42 The Herald (Glasgow). “Business: Oil giant is fined for false trade.” October 16, 1998.<br />

43 The Herald (Glasgow). “BP Chemicals fined £200,000 over death fire.” April 22, 1994.<br />

44 Lange, Larry. “Refiner cited for violations in fatal blast; British Petroleum fined record $135,000 for safety 'shortcuts.'” Seattle<br />

Post-Intelligencer. July 16, 1991.<br />

45 Lange, Larry. “BP Oil to pay $4.3 million in refinery death.” Seattle Post Intelligencer. January 12, 1993.<br />

46 Associated Press. "BP Oil assessed $2.3 million fine for polluting river. (Delaware River)." The Oil Daily. Energy Intelligence<br />

Group. October 24, 1990.<br />

47 The Herald (Glasgow). “BP is fined pounds 750,000 after fatal blast at refinery.” March 22, 1988.<br />

48 The Guardian (London). “BP Fined 15,000 pounds on safety charge after North Sea fire.” February 6, 1985.!!

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