The Associated Press May 3, 2011, 2:04PM ET

BP agrees to $25M penalty for 2006 Alaska spills

BP's subsidiary in Alaska has agreed to pay a $25 million civil penalty as part of a settlement for spilling more than 200,000 gallons of crude oil from company pipelines on the North Slope in 2006.

BP Exploration Alaska Inc. also will be required to install a system-wide pipeline integrity management program.

The settlement was announced Tuesday in Washington, D.C.

Assistant Attorney General Ignacia S. Moreno says the penalty should serve as a wake-up call to all pipeline operators that they will be held accountable for the safety of their operations and environmental laws.

U.S. Attorney for Alaska Karen Loeffler says BP Alaska admitted that it cut corners and failed to do what was required to adequately maintain its pipelines.

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