Bloomberg News

BP to Secure $240 Million for Future U.S. Cleanups, EPA Says

December 01, 2011

(Updates with comment from BP in eighth paragraph.)

Nov. 29 (Bloomberg) -- BP Plc units agreed to pay a $426,500 penalty and ensure that more than $240 million is available to resolve future hazardous-waste violations, the U.S. Environmental Protection Agency said.

The EPA said in a statement today that it found subsidiaries of BP America Inc. didn’t meet requirements from 2006 through 2010 for so-called financial assurance.

“Today’s settlement will ensure that BP’s subsidiaries have the funds available to cover any necessary cleanup costs today and into the future,” Cynthia Giles, assistant administrator for the agency’s Office of Enforcement and Compliance Assurance, said in a statement.

The mandates are aimed at ensuring that the company will meet environmental obligations at sites no longer in operation.

BP has set aside about $40 billion for costs from the 2010 explosion of its Macondo oil well that spewed almost 5 million barrels of oil into the Gulf of Mexico.

The company based in London pleaded guilty in 2007 to violating the Clean Water Act by spilling 200,000 gallons of oil from its Prudhoe Bay field on Alaska’s North Slope in 2006. It paid a $12 million fine and $8 million for restitution and community service and was put on three years’ probation.

The Gulf accident and the Prudhoe Bay spill weren’t part of the settlement announced today.

“At no point did BP fail to perform any environmental measures required by any applicable law, and EPA has not asserted any such failure,” the company said in an e-mailed statement about the agreement. “BP is committed to meeting its environmental obligations and is pleased that the present matter could be resolved cooperatively.”

--Editors: Judy Pasternak, Larry Liebert

To contact the reporters on this story: Vivek Shankar in San Francisco at vshankar3@bloomberg.net; Mark Drajem in Washington at mdrajem@bloomberg.net

To contact the editor responsible for this story: Larry Liebert at lliebert@bloomberg.net


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