October 26, 2007
British Petroleum agrees to pay $70 million USD for environmental crimes
Acting Attorney General Peter D. Keisler announced yesterday that the energy company British Petroleum (BP) has agreed to pay approximately 70 million dollars in fines and restitution for environmental crimes. This includes a criminal fine of $50 million for Clean Air Act violations resulting from an explosion at BP's Texas City refinery in 2005.
"This is the largest fine ever assessed to a single entity under the Clean Air Act. And this is the first criminal prosecution under a section of the Act specifically created to prevent accidental releases that result in death of serious injury," said Keisler.
BP has also agreed to pay a $12 million criminal fine, $4 million in community service payments, and $4 million in criminal restitution for Clean Water Act violations associated with pipeline leaks of crude oil in Alaska. Additionally, BP agreed to three years of probation for the Clean Air Act and Clean Water Act violations.
"BP committed serious environmental crimes in our two largest states, with terrible consequences for people and the environment" said Granta Nakayama, EPA’s Assistant Administrator for Enforcement and Compliance Assurance. "Today's agreement sends a message that these types of crimes will be prosecuted."
The fines are part of BP's plea agreement to pay more than $373 million for environmental crimes, fraud and market manipulation. BP and several of its employees were charged by an indictment issued by a federal grand jury in the Northern District of Illinois with conspiracy to manipulate the price of propane in 2004, wire fraud, and several violations of the Commodity Exchange Act. BP will pay $303 million in restitution and criminal and civil fines for these crimes under the terms of a deferred prosecution agreement.
Read the Department of Justice's press release.
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