BP to Pay Largest Criminal Fine Ever for Air Violations

Today, BP Products North America, Inc. agreed to pay a total criminal fine of more than $60 million for violations of federal environmental regulations in Texas and Alaska. In addition to the penalty, the company will spend approximately $400 million on safety upgrades and improvements to prevent future chemical releases and spills.

"BP committed serious environmental crimes in our two largest states, with terrible consequences for people and the environment," said Granta Nakayama, assistant administrator for EPA's Office of Enforcement and Compliance Assurance. "Today's agreement sends a message that these types of crimes will be prosecuted."

This is the largest criminal fine ever assessed against a corporation for Clean Air Act violations and the first criminal prosecution of the requirement that refineries and chemical plants take steps to prevent accidental releases. The requirement was passed in 1990 as part of the Clean Air Act following the explosion at the Union Carbide chemical plant in Bhopal, India where thousands were killed and injured.

BP will pay $50 million for a catastrophic explosion in 2005 that killed 15 people and injured more than 170 others at its Texas City refinery. BP will also pay a $12 million fine for spilling 200,000 gallons of crude oil onto the Alaskan tundra and onto a frozen lake in March 2006, resulting in the largest spill that ever occurred on the North Slope.

In addition to the $50 million fine, the company pleaded guilty to a felony violation of the Clean Air Act and will serve three years of probation for the Texas City incident. BP is also required to complete a facility-wide study of its safety valves and renovate its flare system to prevent excess emissions at an estimated cost of $265 million.

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