Tuesday, September 28, 2010

BP's (NYSE:BP) Texas City Probation Will Remain in Place

The Department of Justice says it won't be revoking the probation of BP (NYSE:BP) in relationship to the 2005 Texas City explosion which claimed the lives of 15 workers.

In a March 2009 deal, BP said it would pay a $50 million fine over the accident and go through a 3-year probation for the violation of air pollution laws in the U.S. connected to the explosion.

Terms of the deal with the U.S. Occupational Safety and Health Administration (OSHA) were they were supposed to finish the work of installing automated safety equipment and perform a review of pressure-relief valves in the refinery.

When BP missed the deadline to complete the work OSHA notified prosecutors of the situation, and the company was fined $87 million for that and other safety problems which emerged later.

The response of the prosecutors was they “might seek revocation and/or extension of probation” until they came into compliance with the agreement.

Prosecutors, after talking to all parties involved, decided to give BP another 18 months to meet the required demands.

1 comment:

  1. This story was first reported by Truthout.org