Oil firm agrees to abide by EPA monitoring arrangements for five years, allowing it to bid for drilling contracts in Gulf of Mexico
BP

BP is still awaiting a US court ruling about whether it was grossly negligent over the Deepwater Horizon blowout in 2010. Photograph: AFP/Getty Images

BP is closer to restoring its operations and reputation in the US after agreeing a deal with environmental protection authorities that it will enable the oil firm to bid for new drilling rights in the Gulf of Mexico.

The British-based group had started legal proceedings against the US environmental protection agency (EPA) which had banned BP from new contracts on the grounds that it had failed to correct problems properly since the Deepwater Horizon disaster in 2010.

BP said it had now dropped its law suit after resolving outstanding problems with the EPA but the firm will have to abide by monitoring arrangements with the agency for the next five years.

“After a lengthy negotiation, BP is pleased to have reached this resolution, which we believe to be fair and reasonable,” said John Mingé, head of BP America. “Today’s agreement will allow America’s largest energy investor to compete again for federal contracts and leases.”

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March 18, 2014

Huffpost Business

Government Declares BP a ‘Responsible’ Contractor: Workers and Taxpayers Beware

A scant five days before the Department of Interior opens a new round of bids for oil leases in the Gulf of Mexico, the EPA has blinked, pronouncing BP, the incorrigible corporate scofflaw of the new millennium, once again fit to do business with the government.

To get right to the point, the federal government’s decision that BP has somehow paid its debt and should once again be eligible for federal contracts is a disgrace. Not only does it let BP off the hook, it sends an unmistakable signal to the rest of the energy industry: That no matter how much harm you do, no matter how horrid your safety record, the feds will cut you some slack.

Back in 2012, the agency’s intrepid staff had finally gotten permission to pull the trigger on the company, de-barring it from holding any new U.S. contracts on the grounds that it was not running its business in a “responsible” way. Undoubtedly under pressure by the Cameron government and the U.S. Defense Logistics Agency, BP’s most loyal customer, the EPA settled its debarment suit for a sweet little consent decree that will try to improve the company’s sense of ethics by having “independent” auditors come visit once a year.

To review the grim record: BP, now the third-largest energy company in the world, is the first among the roster of companies that have caused the most memorable industrial fiascos in the post-modern age.

  • Its best-known disaster, the explosion aboard the Deepwater Horizon, a drilling rig moored in the Gulf of Mexico that BP had hired to develop its lease of the Macondo well, killed 11 and deposited 205 million gallons of crude oil along the southern coast of the United States — the worst environmental disaster in American history.
  • In a troubling precursor, another explosion killed 15 and injured 180 at the company’s Texas City refinery in July 2005. This incident happened even after the plant manager there had gone on bended knee to John Manzoni, BP’s second in command worldwide, to plead for money to address severe maintenance problems that jeopardized safety at that plant after a consultant surveying refinery workers reported that many thought they ran a real risk of being killed at work. Those fears were warranted, it turned out.
  • Also in 2005, 200,000 gallons of oil spilled from a BP pipeline on Alaska’s North Slope.

 

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