Five years after BP pipelines dumped more than 5,000 barrels of crude over Alaska’s North Slope, the company has agreed to pay $25 million in civil penalties.
As the Associated Press reports, the fine is the largest per barrel civil penalty ever issued for an oil spill. Still, it stands to be dwarfed by what the company eventually is forced to pay for its role in last year’s Deepwater Horizon blowout in the Gulf of Mexico. That disaster, still under investigation by federal authorities, killed 11 workers and produced the largest oil spill in U.S. history.
Federal officials said that, in Alaska, BP’s failure to comply with orders to deal with corrosion in its pipelines led to a pair of spills and prompted the government’s litigation. “This penalty should serve as a wake-up call to all pipeline operators that they will be held accountable for the safety of their operations and their compliance with the Clean Water Act, the Clean Air Act and the pipeline safety laws,” said Assistant U.S. Attorney Ignacia S. Moreno.
The main Alaska spill occurred in March, 2006, when a so-called feeder, or transit, pipeline that connected a pump station and a gathering center sprung a leak. BP, in response, inserted “smart pigs,” devices that travel inside pipelines to search for vulnerable sections and, during the process, a far smaller second leak occurred. The pigs eventually uncovered 16 “anomalies,” leading to the partial shutdown of BP’s enormous Prudhoe Bay operation.
BP also agreed to monitor and maintain the safety of the 1,600-mile pipeline network on the North Slope as part of the settlement, which will cost the company an additional $60 million. Government officials, saying that they were “not going to just take BP at its word,” promised to make sure that the company lives up to the terms of the settlement.
BP Alaska spokesman Steve Rinehart said company officials believe that “the terms of the agreement are fair.”
In 2007, BP pleaded guilty to criminal charges related to the spill, which resulted in $20 million in fines and restitution.
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