This is y2k relevant because it reflects on corporate irresponsibility and failure to report problems--do you really think we're hearing about all the pipeline failures?

BP Fined $15.5 Million in Dumping of Toxic Waste in Alaska

Source: Knight Ridder/Tribune Business News Publication date: Feb 03, 2000

(By Ben Spiess, Anchorage Daily News, Alaska )

Feb. 3--A federal judge Tuesday accepted a settlement between prosecutors and BP Exploration (Alaska) Inc. and sentenced the oil company to pay $15.5 million and serve five years of probation for failing to immediately report hazardous materials dumping at a North Slope oil field.

Last September BP, the state's biggest oil producer, pleaded guilty to a single felony count of failing to report the dumping. BP has already paid $6.5 million in civil penalties.

A BP contractor dumped thousands of gallons of toxic waste at the Endicott oil field between 1993 and 1995. The federal investigation continues, and BP's plea bargain with the prosecutors does not protect individual BP employees or other organizations from prosecution. However, based on what prosecutors know now, they have agreed not to pursue additional criminal charges against BP.

The sentencing by U.S. District Judge James Singleton closes one of the worst environmental crimes in the history of North Slope oil development.

BP vice president Chris Phillips struck a penitent tone at the sentencing. "We recognize that we have been afforded a privilege, not a right, to operate in Alaska. We also recognize that we have a high standard to meet to maintain that privilege," Phillips said. "We are committed to ensuring this never happens again."

BP will pay a $500,000 criminal fine and implement a $15 million environmental management program to oversee U.S. exploration and production operations over the next five years.

Between 1993 and 1995, employees with Doyon Drilling Co. regularly dumped paint, solvent, waste oil and other hazardous substances that contained toxics like benzene and methylene chloride down oil well shafts at BP's Endicott Island oil field. Doyon pleaded guilty in 1998 to 15 counts of violating the Oil Pollution Act and paid $3 million in fines and compensation. Three Doyon workers were also convicted. The single count that BP was sentenced on Tuesday relates to 23 barrels of waste dumped Jan. 17, 1995. BP said it learned of the dumping Aug. 31, 1995, when a Doyon worker came to the company's Anchorage office building. BP waited two weeks and did an internal investigation before reporting the incident to the Environmental Protection Agency.

BP admitted violating federal law by not telling authorities immediately.

"We took two weeks to investigate because we believed (the law) allowed us to determine if the allegations were credible before reporting them to the EPA. We were wrong," stated an internal memo quoted in court documents.

Federal prosecutors and BP remain at odds over two key points.

BP claims it did not know about the dumping at the time, while Doyon employees and federal officials believe the company did know.

BP also holds that because the dumping deposited the materials between 2,700 and 4,500 feet underground there is no environmental damage. Federal officials say they are unsure whether the hazardous material leaked to the surface or somehow contaminated groundwater. However, Alaska EPA director Rick Albright has said that attempts to remove the waste would cause more harm than leaving it buried.

Prosecutor Deborah Smith said Tuesday that employees handling the materials may have been exposed to dangerous levels of toxicity.

U.S. Attorney Robert Bundy has commended BP for cooperating with the federal investigation into the case. Smith said the sentence should send a message to corporations "that you can't contract away your responsibilities."

Smith also said that prosecutors are pleased by BP's willingness to respond to the Endicott dumping by erecting a nationwide environmental management program. A court-appointed monitor, paid for by BP, will make quarterly reports to the court, Smith said.

----- To see more of the Anchorage Daily News, or to subscribe to the newspaper, go to http://www.adn.com (c) 2000, Anchorage Daily News, Alaska. Distributed by Knight Ridder/Tribune Business News. BPA, Publication date: Feb 03, 2000 ) 2000, NewsReal, Inc.

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-- Carl Jenkins (Somewherepress@aol.com), February 05, 2000