BP Will Pay $50.6M Fine for Deadly 2005 Texas City Refinery Explosion

Posted in BP British Petroleum,Government,Texas Maritime News,World Maritime News on August 13, 2010

HOUSTON, TX – The US Government said Thursday that BP will pay a record $50.6 million fine for lingering safety problems from a deadly 2005 explosion that killed 15 workers at its Texas City, Texas refinery. The fine is the latest blow to hit the giant oil company still reeling from the biggest marine oil spill in U.S. history, where the company faces billions of dollars worth of fines and other penalties.

A logo is seen at a BP fuel station in London July 27, 2010. (Xinhua/Reuters File Photo)

OSHA officials have blamed the Texas City explosion on a piece of equipment that overfilled with highly flammable liquid hydrocarbons. Alarms and gauges that were supposed to warn of the overfill did not work properly.

“The size of the fine rightly reflects BP’s lack of regard for worker safety,” U.S. Labor Secretary Hilda Solis said in a Thursday afternoon news conference.

According to Reuters, BP will also spend $500 million between 2010 and 2016 to improve safety at the third-largest U.S. refinery. BP has already paid a $50 million fine to settle the criminal charges and also spent more than $2.1 billion to settle hundreds of lawsuits stemming from the explosion, that also injured 180.

Thursday’s announcement comes after the Labor Department Occupational Safety and Health Administration slapped BP with 709 citations carrying a record $87.4-million in fines at the U.S. refinery in October.

Source: Reuters Article


Published by Houston maritime lawyer Gordon & Elias, LLP