Skip Navigation

Close and don't show again.

Your browser is out of date.

You may not get the full experience here on National Journal.

Please upgrade your browser to any of the following supported browsers:

BP Can Do Business With Uncle Sam Again BP Can Do Business With Uncle Sam Again

This ad will end in seconds
 
Close X

Not a member? Learn More »

Forget Your Password?

Don't have an account? Register »

Reveal Navigation
 

 

Energy

BP Can Do Business With Uncle Sam Again

The BP Deepwater Horizon oil spill released millions of barrels of oil into the Gulf of Mexico.(Spencer Platt/Getty Images)

photo of Ben Geman
March 13, 2014

The Environmental Protection Agency is ending BP's suspension from receiving new federal contracts that was imposed after the oil giant agreed to guilty pleas over the 2010 Gulf of Mexico rig explosion and spill.

But there are a few strings attached to removal of the sanction imposed in late 2012. According to EPA's announcement Thursday, the five-year agreement has specific provisions on BP's "ethics compliance, corporate governance, and process safety."

"This is a fair agreement that requires BP to improve its practices in order to meet the terms we've outlined together," EPA Assistant Administrator of Administration and Resources Craig Hooks said in a statement Thursday.

 

According to EPA, the deal requires BP to retain an EPA-approved auditor who will conduct an annual review and report on BP's compliance.

BP, a major fuel supplier to the Defense Department, has been battling the suspension in court while it negotiated with EPA. The company is dropping the lawsuit.

BP noted Thursday that the agreement will enable the company to again enter into new deepwater drilling leases in the Gulf of Mexico.

The April 2010 Deepwater Horizon disaster killed 11 workers and touched off a months-long spill that eventually dumped more than 4 million barrels of oil into the Gulf of Mexico.

The agreement to lift the suspension drew quick criticism from the watchdog group Public Citizen. The group noted that the Gulf disaster followed a 2006 pipeline spill in Alaska, and the 2005 explosion at a BP refinery in Texas that killed 15 workers.

"BP has not addressed the cultural problems that led to the ban in the first place," said Tyson Slocum, director of Public Citizen's energy program.

"We treat corporate criminals far more leniently than we do human criminals, and that is a sad state of affairs," said Slocum, who also expressed doubt that the independent monitor will effectively police BP.

But John Mingé, chairman and president of BP America, called the agreement "fair and reasonable."

"Today's agreement will allow America's largest energy investor to compete again for federal contracts and leases," he said in a statement.

This article appears in the March 14, 2014 edition of NJ Daily.

LIKE THIS STORY? Sign up for Energy Edge

Sign up for our daily newsletter and stay on top of energy coverage.

Sign up form for Energy Edge
Job Board
Search Jobs
Digital and Content Manager, E4C
American Society of Civil Engineers | New York, NY
PRODUCT REVIEW ENGINEER
American Society of Civil Engineers | CA
Neighborhood Traffic Safety Services Intern
American Society of Civil Engineers | Bellevue, WA
United Technologies Research Fellow
American Society of Civil Engineers | New York, NY
Process Engineering Co-op
American Society of Civil Engineers | Conshohocken, PA
Electrical Engineer Co-op
American Society of Civil Engineers | Findlay, OH
Application Engineer/Developer INTERN - Complex Fluids
American Society of Civil Engineers | Brisbane, CA
Application Engineer - Internships CAE/CFD Metro Detroit
American Society of Civil Engineers | Livonia, MI
Chief Geoscientist
American Society of Civil Engineers
Application Engineer - Internships CAE/CFD Metro Boston
American Society of Civil Engineers | Burlington, MA
Professional Development Program Engineer
American Society of Civil Engineers | Farmington Hills, MI
Civil Enginering Intern - Water/Wastewater/Site-Development
American Society of Civil Engineers | Sacramento, CA
Staff Accountant
American Society of Civil Engineers | Englewood, CO
Biomedical Service Internship Position
American Society of Civil Engineers | Flint, MI
 
Comments
comments powered by Disqus