BP has agreed to pay a record $50 million dollar fine to the state of Texas for unlawful releases of air pollution caused by a deadly explosion at BP’s Texas City refinery in 2005. According to Texas Attorney General Greg Abbot, the settlement resolves all state claims against BP over emissions at the refinery. Sources say the fine is the largest for Texas Clean Air Act violations at a single facility. Abbot stated that the fine sends a clear message about how Texas will handle air quality violations.
Sources say that under the settlement, BP does not acknowledge liability. Reportedly, the company, which put the refinery up for sale in February, settled to avoid the uncertainty of future litigation. According to a BP spokeswoman, the agreement is an important milestone in the progress of operations at the Texas City refinery.
Critics say the fine is the latest blow for a company who has emphasized profits over safety. Sources say in addition to the settlement, BP has agreed to pay more than $140 million in penalties to the federal government for violations of workplace safety and environmental laws at the refinery and up to $2 billion to settle civil claims. Sources say that BP also pleaded guilty in 2008 to a felony violation of the federal Clean Air Act and served three years’ probation.
According to BP’s representatives, the company has spent more than $1 billion to fix problems at the refinery since the 2005 explosion, which killed 15 workers and injured more than 170. Reportedly, after the 2005 explosion the Texas Attorney General’s Office filed a lawsuit alleging that shoddy operations and paltry maintenance led to the unauthorized releases of harmful pollutants, such as benzene, carbon monoxide and hydrogen sulfide. Sources say Mr. Abbot filed another lawsuit after the Texas City refinery released more than 500,000 pounds of toxic chemicals over a 40-day period last year. However, BP has maintained that pollution monitors did not show high levels of benzene and other substances.
According to reports, the settlement covers both lawsuits and will go before a Travis County District Court judge in the next 30 days for approval. Sources say the previous record for a Texas Clean Air Act fine was $9 million which was paid by Huntsman Petrochemical Corp. agreed 2003 for releasing millions of tons of pollution at its Port Arthur plant.
However, some environmentalists say the Attorney General’s Office did not go far enough because the agreement does not require steps to prevent future illegal emissions. According to a representative of Air Alliance Houston, the settlement sets the community up for seven more years of dealing with that pollution. Air Alliance Houston points out that the settlement is just money and not regulations.
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