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BP fined $87m for Texas explosion | BP fined $87m for Texas explosion |
(10 minutes later) | |
BP has been fined a record $87m (£53m) for failing to correct safety hazards at its Texas City refinery in the US. | BP has been fined a record $87m (£53m) for failing to correct safety hazards at its Texas City refinery in the US. |
An explosion in 2005 at the Texas plant killed 15 people and injured 180 more. | An explosion in 2005 at the Texas plant killed 15 people and injured 180 more. |
The Occupational Safety and Health Administration (OSHA) cited 270 violations at the oil refinery, a US Labor Department official said. | The Occupational Safety and Health Administration (OSHA) cited 270 violations at the oil refinery, a US Labor Department official said. |
BP said it believed it was in "full compliance" with a 2005 settlement agreement with OSHA and would work with the agency to resolve the issue. | BP said it believed it was in "full compliance" with a 2005 settlement agreement with OSHA and would work with the agency to resolve the issue. |
The $87m fine is the largest in OSHA's history. | The $87m fine is the largest in OSHA's history. |
In 2005, BP paid a $21.3m fine to OSHA and entered into a four-year agreement to repair hazards at the Texas City refinery, which is the third largest in the US. | In 2005, BP paid a $21.3m fine to OSHA and entered into a four-year agreement to repair hazards at the Texas City refinery, which is the third largest in the US. |
The latest fine follows a six-month inspection into whether BP had complied with that agreement. | The latest fine follows a six-month inspection into whether BP had complied with that agreement. |
While we strongly disagree with [OSHA's] conclusions, we will continue to work with the agency to resolve our differences BP | |
'Can't happen again' | |
OSHA said the company had committed hundreds of new violations by failing to follow industry controls on pressure relief safety systems and other precautions. | OSHA said the company had committed hundreds of new violations by failing to follow industry controls on pressure relief safety systems and other precautions. |
The safety violations found "could lead to another catastrophe", US Labor Secretary Hilda Solis said. | |
"An $87m fine won't restore those lives [lost in the 2005 explosion], but we can't let this happen again. Workplace safety is more than a slogan. It's the law," Ms Solis said. | |
BP said in a statement: "While we strongly disagree with [OSHA's] conclusions, we will continue to work with the agency to resolve our differences." | |
The firm will now have 15 days to either agree to pay the fine and take corrective action, or to contest the penalty through a hearing process. | |
BP was fined $50m by the Department of Justice in 2007 to settle criminal charges stemming from the Texas explosion. | BP was fined $50m by the Department of Justice in 2007 to settle criminal charges stemming from the Texas explosion. |
Lawyers for the victims' families said this was not enough. | Lawyers for the victims' families said this was not enough. |
The company has also paid more than $2bn to settle civil lawsuits, and says it has invested more than $1 billion to repair safety problems at Texas City. | The company has also paid more than $2bn to settle civil lawsuits, and says it has invested more than $1 billion to repair safety problems at Texas City. |