BP and their superior commercials

[Ouchyfish]

I thought they were one of the better ones...they tricked me with the free sunflower seeds to plant...=(


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BP 'abuses' end in US fines of 373 mln dlrs by Justin Cole
1 hour, 16 minutes ago

WASHINGTON (AFP) - British energy firm BP agreed to pay 373 million dollars in fines and restitution to settle several US government probes, including allegations of trading abuses, officials said Thursday.

The penalties represent some of the largest fines ever paid by a British company for violations of US laws.

The global energy giant agreed to pay the fines, some of which were criminal penalties, for environmental violations relating to a Texas refinery blast in 2005, crude oil pipeline leaks in Alaska, and to defer a prosecution for fixing prices in the propane gas market.

Authorities unveiled the settlements at a press conference at the Justice Department. The Federal Bureau of Investigation and other agencies helped investigate BP.

"The BP cases demonstrate our commitment to enforcing the laws that protect our environment, the safety of Americans, and the integrity of the marketplace," said acting Attorney General Peter Keisler.

Officials leveled harsh criticism at BP for its actions.

"BP engaged in massive manipulation, the magnitude of this settlement reflects that the (Commodity Futures Trading) Commission will not tolerate trading abuses in our open and competitive markets," said Walt Lukken, the acting chairman of the CFTC.

"This case demonstrates that criminals aren't just found on unsafe streets ... they could be in corporate board rooms or on trading desks as well," said Kenneth Jones, a deputy chief postal inspector.

The London-based energy company agreed to pay the fines following a fatal industrial incident which killed 15 workers, and in regard to alleged misconduct that has tarnished its reputation.

As part of the settlement, BP will pay a criminal penalty of 100 million dollars and a payment of 25 million dollars to the US Postal Inspection Consumer Fraud Fund, and restitution of 53 million dollars, plus a civil penalty of 125 million dollars, to the CFTC.

In return, the government has defered prosecuting BP for alleged trading violations related to the propane market. The fuel is used for heating and cooking.

In a related development, four former BP employees were indicted in Chicago for conspiring to manipulate propane prices in 2004 and for selling gas at inflated prices.

BP also consented to paying 50 million dollars in criminal fines as part of its agreement with the government and to plead guilty to a violation of the Clean Air Act relating to a March 2005 explosion at BP's Texas City oil refinery.

The large blast killed 15 contract employees and injured over 170 other people. BP has since spent one billion dollars overhauling its largest refinery.

Government investigators found critical equipment at the refinery was "unsafe" and "antiquated" prior to the blast.

BP additionally agreed to pay 12 million dollars in criminal fines and eight million dollars in other payments to settle a violation of the Clean Water Act relating to pipeline leaks of crude oil in Alaska.

"BP committed serious environmental crimes in our two largest states," said Granta Nakayama, an official at the Environmental Protection Agency.

BP America chairman and president Bob Malone said the energy group "deeply" regretted the loss of life at the Texas refinery and said the firm's risk management protections and trading oversight had been boosted.

"These agreements are an admission that, in these instances, our operations failed to meet our own standards and the requirements of the law. For that, we apologize," Malone said.

BP's new chief executive officer, Tony Hayward, has initiated an overhaul of the company since taking the helm after John Browne, BP's former chief, resigned in May amid revelations about his private life.

[Eziekial]

I personally know one of the four in Chicago that were indited. He was a dick in school and it came as NO surprise he was part of this mess at BP. Even less surprising was the fact that he's agreed to testify against his buddies for a lesser sentence. Tool.

[Lueyen]

My dad works for BP, and what he told me was that what Texas and Alaska really came down to was greed and having to much upper management. Basically for the past few years while the company has been making money it hasn't been doing great on dividends to stock holders. In an effort to keep stock holders happy, the operating budgets were reduced. The problem came when regional managers in Alaska and Texas faced a choice of making sure proper maintenance and inspections were done or coming in under budget so they got their yearly bonus for staying in budget, an important factor in this is it isn't like these guy's base pay is in peanuts. He said these two incidents had ripple effects throughout the company, and a lot of money was in the last year put into inspection and maintenance of old equipment. The company is also cutting out several layers of management at the top, basically areas that didn't really produce anything or generate revenue. He was surprised at first that the company agreed to the settlement, while he wasn't sure about everything involved with the propane side, he thought the company would at least go to court on the Texas and Alaska disasters, as they were the results not of company policy but of individuals failure to comply with company policies in paperwork and physical inspections and maintenance. The only thing they really had going against them was the reduction in operating budgets. The pipeline in Alaska was past it's expected life cycle, and the Texas plant was older so he thought at first BP might have felt it was a court case the company might lose. After the settlement however BP's stock went up due to the uncertainty and speculation about the financial impact being lifted, so from that aspect a settlement made a lot of sense.