LONDON (Dow Jones) - BP PLC will pay a fine of $21.3 million to settle government claims of more than 300 safety violations after a March explosion and fire at its huge Texas City, Texas refinery that killed 15 and injured more than 170.

In a story in its Friday online edition, The Wall Street Journal said the fine is the largest ever assessed by the U.S. Occupational Health and Safety Administration.

BP shares were down 0.8% in London morning trading.

The British global petroleum giant (BP) said in a statement that under the settlement agreement with OSHA it did not admit to the alleged violations or agree with how OSHA characterized them.

The company said it also has agreed to make major safety improvements at the 460,000 barrel-per-day refinery, which has been shut down by the threat of Hurricane Rita.

BP also said it has set aside $700 million to compensate victims of the explosion and fire, has already has begun making safety improvement recommended in a May report and has replaced the refinery manager.

The company also said it has agreed to pay OSHA a $102,500 fine for a September, 2004 accident at the refinery that killed two workers and injured a third.

The Journal reported that OSHA investigators found safety violations they characterized as "egregious" and "willful."

OSHA is deciding whether to refer its findings to the U.S. Department of Justice for possible criminal prosecution, The Journal reported, citing John Miles, OSHA's regional director in Dallas .

The Journal also reported that OSHA put BP on an unusual probationary period, essentially requiring it to ask permission before restarting the unit that was affected by the explosion.

BP also will be required to file special reports of minor accidents and lost time due to injuries or illnesses at the refinery every six months for the next three years, The Journal reported, and has agreed to hire outside experts to review safety programs

(END) Dow Jones Newswires

09-23-05 0502ET Copyright (c) 2005 Dow Jones & Company, Inc. Copyright (C) 2005 Dow Jones & Company, Inc. All Rights Reserved.