BP faces record $87 million fine

Government charges oil giant for failure to correct safety violations that resulted in 15 deaths at a Texas facility in 2005.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Hibah Yousuf, CNNMoney.com contributing writer

How strong is any economic recovery in your area?
  • Very strong
  • Small signs of a rebound
  • No recovery here

NEW YORK (CNNMoney.com) -- The Labor Department fined oil giant BP a record $87 million for failing to fix safety problems at a refinery in Texas.

On Friday, the Occupational Safety and Health Administration announced the fine, saying BP failed to correct potential hazards at the Texas City, Texas, plant, where there were 15 deaths and 170 injuries after an explosion in 2005.

After that tragedy, BP (BP) entered a settlement agreement with OSHA to eliminate the hazards. But OSHA said that it has since conducted a six-month investigation of the facility and the problems still exist.

"Instead of living up to that commitment, BP has allowed hundreds of potential hazards to continue unabated," said Secretary of Labor Hilda Solis in a prepared statement. "An $87 million fine won't restore those lives be we can't let this happen again. Workplace safety is more than a slogan. It's the law."

BP, which is based in Houston, appealed the fine to the Review Commission, which makes the final determination. The $87,400,000 fine it must consider is a combination of penalties: $56.7 million for the initial violations and $30.7 million for 439 new violations.

"We are disappointed that OSHA took this action in advance of the full consideration of the Review Commission," said Texas City Refinery Manager Keith Casey. "We continue to believe we are in full compliance with the Settlement Agreement, and we look forward to demonstrating that before the Review Commission. While we strongly disagree with OSHA's conclusions, we will continue to work with the agency to resolve our differences."

If the review board does not overturn the penalty, it will be the largest in OHSA history. The previous record was $21 million, which was levied against BP in 2005.

Shares of BP were down 1.46% in midday trading.  To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
10 of the most luxurious airline amenity kits When it comes to in-flight pampering, the amenity kits offered by these 10 airlines are the ultimate in luxury More
7 startups that want to improve your mental health From a text therapy platform to apps that push you reminders to breathe, these self-care startups offer help on a daily basis or in times of need. More
5 radical technologies that will change how you get to work From Uber's flying cars to the Hyperloop, these are some of the neatest transportation concepts in the works today. More
Sponsors
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.