BP to pay record $50.6 million for Texas refinery safety breaches 13 August 2010

BP is to pay $50.6 million in fines, after last year's investigations at its Texas City refinery – following up the 2005 explosion that killed 15 and injured 170 – led to 'failure-to-abate' safety citations.

The fine is a further significant blow to the oil giant's tarnished reputation, but pales into insignificance, set against the $500 million BP has also agreed to allocate to protecting those now working at the refinery.

According to assistant secretary to the US Labor Department for OSHA (Occupational Safety and Health Administration) Dr David Michaels, BP will immediately begin performing safety reviews of the refinery equipment, according to set schedules and make permanent corrections.

The agreement also identifies "many items in need of immediate attention", and BP says it will address those quickly and hire independent experts to monitor its efforts.

Additionally, "an unprecedented level of oversight" is to be established over BP's safety programme, including regular meetings with OSHA, frequent site inspections and the submission of quarterly reports for the agency's review.

Finally, BP has also agreed to establish a liaison between its North American and London boards of directors and OSHA, which will allow the agency to raise compliance problems at the highest level.

"Safer conditions at this refinery should result from this arrangement, which goes far beyond what can normally be achieved through abatement of problems identified in citations," comments Michaels. "Make no mistake, OSHA will be watching to ensure that BP complies with the agreement and safeguards its workers."

In September 2005, OSHA cited BP for a then-record $21 million as a result of the Texas City refinery explosion in March of that year. It also signed an agreement with the company that required it to identify and correct deficiencies.

OSHA says that BP had "made many changes related to safety, [but] failed to live up to several extremely important terms of that agreement" – and hence the new fine.

During those same 2009 investigation, OSHA says it also "identified 439 new wilful violations and assessed more than $30 million in penalties". Litigation regarding those is ongoing.

Brian Tinham

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