BP could face $150m criminal fine in Texas City case

09 December 2005 22:13  [Source: ICIS news]

WASHINGTON (ICIS news)--BP could be facing criminal penalties of as much as $150m (Euro127m) if the US Department of Justice (DoJ) decides to pursue a case against the company for the Texas City, Texas blast, officials said on Friday.

 

DoJ could also pursue criminal charges against BP officials for the accident that took the lives of 15 workers and injured 170 others on 23 March.

 

Earlier today the US Occupational Safety & Health Administration (Osha) asked DoJ to consider bringing a criminal case against BP over the fatal Texas City accident.  In September, BP agreed to pay a $21.3m fine to Osha and to undertake remedial measures at its Texas City refinery.  Osha had charged the company with more than 300 wilful violations of Osha rules, an Osha spokesman said.

 

A wilful violation is “one committed with intentional disregard of or plain indifference to the requirements of the Occupational Safety and Health Act,” according to Osha.

 

Those 300 wilful violations have been referred by Osha to DoJ for possible criminal prosecution. But an Osha spokesman noted that it is entirely up to DoJ whether to bring a criminal case, and it also is DoJ’s option to decide how many criminal counts to file in the matter.

 

Under the Osha statute, a corporation found guilty of a misdemeanour criminal violation can be fined up to $500,000 per count.  If DoJ were to bring criminal charges on all 300 of the Osha referrals, the company would be facing a total maximum fine of $150m.

 

Under the statute, individuals convicted of Osha criminal violations could face fines of up to $250,000 and a jail term of six months for each count. DoJ could bring criminal cases against both the corporation and officials of the corporation.

 

Osha officials said they do not know when DoJ might make a decision on a possible criminal case in the matter.

By: Joe Kamalick
+1 713 525 2653

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