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Petroleum

BP Amoco Subsidiary Pleads Guilty to Hazardous Waste Dumping in Alaska

Strategic Insights

— 2 min read

A BP Amoco subsidiary has pleaded guilty to a felony charge related to illegal hazardous waste dumping by a drilling subcontractor in Alaska. As part of a plea bargain deal, the company has agreed to install a first-of-its-kind environmental management system at all its production sites in the United States and the Gulf of Mexico. This system is the first of its kind to be implemented in the oil industry as a result of federal prosecution for pollution violations. The company will be supervised by a court-appointed environmental monitor over a five-year probation period.

Key Takeaways:

  • BP Exploration (Alaska) Inc., a BP Amoco subsidiary, pleaded guilty to one felony charge over illegal hazardous waste dumping in Alaska.
  • The company agreed to install a $15 million environmental management system at all its production sites in the United States and the Gulf of Mexico.
  • The system is the first of its kind to be implemented in the oil industry as a result of federal prosecution for pollution violations.
  • The company will be supervised by a court-appointed environmental monitor over a five-year probation period.
  • BP Exploration (Alaska) Inc. agreed to pay a $500,000 fine for its failure to notify authorities of the waste dumping.
  • The company admitted to failing to provide adequate oversight, audits, and funding to ensure proper environmental management on Endicott Island.
  • BP Amoco also agreed to pay an additional $6.5 million in penalties to settle a civil suit related to the waste dumping.
  • Doyon Drilling, the subcontractor responsible for the waste dumping, pleaded guilty to 15 counts of violating the Oil Pollution Act in April 1998.
  • Doyon Drilling agreed to pay a $1 million fine and $2 million to develop an environmental compliance program for its employees.

Statistics:

  • $15 million: total cost of the environmental management system installed by BP Amoco
  • 5 years: duration of the probation period for BP Exploration (Alaska) Inc.
  • $500,000: fine paid by BP Exploration (Alaska) Inc. for failure to notify authorities of the waste dumping
  • $6.5 million: additional penalties paid by BP Amoco to settle the civil suit
  • $1 million: fine paid by Doyon Drilling for violating the Oil Pollution Act
  • $2 million: funds spent by Doyon Drilling on developing an environmental compliance program for its employees

Sources:

  • BP Exploration (Alaska) Inc. pleaded guilty to one felony charge (Source: Associated Press, undated)
  • BP Amoco agreed to install a $15 million environmental management system (Source: Justice Department, undated)
  • Doyon Drilling pleaded guilty to 15 counts of violating the Oil Pollution Act (Source: Associated Press, April 1998)

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