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Oil & Gas

BP Agrees to $25 Million Penalty for 2006 Alaska Spills

May 04, 2011
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BP''s subsidiary in Alaska will pay a $25 million civil penalty under a settlement that comes five years after more than 200,000 gallons of crude oil spilled from company pipelines on the North Slope, according to the Associated Press. The penalty is the largest per barrel civil penalty assessed, exceeding the statutory maximum because the settlement, resolves claims other than the spill, according to the EPA. The settlement also calls for BP Exploration Alaska Inc. to install a system-wide pipeline integrity management program. A March 2006 leak in a transit line, also called a feeder line, between a gathering center and a pump station for the trans-Alaska oil pipeline in March accounted for most of the oil spilled, about 212,000 gallons. Oil from the spill reached a lake. BP four months later had begun inspecting pipelines with "smart pigs," devices inserted to detect abnormalities, when a second leak occurred. The tiny second leak allowed about 1,000 gallons more to spill from another transit line. With data in hand indicating 16 “anomalies,” or other possible corrosive spots, BP shut down part of the massive Prudhoe Bay field.

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