FOR IMMEDIATE RELEASE THURSDAY, OCTOBER 25, 2007 WWW.USDOJ.GOV ENRD (202) 514-2007 TDD (202) 514-1888 The Justice Departments Environment and Natural Resources Division (ENRD) has 40 prosecutors who enforce federal environmental laws, including the Clean Air Act, the Clean Water Act, the Resource Conservation and Recovery Act, the Lacey Act, and the Endangered Species Act, among other statutes. The results obtained in environmental criminal cases prosecuted by ENRD in 2006 were at near-record levels for jail terms imposed on individuals (67.3 years total) and dollar amounts of criminal penalties, restitution and funding for conditions of probation ($70.5 million). With the results obtained today, ENRD is on pace to have another strong year in 2007. In addition to ENRD prosecutors, U.S. Attorneys Offices also bring environmental crimes cases. While there was a temporary drop in the number of overall environmental defendants charged Department-wide immediately after 2001, there was a subsequent rebound and recent years have generally been consistent with pre-2001 numbers. ENRDs criminal indictments and convictions have remained steady throughout the last decade. Prosecuting environmental crimes is only one aspect of the Divisions overall environmental enforcement. Among other initiatives, the Division has an initiative to bring refineries into compliance with the Clean Air Act. Currently, 85 percent of the refinery industry is under settlement agreements to reduce the amount of harmful emissions released each year in compliance with the law. This will cut the amount of harmful emissions of nitrous oxide by 85,000 tons per year and sulfur dioxide by 240,000 tons per year.
The Justice Department is dedicated to environmental resultslarge, complex cases that obtain meaningful relief for the environment.
* * * Today, Acting Attorney General Peter Keisler and Ronald J. Tenpas, Acting Assistant Attorney General for the Environment and Natural Resources Division, announced guilty pleas and a combined $70 million in criminal fines, community service and restitution against two British Petroleum subsidiaries for environmental violations in Texas and Alaska. Texas City Refinery Explosion * On Mar. 23, 2005, a catastrophic explosion occurred at the BP Texas City refinery when hydrocarbon vapor and liquid was released out of a blowdown stack and reached an ignition source, believed to be a pickup truck with its engine running. The 15 contractor employees killed at the BP Texas City refinery were located in temporary trailers approximately 150 feet from the blowdown stack.
* The deceased were Glenn Bolton, Lorena Cruz-Alexander, Rafael Herrera, Daniel Hogan, Jimmy Hunnings, Morris King, Larry Linsenbardt, Arthur Ramos, Ryan Rodriguez, James Rowe, Linda Rowe, Kimberly Smith, Susan Taylor, Larry Thomas, and Eugene White. The explosion also caused the injuries to over 170 other workers at the Texas City refinery. * BP admitted that beginning in 1999 and continuing through the morning of Mar. 23, 2005, several procedures required under the provision of the Clean Air Act specifically enacted to prevent accidental releases that are known or may reasonably be anticipated to cause death, injury or serious adverse effects to human health or the environment had either not been established or were being ignored. Operators, with the knowledge of supervisors, regularly failed to follow written standard operating procedures that required sending excess hydrocarbons to a flare where they could be safely burned off before being released to the open air.
* BP admitted that it had failed to perform a relief valve study to determine whether the blowdown stack had the capacity to safely release excess hydrocarbons. The blowdown stack itself had been in poor operating condition since at least April of 2003. Alarms in failed to function, or were ignored. * BP also admitted that it had become a regular practice at BP to locate temporary trailers occupied by contractor employees near the blowdown stacks, even though BP knew that there had been previous releases of liquid hydrocarbons from the blowdown stacks. Ultimately, BP failed to inform contractors of the potential for fire or explosion near the blowdown stack. Penalties * BP will pay a $50 million criminal fine, the largest criminal fine ever under the Clean Air Act.
* The company will also face three years of probation, during which time it will be required to complete a facility-wide relief valve study under a settlement agreement with OSHA. Under an agreement to be completed with the Texas Commission on Environmental Quality (TCEQ), BP will be required to implement facility-wide renovations of its flare systems to prevent excess unplanned emissions as required by the Clean Air Act. These conditions of probation are estimated to cost BP $265 million. If BP fails to complete the requirements, its probation could be revoked or extended. Prudhoe Bay Alaska * In March 2006 a pipeline spill occurred over an unknown time period, but likely occurred over a period of about five days. There were approximately 200,000 gallons (4,800 barrels) spilled that covered over two acres. The spill was discovered by a BPXA employee on Mar. 2, 2006.
* In August 2006 a pipeline spill occurred over a period of one day. There were approximately 1000 gallons (25 barrels) spilled that covered less than an acre.
This second leak led to the shut down of Prudhoe Bay oil production on the eastern side of the field.
Penalties * As part of the guilty plea BPXA will pay a $12 million criminal fine.
* BPXA will pay $4 million in community service payments to the National Fish and Wildlife Foundation (NFWF) for the purpose of conducting research and activities in support of the arctic environment in the state of Alaska on the North Slope. * BPXA will pay $4 million in criminal restitution to the state of Alaska.
They will also serve a three-year term of probation. The plea agreement provides benchmarks to reduce the length of probation. They are: 1. Making significant progress replacing lines like the ones that leaked; 2. Implementing an integrity management plan; and 3. Improving leak detection capabilities on the North Slope. 07-851
Source: US Department of Justice
