/ 14 March 2003

BP faces record fine for spoiling city’s air

BP is facing a record $320-million pollution fine and allegations that the oil company submitted false documentation to air quality control regulators in the United States.

Complaints for the penalty to be imposed have been submitted to a Los Angeles district court and relate to the Carson oil refinery there. Officials have started to investigate other plants.

The South Coast air quality management district (AQMD) claims BP and its predecessor company, Arco, repeatedly broke rules governing storage tanks at Carson over eight years from 1994.

BP is also accused of inadequately controlling emissions through gas flaring, which led to complaints and even the evacuation of a school.

”This is by far the largest penalty ever sought by air quality management district. The company committed thousands of violations involving excess air pollution while routinely submitting records to AQMD that showed no violations,” said Barry Wallerstein, executive officer of the agency.

A BP representative in London admitted there had been ”failures of procedure and process” but described the proposed fine as ”entirely disproportionate to the offences.”

BP is not alone in the firing line with violation notices understood to have been served on other companies, including ExxonMobil and ChevronTexaco.

The air quality management agency introduced a system of self-policing in 1994 leaving the oil industry to ensure inspection and maintainence of tanks holding oil, petrol and other chemicals. BP hired consultants to look after the tanks and reported to regulators that there was no need for repairs and all was well. Agency officials grew suspicions and visited the sites. They claim they were refused entry at Carson until a search warrant was served.

Nearly 80% of the tanks inspected had leaks, torn seals and other problems that led to excessive emissions. None of this was detailed in BP reports.

BP, which took over Arco three years ago, admitted submitting reports with some inadequate information but denied the failings were of real substance.

The lawsuit comes less than 12 months after BP paid a $45-million fine in California over safety infringements concerning underground fuel tanks at 59 service stations.- Guardian Unlimited Â