Texas, Oklahoma AGs Sue BP

June 15, 2009

In separate court actions, Texas Attorney General Greg Abbott and Oklahoma Attorney General Drew Edmondson have charged BP Products North America Inc. with pollution violations (Texas) and manipulating the price of propane (Oklahoma).

Abbott alleges the company violated state health, safety and environmental protection laws, as a result of 46 separate unlawful pollutant emissions at BP’s Texas City refinery – including the emission linked to the March 2005 explosion that killed 15 workers and injured 170.

The state maintains that BP’s Texas City refinery caused hundreds of thousands of pounds of unauthorized pollutant emissions. The Texas Commission on Environmental Quality filed 15 enforcement orders against BP between 2000 and 2007. Among the improperly released air pollutants were volatile organic compounds, carbon monoxide, hydrogen sulfide, sulfur dioxide and nitrogen oxides.

“Our goal is to resolve this matter and address the state’s concerns,” said BP spokesman Ronnie Chappell in a statement, as reported by Reuters. Chappell added that BP has invested more than $1 billion in workers, work processes and facilities to reduce pollution at the refinery.

Texas seeks to require the company to implement all necessary measures to eliminate future unlawful emissions. The state is also seeking civil penalties, fines and attorneys’ fees.

Oklahoma’s Complaint

Edmondson’s suit accuses BP America of a 2004 scheme to artificially drive up the price of propane by using “unfair and deceptive acts,” according to information from the AG’s office. The state alleges BP orchestrated a strategy to corner the February 2004 propane market and manipulate prices. According to the complaint, BP’s actions increased the price of propane by more than 40 percent from Feb. 4 to Feb. 25.

Defendants in the lawsuit are BP America and subsidiaries BP Corporation North America Inc., BP Products North America Inc. and BP American Production Co.