Judge OKs federal settlement with BPXA

The federal government’s civil case against BP in connection with the 2006 oil leaks in the Prudhoe Bay field is now closed.

U.S. District Judge John W. Sedwick of Anchorage on July 13 signed off on a “consent decree” settling the suit against BP Exploration (Alaska) Inc.

The Justice Department in March 2009 sued BPXA on behalf of the Environmental Protection Agency and the Pipeline and Hazardous Materials Safety Administration. The suit asserted claims based on alleged water, air and pipeline safety violations in connection with a pair of oil spills from corroded Prudhoe oil transit lines.

Under the consent decree, BPXA must wire the Justice Department a $25 million civil penalty, implement an “integrity management program” for its Prudhoe pipeline network, and hire an “independent monitoring contractor” to report to the government on the company’s compliance.

The company did not admit liability in accepting the settlement.

BPXA operates Prudhoe Bay, the nation’s largest oil field, on behalf of itself and partners ExxonMobil, ConocoPhillips and Chevron.

A state civil suit remains pending against BPXA in connection with the spills.

—Wesley Loy