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State of Alaska prepares to sue BP
Steve Quinn Associated Press Writer
The State of Alaska intends to sue BP PLC for losses incurred by oil spills, pipeline leaks and shutdowns on the North Slope two years ago.
No lawsuit has been filed yet, but the state Department of Law has requested $4.7 million from lawmakers to pay for preparation work and possible litigation this year.
Officials didn’t specify how much it would seek from BP, but they estimated the state’s losses from the leaks and aftermath at several hundred million dollars.
The House Finance Committee added the money to its operating budget; the House is expected to vote on that budget in early March.
The state, which relies on oil taxes and royalties for nearly 90 percent of its revenue, has been investigating BP for months.
“We have cooperated with the state’s investigation,” said BP spokesman Steve Rinehart, declining to speculate on claims in a case that has not been filed.
If approved, the appropriation would be used for “counsel, document management, experts and litigation costs,” according to the request made by the Office of Management and Budget on behalf of Gov. Sarah Palin.
The Finance Committee’s vice chairman, Republican Rep. Bill Stoltze, introduced the budget amendment.
“I have a high level of confidence in the attorney general (Talis Colberg), the team of lawyers working on this,” Stoltze said. “It’s not like we are taking a random amount of money and throwing it out there.”
September deadline for lawsuit The Department of Law placed the urgent call for the money, saying the statute of limitations for the lawsuit expires in September.
“Based upon information gathered to date, the Department of Law anticipates making a recommendation to commence litigation to recover the state’s revenue losses, as well as civil penalties and damages under the state’s environmental statues,” the request to lawmakers says.
The budgetary request stems from a pair of 2006 spills, including a 201,000-gallon crude spill in March 2006 at Prudhoe Bay, the nation’s largest oil field.
A smaller spill five months later ultimately prompted BP to halve production for several weeks.
Both leaks were traced to the company’s failure to regularly clean and inspect two of its pipelines over the course of several years, leading to corrosion.
The company last year pleaded guilty to a federal environmental crime related to one spill and agreed to a $20 million fine.
BP is currently replacing 16 miles of feeder pipeline, which could cost up to $260 million.
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