EPA Lifts BP Suspension, Debarment from Federal Contracts

The U.S. Environmental Protection Agency (EPA) on Thursday lifted its suspension and debarment of BP Plc from entering federal contracts after the company pled guilty in its role in the Deepwater Horizon incident in April 2010.

Under the administrative agreement, which will take effect immediately and last five years, BP is required to retain an independent auditor approved by the EPA who will conduct an annual review and report on BP’s compliance with the agreement. Specific provisions addressing ethics compliance, corporate governance and process safety also are included in the agreement.

EPA also will have authority under the agreement to take appropriate corrective action if the agreement is breached, EPA said in a March 13 press release.

The agency coordinated on this matter with the Department of Interior, Defense Logistics Agency and U.S. Coast Guard.

“This is a fair agreement that requires BP to improve its practices in order to meet the terms we’ve outlined together,” said EPA Assistant Administrator of Administration and Resources Craig Hooks in the release. “Many months of discussions and assessments have led up to this point, and I’m confident we’ve secured strong provisions to protect the integrity of federal procurement programs.”

The suspension’s lift means that BP will once again be able to enter into new U.S. government contracts, including new deepwater leases in the U.S. Gulf of Mexico. As part of the agreement, BP also will dismiss the lawsuit filed against the EPA in Texas federal court for improper statutory disqualification and suspension, BP said in a March 13 press release.

“After a lengthy negotiation, BP is pleased to have reached this resolution, which we believe to be fair and reasonable,” said John Minge, chairman and president of BP America, Inc., in the release.

According to the EPA, suspensions are issued when there is an immediate need to protect the public interest supported by adequate evidence. Since November 2012, EPA has suspended 25 BP entities and disqualified BP Exploration and Production Inc. from performing federal contract work at its Houston corporate facility following its criminal conviction in the Deepwater Horizon case.

The suspension did not affect existing agreements BP had with the government.

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13 Comments on "EPA Lifts BP Suspension, Debarment from Federal Contracts"

Nony on Fri, 14th Mar 2014 2:07 am 



Crank up the diesel?

https://www.youtube.com/watch?v=PA8zDpHVGVE

Davy, Hermann, MO on Fri, 14th Mar 2014 2:19 am 



BP is a thoroughly nasty business concern. If you get a chance watch

http://www.thirteen.org/programs/frontline/the-spill/

DC on Fri, 14th Mar 2014 7:20 am 



LoL! Was there any ever doubt? The UsGov couldn’t stay mad at an oil company like that. Besides, how significant was that ‘punishment’ in the first place? Are gov contracts a big part of the oil cartels business? Dont they just drill for themselves first and foremost? Maybe the Rockman can weigh in and let us know if the punishment fit the crime in the first place.

rockman on Fri, 14th Mar 2014 11:41 am 



DC – For the most part these new “special” BP rules aren’t that new or special. Simply put the feds have always had the right to yank us around on govt leases however they wanted. If we don’t like it can spend the next 10+ years in court fighting them. LOL. When a US marshal gives an operator an order it’s obeyed whether it’s legal or not.

And when it comes to leverage I wonder how many folks know the BP is the primary global supplier of fuel to the US DOD?

Davy, Hermann, MO on Fri, 14th Mar 2014 12:03 pm 



Rock, more good info, I did not realize DOD was in cahoots with BP. I should have known.

Nony on Fri, 14th Mar 2014 2:06 pm 



Rock: Your info is dated:

http://www.businessweek.com/news/2014-03-10/bp-goes-from-top-pentagon-fuel-supplier-to-u-dot-s-dot-s-biggest-loser#p1

Nony on Fri, 14th Mar 2014 2:12 pm 



Davy: Put down the conspiracy theory. These aren’t the droids you’re looking for. 😉

https://www.youtube.com/watch?v=2I33k8vV3Sk

Davy, Hermann, MO on Fri, 14th Mar 2014 2:52 pm 



nony, my favorite part of the movie!

Nony on Fri, 14th Mar 2014 3:31 pm 



Hug! 🙂

rockman on Fri, 14th Mar 2014 4:51 pm 



Nony – yes…thanks. I recalled that info from a few years ago. But here’s the $64,000 question: who got the worse punishment: BP or the American taxpayer? I notice no one at the DOD is stating how much more (or less) they are paying for their fuel now that they are buying from others. How did the other fuel sellers respond when one of their largest competitors was removed from the market place…did they lower their prices??? On the surface the ban doesn’t appear to have hurt BP very much:

BP profits hit record £5.6bn – BP faces fierce new criticism from motorists groups today as it announced a record profit of £5.58 billion for the six months to 30 June. The company says higher margins on oil refining rather than retail petrol sales are responsible for the upward jump. But BP’s announcement comes at a time when motorists are feeling bitterly sensitive about how much they are paying for fuel. The figures are bound to stir new controversy.

BP said higher North American gas prices also helped boost its performance. Higher margins on oil refining had enabled that division to report a £1.1billion profit for the three months to 30 June, a 26 per cent jump from the first quarter. The record results come after allowing for costs associated with BP’s takeover last year of oil products group Burmah Castrol.”

Nony on Fri, 14th Mar 2014 5:40 pm 



I don’t know who got hit worse. Could have been lose/lose even!

I’m actually an advocate of being a little less PR minded and a little more bottom line minded. Like I’d even be fine taking all sanctions off of Iran and encouraging (or at least looking the other way) while Kurd and Libyan rebels ship oil.

That said, I do think it’s interesting that BP made so much noise about their green agenda and then seemed to have a poor safety/engineering culture (seagull managers, etc.)

rockman on Fri, 14th Mar 2014 8:37 pm 



Nony – In a world with declining fossil fuels and growing demand I think it’s rather difficult to hurt any fossil fuel provider by not buying their commodities. Not when there are billions of folks out there wanting to buy what they have to sell..

Nony on Fri, 14th Mar 2014 9:21 pm 



There is a huge wealth transfer going on to the Russians and Arabs. I want that price lower. bring back the Iraqi and Libyan oil. Ramp up Iran. Throw in the US with all the little Rockmen running around sticking straws in the prairie. Get a bit of a glut going…SA will try to staunch it…but if it goes on long enough and they see everyone else eating their lunch, maybe they throw in the towel and pump full out.

A girl can dream…