BP to Pay $25 Million as Penalty for Alaskan Oil Pipeline Spill in 2006
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)

On May 3, BP Exploration Alaska, Inc. made an agreement to pay $25 million as a penalty to Alaska.  This penalty came to BP as a result of spilling more than 5,000 barrels of crude oil from its pipelines on Alaska’s North Slope in 2006. About $20 million of the fee that BP is required to pay will go to Oil Spill Liability Trust Fund, and the remaining amount will be put into the US Treasury.

The cause of the spill was corrosion of BP’s pipeline.  The Alaskan government filed suit against BP in Anchorage federal court in March 2009 for inadequate maintenance.


Representation for BP was given by Randal Buckendorf, chief counsel, as well as outside counsel Carol Dinkins, who is from Vinsen & Elkins Houston office.

According to Ignacia Moreno, assistant attorney general for the Justice Department’s Environment and Natural Resources Division, “This penalty should serve as a wake-up call to all pipeline operators that they will be held accountable for the safety of their operations…”

It has already cost BP $200 million to replace the leaky pipelines, and according to the settlement yesterday, it is now required to develop a program that is system-wide to manage the integrity of its 1,600 miles of pipeline on the North Slope of Alaska, which will cost about $60 million more.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!

Since the spill in 2006, BP also paid a criminal fine of $20 million after pleading guilty in 2007 to a misdemeanor violation of the Clean Water Act.


Interesting Legal Sites You May Like




Search Now

Attorney with 8 years of civil litigation experience

USA-CA-Los Angeles

Westside law firm of our client is seeking an attorney with 8 years of civil litigation experience, ...

Apply Now

Senior Attorney with litigation experience

USA-NY-New York City

New York City non profit is seeking a senior litigation counsel to manage litigation strategy as wel...

Apply Now

IP Technical Advisor with 1-3 years of software experience


Alexandria office of our client seeks IP technical advisor with 1-3 years of experience in IP applic...

Apply Now

Senior Attorney with intellectual property litigation experience

USA-CA-San Francisco

San Francisco office of our client seeks senior attorney with experience. The candidate will be repr...

Apply Now


Managing Director, Litigation Finance Investments


Title                ...

Apply now

Contract Associate


Seeking lawyer with at least 2 yrs experience in complex real estate transactional matters, with wil...

Apply now



Growing full-service law firm based in Fort Collins and Greeley is seeking a full time Paralegal. Th...

Apply now



Our Syracuse, NY office seeks an Associate with 3-5 years experience defending general liabilit...

Apply now

Most Popular


To Top