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BP Ordered to Pay Millions for Benzene Emissions Violations

On May 17, 2023, BP agreed to pay a $40 million penalty and invest another $200 million in environmental controls to settle charges for the alleged excessive release of toxic chemicals from BP’s oil refinery in Whiting, Indiana. [1]

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The charges stem from EPA citations issued in July 2020 and December 2021 for pollution violations. The citations indicated that from 2018 through at least 2021, BP underreported the amount of benzene and other toxic chemicals that were being emitted from the refinery. Larry Starfield, acting assistant administrator of the EPA’s Office of Enforcement and Compliance Assurance, stated that “[t]his settlement will result in the reduction of hundreds of tons of harmful air pollution a year, which means cleaner, healthier air for local communities…”. [2]

This settlement will result in the reduction of hundreds of tons of harmful air pollution a year, which means cleaner, healthier air for local communities…

n the past, fines against BP for its activities in Indiana have rarely strayed above a few thousand dollars. Some commentators are optimistic that the scale of these fines may help send a message to the petroleum industry. However, it’s not clear that this will necessarily be the case. While a $40 million fine is significant, in 2022, BP reported $28 billion in profits. [3]

References

[1] U.S. et al. v. BP Products North America Inc. | ENRD | Department of Justice

[2] Justice Department and EPA Announce Settlement to Reduce Hazardous Air Emissions at BP Products’ Whiting Refinery in Indiana

[3] BP’s fourth quarter and full year 2022 results