- BP Oil Sued - Shareholders are MAD about latest Alaskan Shut Down! -
I found this story at Pacific Environment you can read the whole story there.
Original Story By The USA Financial Times
August 17th, 2006
The accident will bring further embarrassment to BP, which has been under heightened scrutiny since the biggest spill at Prudhoe Bay in March.
Since then, regulators have forced BP to perform tests, which have uncovered severe corrosion in oil transit lines and led the company to shut half the 400,000-barrel-a-day field.
BP had wanted to add 20,000 more barrels a day to the current 150,000 barrels being produced daily, to get the half of the field cleared for operation up to capacity.
This latest accident has forced it to abort that effort.
Meanwhile, shareholders have filed a suit against BP executives and board members, including Lord Browne, chief executive, whom it charges took no steps to improve the 30-year-old pipelines, despite becoming aware of corrosion years ago.
BP does not comment on pending litigation.
But Ronnie Chappell, speaking for BP, said the company had a $72m (£38m)-a-year corrosion inspection and prevention program that it had believed was adequate.
“We now know that was not the case,” Mr Chappell added.
Shareholders are seeking unspecified monetary damages. “Despite their awareness of the dangerous effect of the corrosion in the pipeline, defendants repeatedly failed to fund the work necessary to correct the problem, opting instead to squeeze out every last penny in current profits - $7.3bn last quarter - atthe expense of properly and safely maintaining the pipeline and the company’s future profitability,'’ the lawsuit, filed in New York, said.
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