Environmental attorney Sanders says BP Oil settles civil matter with EPA for $161 million, but still earned $25.6 Billion in 2008.

BP Products North America Inc. has agreed to spend more than $161 million on pollution controls, enhanced maintenance and monitoring, and improved internal management practices to resolve Clean Air Act violations at its Texas City, Texas, refinery, the U.S. Environmental Protection Agency (EPA) and the U.S. Justice Department announced today. The company will also pay a $12 million civil penalty and spend $6 million on a supplemental project to reduce air pollution in Texas City.

Don't cry for BP or think that this proposed settlement is going whop the oil company a good one in the old wallet. Not at all; in 2008, BP's annual profits were $25.6 billion. So, the magnitude of the civil penalty was in tune with the defendant's ability to pay, if not far too low for this foreign oil company and financial behemiouth.

EPA identified the violations addressed in the settlement during a series of inspections of the Texas City refinery initiated after a catastrophic explosion and fire in March 2005 that killed 15 people and injured more than 170 others. In October 2007, the company pleaded guilty to a felony violation of the Clean Air Act and agreed to pay a $50 million fine for violations related to the explosion, which is the largest criminal fine ever assessed against a corporation for Clean Air Act violations. The plea is still under review by the U.S. District Court for the Southern District of Texas, and settlement does not address any claims arising from the March 2005 explosion.

The settlement requires that BP address violations of Clean Air Act requirements limiting emissions of stratospheric ozone-depleting hydrochlorofluorocarbons (HCFCs) from leaking cooling appliances. BP will eliminate approximately 51,000 pounds of HCFCs by retrofitting industrial and commercial cooling appliances at Texas City to use non-ozone-depleting refrigerants. The company has also agreed to improve its oversight and management of asbestos-containing wastes generated during routine renovation and demolition activities at the Texas City Refinery.

As part of the settlement, the company will spend an additional $6 million to reduce air pollution from diesel vehicle emissions in Texas City and the surrounding area. BP will convert approximately 100 diesel municipal vehicles, including several dozen school buses, to operate on compressed or liquefied natural gas and will construct four refueling stations for the converted vehicles. As a result, emissions of particulate matter, nitrogen oxides, and hydrocarbons from these vehicles will be substantially reduced.

The proposed settlement, lodged in the U.S. District Court for the Northern District of Indiana, is subject to a 30-day public comment period and final court approval. A copy of the proposed consent decree is available on the Justice Department Web site at www.usdoj.gov/enrd/Consent_Decrees.html