British Petroleum has now committed $2.1 billion to settle civil claims related to the fatal 2005 Texas City refinery explosion, 33 percent more than it reported previously, the company said Tuesday.
It had said in the past that it paid out up to $1.6 billion in settlements but updated the figure in its annual report, which it issued Tuesday.
Spokesman Ronnie Chappell said the figure was adjusted over the past year and is related only to civil claims and not to the efforts by some of the victims' families to increase penalties the company is paying as part of a criminal settlement with federal regulators. The Texas City explosion killed 15 and injured nearly 200.
That settlement, which still requires court approval, involves a guilty plea to a felony environmental crime and a $50 million fine. Plaintiffs' attorneys have argued the company should be fined $400 million to $3.2 billion. The first figure is twice the $200 million in estimated lost wages, future medical expenses and other expenses, and the second is double the company's previously stated settlement total.
British Petroleum has said the $50 million fine is sufficiently harsh, noting the punishment is a record for a violation of the Clean Air Act.
"To date, we have settled more than 2,000 claims, including all claims filed by the family members of those who died and most personal injury claims," Chappell said.
About 4,000 claims have been made against British Petroleum.
Two civil cases went to trial but were settled before juries began deliberations. Another trial is scheduled for May.
A federal appeals court last week ordered a Houston federal judge not to rule on the criminal case until the appeals court considers whether victims were properly consulted about the bargain.
The 5th U.S. Circuit Court of Appeals instructed U.S. District Judge Lee Rosenthal "to take no further action" on the plea agreement until prosecutors respond to the claims regarding victims' rights.
BP also said in the annual report that it is still in talks with the U.S. Chemical Safety and Hazard Investigation Board, the lead agency that investigated the accident, on how it will address final safety recommendations the board made.
"British Petroleum and the CSB continue to discuss British Petroleum's responses with the objective of the CSB agreeing to close out its recommendations," BP said.
The annual report also said that Tony Hayward, who took over as British Petroleum's CEO last May, received a bonus worth about $2.5 million last year.
But he and other executives did not receive equity-related bonuses because return for shareholders compared unfavorably with results from rivals like Royal Dutch Shell and Exxon Mobil Corp.
In a letter to shareholders, board member D.S. Julius said that "performance failed to meet satisfactory levels."
It had said in the past that it paid out up to $1.6 billion in settlements but updated the figure in its annual report, which it issued Tuesday.
Spokesman Ronnie Chappell said the figure was adjusted over the past year and is related only to civil claims and not to the efforts by some of the victims' families to increase penalties the company is paying as part of a criminal settlement with federal regulators. The Texas City explosion killed 15 and injured nearly 200.
That settlement, which still requires court approval, involves a guilty plea to a felony environmental crime and a $50 million fine. Plaintiffs' attorneys have argued the company should be fined $400 million to $3.2 billion. The first figure is twice the $200 million in estimated lost wages, future medical expenses and other expenses, and the second is double the company's previously stated settlement total.
British Petroleum has said the $50 million fine is sufficiently harsh, noting the punishment is a record for a violation of the Clean Air Act.
"To date, we have settled more than 2,000 claims, including all claims filed by the family members of those who died and most personal injury claims," Chappell said.
About 4,000 claims have been made against British Petroleum.
Two civil cases went to trial but were settled before juries began deliberations. Another trial is scheduled for May.
A federal appeals court last week ordered a Houston federal judge not to rule on the criminal case until the appeals court considers whether victims were properly consulted about the bargain.
The 5th U.S. Circuit Court of Appeals instructed U.S. District Judge Lee Rosenthal "to take no further action" on the plea agreement until prosecutors respond to the claims regarding victims' rights.
BP also said in the annual report that it is still in talks with the U.S. Chemical Safety and Hazard Investigation Board, the lead agency that investigated the accident, on how it will address final safety recommendations the board made.
"British Petroleum and the CSB continue to discuss British Petroleum's responses with the objective of the CSB agreeing to close out its recommendations," BP said.
The annual report also said that Tony Hayward, who took over as British Petroleum's CEO last May, received a bonus worth about $2.5 million last year.
But he and other executives did not receive equity-related bonuses because return for shareholders compared unfavorably with results from rivals like Royal Dutch Shell and Exxon Mobil Corp.
In a letter to shareholders, board member D.S. Julius said that "performance failed to meet satisfactory levels."
Source: Houston Chronicle| By TOM FOWLER
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