U.S. Government Halts Dealings With BP Over Lack of â€œBusiness Integrityâ€
British oil company, BP, was banned by the EPA from new federal contracts because of their lack of business integrity in the 2010 Deepwater Horizon disaster. Two weeks ago, BP agreed to the largest criminal fine in history as part of a $4.5 billion settlement to cover part of the damage from the explosion on one its rigs. The EPA ban stops BP from bidding for both supply contracts and oil exploration licenses in the US market. The EPA said it would not lift the ban until BP demonstrated “sufficient evidence that it meets federal business standards”. Suspending these contracts to BP could give the government leverage to pressure BP to settle federal and state civil litigation that could top $20 billion if they find BP was negligent in the Deepwater Horizon disaster. The EPA is taking full action to make sure BP will change their business practices to ensure that future disasters like Deepwater do not happen again. These actions send a message to other oil companies that there are serious consequences to not maintaining rig equipment.
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