• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 11 hours Trump bogged down in Mideast quagmire. US spent $Trillions, lost Thousands of lives, and lost goodwill. FOR WHAT? US interests ? WHAT INTEREST ? . . . . China greatest threat next 50 years.
  • 3 hours Why is Strait of Hormuz the World's Most Important Oil Artery
  • 3 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 15 hours Struggle For Supremacy: Kremlin Condemns Alleged U.S. Ultimatum To Turkey Over Missile Deal
  • 8 hours Apple Bid To Buy Tesla in 2013 For $240 a Share
  • 20 hours Solar Cheaper than Coal
  • 12 hours Another surprise 'build'
  • 12 hours CLIMATE PANIC! ELEVENTY!!! "250,000 people die a year due to the climate crisis"
  • 10 hours California's Oil Industry Collapses Despite Shale Boom
  • 12 hours IMO 2020 could create fierce competition for scarce water resources
  • 12 hours IMO2020 To scrub or not to scrub
  • 13 hours Global Warming Making The Rich Richer
  • 22 hours Rural and Conservative: Polish Towns Go 'LGBT free' Ahead Of Bitter European Election Campaign

BP Not Going Down Without a Fight – Set to Sue the Federal Government

On Monday BP filed a case against the US Federal Government, citing the decision to block BP from bidding on and securing new lucrative contracts to supply fuel and other services. In relation to the 2010 Gulf of Mexico oil spill, BP has pleaded guilty, admitting to charges of manslaughter and obstruction of justice, and based on this the Environmental Protection Agency (EPA) decided to prevent the company from winning any new contracts.

BP claims that this is abuse of the EPAs power.

BP has asked a judge at the US District Court in Huston to lift the suspension and allow them to bid on the new contracts, claiming that they have already missed out on potentially billions of dollars of business with the government.

BP was in the midst of negotiating an agreement with the EPA for its involvement in the Deepwater Horizon spill, when the suspension was placed upon them last November, preventing them from bidding on new contracts worth as much as $1.9 billion dollars.

Related article: Junior Time in the Gulf of Mexico Shelf

The contracts were with the Defense Logistics Agency, a support unit that provides the Navy, Air Force, Marines Crops, and other federal agencies with logistical and technical services.

BP has been a major supplier of fuel to the US military for many years, holding contracts with the government that are worth more than $1.34 billion, and through which it supplies jet fuel, marine diesel fuel, aviation fuel, commercial airport refuelling services, bulk fuel storage, lubricants, and natural gas.

On the 29th of January BP pleaded guilty to charges of manslaughter, obstruction of Congress, and other criminal charges, and agreed to pay a $4 billion penalty charge to the Justice Department. The EPA has said that until BP can settle an administrative agreement, the suspension will continue in affect, although in this recent case filing, BP claim that the suspension should have ended with the end of the criminal case.

In March the Interior Department told BP that it may bid in a Gulf of Mexico lease sale, however if successful and still considered under the power of the EPA suspension, the lease would have to be disqualified.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News