• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 2 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 23 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 11 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 2 days Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 3 hours Saudi Fund Wants to Take Tesla Private?
  • 7 hours Starvation, horror in Venezuela
  • 2 days Batteries Could Be a Small Dotcom-Style Bubble
  • 16 hours Venezuela set to raise gasoline prices to international levels.
  • 8 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 10 hours Are Trump's steel tariffs working? Seems they are!
  • 1 day Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 2 days France Will Close All Coal Fired Power Stations By 2021
  • 2 days Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
The Real Reason Behind The Next Oil Squeeze

The Real Reason Behind The Next Oil Squeeze

An oil supply squeeze may…

Why China Will Continue To Buy Iranian Crude

Why China Will Continue To Buy Iranian Crude

While the United States sanctions…

Ohio Suing BP For $33.3 Million

Ohio is suing BP for $33.3 million, saying it “double-dipped” by taking not only state money but also reimbursement from insurers to clean up spills from the hundreds of underground fuel tanks at service stations around the state.

State Attorney General Mike DeWine joined the Ohio Petroleum Underground Storage Tank Release Compensation Board to file the lawsuit on March 2. The Board was set up in 1989 to serve tank owners that lack insurance to cover the clean-up of a fuel spill.

The suit, filed in Franklin County Common Pleas Court, says BP didn’t disclose that it had insurance when it applied to the Board for compensation. As a result, it said, it received $33.3 million from the fund, even though it was also being reimbursed by its insurers.

“Our lawsuit alleges that BP knowingly and intentionally took more than $33 million that it was not eligible to accept,” DeWine said in a statement. “BP has to follow the same rules as other businesses and can’t engage in misconduct without consequence.”

Related: Oil Majors Balk At Mexican Offshore Proposals

The lawsuit demands that BP return the money and pay unspecified damages.

According to the action, BP and companies that it later acquired have received more money from the Compensation Board than any other company since the agency was created. The complaint points to 2,651 claims filed by the company with the state, which led to the $33.4 million in payments. It also cited 905 additional claims worth $22.3 million that the state is still reviewing.

Other defendants in the suit are the companies acquired by BP during its tenure in Ohio. They include the Standard Oil Co., Standard Oil of Ohio (SOHIO), Amoco Oil and Atlantic Richfield Co. (ARCO).

Related: Duke Energy Facing $102.2 Million Pollution Charge

Because BP acquired these companies, the lawsuit said, the Houston-based US affiliate of the British-owned company enjoys “a historic presence” in Ohio that includes thousands of service stations and convenience stores that BP owned, leased, operated, branded and supplied. Each of them, the suit says, was equipped with an underground storage tank, or UST, the suit says.

“Virtually all of the USTs installed at these service stations and convenience stores were steel tanks with steel pipes,” the suit says, and most of them sprung leaks.

In an e-mail, BP spokesman Jason Ryan responded to the lawsuit by saying the company “acted at all times in good faith and believes its dealings with the Ohio state underground storage tank fund have been proper.”

By Andy Tully of Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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