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U.S. EPA suspends BP from new government contracts

Staff writer |
The U.S. Environmental Protection Agency (EPA) temporarily suspended BP Exploration and Production, Inc., BP PLC and named affiliated companies from new contracts with the federal government.

"EPA is taking this action due to BP's lack of business integrity as demonstrated by the company's conduct with regard to the Deepwater Horizon blowout, explosion, oil spill, and response, as reflected by the filing of a criminal information. On November 15, 2012, BP agreed to plead guilty to eleven counts of Misconduct or Neglect of Ship Officers, one count of Obstruction of Congress, one misdemeanor count of a violation of the Clean Water Act, and one misdemeanor count of a violation of the Migratory Bird Treaty Act, all arising from its conduct leading to the 2010 Deepwater Horizon disaster that killed 11 people and caused the largest environmental disaster in U.S. history," says the agency in the statement.

For the Deepwater Horizon investigation, EPA was designated as the lead agency for suspension and debarment actions. Federal executive branch agencies take these actions to ensure the integrity of Federal programs by conducting business only with responsible individuals or companies. Suspensions are a standard practice when a responsibility question is raised by action in a criminal case.

The BP suspension will temporarily prevent the company and the named affiliates from getting new federal government contracts and other transactions until the company can provide sufficient evidence to EPA demonstrating that it meets Federal business standards. The suspension does not affect existing agreements BP may have with the government.

On November 16, 2012, the company agreed to pay $4.5 billion over a period of six years as a consequence of the 2010 Deepwater Horizon oil spill, and to plead guilty to felony counts related to the deaths of 11 workers and obstruction of Congress.

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