December 2012, Vol. 239 No. 12

In The News

BP To Pay Alaska $255 Million For Lost Production

A subsidiary of BP was ordered to pay the state of Alaska $255 million for royalties lost because of production shutdowns after two North Slope oil spills in 2006 and a subsequent pipeline replacement project, according to the Anchorage Daily News.

An arbitration panel ordered BP (Exploration) Alaska Inc. to pay the state $245 million, plus another $10 million in fines. The amount of the settlement cannot be appealed. BP operates Prudhoe Bay on behalf of other oil companies, which will pay part of the bill, said BP spokeswoman Dawn Patience. BP estimated its cost for the settlement at $66 million.

“With this behind us we can now move forward, operating North America’s largest oil field in a safe, reliable and compliant manner to the benefit of Alaska and the rest of the United States,” a company statement read.