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BP Texas City settlement ruled unacceptable
01 June 2008
The rights of victims in BP’s fatal Texas City explosion in March 2005 were violated by US prosecutors, a US federal appeals court has ruled. The appeals court found that a plea agreement was reached with the UK oil group before consulting victims. The court would not block the plea deal but has sent it to the district court in Houston to take into account the victims’ rights to be consulted in this case before deciding whether to throw out the plea agreement.
Tony Hayward, BP’s chief executive, was hoping to clear the company’s record with the settlement but victims in Texas have refused to let the case rest. They insist that the plea deal is too lenient and that they should have been consulted on the terms.
The court decision adds to BP’s troubles in the US, where the House Energy and Commerce Committee’s investigations subcommittee is already probing whether the plea agreement is a strong enough deterrent,
protects workers and takes into account victims’ rights.
The Texas City agreement was part of a $380m settlement BP made with US authorities to resolve cases being pursued by the US government following the Texas City explosion, which killed 15 people and injured
500 in and around the facility; a major spill and corrosion in its Alaska operations; and a propane scandal. The Texas City portion of the settlement involved a $50m criminal fine.
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