BP settles Prudhoe Bay civil suit

4th May 2011 07:06

Legal battles relating to the Gulf of Mexico oil spill look like running on for years but oil giant BP has at least drawn a line under the dispute over Prudhoe Bay oil transit line leaks in 2006, after settling with the US Department of Justice (DoJ).While not admitting any liability for the leaks, which took place in March and August of 2006, BP has reached an agreement with the DoJ. The deal takes the form of a consent decree which includes three main elements:1) Compliance with a set of requirements covering Prudhoe Bay pipeline operations.2) Retention of an independent contractor to monitor Prudhoe Bay pipeline operations and report on compliance with the consent decree.3) Payment of a civil penalty of $25m.The agreement does not include any sort of "per barrel" penalty assessment. ---jh