The noose is getting tighter... using BP's $ pocketbook
Reuters
Roberta Rampton and Timothy Gardner
11/27/12
U.S. bans BP from new government contracts after oil spill deal
Quote:
The U.S. government banned BP Plc from new federal contracts on Wednesday
over its "lack of business integrity" in the Deepwater Horizon oil spill in 2010,
a move that could imperil the British energy giant's U.S. footing.
The suspension, announced by the U.S. Environmental Protection Agency,
comes on the heels of BP's November 15 agreement with the U.S. government
to plead guilty to criminal misconduct in the Gulf of Mexico disaster,
the worst offshore oil spill in U.S. history.
BP agreed to pay $4.5 billion in penalties, including a record $1.256 billion criminal fine.
BP and its affiliates are barred from new federal contracts until they demonstrate
they can meet federal business standards, the EPA said. The suspension is "standard practice"
and BP's existing U.S. government contracts are not affected, it said.
The EPA's suspension of contracts could push BP to settle civil litigation brought
by the U.S. government and states from the spill.
An EPA official said government-wide suspensions generally don't exceed 18 months,
but can continue longer if there are ongoing legal cases.
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