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BP to pay Alaska $255M for lost oil production

AP -- ANCHORAGE, Alaska (AP) -- A subsidiary of London-based BP PLC has been ordered to pay the state of Alaska $255 million for royalties the state lost because of production shutdowns after two North Slope oil spills in 2006 and a subsequent pipeline replacement project.
A three-member arbitration panel unanimously ordered BP (Exploration) Alaska Inc. to pay the state $245 million, plus another $10 million in fines, by Dec. 3. The panel heard the case over four weeks last May and June in Anchorage, and reached its decision Oct. 31, the state said in a release Thursday announcing the award.
The amount of the settlement cannot be appealed.
"We're absolutely pleased with the result," Alaska Attorney General Michael Geraghty said.
He described it as "a win for all Alaskans, and we look forward to

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Submitted Nov 09, 2012 By: mastermariner

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NedW Champion Author Indianapolis Posts:5,594 Points:1,138,245 Joined:Mar 2008	Message Posted: Nov 11, 2012 1:54:11 AM Ignore NedW Report Abuse That will have to be passed on to the consumer somehow. But, I understand the sentiment.
DrCashFlow Champion Author Massachusetts Posts:7,049 Points:1,623,100 Joined:Jun 2008	Message Posted: Nov 11, 2012 1:29:12 AM Ignore DrCashFlow Report Abuse not nearly enough
DanMtz Champion Author Oakland Posts:3,330 Points:1,238,450 Joined:Oct 2009	Message Posted: Nov 10, 2012 11:06:46 AM Ignore DanMtz Report Abuse BP must have a vice president in charge of fines.
millerin Champion Author Orlando Posts:2,289 Points:477,315 Joined:Jan 2012	Message Posted: Nov 10, 2012 7:13:51 AM Ignore millerin Report Abuse interesting
MrLefty0706 Champion Author Chicago Posts:1,424 Points:347,085 Joined:Apr 2012	Message Posted: Nov 9, 2012 5:27:10 PM Ignore MrLefty0706 Report Abuse Will BP just pass the fine on to consumers?
nsdp Champion Author San Antonio Posts:1,117 Points:47,065 Joined:Jun 2012	Message Posted: Nov 9, 2012 3:59:01 PM Ignore nsdp Report Abuse There is a lesson to be learned from this. Pipelines don't last forever and some time soon the entire Alyeska Line will need to be replaced from Barrow to Valdez. Who is going to front the $65 billion to replace it? Until you have that answer there is no point drilling there.
sydb7 Champion Author Atlanta Posts:3,537 Points:1,916,505 Joined:Mar 2003	Message Posted: Nov 9, 2012 3:41:58 PM Ignore sydb7 Report Abuse Interesting!
Jebeahm Champion Author Maryland Posts:1,235 Points:454,115 Joined:Mar 2011	Message Posted: Nov 9, 2012 11:59:36 AM Ignore Jebeahm Report Abuse Should be double
CocoPaz Champion Author Santa Barbara Posts:2,341 Points:318,420 Joined:Jun 2012	Message Posted: Nov 9, 2012 11:39:13 AM Ignore CocoPaz Report Abuse I don;t have stock in BP and am wondering how their stock prices are affected by something like this. Going down, I suppose. We are praying for those of you on the East Coast.
geezrtek Champion Author Michigan Posts:1,886 Points:427,735 Joined:Apr 2011	Message Posted: Nov 9, 2012 10:37:46 AM Ignore geezrtek Report Abuse Good.
Point__man Champion Author Raleigh Posts:4,314 Points:873,695 Joined:Oct 2010	Message Posted: Nov 9, 2012 10:01:01 AM Ignore Point__man Report Abuse Whew, glad this is done with ;)
ModelWarships Champion Author Missouri Posts:5,769 Points:1,227,110 Joined:Jul 2008	Message Posted: Nov 9, 2012 9:43:20 AM Ignore ModelWarships Report Abuse ouch
tutaw Champion Author Kentucky Posts:3,575 Points:838,745 Joined:Sep 2008	Message Posted: Nov 9, 2012 9:37:52 AM Ignore tutaw Report Abuse wow
Tutootin Champion Author Toronto Posts:10,101 Points:3,073,430 Joined:Jun 2004	Message Posted: Nov 9, 2012 9:30:10 AM Ignore Tutootin Report Abuse charladan, Excellent point!
Sethyl Champion Author Miami Posts:1,728 Points:372,490 Joined:Oct 2009	Message Posted: Nov 9, 2012 9:25:28 AM Ignore Sethyl Report Abuse Wow! I didn't know you could sue for that.
Lologogo Champion Author Twin Cities Posts:1,294 Points:352,390 Joined:Sep 2011	Message Posted: Nov 9, 2012 9:24:36 AM Ignore Lologogo Report Abuse I wonder what the State of Alaska will be using their new found money for.
Lairre Champion Author Sacramento Posts:2,982 Points:183,260 Joined:Oct 2012	Message Posted: Nov 9, 2012 9:24:07 AM Ignore Lairre Report Abuse BP is still paying off claims from the Deepwater Horizon catastrophe. STOP BUYING BP!
blazerbob91 Champion Author Milwaukee Posts:6,122 Points:1,879,630 Joined:Aug 2005	Message Posted: Nov 9, 2012 9:20:33 AM Ignore blazerbob91 Report Abuse We all pay in the end
jamie12704 All-Star Author Minnesota Posts:565 Points:135,640 Joined:Sep 2012	Message Posted: Nov 9, 2012 9:19:31 AM Ignore jamie12704 Report Abuse Something to think about
firechief Champion Author New York Posts:3,426 Points:2,063,125 Joined:Mar 2004	Message Posted: Nov 9, 2012 9:16:20 AM Ignore firechief Report Abuse How is BP still in business
dwbglb Rookie Author Des Moines Posts:46 Points:241,375 Joined:Apr 2012	Message Posted: Nov 9, 2012 9:14:39 AM Ignore dwbglb Report Abuse I agree MattyMattMatt, this does sound like a shakedown. Not only did BP have to clean up the spill and build a new pipeline (at their expense) they also didn't pump any oil and were out the revenue of selling it; however, in the infinite wisdom of the courts, they would have owed Alaska royalties if they had been able to make any money, so pay up. Ridiculous.
ifallsguy Champion Author Minnesota Posts:5,177 Points:1,549,905 Joined:Apr 2007	Message Posted: Nov 9, 2012 9:09:21 AM Ignore ifallsguy Report Abuse more money into the dividend program
fightbigoil71 Champion Author Milwaukee Posts:7,542 Points:1,540,905 Joined:Nov 2008	Message Posted: Nov 9, 2012 9:08:41 AM Ignore fightbigoil71 Report Abuse Interesting, but the consumer will actually pay
Somis1 Champion Author Ventura Posts:13,662 Points:2,610,025 Joined:Jul 2005	Message Posted: Nov 9, 2012 9:08:41 AM Ignore Somis1 Report Abuse Great, but we know who eventually pays the bill.
indyjim Champion Author Indianapolis Posts:10,071 Points:2,315,430 Joined:Jul 2006	Message Posted: Nov 9, 2012 9:08:30 AM Ignore indyjim Report Abuse Slap on the wrist.
redbeard47229 All-Star Author Indiana Posts:668 Points:42,555 Joined:Feb 2012	Message Posted: Nov 9, 2012 9:07:44 AM Ignore redbeard47229 Report Abuse another cost of doing business passed on to the user
Black Wagon Champion Author Illinois Posts:7,287 Points:1,797,865 Joined:Mar 2004	Message Posted: Nov 9, 2012 9:07:14 AM Ignore Black Wagon Report Abuse Don't buy gas from BP or you'll be paying for this.
Taurus1 Champion Author Ohio Posts:3,115 Points:1,669,950 Joined:Apr 2006	Message Posted: Nov 9, 2012 9:06:24 AM Ignore Taurus1 Report Abuse Hope it goes to the right people in Alaska.
buzzieNY Champion Author Buffalo Posts:2,872 Points:631,555 Joined:Jun 2011	Message Posted: Nov 9, 2012 9:05:55 AM Ignore buzzieNY Report Abuse Good for Alaska,not good for the rest of us. They will pass the fines to us at the pump.
jay93LA Champion Author New Orleans Posts:2,423 Points:594,735 Joined:Aug 2011	Message Posted: Nov 9, 2012 9:05:43 AM Ignore jay93LA Report Abuse you gotta watch BP
TuanCanCook Champion Author Los Angeles Posts:11,720 Points:652,540 Joined:Jun 2011	Message Posted: Nov 9, 2012 9:05:30 AM Ignore TuanCanCook Report Abuse That's alot of bucks
DarthDadJr Champion Author Virginia Posts:7,297 Points:1,517,495 Joined:Jul 2008	Message Posted: Nov 9, 2012 9:05:17 AM Ignore DarthDadJr Report Abuse What a deal...
SpankyMI Champion Author Kalamazoo Posts:2,688 Points:755,280 Joined:Jan 2011	Message Posted: Nov 9, 2012 9:03:43 AM Ignore SpankyMI Report Abuse Money for nothing, kicks for free.
mreiff Champion Author Louisville Posts:5,325 Points:1,298,715 Joined:May 2009	Message Posted: Nov 9, 2012 9:03:39 AM Ignore mreiff Report Abuse About time BP pays up.
KingCLP009 All-Star Author Philadelphia Posts:784 Points:373,605 Joined:Mar 2007	Message Posted: Nov 9, 2012 9:03:16 AM Ignore KingCLP009 Report Abuse Alaska
mattymattmatt All-Star Author Scranton Posts:889 Points:360,740 Joined:Mar 2011	Message Posted: Nov 9, 2012 9:02:28 AM Ignore mattymattmatt Report Abuse Sounds like a shake down to me. Exactly what the federal government did to BP with the gulf oil spill. Getting money back for lost oil production because of an oil spill. I would think that cleaning up the oil spill would take precedence over the continuing production of oil thus making the oil spill even worse.
LuthierKS Champion Author Wichita Posts:3,719 Points:724,955 Joined:Apr 2011	Message Posted: Nov 9, 2012 9:01:26 AM Ignore LuthierKS Report Abuse This is a very odd award.
lindact Champion Author New Haven Posts:8,716 Points:1,712,970 Joined:May 2008	Message Posted: Nov 9, 2012 9:01:19 AM Ignore lindact Report Abuse Pocket change...
bonusround98 Sophomore Author Minnesota Posts:191 Points:80,170 Joined:Aug 2012	Message Posted: Nov 9, 2012 8:58:51 AM Ignore bonusround98 Report Abuse Why?
jeff95519 Champion Author California Posts:2,432 Points:1,350,240 Joined:Sep 2008	Message Posted: Nov 9, 2012 8:58:23 AM Ignore jeff95519 Report Abuse so then what
truckpdlr Champion Author Tucson Posts:2,932 Points:1,091,280 Joined:Sep 2009	Message Posted: Nov 9, 2012 8:58:07 AM Ignore truckpdlr Report Abuse Good for them
el_fr Champion Author Massachusetts Posts:3,317 Points:740,700 Joined:Apr 2011	Message Posted: Nov 9, 2012 8:56:53 AM Ignore el_fr Report Abuse Ok
HoosierDaddyKY Champion Author Kentucky Posts:1,257 Points:294,135 Joined:Dec 2011	Message Posted: Nov 9, 2012 8:56:16 AM Ignore HoosierDaddyKY Report Abuse Hmmm...
Alaydown Champion Author Los Angeles Posts:5,093 Points:819,320 Joined:May 2007	Message Posted: Nov 9, 2012 8:56:14 AM Ignore Alaydown Report Abuse Obama should be fined millions also for this country's lost oil production.
Yooperheart Champion Author Michigan Posts:3,395 Points:523,025 Joined:Feb 2010	Message Posted: Nov 9, 2012 8:56:13 AM Ignore Yooperheart Report Abuse Go gettem... AK
dopster Champion Author Toledo Posts:7,251 Points:2,288,250 Joined:Aug 2004	Message Posted: Nov 9, 2012 8:55:54 AM Ignore dopster Report Abuse Chump change for BP!
zimowski Champion Author San Jose Posts:6,646 Points:1,579,490 Joined:Nov 2007	Message Posted: Nov 9, 2012 8:53:57 AM Ignore zimowski Report Abuse Short on money, just beat up BP.
Hybrid923 Sophomore Author Ottawa Posts:198 Points:142,160 Joined:Aug 2012	Message Posted: Nov 9, 2012 8:53:49 AM Ignore Hybrid923 Report Abuse ok
STLcardsfan Champion Author St. Louis Posts:1,039 Points:1,370,460 Joined:Apr 2006	Message Posted: Nov 9, 2012 8:52:33 AM Ignore STLcardsfan Report Abuse Good
packards42 Champion Author Washington Posts:6,420 Points:1,123,615 Joined:Feb 2005	Message Posted: Nov 9, 2012 8:52:25 AM Ignore packards42 Report Abuse Interesting penalty, now does this mean the final production BP should not have to pay the royalties. to the tune of $255M pay. [Edited by: packards42 at 11/9/2012 9:53:38 AM EST]