Not Logged In Log In   Sign Up   Points Leaders
Follow Us    7:16 AM

GasBuddy News Article

45
votes
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


Read the Full Article

Submitted Nov 09, 2012 By: mastermariner
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: BP to pay Alaska $255M for lost oil production Back to Topics
REPLIES (newest first) Post a Reply
Profile Pic
NedW
Champion Author Indianapolis

Posts:7,899
Points:1,656,425
Joined:Mar 2008
Message Posted: Nov 11, 2012 1:54:11 AM

That will have to be passed on to the consumer somehow. But, I understand the sentiment.
Profile Pic
DrCashFlow
Champion Author Massachusetts

Posts:9,577
Points:2,220,760
Joined:Jun 2008
Message Posted: Nov 11, 2012 1:29:12 AM

not nearly enough
Profile Pic
DanMtz
Champion Author Oakland

Posts:5,983
Points:1,854,340
Joined:Oct 2009
Message Posted: Nov 10, 2012 11:06:46 AM

BP must have a vice president in charge of fines.
Profile Pic
millerin
Champion Author Orlando

Posts:4,415
Points:1,028,595
Joined:Jan 2012
Message Posted: Nov 10, 2012 7:13:51 AM

interesting
Profile Pic
MrLefty0706
Champion Author Chicago

Posts:4,019
Points:959,660
Joined:Apr 2012
Message Posted: Nov 9, 2012 5:27:10 PM

Will BP just pass the fine on to consumers?
Profile Pic
nsdp
Champion Author San Antonio

Posts:1,118
Points:77,285
Joined:Jun 2012
Message Posted: Nov 9, 2012 3:59:01 PM

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.
Profile Pic
sydb7
Champion Author Atlanta

Posts:5,398
Points:2,442,185
Joined:Mar 2003
Message Posted: Nov 9, 2012 3:41:58 PM

Interesting!
Profile Pic
Jebeahm
Champion Author Maryland

Posts:1,748
Points:904,030
Joined:Mar 2011
Message Posted: Nov 9, 2012 11:59:36 AM

Should be double
Profile Pic
CocoPaz
Champion Author Santa Barbara

Posts:6,605
Points:934,205
Joined:Jun 2012
Message Posted: Nov 9, 2012 11:39:13 AM

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.
Profile Pic
geezrtek
Champion Author Michigan

Posts:4,511
Points:811,020
Joined:Apr 2011
Message Posted: Nov 9, 2012 10:37:46 AM

Good.
Profile Pic
Point__man
Champion Author Raleigh

Posts:6,801
Points:1,430,090
Joined:Oct 2010
Message Posted: Nov 9, 2012 10:01:01 AM

Whew, glad this is done with ;)
Profile Pic
ModelWarships
Champion Author Missouri

Posts:7,508
Points:1,651,635
Joined:Jul 2008
Message Posted: Nov 9, 2012 9:43:20 AM

ouch
Profile Pic
tutaw
Champion Author Kentucky

Posts:5,978
Points:1,438,275
Joined:Sep 2008
Message Posted: Nov 9, 2012 9:37:52 AM

wow
Profile Pic
Tutootin
Champion Author Toronto

Posts:12,702
Points:3,680,075
Joined:Jun 2004
Message Posted: Nov 9, 2012 9:30:10 AM

charladan, Excellent point!
Profile Pic
Sethyl
Champion Author Miami

Posts:3,985
Points:929,865
Joined:Oct 2009
Message Posted: Nov 9, 2012 9:25:28 AM

Wow! I didn't know you could sue for that.
Profile Pic
Lologogo
Champion Author Twin Cities

Posts:2,937
Points:729,410
Joined:Sep 2011
Message Posted: Nov 9, 2012 9:24:36 AM

I wonder what the State of Alaska will be using their new found money for.
Profile Pic
Lairre
Champion Author Sacramento

Posts:7,235
Points:784,255
Joined:Oct 2012
Message Posted: Nov 9, 2012 9:24:07 AM

BP is still paying off claims from the Deepwater Horizon catastrophe. STOP BUYING BP!
Profile Pic
blazerbob91
Champion Author Milwaukee

Posts:7,090
Points:2,451,565
Joined:Aug 2005
Message Posted: Nov 9, 2012 9:20:33 AM

We all pay in the end
Profile Pic
jamie12704
All-Star Author Minnesota

Posts:928
Points:210,680
Joined:Sep 2012
Message Posted: Nov 9, 2012 9:19:31 AM

Something to think about
Profile Pic
firechief
Champion Author New York

Posts:4,309
Points:2,569,490
Joined:Mar 2004
Message Posted: Nov 9, 2012 9:16:20 AM

How is BP still in business
Profile Pic
dwbglb
Rookie Author Des Moines

Posts:48
Points:498,340
Joined:Apr 2012
Message Posted: Nov 9, 2012 9:14:39 AM

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.
Profile Pic
ifallsguy
Champion Author Arizona

Posts:6,300
Points:2,050,710
Joined:Apr 2007
Message Posted: Nov 9, 2012 9:09:21 AM

more money into the dividend program
Profile Pic
fightbigoil71
Champion Author Milwaukee

Posts:10,119
Points:2,134,670
Joined:Nov 2008
Message Posted: Nov 9, 2012 9:08:41 AM

Interesting, but the consumer will actually pay
Profile Pic
Somis1
Champion Author Ventura

Posts:16,266
Points:3,187,505
Joined:Jul 2005
Message Posted: Nov 9, 2012 9:08:41 AM

Great, but we know who eventually pays the bill.
Profile Pic
indyjim
Champion Author Indianapolis

Posts:13,738
Points:2,930,305
Joined:Jul 2006
Message Posted: Nov 9, 2012 9:08:30 AM

Slap on the wrist.
Profile Pic
redbeard47229
Champion Author Indiana

Posts:1,112
Points:72,640
Joined:Feb 2012
Message Posted: Nov 9, 2012 9:07:44 AM

another cost of doing business passed on to the user
Profile Pic
Black Wagon
Champion Author Illinois

Posts:9,729
Points:2,339,580
Joined:Mar 2004
Message Posted: Nov 9, 2012 9:07:14 AM

Don't buy gas from BP or you'll be paying for this.
Profile Pic
Taurus1
Champion Author Ohio

Posts:5,177
Points:2,183,430
Joined:Apr 2006
Message Posted: Nov 9, 2012 9:06:24 AM

Hope it goes to the right people in Alaska.
Profile Pic
buzzieNY
Champion Author Buffalo

Posts:5,443
Points:1,229,510
Joined:Jun 2011
Message Posted: Nov 9, 2012 9:05:55 AM

Good for Alaska,not good for the rest of us. They will pass the fines to us at the pump.
Profile Pic
jay93LA
Champion Author New Orleans

Posts:5,101
Points:1,203,570
Joined:Aug 2011
Message Posted: Nov 9, 2012 9:05:43 AM

you gotta watch BP
Profile Pic
TuanCanCook
Champion Author Los Angeles

Posts:227,538
Points:1,262,440
Joined:Jun 2011
Message Posted: Nov 9, 2012 9:05:30 AM

That's alot of bucks
Profile Pic
DarthDadJr
Champion Author Virginia

Posts:9,171
Points:2,059,365
Joined:Jul 2008
Message Posted: Nov 9, 2012 9:05:17 AM

What a deal...
Profile Pic
SpankyMI
Champion Author Kalamazoo

Posts:4,870
Points:1,320,650
Joined:Jan 2011
Message Posted: Nov 9, 2012 9:03:43 AM

Money for nothing, kicks for free.
Profile Pic
mreiff
Champion Author Louisville

Posts:7,841
Points:1,896,935
Joined:May 2009
Message Posted: Nov 9, 2012 9:03:39 AM

About time BP pays up.
Profile Pic
KingCLP009
Champion Author Philadelphia

Posts:2,834
Points:835,150
Joined:Mar 2007
Message Posted: Nov 9, 2012 9:03:16 AM

Alaska
Profile Pic
mattymattmatt
Champion Author Scranton

Posts:1,075
Points:854,760
Joined:Mar 2011
Message Posted: Nov 9, 2012 9:02:28 AM

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.
Profile Pic
LuthierKS
Champion Author Wichita

Posts:6,676
Points:1,311,500
Joined:Apr 2011
Message Posted: Nov 9, 2012 9:01:26 AM

This is a very odd award.
Profile Pic
lindact
Champion Author New Haven

Posts:11,225
Points:2,294,420
Joined:May 2008
Message Posted: Nov 9, 2012 9:01:19 AM

Pocket change...
Profile Pic
bonusround98
Veteran Author Minnesota

Posts:295
Points:101,825
Joined:Aug 2012
Message Posted: Nov 9, 2012 8:58:51 AM

Why?
Profile Pic
jeff95519
Champion Author California

Posts:5,021
Points:1,962,970
Joined:Sep 2008
Message Posted: Nov 9, 2012 8:58:23 AM

so then what
Profile Pic
truckpdlr
Champion Author Tucson

Posts:5,494
Points:1,703,335
Joined:Sep 2009
Message Posted: Nov 9, 2012 8:58:07 AM

Good for them
Profile Pic
el_fr
Champion Author Massachusetts

Posts:5,973
Points:1,358,455
Joined:Apr 2011
Message Posted: Nov 9, 2012 8:56:53 AM

Ok
Profile Pic
HoosierDaddyKY
Champion Author Kentucky

Posts:2,946
Points:699,545
Joined:Dec 2011
Message Posted: Nov 9, 2012 8:56:16 AM

Hmmm...
Profile Pic
Alaydown
Champion Author Los Angeles

Posts:6,871
Points:1,144,530
Joined:May 2007
Message Posted: Nov 9, 2012 8:56:14 AM

Obama should be fined millions also for this country's lost oil production.
Profile Pic
Yooperheart
Champion Author Michigan

Posts:6,505
Points:1,137,700
Joined:Feb 2010
Message Posted: Nov 9, 2012 8:56:13 AM

Go gettem... AK
Profile Pic
dopster
Champion Author Toledo

Posts:10,409
Points:2,901,425
Joined:Aug 2004
Message Posted: Nov 9, 2012 8:55:54 AM

Chump change for BP!
Profile Pic
zimowski
Champion Author San Jose

Posts:9,278
Points:2,194,315
Joined:Nov 2007
Message Posted: Nov 9, 2012 8:53:57 AM

Short on money, just beat up BP.
Profile Pic
Hybrid923
Sophomore Author Ottawa

Posts:206
Points:165,370
Joined:Aug 2012
Message Posted: Nov 9, 2012 8:53:49 AM

ok
Profile Pic
STLcardsfan
Champion Author St. Louis

Posts:1,069
Points:1,848,085
Joined:Apr 2006
Message Posted: Nov 9, 2012 8:52:33 AM

Good
Profile Pic
packards42
Champion Author Washington

Posts:8,853
Points:1,655,440
Joined:Feb 2005
Message Posted: Nov 9, 2012 8:52:25 AM

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]
Post a reply Back to Topics