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GasBuddy News Article

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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
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
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NedW
Champion Author Indianapolis

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Message Posted: Nov 10, 2012 11:54:11 PM

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

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Message Posted: Nov 10, 2012 11:29:12 PM

not nearly enough
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DanMtz
Champion Author Oakland

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Message Posted: Nov 10, 2012 9:06:46 AM

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

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Message Posted: Nov 10, 2012 5:13:51 AM

interesting
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MrLefty0706
Champion Author Chicago

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Message Posted: Nov 9, 2012 3:27:10 PM

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

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Message Posted: Nov 9, 2012 1:59:01 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.
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sydb7
Champion Author Atlanta

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Message Posted: Nov 9, 2012 1:41:58 PM

Interesting!
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Jebeahm
Champion Author Maryland

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Message Posted: Nov 9, 2012 9:59:36 AM

Should be double
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CocoPaz
Champion Author Santa Barbara

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Message Posted: Nov 9, 2012 9:39:13 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.
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geezrtek
Champion Author Michigan

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Message Posted: Nov 9, 2012 8:37:46 AM

Good.
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Point__man
Champion Author Raleigh

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Message Posted: Nov 9, 2012 8:01:01 AM

Whew, glad this is done with ;)
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ModelWarships
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Message Posted: Nov 9, 2012 7:43:20 AM

ouch
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tutaw
Champion Author Kentucky

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Message Posted: Nov 9, 2012 7:37:52 AM

wow
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Tutootin
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Message Posted: Nov 9, 2012 7:30:10 AM

charladan, Excellent point!
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Sethyl
Champion Author Miami

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Message Posted: Nov 9, 2012 7:25:28 AM

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

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Message Posted: Nov 9, 2012 7:24:36 AM

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

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Message Posted: Nov 9, 2012 7:24:07 AM

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

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Message Posted: Nov 9, 2012 7:20:33 AM

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

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Message Posted: Nov 9, 2012 7:19:31 AM

Something to think about
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firechief
Champion Author New York

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Message Posted: Nov 9, 2012 7:16:20 AM

How is BP still in business
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dwbglb
Rookie Author Des Moines

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Message Posted: Nov 9, 2012 7:14:39 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.
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ifallsguy
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Message Posted: Nov 9, 2012 7:09:21 AM

more money into the dividend program
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fightbigoil71
Champion Author Milwaukee

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Message Posted: Nov 9, 2012 7:08:41 AM

Interesting, but the consumer will actually pay
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Somis1
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Message Posted: Nov 9, 2012 7:08:41 AM

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

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Message Posted: Nov 9, 2012 7:08:30 AM

Slap on the wrist.
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redbeard47229
Champion Author Indiana

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Message Posted: Nov 9, 2012 7:07:44 AM

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

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Message Posted: Nov 9, 2012 7:07:14 AM

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

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Message Posted: Nov 9, 2012 7:06:24 AM

Hope it goes to the right people in Alaska.
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buzzieNY
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Message Posted: Nov 9, 2012 7:05:55 AM

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

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Message Posted: Nov 9, 2012 7:05:43 AM

you gotta watch BP
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TuanCanCook
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Message Posted: Nov 9, 2012 7:05:30 AM

That's alot of bucks
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DarthDadJr
Champion Author Virginia

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Message Posted: Nov 9, 2012 7:05:17 AM

What a deal...
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SpankyMI
Champion Author Kalamazoo

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Message Posted: Nov 9, 2012 7:03:43 AM

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

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Message Posted: Nov 9, 2012 7:03:39 AM

About time BP pays up.
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KingCLP009
Champion Author Philadelphia

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Message Posted: Nov 9, 2012 7:03:16 AM

Alaska
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mattymattmatt
Champion Author Scranton

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Message Posted: Nov 9, 2012 7:02:28 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.
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LuthierKS
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Message Posted: Nov 9, 2012 7:01:26 AM

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

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Message Posted: Nov 9, 2012 7:01:19 AM

Pocket change...
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bonusround98
Veteran Author Minnesota

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Message Posted: Nov 9, 2012 6:58:51 AM

Why?
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jeff95519
Champion Author California

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Message Posted: Nov 9, 2012 6:58:23 AM

so then what
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truckpdlr
Champion Author Tucson

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Message Posted: Nov 9, 2012 6:58:07 AM

Good for them
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el_fr
Champion Author Massachusetts

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Message Posted: Nov 9, 2012 6:56:53 AM

Ok
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HoosierDaddyKY
Champion Author Kentucky

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Message Posted: Nov 9, 2012 6:56:16 AM

Hmmm...
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Alaydown
Champion Author Los Angeles

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Message Posted: Nov 9, 2012 6:56:14 AM

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

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Message Posted: Nov 9, 2012 6:56:13 AM

Go gettem... AK
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dopster
Champion Author Toledo

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Message Posted: Nov 9, 2012 6:55:54 AM

Chump change for BP!
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zimowski
Champion Author San Jose

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Message Posted: Nov 9, 2012 6:53:57 AM

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

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Message Posted: Nov 9, 2012 6:53:49 AM

ok
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STLcardsfan
Champion Author St. Louis

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Message Posted: Nov 9, 2012 6:52:33 AM

Good
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packards42
Champion Author Washington

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Message Posted: Nov 9, 2012 6:52:25 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]
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