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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:5,630 Points:1,145,170 Joined:Mar 2008	Message Posted: Nov 10, 2012 11:54:11 PM 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:7,079 Points:1,630,050 Joined:Jun 2008	Message Posted: Nov 10, 2012 11:29:12 PM Ignore DrCashFlow Report Abuse not nearly enough
DanMtz Champion Author Oakland Posts:3,370 Points:1,246,350 Joined:Oct 2009	Message Posted: Nov 10, 2012 9:06:46 AM Ignore DanMtz Report Abuse BP must have a vice president in charge of fines.
millerin Champion Author Orlando Posts:2,322 Points:483,915 Joined:Jan 2012	Message Posted: Nov 10, 2012 5:13:51 AM Ignore millerin Report Abuse interesting
MrLefty0706 Champion Author Chicago Posts:1,459 Points:354,010 Joined:Apr 2012	Message Posted: Nov 9, 2012 3:27:10 PM Ignore MrLefty0706 Report Abuse Will BP just pass the fine on to consumers?
nsdp Champion Author San Antonio Posts:1,117 Points:47,340 Joined:Jun 2012	Message Posted: Nov 9, 2012 1:59:01 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:3,563 Points:1,920,900 Joined:Mar 2003	Message Posted: Nov 9, 2012 1:41:58 PM Ignore sydb7 Report Abuse Interesting!
Jebeahm Champion Author Maryland Posts:1,252 Points:461,030 Joined:Mar 2011	Message Posted: Nov 9, 2012 9:59:36 AM Ignore Jebeahm Report Abuse Should be double
CocoPaz Champion Author Santa Barbara Posts:2,385 Points:325,345 Joined:Jun 2012	Message Posted: Nov 9, 2012 9:39:13 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:1,922 Points:432,410 Joined:Apr 2011	Message Posted: Nov 9, 2012 8:37:46 AM Ignore geezrtek Report Abuse Good.
Point__man Champion Author Raleigh Posts:4,350 Points:880,620 Joined:Oct 2010	Message Posted: Nov 9, 2012 8:01:01 AM Ignore Point__man Report Abuse Whew, glad this is done with ;)
ModelWarships Champion Author Missouri Posts:5,805 Points:1,234,035 Joined:Jul 2008	Message Posted: Nov 9, 2012 7:43:20 AM Ignore ModelWarships Report Abuse ouch
tutaw Champion Author Kentucky Posts:3,623 Points:845,670 Joined:Sep 2008	Message Posted: Nov 9, 2012 7:37:52 AM Ignore tutaw Report Abuse wow
Tutootin Champion Author Toronto Posts:10,136 Points:3,080,355 Joined:Jun 2004	Message Posted: Nov 9, 2012 7:30:10 AM Ignore Tutootin Report Abuse charladan, Excellent point!
Sethyl Champion Author Miami Posts:1,768 Points:380,390 Joined:Oct 2009	Message Posted: Nov 9, 2012 7:25:28 AM Ignore Sethyl Report Abuse Wow! I didn't know you could sue for that.
Lologogo Champion Author Twin Cities Posts:1,314 Points:356,390 Joined:Sep 2011	Message Posted: Nov 9, 2012 7:24:36 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:3,062 Points:190,185 Joined:Oct 2012	Message Posted: Nov 9, 2012 7:24:07 AM Ignore Lairre Report Abuse BP is still paying off claims from the Deepwater Horizon catastrophe. STOP BUYING BP!
blazerbob91 Champion Author Milwaukee Posts:6,160 Points:1,886,595 Joined:Aug 2005	Message Posted: Nov 9, 2012 7:20:33 AM Ignore blazerbob91 Report Abuse We all pay in the end
jamie12704 All-Star Author Minnesota Posts:585 Points:139,640 Joined:Sep 2012	Message Posted: Nov 9, 2012 7:19:31 AM Ignore jamie12704 Report Abuse Something to think about
firechief Champion Author New York Posts:3,456 Points:2,069,075 Joined:Mar 2004	Message Posted: Nov 9, 2012 7:16:20 AM Ignore firechief Report Abuse How is BP still in business
dwbglb Rookie Author Des Moines Posts:46 Points:247,600 Joined:Apr 2012	Message Posted: Nov 9, 2012 7:14:39 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:5,180 Points:1,553,670 Joined:Apr 2007	Message Posted: Nov 9, 2012 7:09:21 AM Ignore ifallsguy Report Abuse more money into the dividend program
fightbigoil71 Champion Author Milwaukee Posts:7,577 Points:1,548,580 Joined:Nov 2008	Message Posted: Nov 9, 2012 7:08:41 AM Ignore fightbigoil71 Report Abuse Interesting, but the consumer will actually pay
Somis1 Champion Author Ventura Posts:13,701 Points:2,617,700 Joined:Jul 2005	Message Posted: Nov 9, 2012 7:08:41 AM Ignore Somis1 Report Abuse Great, but we know who eventually pays the bill.
indyjim Champion Author Indianapolis Posts:10,111 Points:2,322,355 Joined:Jul 2006	Message Posted: Nov 9, 2012 7:08:30 AM Ignore indyjim Report Abuse Slap on the wrist.
redbeard47229 All-Star Author Indiana Posts:675 Points:43,045 Joined:Feb 2012	Message Posted: Nov 9, 2012 7:07:44 AM Ignore redbeard47229 Report Abuse another cost of doing business passed on to the user
Black Wagon Champion Author Illinois Posts:7,327 Points:1,805,695 Joined:Mar 2004	Message Posted: Nov 9, 2012 7:07:14 AM Ignore Black Wagon Report Abuse Don't buy gas from BP or you'll be paying for this.
Taurus1 Champion Author Ohio Posts:3,140 Points:1,677,175 Joined:Apr 2006	Message Posted: Nov 9, 2012 7:06:24 AM Ignore Taurus1 Report Abuse Hope it goes to the right people in Alaska.
buzzieNY Champion Author Buffalo Posts:2,909 Points:638,480 Joined:Jun 2011	Message Posted: Nov 9, 2012 7:05:55 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:2,464 Points:602,635 Joined:Aug 2011	Message Posted: Nov 9, 2012 7:05:43 AM Ignore jay93LA Report Abuse you gotta watch BP
TuanCanCook Champion Author Los Angeles Posts:12,895 Points:660,440 Joined:Jun 2011	Message Posted: Nov 9, 2012 7:05:30 AM Ignore TuanCanCook Report Abuse That's alot of bucks
DarthDadJr Champion Author Virginia Posts:7,322 Points:1,524,245 Joined:Jul 2008	Message Posted: Nov 9, 2012 7:05:17 AM Ignore DarthDadJr Report Abuse What a deal...
SpankyMI Champion Author Kalamazoo Posts:2,723 Points:762,205 Joined:Jan 2011	Message Posted: Nov 9, 2012 7:03:43 AM Ignore SpankyMI Report Abuse Money for nothing, kicks for free.
mreiff Champion Author Louisville Posts:5,362 Points:1,306,515 Joined:May 2009	Message Posted: Nov 9, 2012 7:03:39 AM Ignore mreiff Report Abuse About time BP pays up.
KingCLP009 All-Star Author Philadelphia Posts:804 Points:378,655 Joined:Mar 2007	Message Posted: Nov 9, 2012 7:03:16 AM Ignore KingCLP009 Report Abuse Alaska
mattymattmatt All-Star Author Scranton Posts:891 Points:367,005 Joined:Mar 2011	Message Posted: Nov 9, 2012 7:02:28 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:3,764 Points:732,855 Joined:Apr 2011	Message Posted: Nov 9, 2012 7:01:26 AM Ignore LuthierKS Report Abuse This is a very odd award.
lindact Champion Author New Haven Posts:8,751 Points:1,719,895 Joined:May 2008	Message Posted: Nov 9, 2012 7:01:19 AM Ignore lindact Report Abuse Pocket change...
bonusround98 Sophomore Author Minnesota Posts:201 Points:82,220 Joined:Aug 2012	Message Posted: Nov 9, 2012 6:58:51 AM Ignore bonusround98 Report Abuse Why?
jeff95519 Champion Author California Posts:2,467 Points:1,357,165 Joined:Sep 2008	Message Posted: Nov 9, 2012 6:58:23 AM Ignore jeff95519 Report Abuse so then what
truckpdlr Champion Author Tucson Posts:2,964 Points:1,099,020 Joined:Sep 2009	Message Posted: Nov 9, 2012 6:58:07 AM Ignore truckpdlr Report Abuse Good for them
el_fr Champion Author Massachusetts Posts:3,352 Points:747,625 Joined:Apr 2011	Message Posted: Nov 9, 2012 6:56:53 AM Ignore el_fr Report Abuse Ok
HoosierDaddyKY Champion Author Kentucky Posts:1,277 Points:298,135 Joined:Dec 2011	Message Posted: Nov 9, 2012 6:56:16 AM Ignore HoosierDaddyKY Report Abuse Hmmm...
Alaydown Champion Author Los Angeles Posts:5,131 Points:825,570 Joined:May 2007	Message Posted: Nov 9, 2012 6:56:14 AM Ignore Alaydown Report Abuse Obama should be fined millions also for this country's lost oil production.
Yooperheart Champion Author Michigan Posts:3,435 Points:529,950 Joined:Feb 2010	Message Posted: Nov 9, 2012 6:56:13 AM Ignore Yooperheart Report Abuse Go gettem... AK
dopster Champion Author Toledo Posts:7,293 Points:2,295,175 Joined:Aug 2004	Message Posted: Nov 9, 2012 6:55:54 AM Ignore dopster Report Abuse Chump change for BP!
zimowski Champion Author San Jose Posts:6,686 Points:1,587,390 Joined:Nov 2007	Message Posted: Nov 9, 2012 6:53:57 AM Ignore zimowski Report Abuse Short on money, just beat up BP.
Hybrid923 Sophomore Author Ottawa Posts:198 Points:143,010 Joined:Aug 2012	Message Posted: Nov 9, 2012 6:53:49 AM Ignore Hybrid923 Report Abuse ok
STLcardsfan Champion Author St. Louis Posts:1,039 Points:1,376,810 Joined:Apr 2006	Message Posted: Nov 9, 2012 6:52:33 AM Ignore STLcardsfan Report Abuse Good
packards42 Champion Author Washington Posts:6,452 Points:1,130,340 Joined:Feb 2005	Message Posted: Nov 9, 2012 6:52:25 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]