By Abrahm Lustgarten: Two years after a series of gambles and ill-advised decisions on a BP drilling project led to the largest accidental oil spill in United States history and the death of 11 workers on the Deepwater Horizon oil rig, no one has been held accountable.

Sure, there have been about $8 billion in payouts and, in early March, the outlines of a civil agreement that will cost BP, the company ultimately responsible, another $7.8 billion in restitution to businesses and residents along the Gulf of Mexico. It’s also true the company has paid at least $14 billion more in cleanup and other costs since the accident began on April 20, 2010, bringing the expense of this fiasco to about $30 billion for BP. These are huge numbers. But this is a huge and profitable corporation.

What is missing is the accountability that comes from real consequences: a criminal prosecution that holds responsible the individuals who gambled with the lives of BP’s contractors and the ecosystem of the Gulf of Mexico. Only such an outcome can rebuild trust in an oil industry that asks for the public’s faith so that it can drill more along the nation’s coastlines. And perhaps only such an outcome can keep BP in line and can keep an accident like the Deepwater Horizon disaster from happening again.

BP has already tested the effectiveness of lesser consequences, and its track record proves that the most severe punishments the courts and the United States government have been willing to mete out amount to a slap on the wrist.

Prior to the gulf blowout, which spilled 200 million gallons of oil, BP was convicted of two felony environmental crimes and a misdemeanor: after it failed to report that its contractors were dumping toxic waste in Alaska in 1995; after its refinery in Texas City, Texas, exploded, killing 15, in 2005; and after it spilled more than 200,000 gallons of crude oil from a corroded pipeline onto the Alaskan tundra in 2006. In all, more than 30 people employed directly or indirectly by BP have died in connection with these and other recent accidents.

In at least two of those cases, the company had been warned of human and environmental dangers, deliberated the consequences and then ignored them, according to my reporting.

None of the upper-tier executives who managed BP 2014 John Browne and Tony Hayward among them 2014 were malicious. Their decisions, however, were driven by money. Neither their own sympathies nor the stark risks in their operations 2014 corroding pipelines, dysfunctional safety valves, disarmed fire alarms and so on 2014 could compete with the financial necessities of profit making.

Before the accident in Texas City, BP had declined to spend $150,000 to fix a part of the system that allowed gasoline to spew into the air and blow up. Documents show that the company had calculated the cost of a human life to be $10 million. Shortly before that disaster, a senior plant manager warned BP’s London headquarters that the plant was unsafe and a disaster was imminent. A report from early 2005 predicted that BP’s refinery would kill someone “within the next 12 to 18 months” unless it changed its practices.

Such explicit flirtation with deadly risk was undertaken as part of Mr. Browne’s effort while chief executive to expand BP as quickly as possible. Mr. Browne relentlessly cut costs, including on maintenance and safety. Then he hastily assembled a series of acquisitions and mergers between 1998 and 2001 that added tens of thousands of employees, blurred chains of command and wrought chaos on his operations. His methods 2014 and the demands of Wall Street 2014 became overly dependent on quantitative measures of success at the expense of environmental and human risk.

After each disaster, Mr. Browne pledged to refresh his focus on safety, investment in maintenance and commitment to the environment. His successor, Mr. Hayward, followed suit, saying that BP’s culture had to change. But the Deepwater Horizon tragedy 2014 which bears many of the same traits as the company’s past accidents 2014 shows how difficult it has been for the company’s leaders to shift BP’s corporate values and live up to their promises.

The question becomes: did they try hard enough, and did the mechanisms of oversight, regulation and law enforcement work sufficiently to provide a recidivist organization the deterrent that could guarantee its compliance?

After its previous convictions, BP paid unprecedented fines 2014 more than $70 million 2014 and committed to spend at least another $800 million on maintenance to improve safety. The point was to demonstrate that the cost of doing business wrong far outweighs the cost of doing business right. But without personal accountability, the fines become just another cost of doing business, William Miller, a former investigator for the Environmental Protection Agency who was involved in the Texas City case, told me.

The problem then (and perhaps now) is that it is the slow pileup of factors that cause an industrial disaster. Poor decisions are usually made incrementally by a range of people with differing levels of responsibility, and almost always behind a shield of plausible deniability. It makes it almost impossible to pin one clear-cut bad call on a single manager, which is partly why no BP official has ever been held criminally accountable.

Instead, the corporation is held accountable. It isn’t clear that charging the company repeatedly with misdemeanors and felonies has accomplished anything.

At more than $30 billion and climbing, the amount BP has paid out so far for reparations, lawsuits and cleanup dwarfs the roughly $8 billion that Exxon had to pay after its 1989 spill in Prince William Sound in Alaska. And BP will likely still pay billions more before this is finished.

And yet it is not enough. Two years after analysts questioned whether the extraordinary cost and loss of confidence might drive BP out of business, it has come roaring back. It collected more than $375 billion in 2011, pocketing $26 billion in profits.

What the gulf spill has taught us is that no matter how bad the disaster (and the environmental impact), the potential consequences have never been large enough to dissuade BP from placing profits ahead of prudence. That might change if a real person was forced to take responsibility 2014 or if the government brought down one of the biggest hammers in its arsenal and banned the company from future federal oil leases and permits altogether. Fines just don’t matter.
This story was originally published on Propublica and The New York Times

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By Abrahm Lustgarten: BP’s refining subsidiary was released today from criminal probation related to a 2005 explosion in Texas City that killed 15 workers.

The company has addressed the most serious safety deficiencies exposed by the accident and satisfied the terms of a felony plea agreement to settle charges that it failed to protect workers from known risks, a U.S. Justice Department spokesman said.

The move closes a controversial chapter for the company, but it leaves an array of worker-safety issues unresolved. BP is still negotiating over more than 400 additional violations brought against its Texas City refinery separately from the criminal case.

Following the explosion, the U.S. Occupational Safety and Health Administration and BP reached a settlement requiring the company to address safety issues at the refinery. Fixing those problems became one of the Justice Department’s conditions for settling felony charges relating to the explosion and for ending the three-year probation period.

In late 2009, however, after a series of inspections, OSHA determined that BP had not addressed many of its safety lapses and levied 270 additional violations and a $87.4 million fine. It also hit the company with another 439 additional “egregious and willful” safety violations at the refinery that were not a component of the criminal case.

At issue then was whether the company had violated some of the most important terms of its probation even after it was given a second chance. In 2010, BP settled with OSHA, paying the agency $50.6 million and committing to making substantive safety changes by the court-set sunset of its probation period today (March 12).

A Justice Department spokesman said BP has met its obligations for probation, including addressing the 270 violations. The remaining 400 or so OSHA violations, however, were not specific to the Texas City agreement.

“These violations were unrelated to the 2005 settlement agreement and did not in the Department’s view rise to criminal conduct,” said Wyn Hornbuckle, an agency spokesman, in a statement to ProPublica. “The Department did not seek any extension or revocation of BP’s criminal probation.”

The resolution of those remaining violations will be dealt with administratively, by OSHA, Hornbuckle said, and not by the courts.

As the probation expired, confusion remained about exactly what improvements BP had made at its refineries. According to the 2010 agreement with OSHA, BP pledged to address the risk of catastrophic chemical releases and to install new protective equipment and instrument systems across the sprawling refinery’s 28 units.

It was not clear how much progress the company had made, however, and BP spokesman Daren Beaudo characterized the OSHA issues as Unresolved.

“We continue to work with OSHA to resolve these issues,” Beaudo wrote in an email. BP declined to say whether it had made any of the specific improvements listed in its 2010 settlement agreement, or to say how much money it had invested at the Texas City plant to meet the terms of its agreement with OSHA.

A spokeswoman for OSHA said the agency remained in negotiations with the company.

In an email exchange, OSHA told ProPublica that the agency could not provide copies of any of the quarterly progress reports that BP had agreed to submit, and that it was “unable” to specify how many of its outstanding violations BP had addressed.

On March 23, 2005, a facility used to distill gasoline and boost its octane content was overfilled by BP workers, spewing a geyser of flammable liquid into the air. The subsequent explosion destroyed an office trailer nearby, killed 15 workers, and sent nearly 200 more to area hospitals.

Like the investigations into BP’s Deepwater Horizon accident in the Gulf of Mexico in 2010, a series of reports analyzing the refinery disaster found that the company had failed to follow basic steps to avert a disaster, had not installed or maintained equipment that would have helped prevent the leak and the explosion, and generally had a poor safety approach.

A 2010 investigation by ProPublica found that in the years before the explosion, BP had been repeatedly warned that its facilities were in need of repair, and the company had declined to replace ailing equipment 2014 including the unit that failed the day of the explosion 2014 in order to cut costs.

Documents obtained by ProPublica showed that an internal BP report shortly before the disaster said that employees at the plant worked with “an exceptional degree of fear.” The report warned that the plant might “kills (sic) someone in the next 12-18 months.”

The Texas refinery, which produces about 3 percent of the country’s gasoline, continued to have problems after the explosion. Several more workers died in accidents, and in 2010, the plant was found emitting a huge cloud of unpermitted toxic emissions.

After the toxic release, the Texas Commission on Environmental Quality (TCEQ), Texas’s chief environmental regulator, charged the company with emissions reporting violations and alleged it had violated the terms of its probation with the federal government. BP settled that case, as well as an another similar emissions violation, with Texas in late 2011.

That left the criminal probation period and the outstanding OSHA violations as the final chapters in the Texas City saga.

BP has endeavored to keep the Texas City accident separate from claims and ongoing investigations into its 2010 oil spill in the Gulf of Mexico. As recently as two weeks ago, the company’s lawyers argued in court that past accidents should have no bearing on a trial to decide liability for the Deepwater Horizon explosion that killed 11 workers.

BP sought to strike portions of testimony about Texas City and other past incidents from its former CEO, Tony Hayward, in depositions that would be admitted to the court.

BP announced last year that it would sel

l its Texas City refinery along with another facility outside Los Angeles. The company said this week it has suitors and expects to complete a sale by year’s end.

This article was originally published on ProPublica

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