BP Ordered to Pay State of Alaska $255 Million Over Lost Royalties Due to Negligent Spills

A subsidiary BP 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 December 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.

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