BP sues US over contract ban

14th August 2013

Related Topics

Related tags

  • Pollution & Waste Management ,
  • Environment agencies ,
  • Energy



BP has launched a lawsuit against the US, claiming that the government's refusal to award any new work contracts to the oil and gas giant is "unjustified"

In November 2011, the US Environmental Protection Agency (EPA) announced it would not grant any new government contracts or funding to BP until the firm could demonstrate it was a “responsible company”.

The EPA banned the company from working for US federal authorities after BP pleaded guilty to 14 criminal offences related to the Deepwater Horizon disaster, which killed 11 people and released 4.9 million barrels of oil into the Gulf of Mexico.

The agency argued that BP did not meet the “required standards” necessary to work on new government oil and gas exploration contracts.

More than 18 months later, the ban, which also covers 21 of the company’s subsidiary companies, remains in place.

BP is now challenging this decision in the US district court, arguing that its exclusion from government contracts risks causing the company “irreparable harm”.

“We believe that the EPA's action here is inappropriate and unjustified as a matter of law and policy,” said Geoff Morrell, BP's head of US communications.

In July, BP estimated that cleanup, compensation and legal costs related to the Gulf of Mexico spill were going to cost the firm a total of $42.4 billion.

The oil giant is also fighting a separate legal battle over the amount of compensation claims being granted by the US courts in relation to the incident. BP is arguing that the authorities have “misinterpreted” its agreement for settlements and as a result “fictitious and inflated” claims were being rewarded.


Subscribe to IEMA's newsletters to receive timely articles, expert opinions, event announcements, and much more, directly in your inbox.

Transform articles

Latest environmental legislation round-up

Regulatory gaps between the EU and UK are beginning to appear, warns Neil Howe in this edition’s environmental legislation round-up

4th April 2024

Read more

Dr Julie Riggs issues a call to arms to tackle a modern-day human tragedy

15th March 2024

Read more

The UK’s new biodiversity net gain (BNG) requirements could create 15,000 hectares of woodlands, heath, grasslands, and wetlands and absorb 650,000 tonnes of carbon each year.

13th March 2024

Read more

Campaign group Wild Justice has accused the UK government of trying to relax pollution rules for housebuilders “through the backdoor”.

14th February 2024

Read more

Digital tracking, packaging data delays and new collections provide a waste focus for this edition’s environmental round-up by legislation expert Neil Howe

28th November 2023

Read more

Environmental crimes could result in prison sentences of up to 10 years and company fines of 5% of turnover under a proposed EU law agreed by the European parliament and council.

21st November 2023

Read more

Stuart McLachlan and Dean Sanders discuss their book: The Adventure of Sustainable Performance: Beyond ESG Compliance to Leadership in the New Era.

14th November 2023

Read more

Media enquires

Looking for an expert to speak at an event or comment on an item in the news?

Find an expert

IEMA Cookie Notice

Clicking the ‘Accept all’ button means you are accepting analytics and third-party cookies. Our website uses necessary cookies which are required in order to make our website work. In addition to these, we use analytics and third-party cookies to optimise site functionality and give you the best possible experience. To control which cookies are set, click ‘Settings’. To learn more about cookies, how we use them on our website and how to change your cookie settings please view our cookie policy.

Manage cookie settings

Our use of cookies

You can learn more detailed information in our cookie policy.

Some cookies are essential, but non-essential cookies help us to improve the experience on our site by providing insights into how the site is being used. To maintain privacy management, this relies on cookie identifiers. Resetting or deleting your browser cookies will reset these preferences.

Essential cookies

These are cookies that are required for the operation of our website. They include, for example, cookies that enable you to log into secure areas of our website.

Analytics cookies

These cookies allow us to recognise and count the number of visitors to our website and to see how visitors move around our website when they are using it. This helps us to improve the way our website works.

Advertising cookies

These cookies allow us to tailor advertising to you based on your interests. If you do not accept these cookies, you will still see adverts, but these will be more generic.

Save and close