A Texas state district court ordered BP PLC’s Chief Executive Officer John Browne to give a deposition regarding the Mar. 23, 2005, explosion and fire at the company’s 446,500 b/cd Texas City, Tex., refinery that killed 15 people and injured 170 others.
Separately, BP confirmed receiving questions from the US Commodity Futures Trading Commission in a civil investigation into whether the company manipulated oil and unleaded gasoline prices on global over-the-counter markets during 2003-04.
The fire and explosion occurred at BP’s Texas City refinery’s isomerization unit and involved the raffinate splitter and blowdown drum and stack. A jury trial is scheduled to begin Sept. 18 in Galveston, Tex., regarding plaintiffs’ claims that “gross negligence” by BP contributed to the accident.
Judge Susan Criss of the state 212th District Court ruled Aug. 21 that Browne and John Manzoni, BP Global refining and marketing chief, both must provide depositions in a lawsuit filed by accident survivors and the victims’ families.
BP will appeal the ruling, said a company spokesman, adding that Browne and Manzoni lack any unique knowledge about the accident. Plaintiffs’ attorneys already have access to BP executives having direct knowledge of the incident, he said.
Previously, BP settled with some victims. On Dec. 9, 2005, BP Products North America Inc. released its final incident investigation report on the explosion and fire (OGJ, Dec. 19, 2005, Newsletter).
BP’s ongoing troubles
During the last 18 months, in addition to the refinery accident and investigations into propane trading activity, BP has faced Alaskan oil pipeline spills and the partial shutdown of Prudhoe Bay oil field in Alaska (OGJ Online, June 29, 2006).
BP Exploration (Alaska) Inc. said on Aug. 25 that Prudhoe Bay production was reduced to 110,000 b/d from 200,000 b/d during a temporary shutdown of Gathering Center 2 to make mechanical repairs to a gas compressor.
On Aug. 29, BP reported production was more than 200,000 b/d. The field normally produces 400,000 b/d. Its Eastern Operating Area (EOA) remains shut down pending replacement of 16 miles of severely corroded oil transit line that resulted in a small spill (OGJ, Aug. 14, 2006, p. 26).
BP has completed ultrasonic inspections of 2,500 ft of pipe in the EOA, and 5,300 ft of pipe in the Western Operating Area (WOA). The company continues visual and infrared surveillance of the line to insure safe operations.
More than 15,000 ft of insulation has been stripped from oil transit lines in the EOA. BP temporarily halted removal of insulation from WOA transit lines to evaluate possible exposure of workers to asbestos. The transit line was built during the late 1970s.
