Reuters AlertNet Lite - Texas blast victims seek $1 bln fine against BP

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Texas blast victims seek $1 bln fine against BP

20 Nov 2007 21:21:20 GMT
Source: Reuters

HOUSTON, Nov 20 (Reuters) - Some victims of the 2005 fatal explosion at BP Plc's <BP.L> refinery in Texas City, Texas, asked a judge on Tuesday to impose a $1 billion fine in exchange for the company's agreement to plead guilty to one felony, their lawyer said.

In a motion filed in U.S. District Court in Houston, attorney David Perry said 12 victims objected to the $50 million fine the judge was considering for one felony violation of the Clean Air Act agreed to by prosecutors and BP and announced Oct. 25.

Fifteen workers died and more than 170 were injured in the accident on March 23, 2005, which investigators blamed on inadequate operating practices and poor maintenance.

A BP spokesman declined to comment.

Formal sentencing was scheduled for Nov. 27, and Perry said he wanted to make his arguments for a greater fine in person to the court that day.

Perry said BP made $1 billion in profits in the 14 months before the accident and should forfeit that money.

"Letting BP keep a billion in profits makes a mockery of the notion crime does not pay," Perry said.

The filing also asked that U.S. District Judge Gray Miller, who is presiding over the case, be disqualified because, at the time of the accident, he was a partner in Fulbright & Jaworski, the Houston law firm that represented BP in legal proceedings arising from the blast.

BP, in a separate settlement also announced on Oct. 25, agreed to pay $303 million to settle U.S. allegations it manipulated the price of propane in 2004.

The company also will plead guilty to environmental crimes in Alaska pipeline leaks in 2006 and pay $20 million in fines and restitution. (Reporting by Bruce Nichols; editing by Walter Bagley)

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Last updated:Tue Nov 20 21:20:35 2007