Browsing: BP

The revamped Minerals Management Service is wasting no time showing the oil and natural gas industry that a new day has dawned. The Interior Department’s Bureau of Ocean Energy Management, Regulation and Enforcement — created last month in the wake of April’s catastrophic oil spill in the Gulf of Mexico — assessed a $5.2 million civil penalty on BP America for submitting “false, inaccurate and misleading reports” about energy production on Southern Ute Indian Tribal lands in southwestern Colorado, bureau director Michael Bromwich said today. BP reported incorrect royalty rates and prices to the department and also attributed oil and gas…

The Wall Street Journal speculates on possible punishments for BP, saying that the government could go beyond fines and bar the company from receiving federal contracts. BP is the single biggest supplier of fuel to the Department of Defense, with Pentagon contracts worth $2.2 billion a year, the Journal reports. BP has plenty to be worried about right now, but losing the right to bid on U.S. government contracts is probably fairly low on the list. The Gulf spill doesn’t have anything to do with a federal contract, so a suspension or debarment action would just be vindictive — and…