Safety Violations and Fines Did Not Deter BP and Massey Disasters

by: Joshua Frank, t r u t h o u t | Report

Safety Violations and Fines Did Not Deter BP and Massey Disasters
(Image: Lance Page / t r u t h o u t; Adapted: gaelx, futureatlas.com, Ravages)

When natural resource industry giants get hit with worker safety and environmental violations, they open their checkbook, pay a fine and go on operating as per usual.

At least that's the lesson learned from the recent Massey Energy deadly mine explosion and British Petroleum's (BP) massive oil spill. Both companies have paid millions in fines in recent years, yet, have gone on with their business as usual.

"Violations are, you know, unfortunately, a normal part of the mining process. You know, you have inspections every day," said Massey CEO Don Blankenship on MetroNews Radio shortly after the disaster. "And it's hard to differentiate sometimes between, you know, head count or number counts on violations and, you know, the seriousness or type of it."

According to Blankenship, these violations are simply something we should all accept. In all, Massey was levied over 1,300 safety violations at its Upper Branch Mine where 29 miners died horrific and arguably preventable, deaths in April. It appears these fines are just a part of doing business instead of an effective method of enforcing the law.

Data from the Mine Safety and Health Administration (MSHA) shows that Upper Big Branch Mine had six violations related to ventilation since January of this year and four since mid-March.

Last year, the mine had 50 "unwarrantable failure citations," which are the most serious acts of negligence a mine inspector can ticket a mining company. In 2009, MSHA had also proposed 458 total safety violations, which racked up $900,000 in fines.

But if you thought Massey's rap sheet was long, take a peak at BP's list of documented mishaps.

Transocean, which oversees 141 oil rigs around the globe, manages BP's Deepwater Horizon rig that claimed the lives of 11 workers and continues to leak thousands of barrels of oil into the Gulf of Mexico daily. The company operates 15 other oil rigs in the Gulf, yet, avoids paying a single royalty to US taxpayers.

BP also owes US citizens for its law breaking ways. Since 2005, the oil company has paid the US government $485 million in fines and settlements for "willful neglect of worker safety rules and penalties for manipulating energy markets." BP is the most heavily fined energy company in the United States.

"We need to consider whether or not [BP's] Corporate Charter in the United States needs to be revoked," Tyson Slocum, the director of energy for Public Citizen, a Washington, DC, based citizen advocacy group, said on Free Speech radio. "We need to consider whether or not its rights to win leases on public lands should be revoked."

In 2009, the British-based company paid $87.43 million for a single Occupational Safety and Health Administration (OSHA) violation for willful negligence that led to the deaths of 15 workers in a 2005 explosion at a Texas refinery. BP handed over $50 million to the Department of Justice (DOJ) for the same crime.

In 2006, an oil leak at a BP pipeline in Prudhoe Bay, Alaska, resulted in a $20 million settlement for alleged Clean Water Act violations.

"The Texas and Alaska cases illustrate the twin pillars of environmental enforcement: first, protecting human life and health and, second, protecting our natural resources," said Acting Assistant Attorney General Ronald J. Tenpas of the DOJ's Environment and Natural Resources Division. "BP cut corners with disastrous consequences for both and is being held to account."

Despite the DOJ's claim that BP is "being held to account," just last month, the company paid another $3 million fine for42 worker safety violations at a company refinery in Ohio. In fact, if BP were an actual person it would have spent time in prison, as the company has been levied two separate felony charge for violating the Clean Air and Water Acts.

"We need to get tough on corporations that fail to comply with US laws and regulations," said Slocum of Public Citizen.

Federal fines have not put an end to BP's egregious environmental and worker safety violations. But consumer advocate Ralph Nader takes it a bit further, claiming that manslaughter charges ought to be considered for Massey Energy.

"In the last month, MSHA has filed a dozen citations specifically alleging the mines failure to properly ventilate the lethal, highly volatile methane gas," Nader recently wrote in response to Massey's Upper Branch Mine explosion. "That is why affected people are wondering whether any district attorneys will have the will and an adequate budget to charge Massey officials with 'involuntary manslaughter,' should the findings of the completed investigation meet the statutory definition."

Creative Commons License
This work by Truthout is licensed under a Creative Commons Attribution-Noncommercial 3.0 United States License.





     

»



Joshua Frank is the author of Left Out! How Liberals Helped Reelect George W. Bush (Common Courage Press, 2005), and along with Jeffrey St. Clair, the editor of Red State Rebels: Tales of Grassroots Resistance in the Heartland (AK Press, 2008). Frank is also the co-author with St. Clair of the forthcoming Green Scare: The New War on Environmentalism (Haymarket Books, 2010)


Comments

This forum is moderated by software. Please allow up to 15 minutes for your comments to go live and avoid posting the same comment multiple times.



Prob is

Prob is GreatAmericanDeregulation has not updated fines cost to keep them purposeful-> the fine is the cost of the fine is more than the correction, & TO MAKE I NOT PROFITABLE TO continue the behavior. For these business, cheaper to pay the fine & carryon practice as usual. Low fines are not an incentive to change, progress, or upgrade in any way. Compare these to speeding violations & you get the point. Also there is an inclusion of deaths being civil matters & subject only to fines: this is an error--death carries a criminal penalty that citizen drivers do not have the privilege to escape so why do business bosses have this privilege?



BP is not just greedy and

BP is not just greedy and negligent. They are haters of the earth and of all things vulnerable and living - cocky Republican Devils worthy of the death penalty for all the lives and organisms that have died at their ugly hands.



First, the fines are large

First, the fines are large enough, that's obvious. Start at 10% of gross profits averaged over the past 3 years and go up w/repeat violations, that way the fine amount keeps place w/inflation.

Second, how many of these fines are actually collected? Last time I saw any information about fines was at the end of the Bush administration & the GAO said the feds were collecting maybe 12% of fines. Quite often the fines were reduced or just never collected. Maybe no more negotiating these types of corporate fines downwards and they must get collected or the regulatory agency is in trouble. Might help to beef up the corporate tax department of the IRS, it's been obvious since Bush I that one way the feds were giving tax breaks to the wealthy & corporate was to cut back on IRS personnel--the then IRS Commissioner was quoted in the Wall St. Journal as saying that the IRS didn't have the staff to review corporate tax returns for large corporations like Exxon, because they didn't have the staff. Just another area of cutbacks that started during the Reagan administration.

But if you've got a simple return, relatively, then it goes through a computer & is checked.

we have high UE, I bet some of those UE are CPAs, maybe some forensic CPAs. It's not like partial solutions to the problems aren't pretty easy--like hiring more IRS employees for the specific purpose of providing the same level of scrutiny to corporate tax returns of large corporations that is afforded to middle class/lower class tax returns.

Like imposing fines of a size commensurate w/the profits a corporation estimates it will gain from the risky behavior. You have to make the behavior too risky and too costly to be worth engaging in. Simple.

Who's heard of anyone currently in Congress or the White House suggesting any of these solutions?

Forget these stupid panels and congressional investigations, they're all toothless. Put some teeth in the laws and then enforce them.



Sorry, it should say, first

Sorry, it should say, first the fines aren't large enough.



When a corporation commits a

When a corporation commits a huge crime, such as mass murder (which both of these events were), since they are persons, according to the Supreme Court, they should be treated the same as any person would. Isolated from society (not allowed to do any more business), or executed (completely dissolved). If they have the rights of people, they must also take on the responsibilities.



Diskuzni ceske forum

Ceske forum

Ahoj, chci Vas poprosit o recenzi meho noveho fora http://www.ceskeforum.com/.
Zalozili jsme ho asi pred dvema mesici.

Nejvice se soustredime na temata Internetova reklama, Vydelek na internetu, Zvyseni navstevnosti, zpetne odkazy a take pocitace.

Dekuji moc za prilezitost napsat sem mou zpravu.