OK

This is only a Preview!

You must Publish this diary to make this visible to the public,
or click 'Edit Diary' to make further changes first.

Posting a Diary Entry

Daily Kos welcomes blog articles from readers, known as diaries. The Intro section to a diary should be about three paragraphs long, and is required. The body section is optional, as is the poll, which can have 1 to 15 choices. Descriptive tags are also required to help others find your diary by subject; please don't use "cute" tags.

When you're ready, scroll down below the tags and click Save & Preview. You can edit your diary after it's published by clicking Edit Diary. Polls cannot be edited once they are published.

If this is your first time creating a Diary since the Ajax upgrade, before you enter any text below, please press Ctrl-F5 and then hold down the Shift Key and press your browser's Reload button to refresh its cache with the new script files.

ATTENTION: READ THE RULES.

  1. One diary daily maximum.
  2. Substantive diaries only. If you don't have at least three solid, original paragraphs, you should probably post a comment in an Open Thread.
  3. No repetitive diaries. Take a moment to ensure your topic hasn't been blogged (you can search for Stories and Diaries that already cover this topic), though fresh original analysis is always welcome.
  4. Use the "Body" textbox if your diary entry is longer than three paragraphs.
  5. Any images in your posts must be hosted by an approved image hosting service (one of: imageshack.us, photobucket.com, flickr.com, smugmug.com, allyoucanupload.com, picturetrail.com, mac.com, webshots.com, editgrid.com).
  6. Copying and pasting entire copyrighted works is prohibited. If you do quote something, keep it brief, always provide a link to the original source, and use the <blockquote> tags to clearly identify the quoted material. Violating this rule is grounds for immediate banning.
  7. Be civil. Do not "call out" other users by name in diary titles. Do not use profanity in diary titles. Don't write diaries whose main purpose is to deliberately inflame.
For the complete list of DailyKos diary guidelines, please click here.

Please begin with an informative title:

The EPA has temporarily suspended BP from entering into new contracts with the federal government due to BP's criminal conduct in the Deepwater Horizon disaster. Existing contracts will not be suspended. The EPA has determined that BP lacks business integrity and BP fails to meet federal business standards. The EPA is requiring BP to show sufficient evidence that it meets federal business standards to get the suspension lifted.

BP continues to be the largest supplier of petroleum products to the U.S. military. This suspension would stop BP from receiving new military contracts if the military does not get a waiver. Despite BP's reckless actions in the Deepwater Horizon disaster, the value of BP's military contracts increased substantially in 2011.

The company in fiscal year 2011 was the Defense Department’s biggest fuel supplier with awards valued at about $1.35 billion. Its contracts with the military surged 33 percent from $1.02 billion in the previous year, according to data compiled by Bloomberg.
BP's stock dropped over 1% in London after the announcement, but the U.S. military's demand for oil will continue. The military may request a waiver because it has become dependent on BP's supplies. Moreover, this suspension may have little long-term effect on BP because oil is a commodity sold on world markets. To date the financial penalties are a small percentage of profits which can be treated as a cost of business. Previous penalties have been ineffective at changing BP's culture of recklessness. The disaster in the Gulf was the third major accident that BP was involved in over recent years, not a one of a kind event. In 2009 15 men were killed in a BP refinery explosion in Texas and in 2008 BP had a major pipeline spill in Alaska due to poor maintenance.

The EPA's actions today are significant, but until executives are held personally responsible for criminal actions by BP, there is little reason to expect BP to change its corporate culture. If the deaths of 15 workers in Texas didn't spur BP to improve safety, financial penalties that are a modest percentage of profits cannot be expected to bring change.

Release Date: 11/28/2012
Contact Information: Stacy Kika, kika.stacy@epa.gov, 202-564-0906, 202-564-4355

WASHINGTON - The U.S. Environmental Protection Agency (EPA) today announced that it has temporarily suspended BP Exploration and Production, Inc., BP PLC and named affiliated companies (BP) from new contracts with the federal government. EPA is taking this action due to BP’s lack of business integrity as demonstrated by the company's conduct with regard to the Deepwater Horizon blowout, explosion, oil spill, and response, as reflected by the filing of a criminal information. On November 15, 2012, BP agreed to plead guilty to eleven counts of Misconduct or Neglect of Ship Officers, one count of Obstruction of Congress, one misdemeanor count of a violation of the Clean Water Act, and one misdemeanor count of a violation of the Migratory Bird Treaty Act, all arising from its conduct leading to the 2010 Deepwater Horizon disaster that killed 11 people and caused the largest environmental disaster in U.S. history.

For the Deepwater Horizon investigation, EPA was designated as the lead agency for suspension and debarment actions. Federal executive branch agencies take these actions to ensure the integrity of Federal programs by conducting business only with responsible individuals or companies. Suspensions are a standard practice when a responsibility question is raised by action in a criminal case.

The BP suspension will temporarily prevent the company and the named affiliates from getting new federal government contracts, grants or other covered transactions until the company can provide sufficient evidence to EPA demonstrating that it meets Federal business standards. The suspension does not affect existing agreements BP may have with the government.

Intro

You must enter an Intro for your Diary Entry between 300 and 1150 characters long (that's approximately 50-175 words without any html or formatting markup).

Extended (Optional)

EMAIL TO A FRIEND X
Your Email has been sent.