British energy firm BP agreed to pay US$373 million in fines and restitution to settle several US government probes, including allegations of trading abuses, officials said on Thursday.
The penalties represent some of the largest fines ever paid by a British company for violations of US laws.
The global energy giant agreed to pay the fines, some of which were criminal penalties, for environmental violations relating to a Texas refinery blast in 2005, crude oil pipeline leaks in Alaska and to defer a prosecution for fixing prices in the propane gas market.
Authorities unveiled the settlements at a press conference at the Department of Justice. The FBI and other agencies helped investigate BP.
"The BP cases demonstrate our commitment to enforcing the laws that protect our environment, the safety of Americans and the integrity of the marketplace," acting Attorney General Peter Keisler said.
Officials leveled harsh criticism at BP for its actions.
"BP engaged in massive manipulation, the magnitude of this settlement reflects that the [Commodity Futures Trading] commission will not tolerate trading abuses in our open and competitive markets," commission acting chairman Walt Lukken said.
"This case demonstrates that criminals aren't just found on unsafe streets ... they could be in corporate board rooms or on trading desks as well," said Kenneth Jones, a deputy chief postal inspector.
The London-based energy company agreed to pay the fines following the fatal refinery explosion which killed 15 workers and in regard to alleged misconduct that has tarnished its reputation.
BP consented to pay US$50 million in criminal fines and agreed to plead guilty to a violation of the Clean Air Act relating to the industrial accident at its Texas City oil refinery.
Government investigators found critical equipment at the refinery was "unsafe" and "antiquated" prior to the blast.
The explosion also injured more than 170 people. BP has since spent US$1 billion upgrading its largest refinery.
BP additionally agreed to pay a criminal penalty of US$100 million and a payment of US$25 million to the US Postal Inspection Consumer Fraud Fund, and restitution of US$53 million, plus a civil penalty of US$125 million to the commission.
In return, the government has deferred prosecuting BP for alleged trading violations related to the propane market. The fuel is used for heating and cooking.
In a related development, four former BP employees were indicted in Chicago for conspiring to manipulate propane prices in 2004 and for selling gas at inflated prices.
The British company will also pay US$12 million in criminal fines and US$8 million dollars in other payments to settle a violation of the Clean Water Act relating to two pipeline leaks of crude oil in Alaska last year.
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