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‘Lack of Business Integrity’: Obama Admin. Indefinitely Halts New Fed Contracts to BP

Nov. 28, 2012 8:55pm Becket Adams

Feds Bar BP from Applying for New Govt Contracts

(AP)

WASHINGTON (TheBlaze/AP) — The Obama administration put a temporary stop to new federal contracts with British oil company BP on Wednesday, citing the company’s “lack of business integrity” and criminal proceedings stemming from the Deepwater Horizon disaster in 2010.

The action by the Environmental Protection Agency (EPA) bars BP and its affiliates from new government contracts for an indefinite period, but won’t affect existing contracts.

In a further blow to the company, BP will be disqualified from winning new leases to drill for oil or gas on taxpayer-owned land until the suspension is lifted. The federal government planned a sale Wednesday of more than 20 million acres of offshore land in the Gulf of Mexico. BP was not eligible for that sale, the Interior Department said. An EPA official said BP was not informed about the suspension until Wednesday morning.

In London, BP sought to minimize the effects of the suspension, and said it has been informed by EPA that an agreement to resolve the dispute is in the works. Highlighting its investments in the U.S. economy, BP said it employs 23,000 American workers and has invested more in the U.S. than any other oil and gas company.

“The company has made significant enhancements since the accident,” BP said in a statement, noting its efforts to adopt new drilling standards and to reorganize its operations in response to the spill.

The EPA said the suspension was standard practice when a criminal case raises responsibility questions about a company. The suspension came the same day two BP rig supervisors and a former executive were scheduled to be arraigned on criminal charges stemming from the deadly explosion and the company’s response to the resulting oil spill in the Gulf of Mexico.

“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,” the agency said in a statement.

BP announced earlier this month that it will plead guilty to manslaughter, obstruction of Congress and other charges and will pay a record $4.5 billion in penalties to resolve a Justice Department investigation of the disaster. Attorneys and a federal judge will meet in December to discuss a plea date.

The suspension marked yet another obstacle for a company that has struggled to revive its tarnished image in the U.S. and abroad after the 2010 explosion that killed 11 workers and led to the largest oil spill in U.S. history.

In this April 21, 2010 file photo taken in the Gulf of Mexico more than 50 miles southeast of Venice on Louisiana’s tip, the Deepwater Horizon oil rig is seen burning. (AP Photo/Gerald Herbert, File)

BP has been a major supplier of energy to the U.S. military, and in 2012 sold more than $1 billion of mostly fuel products to the Defense Department and other U.S. agencies, including the General Services Administration and the Labor Department.

An EPA official said Wednesday that the plea agreement includes a provision for how BP can satisfy the concerns that stand in the way of the suspension being lifted. That order, if the court accepts it during sentencing, would give BP 60 days to address the conditions that led to violations. If the government approves the plan, it becomes part of BP’s criminal probation.

But the suspension could still remain in effect while civil claims against BP move forward. In addition to the criminal proceedings, BP faces huge civil claims covering the billions of dollars in civil penalties the U.S. government and the Gulf states are seeking from it because of environmental damage.

A trial in the civil case is scheduled for early next year. Attorney General Eric Holder and the states have vowed to press their case and BP has vowed to fight it. However, negotiations have been under way in an effort to reach a settlement. At the time of the criminal settlement, Holder said the government intended to show in the upcoming civil case that BP was grossly negligent in causing the spill.

Follow Becket Adams (@BecketAdams) on Twitter

All photos courtesy the Associated Press.

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Comments (21)

Old Ogre
Posted on November 29, 2012 at 4:05pm
I detest Obama and the socialists more than I have ever detested one of our officials but I have to agree with them on this one. No excuse for how bad this got, use cheap parts pay the price. I would like to see any drilling on American property owned by Americans and ALL profits staying in America!
Screw this foreign investing and companies sending their jobs overseas, owned by Americans, built by Americans and supporting Americans.

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EP46
Posted on November 29, 2012 at 3:38pm
BP is Great Britian and obama hates them so they need to be shut down in US so Brazil & Mexico etc can get more money from US. But keep in mind, all the green energy companies that wasted taxpayer money & shut down have ‘great integrity” !

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joe alexich
Posted on November 29, 2012 at 3:10pm
Thank you USW,nice choice.

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IMP
Posted on November 29, 2012 at 1:11pm
I think Obama is right. These guys are criminals. In the interest of safety and care for the environment and of BP’s workers, BP should shut down all the oil production in every well it has supplying the US to re-evaluate its commitment to be a 100% safe and integrity minded corporation.

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jrcess
Posted on November 29, 2012 at 11:05am
Typical Obama , lets see that should destroy about 3,000 jobs. Way to go Lol. This guy is taking this country apart at the seams.

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Dno
Posted on November 29, 2012 at 10:09am
Believe BP should counter attack. Much of the damage to the gulf could have been prevented since there were multiple offers of assistance in cleanup at the onset of the problem. However, due to leading from the rear, the administration refused the offers and did nothing to alleviate problems. The “do nothing for days” approach definitely shows culpability by the US government.

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hanging10
Posted on November 29, 2012 at 10:04am
For the obama administration to ridicule someone else for lack of integrity is oxymoronic. Integrity and obama administration shouldn`t be allowed on the same page together.

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JeffMT
Posted on November 29, 2012 at 9:56am
“Lack of business integrity”. Get used to hearing that phrase in the USA from now on, and not just in regard to the oil and gas business. Whenever any governmental entity – federal, state, city, special district – wants to either deny a business permit or license or yank one that has previously been issued, all they have to do is cite a “lack of business integrity” and shazamm, that business is history. Or they will have to pay a huge ‘integrity’ fee to get the permit or license issued, reinstated, whatever. Governments are broke all over this country and this is one way they will come up with to raise revenue, by selling ‘integrity’.

If you file a complaint against a business, whether legitimate or not, and the mystical governmental powers-that-be decide it is ‘legitimate’, they will play the “lack of business integrity” card and that business is done unless they buy their integrity from the government.

Just a hunch, but I suspect we will see that card being played a whole lot the next four years against the energy industry (e.g. oil, nat gas, coal) in this country. Get ready to sit in the dark and freeze, America, because that’s what’s coming. And buy yourself a bicycle because that is all you are going to have for transportation.

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- KangarooJack
  Posted on November 29, 2012 at 10:11am
  BINgO!
  
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huey6367
Posted on November 29, 2012 at 8:55am
Why is BP the point of blame for that tragedy? It was the EPA that pushed oil companies to drill in very deep water. They must share a portion of the blame. But, since when does the government ever claim responsibility for anything bad?

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IOWAGIR
Posted on November 29, 2012 at 8:14am
Obama knows nothing about integredy and the only thing he has run is the USA…into the ground.

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Pat Alexander
Posted on November 29, 2012 at 7:46am
If they had a crystal ball, BP may have responded differently when BO was milking that 20 billion out of them.

Of course, with “Under The Bus Barry” they should have known this was coming…

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glenng2
Posted on November 29, 2012 at 3:58am
Well if I controlled BP I would lay off all the employees shut down US operations until the employees brought their Government under control. The EPA is just a strong arm orginization for the left wing.

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welovetheUSA
Posted on November 29, 2012 at 3:34am
This is what happens when you support a dictator……and they did.

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DadRocked
Posted on November 29, 2012 at 1:11am
Although not taking control but halts future business…
Similarities… You decide…

Hugo Chavez confiscates private property 05/17/2010
Chavez signs decree to nationalize foreign oil companies 02/27/2007
Chavez has spoken of his ambition to set up what he calls a Bank of the South 02MAY2007
Chavez to Nationalize Gold Industry, Withdraw Gold Reserves from U.S. 18AUG2011

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Serenabit
Posted on November 29, 2012 at 12:22am
Here we go! Obama’s EPA is stepping up the control and distribution of fossil fuels … I hate to say this, but this is just the beginning. Look forward to $6.00 per gallon gasoline by this time next year.

This isn’t just about a “green” agenda, this is far beyond that … Obama intends to create a caste based society in the United States.

http://www.nathanbeman.blogspot.com

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- DadRocked
  Posted on November 29, 2012 at 1:27am
  Agreed…and yet people will justifiably complain and yet hit up a Starbucks for a $4/12oz coffee.
  As I posted on the article about Jimmy Kimmel and Starbucks…
  
  Anybody have a problem with $4/gallon of gasoline?
  The same gasoline that gets you a paycheck?
  
  Anybody have a problem with $42.68/gallon of (@ $4 per 12oz) of Starbucks coffee?
  Just saying…
  
  Report this comment
- Stoic one
  Posted on November 29, 2012 at 2:56am
  And that is why I have never set foot in a starbuck’s
  
  Report this comment
- DadRocked
  Posted on November 29, 2012 at 8:10am
  Nor I Stoic_One… Nor I..
  When I’m at the fuel pump and hear the complaints of fuel, I always that comparison fact up.
  If nothing else, it keeps people thinking and is but one of my contributions to elimation of sheeples.
  
  Wife calls me an instigator, I call it one of my patriotic responsibilities.
  
  Report this comment
MFHorn3
Posted on November 28, 2012 at 11:25pm
“lack of business integrity” LOL!
Since when does the Obama administration write copy for The Onion?

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- NOTMOHAMMED
  Posted on November 29, 2012 at 4:37am
  LOL! …lack of total integrity!
  
  Report this comment

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