BP has been ordered to pay the state of Alaska $255 million

BP has been ordered to pay the state of Alaska $255 million

A subsidiary BP has been ordered to pay the state of Alaska $255 million for royalties the state lost because of production shutdowns after two North Slope oil spills in 2006 and a subsequent pipeline replacement project.
A three-member arbitration panel unanimously ordered BP (Exploration) Alaska Inc. to pay the state $245 million, plus another $10 million in fines, by December 3.
The panel heard the case over four weeks last May and June in Anchorage, and reached its decision Oct. 31, the state said in a release Thursday announcing the award.
The state of Alaska, which relies on oil taxes for about 90 percent of its revenue, sought what it would have earned in royalties from the lost production during the spills and shutdowns to replace pipe.
BP operates Prudhoe Bay on behalf of other oil companies, which will pay part of the bill
SOURCE: AP
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