{"id":25247,"date":"2010-05-19T18:36:03","date_gmt":"2010-05-19T23:36:03","guid":{"rendered":"http:\/\/planetwaves.net\/news\/?p=25247"},"modified":"2011-06-03T18:08:29","modified_gmt":"2011-06-03T22:08:29","slug":"how-bushs-doj-killed-a-criminal-probe-into-bp-that-threatened-to-net-top-officials","status":"publish","type":"post","link":"https:\/\/planetwaves.net\/news\/daily-astrology\/how-bushs-doj-killed-a-criminal-probe-into-bp-that-threatened-to-net-top-officials\/","title":{"rendered":"How the Bush Administration Justice Deparment Killed a Criminal Probe Into BP That Threatened to Net Top Officials"},"content":{"rendered":"<p><strong><a href=\"http:\/\/www.truthout.org\/how-bushs-doj-killed-a-criminal-probe-into-bp-that-threatened-net-top-officials59648\" target=\"_blank\">By\u00a0 Jason Leopold, t r u t h o u t | Report<\/a><\/strong><\/p>\n<p>Mention the name of the corporation BP to Scott West  and two words immediately come to mind: Beyond Prosecution.<\/p>\n<p>West was the special agent in charge with the  Environmental Protection Agency&#8217;s (EPA) criminal division who had been  probing alleged crimes committed by BP and the company&#8217;s senior  officials in connection with a March 2006 pipeline rupture at the  company&#8217;s Prudhoe Bay operations in Alaska&#8217;s North Slope that spilled  267,000 gallons of crude oil across two acres of frozen tundra &#8211; the  second largest spill in Alaska&#8217;s history &#8211; which went undetected for  nearly a week.<\/p>\n<p>West was confident that the thousands of hours he  invested into the criminal probe would result in felony charges against  the company and the senior executives who received advanced warnings  from dozens of employees at the Prudhoe Bay facility that unless  immediate steps were taken to repair the severely corroded pipeline, a  disaster on par with that of the 1989 Exxon Valdez spill was only a  matter of time.<\/p>\n<p>In fact, West, who spent more than two decades at the  EPA&#8217;s criminal division, was also told the pipeline was going to  rupture &#8211; about six months before it happened.<\/p>\n<p>In a wide-ranging interview with Truthout, West  described how the Justice Department (DOJ) abruptly shut down his  investigation into BP in August 2007 and gave the company a &#8220;slap on the  wrist&#8221; for what he says were serious environmental crimes that should  have sent some BP executives to jail.<\/p>\n<p><!--more--><\/p>\n<p>He first <a href=\"http:\/\/online.wsj.com\/article\/SB122706017166039657.html\" target=\"_blank\">aired his  frustrations <\/a>after he retired from the agency in 2008. But he said  his story is ripe for retelling because the same questions about BP&#8217;s  record are now being raised again after a catastrophic explosion aboard  the Deepwater Horizon drilling rig killed 11 workers and ruptured an oil  well 5,000 feet below the surface that has been spewing upwards of  200,000 barrels of oil per day into the Gulf waters for a month.<\/p>\n<p><strong>The Watchdog<\/strong><\/p>\n<p>In the summer of 2005, West was transferred from San  Francisco to the EPA&#8217;s Seattle office and was introduced to Chuck Hamel,  an oil industry watchdog, who is credited with exposing weak pollution  laws at the Valdez tanker port in the 1980s prior to the Exxon Valdez  spill and the electrical and maintenance problems associated with the  trans-Alaska oil pipeline operated by BP.<\/p>\n<p>Hamel had become the defacto spokesperson and  protector of dozens of BP Exploration Alaska (BPXA) whistleblowers, who  would routinely leak to him documents, pictures and inside information  about the company&#8217;s poor safety and maintenance record at its Prudhoe  Bay operations. Hamel also operated a now defunct web site, <a href=\"http:\/\/web.archive.org\/web\/20040912131301\/http:\/\/www.anwrnews.com\/reports\/Faulty_New_Technology\/Letter_to_Sir_John_Browne.asp\" target=\"_blank\">Anwrnews.com<\/a> (the acronym for Arctic National Wildlife Refuge), which became a  clearing house for the whistleblowers&#8217; complaints and an archive  showcasing, among other things, the letters Hamel had written to  Congress, the White House and BP&#8217;s top executives exposing the company&#8217;s  shoddy operations in the North Slope and demanding immediate action.  The tagline on the archived version of Anwrnews.com says it was  &#8220;established by and for the many concerned Prudhoe Bay BP operators who  fear for their lives and the environment due to violations of Government  regulations and requirements by BP.&#8221;<\/p>\n<p>One of the <a href=\"http:\/\/web.archive.org\/web\/20040903051626\/www.anwrnews.com\/docs\/20010110_Letter_from_Technitians_to_Charles_Hamel.asp\" target=\"_blank\">letters<\/a> still posted on the web site is dated January 10, 2001. It was sent to  him by unnamed BP employees, who asked him to assist them in getting BP  management to address their concerns about safety and maintenance issues  that their repeated attempts had failed to do. They said they even <a href=\"http:\/\/web.archive.org\/web\/20040912131301\/http:\/\/www.anwrnews.com\/reports\/Faulty_New_Technology\/Letter_to_Sir_John_Browne.asp\" target=\"_blank\">reached  out<\/a> to then-BP President Lord John Browne about &#8220;inadequate  staffing levels&#8221; two years earlier, but never received a response.<\/p>\n<p>&#8220;We were concerned about our recommendations being  ignored and disregarded&#8230;We were concerned about BP&#8217;s cost cutting  efforts undermining our ability to respond to emergencies and reducing  the reliability of critical safety systems. We were concerned about the  lack of preventative maintenance on our equipment,&#8221; the BP employees&#8217;  letter said. &#8220;We had suffered a major fire, which burned a well pad  module to the ground and nearly cost one of our operators his life.<\/p>\n<p>&#8220;We had suffered two job fatalities and a third  serious injury to personnel in the months before the letter was sent. In  response to our concerns, Sir John&#8217;s Management Team further reduced  our staffing levels from six to four in the GC Plants and from seven to  six on the Well Pads. Our four Plant Operators do the work that seven  did in 1990.<\/p>\n<p>&#8220;It is clear that BP Management has one priority and  that is cost reduction &#8230; Perhaps you may know some way of getting our  concerns heard and addressed. If these concerns are not addressed, we  feel that a major catastrophe is imminent. We have only our lives and  our futures at risk here.&#8221;<\/p>\n<p>Hamel followed up the employees&#8217; letter with one he  sent on <a href=\"http:\/\/web.archive.org\/web\/20040903051622\/www.anwrnews.com\/docs\/20011010_Letter_to_Sir_John_Browne.asp\" target=\"_blank\">April  11, 2001<\/a>,\u00a0 to Browne at the company&#8217;s London headquarters alerting  him to the substandard safety and maintenance policies in place at  Prudhoe Bay that threatened the welfare of BP employees, an issue that  persists at the facility nearly a decade later.<\/p>\n<p>&#8220;Courageous &#8216;Concerned Individuals&#8217; contacted me for  assistance in reaching you,&#8221; Hamel&#8217;s letter to Browne said. &#8220;They have  not succeeded in being heard in the past two years in London, Juneau or  Washington. I am again a reluctant conduit. They hope that you will take  whatever action appropriate to effect corrective action which would  protect the environment, the facilities and their safety.&#8221;<\/p>\n<p>Hamel also sent a copy of the letter to President  Bush. It is unclear if either Browne or the Bush White House ever  responded. BP would not comment for this story. But a majority of these  allegations were repeated to West when he met with Hamel years later,  and one explosive tidbit of information would form the basis of his  criminal investigation into the company.<\/p>\n<p>West said when he met Hamel he was told in no  uncertain terms by Hamel that a section of pipeline at a caribou  crossing &#8211; a &#8220;perfect habitat for corrosion&#8221; &#8211; was going to rupture and  when it did it would be catastrophic.<\/p>\n<p>&#8220;He said &#8216;eventually, the pipeline will fail,'&#8221; West  said.<\/p>\n<p>Hamel explained that the pipeline was so fragile that  new employees were warned not to lean against it or allow their keys to  bang against the structure because of the damage it could cause.<\/p>\n<p>Hamel also told West that BP failed to take steps to  conduct an internal inspection of the pipeline through a lengthy process  known as &#8220;smart pigging,&#8221; which calls for sending electronic monitors,  referred to as &#8220;smart pigs,&#8221; through the pipeline to determine whether  any defects exist, such as sediment buildup, on the pipeline walls. The  monitors squeal as they travel through the pipeline and that&#8217;s how the  device got its name. It would later be revealed that BP had not  conducted such an inspection for eight years and ignored and or  retaliated against employees who suggested the company do so.<\/p>\n<p>West said the first question he posed to Hamel was  &#8220;how do you know this?&#8221;<\/p>\n<p>&#8220;This is what the employees are telling me,&#8221; West  said, recalling his conversation with Hamel. Hamel was unavailable to  comment for this story. &#8220;I told Chuck that if you don&#8217;t have first hand  information there&#8217;s not much that I can do. I asked if I can speak to  the employees. But he&#8217;s extremely protective of them and wanted  assurances that I would keep their identities confidential and I  wouldn&#8217;t bring any harm to them. I gave him my word and he arranged for  me to speak to these guys.&#8221;<\/p>\n<p><strong> &#8220;Nightmares&#8221;<\/strong><\/p>\n<p>During the time that West met with Hamel, Congress  was debating opening up the Arctic National Wildlife Refuge to  exploration and BP, which operated the Prudhoe Bay oil field, the  largest in North America and jointly owned by ExxonMobil, BP and  ConocoPhillips, would have led the drilling efforts.<\/p>\n<p>One of the concerns that employees expressed back  then was that the frequent oil spills at Prudhoe Bay would also become a  routine occurrence in ANWR because of BP&#8217;s ongoing cost-cutting  measures that left its operations vulnerable. And for that reason, some  employees opposed calls to pass legislation to drill in ANWR.<\/p>\n<p>In an <a href=\"http:\/\/www.politicalaffairs.net\/article\/view\/989\/1\/89\/\" target=\"_blank\">interview<\/a> with Truthout in 2005, Hamel said whistleblowers informed him and  then-Interior Secretary Gale Norton, who at the time was touring the  Prudhoe Bay oil fields, that the safety valves at Prudhoe Bay, which  kick in in the event of a pipeline rupture, failed to close. Secondary  valves that connect the oil platforms with processing plants also failed  to close. And because the technology at Prudhoe Bay would be duplicated  at ANWR, that meant there was a strong chance for an explosion and  massive oil spills.<\/p>\n<p>West said after he spoke with a handful of the BP  whistleblowers he &#8220;started having nightmares.&#8221;<\/p>\n<p>&#8220;They told me there was going to be a massive spill  on the North Slope and I need to be ready,&#8221; West said. &#8220;I had these guys  telling me about conversations they had with midlevel managers and  documents they turned in exposing the pipeline corrosion and leak  detection equipment on pipes that failed and ignored because it went off  all the time. The employees were slapped down. They were given a lot of  grief for having raised these issues. The BP culture is keep your mouth  shut and your head down because nobody at BP wants to hear about it.<\/p>\n<p>&#8220;That&#8217;s why I knew this was a criminal case,&#8221; West  said. &#8220;BP turned a blind eye and deaf ear to their experts who predicted  a major spill. It wasn&#8217;t intentional act to put oil on the ground, but  it was intentional act to ignore their employees. That&#8217;s negligence and  its criminal. &#8221;<\/p>\n<p>West said he contacted colleagues in one of EPA&#8217;s  regional offices in around December 2005 that he had information an oil  spill was likely to happen in the North Slope.<\/p>\n<p><strong>Prediction Becomes Reality<\/strong><\/p>\n<p>On March 2, 2006, West was at his desk when he  received a phone call.<\/p>\n<p>&#8220;It was one of the employees I spoke to months  earlier,&#8221; West said. &#8220;He said &#8216;just as we predicted, there&#8217;s a leak at  the caribou crossing we told you about and it&#8217;s pretty bad.'&#8221;<\/p>\n<p>Even worse, the leak had gone undetected for nearly a  week. The leak detection equipment employees had warned BP managers  about malfunctioned and for about five days oil spilled out of a hole in  the pipeline the size of a pencil eraser. The leak was discovered when  an oilfield worker surveying the area smelled petroleum in the air and  stepped out of his car to investigate.<\/p>\n<p>&#8220;He ended up with a black foot,&#8221; West said. &#8220;That&#8217;s  how bad the spill was.&#8221;<\/p>\n<p>The oil leak was determined to be caused by &#8220;severe  corrosion.&#8221; It forced BP to shut down five oil processing centers in the  region for about two weeks, which led to a spike in gas prices during a  time of tight crude supplies.<\/p>\n<p>Longtime BP employee Marc Kovac said a couple of  weeks after the oil spill that he and his co-workers warned the company  numerous times that their aggressive cost-cutting measures would  increase the likelihood of accidents, pipeline ruptures and spills.<\/p>\n<p>&#8220;For years we&#8217;ve been warning the company about  cutting back on maintenance,&#8221; Kovac told The New York Times. &#8220;We know  that this [March 2006 oil spill] could have been prevented.&#8221;<\/p>\n<p>West said he immediately dispatched one of his  investigators to the North Slope and he admits that he became &#8220;excited  about the prospect of putting people in jail for environmental crimes&#8221;  and that was his goal as he and his team, working with the FBI, the DOJ  and Alaska state environmental and regulatory officials, launched their  probe into the circumstances behind the spill.<\/p>\n<p>As West&#8217;s investigation into the company began to  take shape, he obtained information that &#8220;very senior people in [BP&#8217;s]  London [headquarters] were aware of what was going on [with regard to  the corrosion in the pipeline] and did nothing.&#8221;<\/p>\n<p>&#8220;That&#8217;s where my investigation was going,&#8221; he said.  &#8220;This was one of the top two cases being investigated by the EPA&#8217;s  criminal division in 2007. This was a big deal. This case had all the  markings of letting us getting high and deep into the corporate veil. &#8221;<\/p>\n<p>West would not identify the executives, but two DOJ  officials, who work in the agency&#8217;s environmental and natural resources  division and are familiar with the case, said it was Browne, BP&#8217;s  then-president and chief executive, and Tony Hayward, who was head of  the company&#8217;s production and exploration division. The DOJ officials  would only speak on condition of anonymity because of the sensitive  issues surrounding BP in the aftermath of the explosion on the Deepwater  Horizon drilling rig that led to the massive oil spill in the Gulf.<\/p>\n<p>Hayward took over for Browne in May 2007, a move that  BP accelerated by 18 months in the wake of the Alaska oil spill and  widespread safety issues there at a March 2005 refinery explosion in  Texas that killed 15 employees.<\/p>\n<p><strong>Grand Jury Convened<\/strong><\/p>\n<p>One of the setbacks West faced early on, however, was  that he could not use the information he and his investigators obtained  from the employees who claimed BP officials knew about the pipeline  corrosion prior to the spill.<\/p>\n<p>&#8220;One of the things that made this case slow was the  vindictive nature of BP,&#8221; West said. &#8220;Sources we spoke with would not  allow their name to be used because they feared they would be fired or  retaliated against. What that meant was that I couldn&#8217;t send  investigators out to knock on their doors at night and take their  statements. [The employees] said &#8216;what you have to do is get me in front  of a grand jury and subpoena me to testify.'&#8221;<\/p>\n<p>So, the US attorney&#8217;s office in Anchorage, under the  guidance of Assistant US Attorney Aunnie Steward, the lead prosecutor on  the case, convened a grand jury to hear witness testimony and subpoena  witnesses as well as documents from BP. Because grand jury testimonies  are secret, West could not say who or how many people testified before  the panel. Nor could he divulge the details about what they revealed.<\/p>\n<p>West said his team prepared a &#8220;surgical subpoena,&#8221;  requesting specific documents from the company that would shed light on  who knew what and when regarding the Alaska pipeline rupture.<\/p>\n<p>&#8220;BP overwhelmed us,&#8221; West recalled. &#8220;When I say  overwhelmed I&#8217;m talkin&#8217; 62 million pages of documents they turned over.  That told me there was a smoking gun in there but it was going to take  time to find it.&#8221;<\/p>\n<p><strong>&#8220;Like Trying to Turn the Titanic&#8221;<\/strong><\/p>\n<p>The investigation progressed into 2007, and by June  of that year, prosecutors were discussing the evidence of BP&#8217;s alleged  crimes.<\/p>\n<p>Indeed, in a <a href=\"http:\/\/www.truthout.org\/files\/08_11_11_us_attorney_memo_on_bp_case.pdf\" target=\"_blank\">confidential  email<\/a> dated June 12, 2007, Steward sent to other federal and state  prosecutors and EPA officials working on the case. Steward said what  made the Alaska pipeline spill an issue of criminal negligence was that  &#8220;BP knew or should have known that failure to maintenance pig the line  that leaked would cause the line to fail.&#8221;<\/p>\n<p>&#8220;Standard in the industry is anywhere from quarterly  to once every five years,&#8221; said Steward&#8217;s email, under the subject line  &#8220;BP Theory of the Case.&#8221; The email was prepared in preparation for an  August 2007 meeting with BP&#8217;s defense attorneys. Steward noted that the  goal for the prosecution for the next two months is to &#8220;get something in  writing on the charges and the evidence. It won&#8217;t be trial ready in  August.&#8221; But she said her hope &#8220;for the August 28 [2007] meeting is to  listen to BP and find out what they think their defenses or mitigating  circumstances are so that we can focus on those.&#8221;<\/p>\n<p>As for the evidence, Steward said the prosecution had  plenty and she expressed an interest in pursuing felony charges.<\/p>\n<p>&#8220;It had been eight years since the line had been  pigged. We have a nice photo of the cross-section of pipe where the leak  occurred with 6 inches of sediment accumulated in the line. BP&#8217;s own  corrosion engineers say that if they had known there was that much  sediment in the line they would have pigged immediately. The important  point here is that other parts of BP&#8217;s organization besides the  corrosion team knew that there was sediment in the line &#8211; so perhaps a  corporate collective knowledge would get us to knowing, ie, BP knew that  failure to pig was going to cause the pipe to fail because of sediment  build up.&#8221;<\/p>\n<p>By this point, BP had mounted a vigorous defense and  suggested that even if they had performed maintenance on the line it  still could have failed. But the company&#8217;s own corrosion engineers  disagreed with that assertion. The company also said that it intended to  pig the line by the summer of 2006, but the oil spill happened first.<\/p>\n<p>Moreover, according to Steward&#8217;s email, &#8220;BP has also  made a point of saying that everyone thought these lines were not likely  to leak and so even if they had more money to throw at it, nothing  would have been done differently regarding the lines that leaked. We  have a ton of evidence to the contrary on this point.&#8221;<\/p>\n<p>Steward&#8217;s email then indicates that employee concerns about aggressive  cost-cutting measures were substantiated during the course of the  investigation. She indicated that BP has stated publicly that the  company &#8220;changed their attitude&#8221; about cost-cutting in 2005, after the  Texas refinery explosion and was &#8220;trying to do the right thing but they  just didn&#8217;t do it quickly enough (and I think the implication is that  they should thus not be penalized).&#8221;<\/p>\n<p>&#8220;It was all, however, too little too late,&#8221; Steward wrote. &#8220;Like trying  to turn the titanic. Managers at BP have said that things were so tight  at BP from the 90s through 2004 that even after things began to change  in 2005 the mentality of employees was still so entrenched in cost  cutting that the first response to any proposal is &#8216;we&#8217;ll never get the  money for that&#8217;. The only reason things started to change were because  the corrosion manager was such a tyrant and cost cutting was so rampant  that whistleblowers complained to the probation office while [BP  Exploration Alaska] was on probation for [a prior] felony conviction.  This led to an audit in &#8217;04 which recommended serious changes in  organization and budgeting to address the problems that started to be  rolled out in &#8217;05.&#8221;<\/p>\n<p>The audit was prepared by the law firm Vinson &amp;  Elkins. It said BP created a climate of fear for employees who wanted to  report concerns about the company&#8217;s operations. Congressional  investigators probing the March 2006 oil spill obtained internal BP  emails that showed executives issued &#8220;budget challenges&#8221; and ordered  &#8220;top down cost cutting&#8221; with no regard for the safety of its pipelines.<\/p>\n<p>Steward said in her email, however, that the  &#8220;explosion in Texas got BP&#8217;s attention&#8221; and company executives  maintained that BP had &#8220;changed.&#8221;<\/p>\n<p>&#8220;Tony Hayward traveled to [Alaska] after the [Texas  refinery] explosion to see if there were similar problems in [Alaska] as  in [Texas] such as overly aggressive cost cutting and a lack of  communication between [management] and employees and found that there  were,&#8221; she wrote.<\/p>\n<p>Hayward told BP employees who attended a town hall  type meeting in December 2006 that BP has &#8220;a leadership style that is  too directive and doesn&#8217;t listen sufficiently well. The top of the  organisation doesn&#8217;t listen sufficiently to what the bottom is saying.&#8221;<\/p>\n<p>Those comments led Steward to conclude that the  changes at BP &#8220;did not come about because they were being good corporate  citizens, it was because they were already felons and had recently  killed a bunch of people.&#8221;<\/p>\n<p>Steward also attached a <a href=\"http:\/\/www.truthout.org\/files\/epa_fine_calculations.pdf\" target=\"_blank\">12-page  memo<\/a> to her from Dean Ingemansen, the EPA&#8217;s criminal enforcement  attorney, of the proposed fines that could be levied against BP  Exploration Alaska for the week-long oil spill as well as another spill  that occurred five months later, which also resulted from a corroded  pipeline.<\/p>\n<p>Ingemansen concluded, based on his review of case  law, sentencing decisions and &#8220;guidance documents&#8221; from the EPA and the  DOJ&#8217;s Environmental Crimes Manual, that BP could be penalized as much as  $672 million for the March and August 2006 oil spills or as little as  $58 million, &#8220;incredibly low settlements&#8221; as far as West was concerned.<\/p>\n<p><strong>Blunted<\/strong><\/p>\n<p>West said he knew he still had quite a bit of work to  do. Although his probe had crossed the one year mark, he didn&#8217;t have  enough evidence to recommend felony charges against BP or senior  executives.<\/p>\n<p>&#8220;These are complex investigations,&#8221; West said. &#8220;It  usually takes a minimum of three to five years.&#8221;<\/p>\n<p>He said as much during a meeting of investigators and  prosecutors in Anchorage on August 28, 2007, to discuss the case. And,  West said, he was told that if he did not have enough evidence to allow  prosecutors to file immediate felony charges against BP or executives at  the company than the government was no longer interested in pursuing  the case.<\/p>\n<p>Federal prosecutors &#8220;asked me what I thought we could  charge BP at that very moment and I said a criminal misdemeanor for  Clean Water Act violations,&#8221; West said. &#8220;And they said &#8216;OK, then a  misdemeanor it is.&#8217; I&#8217;m screaming bloody murder! I told them I&#8217;m hot on  the trail. Don&#8217;t kill this investigation now! It would be different if I  were working this case for six years and spent a lot of time and  resources on it. But it was only 17 months.&#8221;<\/p>\n<p>DOJ attorneys in Alaska decided the best course of  action was to settle the case then and there. West said he continued to  argue against the &#8220;rush to settle&#8221; and explained that he still had a  large volume of evidence he hadn&#8217;t yet reviewed. He said he needed at  least another year.<\/p>\n<p>&#8220;They said flatly &#8216;no,'&#8221; West said. He then asked for  six months and again was rebuffed.<\/p>\n<p>&#8220;How about three more months?&#8221;<\/p>\n<p>&#8220;No,&#8221; he was told. &#8220;It&#8217;s over.&#8221;<\/p>\n<p>West said he was pulled aside at the end of the  meeting by Karen Loeffler, the chief of the criminal division of the US  attorney&#8217;s office in Alaska.<\/p>\n<p>&#8220;She told me that she was just following orders and  that the decision to close the case and settle was made by Ron Tenpas,&#8221;  the assistant attorney general for Environment and Natural Resources at  Main Justice, who was appointed to that position earlier in the year.<\/p>\n<p>Tenpas, now in private practice at the law firm  Morgan Lewis in Washington, DC, did not return calls or emails seeking  comment. Loeffler also did not respond to requests for comment. Loeffler  had previously denied that she told West that Tenpas shut down the  probe. Tenpas had said in November 2008 that, while he agreed with the  decision to settle, the decision to do so was not his.<\/p>\n<p>West said he would be willing &#8220;to testify under oath  and take a lie detector test&#8221; to prove that Loeffler told him Tenpas  killed the investigation.<\/p>\n<p>&#8220;What really irritated me though is that my own  management didn&#8217;t even back me on this one,&#8221; West said. &#8220;Something  happened between June of 2007 when Aunnie Steward sent the email talking  about serious criminal charges and the meeting I attended in August  when the case was killed.&#8221;<\/p>\n<p>He suspects that federal prosecutors in Alaska had  already been negotiating with BP about a plea agreement prior to the  August 28, 2007, meeting. DOJ officials familiar with the case said they  were unaware whether there was any interference from the Bush White  House or senior agency officials that would have led to the decision to  shutter the probe.<\/p>\n<p>In a statement issued in November 2008 when he first  went public, the DOJ said West&#8217;s claims that something &#8220;sinister took  place<br \/>\nbetween June 12 and August 28, 2007&#8221; are &#8220;not based in fact and simply  not true.&#8221;<\/p>\n<p>&#8220;As with any investigation, there comes a point in  time when further investigation is no longer warranted if it does not  have a realistic chance of generating useful evidence,&#8221; the statement  said. In this case, the judgment by career prosecutors was that the case  had been sufficiently and fully investigated to reach appropriate  charging decisions. No further investigation was likely to find evidence  that would shed any new light on the essential facts of the case. The  investigators from the EPA and FBI agreed with the prosecution&#8217;s  approach.&#8221;<\/p>\n<p>Naturally, West disagrees.<\/p>\n<p>&#8220;I know how this case would have proceeded,&#8221; he said.  &#8220;I would have interviewed more people and developed more leads and  obtained more documents to look at. That&#8217;s a guarantee. At the end of  the day we would have had a clear understanding of who knew what and  when and then we would be able to make appropriate charging decisions.  But because the investigation was shut down that was the end of it.&#8221;<\/p>\n<p><strong>Penalty Phase<\/strong><\/p>\n<p>West said he believed the DOJ did not appropriately  handle the case as it moved into the penalty phase a couple of months  later.<\/p>\n<p>&#8220;The US Attorney in Alaska, Nelson Cohen, sidestepped  the recommendations EPA made for fines against BP,&#8221; West said. &#8220;He said  the fine would fall somewhere between $20 to $35 million and that the  benchmark he came up with was based on the [1999] Olympic Pipeline&#8221;  explosion in Bellingham, Washington, that spilled 277,000 gallons of  gasoline into nearby creeks, which killed a teenager and two  ten-year-old boys.<\/p>\n<p>West said he had a run-in with Cohen in October 2006,  when, at the prosecutor&#8217;s request, he met privately with him in  Anchorage to discuss the case. Cohen was one of the recess appointments  recommended by then-Attorney General Alberto Gonzales to fill the  vacancy in the federal prosecutor&#8217;s office in Alaska.<\/p>\n<p>West said Cohen asked him &#8220;what do you know about  me?&#8221;<\/p>\n<p>&#8220;I said I didn&#8217;t know anything about him, but I told  him I was anticipating the Attorney General to make a recess appointment  who would come to Alaska and kill my case against BP. And here you  are.&#8221;<\/p>\n<p>West was, a year later, invited by Cohen to attend  the meeting with BP&#8217;s defense attorney Carol Dinkins and other people  representing the company where terms of the plea deal would be hammered.<\/p>\n<p>&#8220;I was shocked at what I witnessed,&#8221; West said.  &#8220;Cohen opened the settlement negotiations with the lowest dollar figure:  $20 million. He said the government&#8217;s benchmark was between $20 to $35  million and he opened with $20 million. I have never seen such anything  like this during my career. Usually you start on the high end and  negotiate toward a lower figure.&#8221;<\/p>\n<p>He said BP&#8217;s defense team &#8220;hemmed and hawed&#8221; and then  &#8220;came back and quickly accepted it. This looked like a big show staged  for my benefit.&#8221;<\/p>\n<p>Cohen told The Wall Street Journal in November 2008  that the decision to impose a $20 million fine was a &#8220;judgment call&#8221;  made by his office.<\/p>\n<p>&#8220;It&#8217;s not my job to take every nickel from a  defendant when they have done something wrong,&#8221; Nelson said. &#8220;Our job is  to come up with what we feel is fair and just.&#8221;<\/p>\n<p>West said he was told that the reason the DOJ decided  on the $20 million fine was because the criminal case against the  company for safety and environmental violations resulting from the Texas  Refinery explosion, where 15 people were killed and 170 other were  injured, was being settled for $50 million, another example, West says,  of a &#8220;rushed&#8221; settlement.<\/p>\n<p>On October 25, 2007, in what can be described as a  package deal, BP settled all of its major criminal cases. The  corporation pled guilty to a criminal violation of the <a href=\"http:\/\/www.usdoj.gov\/usao\/ak\/press\/October%202007\/BPXA_071025.pdf%3E\" target=\"_blank\">Clean  Water Act<\/a> and paid the $20 million fine related to the March and  August 2006 oil spills that occurred in the North Slope. The EPA said  the $20 million fine still represented one of the largest penalties  under the Clean Water Act.<\/p>\n<p>That same day, the company also pled guilty to a  felony for the Texas City refinery explosion and entered into a deferred  prosecution agreement with the DOJ where the company admitted that it  manipulated the propane market.<\/p>\n<p>Rep. John Dingell, the Democratic chairman of the  House Committee on Energy and Commerce, issued a statement the day the  settlement was announced excoriating the oil behemoth.<\/p>\n<p>&#8220;Congress has held hearing after hearing about BP&#8217;s  mismanagement and now DOJ, [the Commodities Futures Trading Commission]  and EPA have imposed criminal fines,&#8221; Dingell&#8217;s statement said. &#8220;It is  troubling that many of the same BP executives who were responsible for  the management failures that led to the criminal charges and settlements  &#8230; are still employed by BP and, in some cases, have been promoted to  the highest levels of the company.&#8221;<\/p>\n<p>On November 29, 2007, BP formally entered a guilty  plea in federal court in Alaska. US District Court Judge Ralph Beistline  sentenced BP to three years probation and said the oil spills were a  &#8220;serious crime&#8221; that could have been prevented if BP had spent more time  and funds investing in pipeline upgrades and a &#8220;little less emphasis on  profit.&#8221;<\/p>\n<p>Four months later, Dingell and Subcommittee Chairman  Bart Stupak (D-Michigan) fired off a <a href=\"http:\/\/energycommerce.house.gov\/images\/stories\/Documents\/investigations\/energy\/BP.031208.DOJ.Mukasey.BP.ltr.pdf\" target=\"_blank\">letter<\/a> to Attorney General Michael Mukasey questioning the rationale behind  the DOJ&#8217;s settlement agreements with the company over the refinery  explosion and oil spill in Alaska. The lawmakers requested documents  from the DOJ that may have shed light on a prior decision to  &#8220;consolidate&#8221; all of the pending criminal cases.<\/p>\n<p>Mukasey <a href=\"http:\/\/energycommerce.house.gov\/images\/stories\/Documents\/investigations\/energy\/BP.040308.respto031208.BP.ltr.pdf\" target=\"_blank\">responded<\/a> on April 3, 2008, and said the DOJ was &#8220;not in a position to disclose  non-public information about our prosecutorial decisions.&#8221;<\/p>\n<p>He did note, however, that while the three criminal  plea &#8220;agreements were announced together, the agreements were not  contingent on one another.&#8221;<\/p>\n<p>West said Dingell and Stupak didn&#8217;t push back hard  enough.<\/p>\n<p>&#8220;They should have brought me in and DOJ officials to  testify about the decision Ronald Tenpas made to shut down the case,&#8221;  West said. &#8220;When you have a situation like this where a career  investigator is going to the Justice Department and saying &#8216;I&#8217;m not  done&#8217; give me a year, six months, three months and the answer is no  that&#8217;s completely unheard of.&#8221;<\/p>\n<p><strong>The Whistleblower<\/strong><\/p>\n<p>West&#8217;s tenure at the EPA after his investigation into  BP was shut down was tumultuous. He said the agency tried to fire him  over the fact that he continued to be outspoken about the case.<\/p>\n<p>He retired from the agency on October 29, 2008. Two  days later, he would become a whistleblower in his own right.<\/p>\n<p>West took his complaints about the way the BP case  was handled to the nonprofit organization Public Employees for  Environmental Responsibility (PEER). He issued a two-page statement on  October 31, 2008, that said he never had a &#8220;significant environmental  criminal case shut down by the political arm of the Department of  Justice, nor have I had a case declined by the Department of Justice  before I had been fully able to investigate the case. This is  unprecedented in my experience.&#8221;<\/p>\n<p>&#8220;The case against BP Alaska involved a major oil  company with strong political connections,&#8221; West said. &#8221; We had several  investigative avenues available to us that in my judgment as a veteran  senior manager with the EPA Criminal Investigation Division would likely  have led us to find criminal culpability on the part of a number of  senior BP officials and to felonious behavior by this major  corporation.&#8221;<\/p>\n<p>The EPA issued a statement a few days later in  response to West&#8217;s claims. &#8220;In the case of BP Alaska, after a robust  18-month criminal investigation, EPA, FBI and DOT, along with DOJ  prosecutors, jointly concluded the corporation was liable for a  negligent discharge of oil,&#8221; the agency&#8217;s November 3, 2008, statement  said. &#8220;EPA, along with DOJ, also concluded that further investigative  efforts were unlikely to be fruitful.&#8221;<\/p>\n<p>PEER&#8217;s Executive Director Jeff Ruch filed a complaint  with DOJ Inspector General Glenn Fine on November 10, 2008, asking him  to probe, among other things, whether West&#8217;s investigation was  &#8220;prematurely closed down&#8221; and if the amount of the fines were adequate.  Fine&#8217;s office responded by saying the allegations leveled by PEER was a  matter for the DOJ&#8217;s Office of Professional Responsibility (OPR), which  is charged with investigating attorney misconduct. The OPR concluded  federal prosecutors acted appropriately.<\/p>\n<p>Last year, the DOJ filed a civil suit on behalf of  the EPA against BP Exploration Alaska over the March and August 2006 two  massive oil spills in Prudhoe Bay three years ago. One of the spills  forced BP to shut down it&#8217;s oil processing centers in the region for  five days, which led to price spikes during a period of tight crude oil  supplies.<\/p>\n<p>The complaint, filed by the DOJ on behalf of the EPA  and the Department of Transportation-Pipeline and Hazardous Materials  Safety Administration (PHMSA), is seeking maximum penalties from BP,  alleging the company violated federal clean air and water laws and  failed to implement spill prevention technology.<\/p>\n<p>The state of Alaska also sued BP for violating  environmental laws, claiming it lost as much as $1 billion in revenue  due to the 2006 oil spills, which resulted in 35 million barrels of oil  that BP was unable to produce. The complaint said the spills along with  BP&#8217;s work to repair a severely corroded pipeline &#8220;significantly reduced  oil production for more than two years.&#8221;<\/p>\n<p><strong>Oil Spill Redux<\/strong><\/p>\n<p>Despite the plea agreement BP entered into, it would  appear the company may still be cutting corners on safety and  maintenance.<\/p>\n<p>Last November, a pipeline ruptured at BP&#8217;s Prudhoe  Bay oil field, spilling 46,000 gallons of crude oil and water onto the  North Slope, which now hovers just a notch under the top ten oil spills  in the region. State officials said the rupture occurred due to a  buildup of ice inside the pipeline that caused it to burst under  pressure.<\/p>\n<p>Criminal and civil investigations were immediately  announced, led by West&#8217;s former colleagues at the EPA&#8217;s criminal  division and the FBI.<\/p>\n<p>&#8220;The (EPA) Criminal Investigation Division is  continuing to work in concert with our federal and state partners and  British Petroleum, to assess the situation associated with the November  29 [2009] rupture,&#8221; said Tyler Amon, the division&#8217;s acting special agent  in charge for the Northwest. &#8220;This matter is under investigation.&#8221;<\/p>\n<p>BP is still on probation for the March 2006 oil spill. If investigators  determine that the company failed to address any of the maintenance and  safety issues whistleblowers had told West about before and after the  2006 leak, then that would likely be a probation violation.<\/p>\n<p>Mary Frances Barnes, BP&#8217;s probation officer, said  that is a question investigators will determine.<\/p>\n<p>&#8220;It will be looked into,&#8221; Barnes told Truthout. &#8220;We  just have let the investigations play out.&#8221;<\/p>\n<p>West, who now heads the Department of Intelligence and Investigations  for the Sea Shepherd Conservation Society, has heard that story before.<\/p>\n<p>&#8220;I don&#8217;t think BP learned any lessons,&#8221; he said.  &#8220;They were just doing what corporations do. It&#8217;s the government that  failed us. Now there&#8217;s the disaster in the Gulf. When I first heard  about it, I said to my wife that it&#8217;s probably a BP rig and I was right.  I will bet that when the investigations into the explosion and leak are  complete we&#8217;re going to find out it had something to do with BP cutting  corners.&#8221;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By\u00a0 Jason Leopold, t r u t h o u t | Report Mention the name of the corporation BP to Scott West and two words immediately come to mind: Beyond Prosecution. West was the special agent in charge with the Environmental Protection Agency&#8217;s (EPA) criminal division who had been probing alleged crimes committed by &#8230; <a title=\"How the Bush Administration Justice Deparment Killed a Criminal Probe Into BP That Threatened to Net Top Officials\" class=\"read-more\" href=\"https:\/\/planetwaves.net\/news\/daily-astrology\/how-bushs-doj-killed-a-criminal-probe-into-bp-that-threatened-to-net-top-officials\/\" aria-label=\"More on How the Bush Administration Justice Deparment Killed a Criminal Probe Into BP That Threatened to Net Top Officials\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"generate_page_header":""},"categories":[1],"tags":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/planetwaves.net\/news\/wp-json\/wp\/v2\/posts\/25247"}],"collection":[{"href":"https:\/\/planetwaves.net\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/planetwaves.net\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/planetwaves.net\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/planetwaves.net\/news\/wp-json\/wp\/v2\/comments?post=25247"}],"version-history":[{"count":0,"href":"https:\/\/planetwaves.net\/news\/wp-json\/wp\/v2\/posts\/25247\/revisions"}],"wp:attachment":[{"href":"https:\/\/planetwaves.net\/news\/wp-json\/wp\/v2\/media?parent=25247"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/planetwaves.net\/news\/wp-json\/wp\/v2\/categories?post=25247"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/planetwaves.net\/news\/wp-json\/wp\/v2\/tags?post=25247"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}