Wednesday, December 5, 2012

BP Amoco Double-dipped on Insurance

Utah is suing BP Amoco for allegedly double-dipping insurance reimbursements tied to cleanups of leaking underground tanks.

The civil suit was filed by the Utah Attorney General’s Office in 3rd District Court on behalf of the Division of Environmental Response and Remediation. It says the company illegally took $1.5 million from the state’s Petroleum Storage Tank Fund, a state insurance pool, to cover cleanup costs at BP Amoco service stations from 1995 to 2007, even though the company already had insurance.

"We have a responsibility to make sure the fund is used appropriately," said Brent Everett, director of the state’s environmental cleanup programs.

The state insurance pool allows oil companies to be reimbursed from the tank fund only when they lack private pollution liability coverage. But BP Amoco did not tell the state it already had coverage. The state is seeking reimbursement of the $1.5 million, in addition to interest and penalties. Salt Lake Tribune