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BP executives today faced a barrage of fierce criticism from US lawmakers over the company’ maintenance of its Alaskan oil pipelines following the closure last month of Prudhoe Bay, America's largest oilfield.
"We don’t need prices suddenly kicked higher because the company responsible for bringing a vital part of this country’s oil to market isn’t taking care of the pipelines," Representative Joe Barton, the Texas Republican who heads the House Energy and Commerce Committee, said.
"Years of neglecting to inspect two of the most vital oil pipelines in this country is simply unacceptable," he added, calling BP's policies "as rusty as its pipelines."
In a series of stinging remarks calculated to unsettle BP's leadership he said: "If a company, a very successful company, can’t do the basic maintenance needed to keep Prudhoe Bay’s oil field operating safely and without interruption then maybe it shouldn’t be operating the pipeline."
Robert A. Malone, the head of BP's US operations, acknowledged in prepared testimony that the company’s reputation has suffered, and he vowed to manage Prudhoe Bay in "a safe, efficient and environmentally sensitive way."
In March, more than 200,000 gallons of oil leaked from a 34-inch pipeline that crosses the Alaska tundra. Follow-up inspections mandated by federal investigators led to the discovery of another much smaller leak, as well as "significant" corrosion, according to BP, which briefly shut down the entire Prudhoe Bay field on August 6.
"We have fallen short of the high standards we hold for ourselves, and the expectations that others have for us," Mr Malone, who was named chairman and president of BP America in July, said.
Shortly before the hearing, BP announced it has hired three outside corrosion experts to independently review the incident and make recommendations for improving BP’s corrosion prevention policies.
In an effort to address criticism that the company for years has ignored employee concerns about pipeline safety and other environmental issues, BP yesterday asked a former federal judge to serve as its ombudsman and hear complaints from workers in Alaska and elsewhere about the company’s operations.
BP also faces lawsuits after an explosion last year at its Texas City, Texas-based refinery. And in June, federal investigators said BP energy traders cornered the U.S. propane market in the winter of 2004 and illegally manipulated prices.
Today's hearing by is the first of several that will focus on BP in coming weeks.
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