BP to pay $373 million to settle charges

By Chris Baltimore

WASHINGTON (Reuters) - Oil major BP (BP.L: Quote, Profile, Research, Stock Buzz) on Thursday agreed to pay $373 million to settle U.S. charges stemming from a deadly Texas refinery explosion, an Alaska oil spill and allegations it manipulated the propane market.

The criminal fines and civil penalties come as fledgling BP CEO Tony Hayward seeks to close a dark chapter in the company's history in the United States through a restructuring aimed at improving its safety and environmental record.

"These agreements are an admission that, in these instances, our operations failed to meet our own standards and the requirements of the law," said Bob Malone, chairman of BP's U.S. subsidiary. "For that, we apologize."

BP will pay up $303 million in civil and criminal penalties for attempting to corner the U.S. propane market in 2004, the largest fine ever handed down by the Commodity Futures Trading Commission.

In addition, the British oil giant will pay a $50 million criminal fine for the massive 2005 explosion at its Texas City refinery -- the deadliest U.S. industrial accident in more than a decade -- that killed 15 people and injured more than 170.

BP agreed to plead guilty to one felony violation of the Federal Clean Air act and will face the biggest penalty ever levied under the act for the refinery explosion, the U.S. Justice Department said.

The company has already given $1.6 billion to victims of the explosion and has resolved over 1,600 personal injury claims. Ongoing civil lawsuits could push the payment higher.

BP will also pay $20 million in criminal fines and restitution to Alaska to resolve criminal liability for a pipeline spill at its Prudhoe Bay oilfield in Alaska in 2006.