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Attorney General Mike DeWine
Ohio Sues BP
for $33 Million in Wrongful Oil Tank Clean-Up Compensation
Attorney General DeWine Alleges BP “Double Dipped” from State Fund and
Insurers
(COLUMBUS, Ohio)—Ohio Attorney General Mike DeWine and the Ohio
Petroleum Underground Storage Tank Release Compensation Board today
announced a lawsuit against BP Inc. for wrongfully obtaining more than
$33.3 million in reimbursement to clean up leaks from BP-owned
underground storage tanks in Ohio.
The state alleges that BP knowingly “double dipped” — taking money both
from the Petroleum Board and from insurers — to cover the cost of
correcting accidental leaks from underground storage tanks at hundreds
of BP gas stations throughout Ohio.
In Ohio, the Petroleum Board administers a fund called the Petroleum
Financial Assurance Fund to ensure that accidental leaks from
underground storage tanks can be cleaned up. Money for the fund comes
from fees paid by the owners of underground storage tanks, such as gas
station owners.
The fund is considered a financial resource of last resort, and
underground storage tank owners can only accept money from the fund if
they do not have coverage or accept money from any other sources, such
as their insurance companies.
According to the state’s lawsuit, BP wrongfully obtained $33.3 million
in reimbursements from the fund after submitting its applications to
the Petroleum Board, claiming it had no insurance for the leaks when it
actually had layers of insurance and often accepted insurance money for
the same releases.
“Our lawsuit alleges that BP knowingly and intentionally took more than
$33 million that it was not eligible to accept,” Attorney General
DeWine said. “BP has to follow the same rules as other businesses, and
can’t engage in misconduct without consequence.”
According to the state’s complaint, filed in the Franklin County Common
Pleas Court, BP has submitted 2,651 claim applications to the Petroleum
Board for reimbursement from the Petroleum Financial Assurance Fund for
specific releases at Ohio sites. The Petroleum Board has reimbursed BP
$33,360,455.61 for corrective action costs submitted in these claim
applications.
An additional 905 claim applications with a value of approximately
$22,281,926.28 are pending review and settlement.
The state accuses BP of numerous violations of Ohio law. Specific
counts include subrogation, indemnification, breach of contract, unjust
enrichment, negligent misrepresentation, and conversion.
In the lawsuit, the state seeks a judgment against BP, restitution and
disgorgement of money disbursed to BP from the Petroleum Financial
Assurance Fund, and damages.
The Petroleum Financial Assurance Fund was established in 1989 to
address the environmental implications associated with releases from
underground storage tanks.
A copy of the lawsuit is available on the Ohio Attorney General’s
website.
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