The U.S. Environmental Protection Agency has temporarily suspended BP Exploration and Production, Inc., BP PLC and BP-affiliated companies from new contracts with the federal government.
The EPA made the move Wednesday due to BP's "lack of business integrity" in relation to the Deepwater Horizon explosion, oil spill, and response in the Gulf states.
The BP suspension will temporarily prevent the company and affiliates from getting new federal government contracts, grants or other covered transactions until the company can provide sufficient evidence to the EPA demonstrating that it meets federal business standards. The suspension does not affect existing agreements BP may have with the government.
Suspensions are a standard practice when a responsibility question is raised by action in a criminal case. Federal agencies take these actions to ensure the integrity of federal programs by conducting business only with responsible individuals or companies.
On Nov. 15, BP agreed to plead guilty to eleven counts of misconduct or neglect of ship officers, one count of obstruction of Congress, one misdemeanor count of a violation of the Clean Water Act and one misdemeanor count of a violation of the Migratory Bird Treaty Act – all charges stemming from the 2010 Deepwater Horizon disaster and Gulf oil spill.
The Deepwater Horizon disaster killed 11 people and the ensuing oil spill is the largest environmental disaster in U.S. history.