BP (BP)

CSB Final Report

On March 20, 2007, the U.S. Chemical Safety and Hazard Investigation Board (CSB) released the final report of their investigation into the explosion and fire at the Texas City Refinery. In a press release, the CSB states that its investigators conclude that organizational and safety deficiencies at all levels of the BP Corporation caused the March 23, 2005 explosion. The CSB final report is expected to be made publicly available on the CSB website.

On March 20, 2007, following the announcement by the CSB, BP Products North America Inc. issued the following statement in a press release:

BP accepted responsibility for the March 23, 2005 explosion and fire at the Texas City refinery. We have apologized to those harmed. While we cannot change the past or repair all the damage this incident caused, we have worked diligently to provide fair compensation, without the need for lengthy court proceedings, to those who were injured and to the families of those who died. On the recommendation of the U.S. Chemical Safety and Hazard Investigation Board (CSB), we created an Independent Panel, led by Former U.S. Secretary of State James A. Baker, III to assess process safety management and safety culture at our US refineries. The Independent Panel undertook extensive investigations, and issued their report in January of this year. BP is implementing the recommendations in full.

We have completed and made public the results of our own investigation of the incident and, as CSB Chairman Merritt has publicly recognized, BP cooperated in an unprecedented way with the CSB investigation. BP voluntarily produced to CSB over 6,300,000 pages of documents, made over 300 witnesses available for CSB interviews, including some of its most senior executives and, importantly, agreed to form the Independent Panel.

Notwithstanding the Company’s strong disagreement with some of the content of the CSB report, particularly many of the findings and conclusions, BP will give full and careful consideration to CSB’s recommendations, in conjunction with the many activities already underway to improve process safety management. BP and its employees are ready, willing and able to achieve the goal of becoming an industry leader in process safety management.

In the two years since the accident, BP has taken significant steps to identify and address the causes of the March 23, 2005 Texas City explosion in order to reduce risk and improve process safety management and performance at its five US Refineries. This effort continues. BP is committed to preventing such a tragedy from occurring again.

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