At issue in this matter were two oil spills in 2006 from pipelines operated by BP Exploration (Alaska), Inc. (“BPXA”) in the North Slope of Alaska. The State of Alaska alleged, among other claims, that BPXA failed to comply with a variety of environmental regulations related to the inspection and maintenance of the pipelines, which resulted in the oil spills. According to the State of Alaska, BPXA was required to return to the State any economic benefit it received from delayed or avoided compliance costs.
Econ One was retained by the State of Alaska to calculate the economic benefit that BPXA derived from these alleged noncompliance violations by utilizing the United States Environmental Protection Agency’s BEN computer model. Dr. Daniel Flores submitted an expert report and provided deposition testimony. The parties reached a settlement with regard to these claims.