Texas Rep. Joe Barton rips BP for its "notorious track record" in Alaska

Washington, D.C.

The head of the House Energy and Commerce Committee chided BP Plc. executives on Thursday for overlooking corrosion that threatened to shut down the giant Prudhoe Bay oil field in Alaska, calling the UK-based energy giant's policies "as rusty as its pipelines."

"Years of neglecting to inspect two of the most vital oil pipelines in this country is simply unacceptable," said Texas Rep. Joe Barton in prepared remarks to the committee, which has broad investigative powers.

BP executives conceded that "the shine has come off of BP" but stopped short of a full apology for the Prudhoe Bay pipeline leak, which threatened at one point to shut down about 400,000 barrels per day of oil, or 8 percent of U.S. domestic supply.

Robert Malone, chairman and president of BP America Inc. and the company's top U.S. executive, conceded that BP had "fallen short of the high standards we hold for ourselves" and tested public faith in BP, which has marketed itself as friendly to the environment with such advertising slogans as "Beyond Petroleum."

BP shut down half of the Alaska field in early August after government-ordered pipeline inspections turned up severe corrosion inside a segment of the eastern oil transit line at the field. BP is also the target of a federal criminal probe into a bigger leak at Prudhoe Bay in March that spilled 200,000 barrels of oil.

Barton berated BP for neglecting to run "pigs" through its Prudhoe Bay pipelines -- mechanical devices that detect corrosion and push out sludge -- since at least 1998.

"It seems that BP might have been betting that the field would be depleted before major parts of the pipeline failed and needed replacement," Barton said.

Barton also referred to what he called BP's "notorious track record," pointing to a fire at a BP Texas refinery in 2005 that killed 15 employees and allegations by U.S. regulators that BP tried to manipulate propane and gasoline prices.

Thomas Barrett -- the top U.S. pipeline regulator at the U.S. Transportation Department -- said BP was initially slow to respond to regulatory orders after an initial Prudhoe Bay pipeline leak was found in March.

"I was dismayed at the slow rate of progress," said Barrett, who led federal inspection efforts at the Alaska field, pointing to "difficulty in problem solving, poor communication," and delays in ordering needed equipment.

BP did not run a "smart pig" on pipelines in the corrosion-hit eastern side of Prudhoe Bay until July 22, which was 37 days after federal regulators initially ordered the work to be done, Barrett said in prepared testimony.