BP and the U.S. Environmental Protection Agency reached an agreement that will allow the oil and gas company to start doing business again with the federal government, according to a report Thursday by Tom Fowler in the Wall Street Journal’s Law Blog.
In 2012, BP was banned from U.S. government contracts largely because of the 2010 Deepwater Horizon rig explosion and oil spill in the Gulf of Mexico.
The ban “kept BP from renewing existing fuel contracts with the military and from leasing more offshore oil and gas properties,” Fowler reported.
BP agreed to improve safety, operations, ethics and corporate governance, the company said Thursday.
Under the new agreement with the EPA, BP will retain an independent auditor for five years to conduct annual reviews and report back to the government on compliance with the agreement, the EPA said.
The EPA can also “take corrective action if it believes BP breaches the agreement,” the Wall Street Journal reported.
“Thursday’s agreement means BP will be eligible to bid in the next auction of Gulf of Mexico oil and gas leases, which will be held on Wednesday,” the Wall Street Journal said.