BP faces $320m fine over alleged US clean air breach

BP is facing a fresh environmental controversy after a Californian clean air agency filed a $320m (£200m) lawsuit against the oil giant for alleged breach of emissions standards at one of its refineries.

The legal action, filed in Los Angeles Superior Court on Tuesday by the South Coast Air Quality Management District, alleges that 80 per cent of the above ground petroleum tanks at the site violated environmental regulations relating to the escape of ozone-damaging vapours.

The suit follows earlier criticism of BP for its environmental record in Alaska which has prompted some ethical investment funds to sell their holdings in the company.

According to the agency, BP had operated a "self inspection" programme at the refinery from 1994 but officials became suspicious after the company reported no violations and virtually no repairs to the tanks between 1999 and 2002.

The suit alleges that when inspectors eventually gained access they discovered violations on 39 of the 45 tanks.

A BP spokesman said the claims would be vigorously contested in court. "The offences were largely procedural and technical, they had minimal environmental impact and the proposed fine is entirely disproportionate to the offence," he added.