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TheOPA90isimplementedthroughregulationissuedbytheEPA,theUS
CoastGuard,theDOT,theOccupationalSafetyandHealthAdministration
andvariousstates;Alaskaandthewestcoaststatesarecurrentlythemost
demanding.ThereisanexpectationthattheOPA90anditsregulationswill
becomemorestringentin2011.Theimpactwilllikelybemorerigorous
preparednessrequirements(theabilitytorespondoveralongerperiodto
largerspills),includingthedemonstrationofthatpreparedness.Therewill
beadditionalcostsassociatedwiththisincreasedregulation.In2011,
weexpectmoreunannouncedexercisesandpotentialpenaltiesforany
failuretodemonstraterequiredpreparednessevenwithoutany
OPA90amendments.
TheUSreneriesofBPProductsNorthAmericaInc.(BPProducts)
aresubjecttoaconsentdecreewiththeEPAtoresolveallegedviolations
oftheCAAandimplementationofthedecree’srequirementscontinues.
A2009amendmenttothedecreeresolvesremainingallegedairviolations
attheTexasCityrenerythroughthepaymentofa$12-millioncivilne,a
$6-millionsupplementalenvironmentalprojectandenhancedCAA
compliancemeasuresestimatedtocostapproximately$150million.The
nehasbeenpaidandBPProductsisimplementingtheotherprovisions.
ForfurtherdisclosuresrelatingtotheTexasCityrenery,pleaseseeLegal
proceedingsonpage132.
VariousenvironmentalgroupsandtheEPAhavechallengedcertain
aspectsoftheoperatingpermitissuedbytheIndianaDepartmentof
EnvironmentalManagement(IDEM)forourupgradestotheWhiting
renery.Inresponsetothesechallenges,theIDEMhasreviewedthe
permitsandrespondedformallytotheEPA.TheEPA,eitherdirectlyor
throughtheIDEM,cancausethepermittobemodied,reissuedor,in
extremecircumstances,terminatedorrevoked.BPisindiscussionswith
theEPA,theIDEMandcertainenvironmentalgroupsovertheseissuesand
allegedCAAviolationsattheWhitingrenery.Settlementnegotiations
continueinanefforttoresolvethesematters.BPisalsoinsettlement
discussionswiththeEPArelatingtoallegedviolationsattheToledo,Carson
andCherryPointreneries.
European Union
BP’soperationsintheEUaresubjecttoanumberofcurrentandproposed
regulatoryrequirementsthataffectouroperationsandprotability.These
include:
• T heEUClimateActionandRenewableEnergyPackageandthe
EmissionsTradingScheme(ETS)Directive(see Greenhouse gas
regulation on page 78).
• TheEUEuropeanIntegratedPollutionPreventionandControl(IPPC)
Directiveimposesauniedenvironmentalpermitrequirementonour
majorEuropeansites,includingreneriesandchemicalfacilities,and
requiresassessmentsandupgradestoourfacilities.Aproposed
IndustrialEmissionDirectivewouldreplacetheIPPCDirective.Itwould
mergeseveralexistingindustrialemissiondirectives,imposetighter
emissionstandardsforlargecombustionplantsandbemore
prescriptiveastotheemissionlimitsthathavetobeachievedbyBest
AvailableTechniques(BAT).Whennallytransposedintonational
legislationitwillresultinrequirementsforfurtheremissionreductions
atourEUsites.
• TheEuropeanCommission(EC)ThematicStrategyonAirPollutionand
therelatedworkonrevisionstotheGothenburgProtocolandNational
EmissionsCeilingDirective(NECD),willestablishnationalceilingsfor
emissionsofavarietyofairpollutantsinordertoachieveEU-wide
healthandenvironmentalimprovementtargets.TheECisalso
consideringtheuseofaNOXandSO2tradingschemeasatoolto
achieveemissionreductions.Thismayresultinrequirementsforfurther
emissionreductionsatourEUsites.
• TheEURegulationonozonedepletingsubstances(ODS),which
implementstheMontrealProtocolonODSwasmostrecentlyrevised
in2009.ItrequiresBPtoreducetheuseofODSandphaseoutuseof
certainODSsubstances.BPcontinuestoreplaceODSinrefrigerants
and/orequipment,intheEUandelsewhere,inaccordancewiththe
Protocolandrelatedlegislation.Methylbromide(anODS)isaminor
by-productintheproductionofpuriedterephthalicacidinour
petrochemicalsoperations.Theprogressivephase-outofmethyl
bromideusesmayresultinfuturepressuretoreduceouremissionsof
methylbromide.
• TheEUFuelsQualityDirectiveaffectsourproductionandmarketingof
transportfuels.Revisionsadoptedin2009mandatereductionsinthe
lifecycleGHGemissionsperunitofenergyasdescribedinGreenhouse
gasregulationabove,andtighterenvironmentalfuelqualitystandards
forpetrolanddiesel.
• TheEURegistration,EvaluationandAuthorizationofChemicals
(REACH)Regulationrequiresregistrationofchemicalsubstances,
manufacturedin,orimportedinto,theEUinquantitiesgreaterthan
1tonneperannumperlegalentitytogetherwiththesubmissionof
relevanthazardandriskdata.Havingcompliedwiththe2008pre-
registrationrequirements,wehavenowcompletedfullregistration
ofallthesubstancesthatwewererequiredtosubmitbythe
regulatorydeadlineof1December2010.Thisrstphasecovered
hightonnage/highhazardchemicals;chemicalswithlowerproduction/
importtonnagematerialswillbesubjecttoregistrationintheperiod
2013-2018.REACHaffectsourrening,petrochemicals,lubricantsand
othermanufacturingortrading/importoperations.
Inaddition,EuropehasadoptedtheUNGlobalHarmonizationSystemfor
hazardclassicationandlabellingofchemicalsandproductsthroughthe
ClassicationLabellingandPackaging(CLP)Regulation.Thisrequiresusto
assessthehazardsofallofourchemicalsandproductsagainstnewcriteria
andwillresultinsignicantchangestowarninglabelsandmaterialsafety
datasheets.AllourEuropeanMaterialSafetyDataSheetswillneedtobe
updatedtoincludebothREACHandCLPinformation.Thecompliance
deadlineforsubstanceswas1December2010andmaintaining
compliancewillbeintegratedintotheoperatingprocessesofour
manufacturingandmarketingbusinessesinEurope.Wearealso
requiredtonotifyhazardclassicationstotheEuropeanChemicals
Agencyforinclusioninapubliclyavailableinventoryofhazardous
chemicalsbefore3January2011.TheCLPwillalsoapplytomixtures
(e.g.lubricants)by2015.
• InternationalmarinefuelregulationsunderInternationalMaritime
Organization(IMO)andInternationalConventionforthePreventionof
PollutionfromShips(MARPOL)regimesimposestrictersulphur
emissionrestrictionsonshipsinEUportsandinlandwaterwaysand
theNorthandBalticseasbeginningin2010andwithastricterglobal
caponmarinesulphuremissionsbeginningin2012.Furtherreductions
aretobephasedinthereafter.Theserestrictionsrequiretheuseof
compliantheavyfueloil(HFO)ordistillate,ortheinstallationof
abatementtechnologiesonships.Theseregulationswillplace
additionalcostsonreneriesproducingmarinefuel,includingcoststo
disposeofsulphur,aswellasincreasedCO2emissionsandenergy
costsforadditionalrening.
• IntheUK,signicanthealthandsafetylegislationaffectingBPincludes
theHealthandSafetyatWorkActandregulationsandtheControlof
MajorAccidentHazardsRegulations.
80BPAnnualReportandForm20-F2010