Oil Giant BP Agrees to Settle Texas Refinery Gas Explosion Suit

By Mary Mitchell

Published on November 14, 2006

BP Plc agreed to pay about $38 million to charities and community groups, plus an undisclosed amount to Eva Rowe. The explosion at the company's Texas City refinery injured hundreds of workers and killed 15 people. All of the death claims except Eva Rowe's were settled before trial; the trial based on her suit was to begin on Nov. 9 when BP agreed to settle and acknowledged safety problems at the refinery.

As part of the settlement, BP will donate $12.5 million to Texas A&M University’s Process Safety Center; $12.5 million to the University of Texas hospital burn unit in Galveston; $5 million to College of the Mainland, a Texas City school, for safety training; $1 million to St. Jude Children’s Research Hospital in Memphis; and $1 million to schools Eva Rowe attended in Louisiana. BP also agreed to match any donations made to Texas A&M, University of Texas, and College of the Mainland, up to $2 million for each school.

The explosion occurred when part of the refinery's octane-boosting unit's vent system overflowed, releasing vapors that pooled above ground. A spark ignited the vapors.

The lawsuit is Arenazas v. BP Products North America, 05CV0337, 212th District Court, Galveston County, Texas (Galveston).

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