BP sued over pipeline conduct

ANCHORAGE — BP executives and its board of directors were negligent in their oversight of pipelines in the Prudhoe Bay oil field in Alaska, resulting in leaks that damaged the company's reputation while exposing it to millions of dollars in penalties and fines, according to a lawsuit filed on behalf of shareholders.

The more than 100-page lawsuit filed Monday in Superior Court in Anchorage says BP executives and the board breached their fiduciary duties in running U.S. operations for the world's second-largest oil and gas producer.

Their conduct, the suit says, damaged BP's reputation; hurt the environment; left BP open to costly lawsuits, penalties and fines; increased its operating costs due to burdensome requirements by regulators; and resulted in lost revenue and profit.

It says London-based BP presented itself to shareholders as "an exceptionally progressive, highly ethical and environmentally sensitive corporation, which stressed safety in its operations."

"However, the true facts were quite different than these corporate fiduciaries presented to BP's owners — its shareholders," the lawsuit says. "Unfortunately, BP has a long and sordid history of environmental-law violations its executives now try to camouflage with a little green and yellow sunburst," a reference to the company's logo.

The suit focuses on recent BP problems, including leaks because of corroded pipes at Prudhoe Bay, a refinery explosion in Texas in which 15 people were killed and investigations into illegal price fixing in the propane market.