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Former Secretary of State to Look at Safety Problems at BP

Posted on: Monday, 24 October 2005, 21:00 CDT

By Anne Bell, Houston Chronicle

Oct. 25--BP on Monday named political heavyweight James A. Baker III as chairman of an independent panel to review safety lapses at the troubled oil giant.

Baker, former secretary of state and secretary of the treasury, vowed to lead a panel that would delve into the company's corporate culture and issue a public report within a year.

"You are going to see an aggressive and complete and thorough investigation," Baker said.

"And we're going to let the chips fall where they may."

An explosion at BP's Texas City refinery in March killed 15 people, injured 170 others and set off widespread concern that company managers have a lax attitude toward safety.

Creation of the panel was urged two months ago by the U.S. Chemical Safety and Hazard Investigation Board, which has been investigating the March 23 explosion at the Texas City plant.

The Occupational Safety and Health Administration last month ordered BP to pay a record $21.4 million -- almost double the previous record -- after finding hundreds of willful and serious violations at Texas City.

In an interview with the Houston Chronicle, Baker acknowledged that the stalwart law firm that carries his family's name, Baker Botts, has done years of work with BP. But he brushed aside concerns that those ties constituted a conflict of interest.

"I have a record of public service that goes back a long way," Baker told the Chronicle. "You think I'm going to risk that on this? The answer is no."

According to a disclosure statement made public by BP, Baker Botts' work for the oil behemoth in the last five years represented less than 1 percent of the law firm's revenue for that period.

Also, Baker and his wife sold 675 shares of BP stock when he agreed to chair the panel.

The company contributed $215,000 to the James A. Baker III Institute of Public Policy at Rice University between 1993 and 2005, according to the disclosure statement. But Baker said he receives no compensation from the institute.

Baker also said the law firm would not do any work for the company during the panel's tenure and would immediately begin phasing out any existing work.

However, he acknowledged that the firm would make money performing support work for the panel. He said he did not know how much.

BP's chief executive, John Browne, said in a prepared statement: "The panel will have BP's full support and cooperation.

"We are determined to do everything possible to prevent a tragedy like this from ever happening again by ensuring that safety practices at our operations are effective and comprehensive."

Baker said that each panel member, including himself, would be paid $100,000, despite the length of the inquiry, and that each of the panelists was dedicated to conducting an independent review.

The nine other panel members are a combination of industry experts, public service officials and union representatives.

"Look at the makeup of this panel," he said. "These are people who are not in the tank for BP."

Monday's announcement comes two months after the chemical board issued an "urgent recommendation" -- the first ever made by the agency -- after two more incidents at the Texas City refinery in July and August raised questions about the company's commitment to safety.

Carolyn Merritt, chairman of the safety board, said Monday that she was pleased with the makeup of the panel.

"I anticipate a squeaky-clean report and a very thorough report," Merritt said.

She also applauded BP's cooperation with the safety board and said the panel's findings likely will be closely watched by other refining industry executives.

"They are very eager to be able to learn from this," Merritt said. "If it was not for BP's cooperation, we would not be learning from this."

Mike Wright, director of health, safety and environment for the United Steelworkers, said he hoped that BP will assure all of its workers that they may speak openly and honestly to the panel without fear of demotion or firing.

"Unless the company can give that guarantee to workers, this panel is going to have a very difficult job," Wright said. "And it's not just a matter of retaliating. It's a matter of encouraging and rewarding people for doing the kinds of things that make a plant safe. That is something that the hourly work force has to be intimately involved in."

BP spokesman Ronnie Chappell said the company already provides that guarantee.

"All BP employees are expected to assist the panel in its efforts and to respond to requests from the panel for information," Chappell said. "Retaliation against employees who raise workplace concerns is prohibited by company policy and is not tolerated."

Baker said he wouldn't tolerate any retaliation against workers -- or anyone.

"I believe that no one who talks to the panel should attract retaliation from BP," he said. "The panel will seek that assurance from BP, and I expect to get it."

Baker said he did not want to prejudge the panel's work, but that reports of problems at the company in the last six months were "disturbing."

He noted that although the safety board's recommendation called for a review of the safety culture at all five of BP's U.S. refineries, the panel's findings could expose lapses across the Atlantic Ocean in BP's headquarters in London.

"We are going to look at the corporate culture," he said. "Where the facts take us is where we are going to go."

He noted that he has already butted heads with BP over a confidentiality agreement that the company insisted all panelists sign.

Baker said the company wanted the agreement to say that panelists would be removed if they revealed proprietary information even inadvertently.

He rejected that for a lesser standard that panelists would be removed if they revealed such information out of malice or in bad faith.

Some public meetings

Baker added that although the panel's decisions were subject to a vote, he favored having at least some of its work conducted in the open.

"My view is that we ought to have some public meetings, and I have said that from day one," he said. "We are going to get into every issue, and nothing is off the table."

AT A GLANCE:

--The panel: Charged with assessing and reporting on the safety management systems and corporate safety culture of BP Products North America at its five U.S. refineries.

--Members: 10, plus one more to be named

--The findings: Final report will be made public.

--Target for completion: Within one year.

THIS WEEK: On Thursday, the Chemical Safety and Hazard Investigation Board will release preliminary findings of its investigation into the March 23 explosion at the Texas City refinery. It also will hold a public hearing at 7 p.m. at the Doyle Convention Center in Texas City.

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Source: Houston Chronicle

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