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Monday, 21 July, 2008, 01:00 GMT | more prices >>

BP apology as it closes Texas City suit

By Upstream staff

Photo by AP/Galveston Country Daily News

BP has reached a settlement of the only remaining lawsuit stemming from the deadly 2005 explosion at the company's giant Texas City refinery.

BP and plaintiff Eva Rowe, whose parents were killed in the blast, reached a settlement on Thursday morning, Bonnie Quiroga, an administrator of the 212th District Court in Galveston, Texas, said today.

Quiroga told Reuters said the settlement figure was not disclosed.

"We are deeply sorry that she (Rowe) had to go through an ordeal like this and we truly regret her loss," said a BP spokeswoman.

The deal also will require BP to admit responsibility for the accident, Brent Coon, the lawyer representing Eva Rowe said.

Coon told Reuters the total settlement was "a very small fraction" of the $1.2 billion Rowe was seeking.

As part of the settlement, $32 million in donations will be made to colleges and hospitals.

"I wanted to help the community and make a difference for a lot of people, so it feels really good," Rowe said. "I wanted to help people and I've accomplished that."

The burns unit at University of Texas Medical Branch in Galveston and the chemical plant safety programme at Texas A&M University in College Station will each receive $12.5 million.

The chemical plant safety programme at the College of the Mainland in Texas City will get $5 million.

St Jude Hospital, which Rowe said was the favourite charity of her parents Linda and James Rowe, will receive $1 million and $1 million will go to a high school in Hornbeck, Louisiana, where Linda Rowe was once a teacher.

Rowe’s civil lawsuit was the only remaining one involving fatalities from the 2005 explosions at BP’s Texas City refinery that killed 15 people, including James and Linda Rowe, and injured more than 170.

BP has paid about $700 million in claims over the accident.

Several lawsuits filed by people injured in the accident are scheduled to go to trial in February.

A local television report said BP had also agreed to donate $32 million to colleges and hospitals as part of the settlement.

Reuters said KHOU-TV reported the money will be donated to safety programs at Texas colleges, the burn unit of the University of Texas Medical Branch at Galveston and to St Jude Children's Research Hospital in Memphis, Tenneesee.

The full amount and complete details of the settlement were not disclosed.