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Home | News & events | Legal updates | Oil companies get fingers burnt over Buncefield

Oil companies get fingers burnt over Buncefield

19 July 2010

The firms involved in the operation and maintenance of the Buncefield fuel storage depot, prior to the huge explosion in December 2005, have today been ordered to pay fines and costs totalling nearly £10 million.

The incident, which injured 43 people, is believed to be the largest explosion in Britain since the war, measuring 2.4 on the Richter scale, and was heard up to 125 miles away.
 
Five defendants received fines ranging from £1,000 (plus £500 costs) to more than £3.5 million for French oil giant, Total, who was also landed with a £2.6 million share of the investigation and prosecution costs bill from the HSE and Environment Agency. However, the level of fines have already been robustly criticised by some politicians and families of victims for being too low, given the level of profits in the oil industry.

In his sentencing remarks, Judge Sir David Calvert-Smith said that it was miraculous no one was killed or seriously injured by the explosion, which occurred at about 6am on a Sunday morning. Had it occurred during working hours, "loss of life could have been measured in the tens or even hundreds.”
 
The offences and fines are as follows:

• Total - £3.6 million plus £2.6 million costs for failing to ensure the safety or workers and members of the public; 
• Hertfordshire Oil Storage Limited - £1.45 million plus £1 million costs for failing to prevent major accidents; 
• British Pipeline Agency Limited - £300,000 plus £480,000 costs for failing to prevent major accidents and limit their effects as well as causing pollution to enter controlled waters; 
• Motherwell Control Systems 2003 Limited - £1,000 plus £500 costs; and, 
• TAV Engineering Limited - £1,000 plus £500 costs.

It is unclear at this stage whether any of the defendants will appeal their sentences.
 
Whilst the size of the fines are not as large as the £15 million handed to Transco in Scotland following an explosion which resulted in multiple fatalities, or to the firms involved in the Hatfield Rail Disaster, they represent the largest fines on any company in a UK Court for a non-fatal accident. Furthermore, a number of the companies including Total, pleaded guilty.

The sentence for Total comes on top of a civil judgement last year which apportioned 100% of the liability for its joint venture with Chevron, which operated the site, Hertfordshire Oil Storage Limited - the estimated liability at the time was £750 million.

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Philip Ryan

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T: 03700 86 8915
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E: philip.ryan@shoosmiths.co.uk