BP to pay Alaska $255M for lost oil production

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BP Exploration (Alaska) Inc. has been ordered to pay the state of Alaska $255 million for royalties on oil production lost during 2006 spills and subsequent pipeline shutdowns to replace pipe on the North Slope.

The state announced the award, reached by arbitrators Oct. 31, in a release on Thursday.

The state says the final amount, which cannot be appealed, includes $10 million to settle civil assessments.

BP says in a statement it was "pleased to finally resolve the last remaining claim."

The state and BP agreed to enter arbitration instead of continuing legal battles. A three-member panel heard the case over four weeks last May and June in Anchorage.

BP Exploration (Alaska) Inc., a subsidiary of London-based BP PLC, must pay by Dec. 3.

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