SACRAMENTO, Calif. (Legal Newsline) — California Attorney General Xavier Becerra announced Jan. 11 that BP Energy Company and affiliates (BP) will pay $102 million to resolve allegations of intentionally overcharging the state for natural gas purchased between March 2003 and August 2012.
The California Department of General Services bought the natural gas in three contracts and used the gas for a multitude of state agencies and political subdivisions. Under the contracts the department was supposed to be allowed to cap the price it would pay BP for specific volumes of gas.
According to Becerra’s office, BP often charged the department prices that violated the cap, violating the contract and the California False Claims Act. BP purportedly also concealed its overpricing through a series of false and misleading information.
“BP thought it could get away with providing false and misleading information in order to line its own pockets. [Now] we send a clear message that cheating the people of California will cost you more than it's worth,” Becerra said. “My office is committed to holding accountable those who unscrupulously put profits ahead of people.”