California accuses BP of inflating gas contract

Nov 13, 2014 4:44 PM by News Staff

SAN FRANCISCO (AP) - California is accusing the oil and gas company BP of overcharging the state up to $300 million on natural gas sales.

The allegation is in a lawsuit unsealed in San Francisco County Superior Court this week. It says California gave the British company an exclusive deal to provide $2 billion in natural gas for government agencies. The case alleges BP sellers routinely charged above market price and BP reaped a profit margin at least three times greater than the contract allowed.

A BP spokesman said Thursday that the allegations have no merit.

A fired BP whistleblower originally brought the civil lawsuit. California Attorney General Kamala Harris notified the court this month that her office would also join in the suit against BP.

Copyright 2014 The Associated Press. All rights reserved.


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