Tuesday, August 31, 2010

BP (NYSE:BP) Oil Spill Generates Regulatory Changes for Inspectors

Inspectors for the Bureau of Ocean Energy Management were hit with some changes today after they took a hit from the BP (NYSE:BP) spill, which gave the appearance of unethical behavior on the part of some, which could have lowered inspection standards.

The new rules put in place will bar inspectors from performing inspections on any project where a close friend or relative works. The rules are effective immediately.

So as not to be confused, the Bureau of Ocean Energy Management is the new name for the Minerals Management Service.

The problem with these new rules in the Gulf region is the industry is such a big part of the communities, it's hard to find a project where someone doesn't know somebody, or a relative isn't working for them.

Concerns are this could result in might make it hard to find qualified inspectors under the new rules, which could significantly slow down the approval process.

Another new rule is inspectors will not be allowed to perform inspections on projects of a former employer until at least two years after leaving the firm.

This is a response to the perception the inspectors were too close to the oil industry in general.

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