BP double-billed government, others for clean-up, state says

SACRAMENTO (AP) - California officials say oil giant BP double-billed the government and insurance companies for clean-up of old gas-storage sites.

The California Water Resources Control Board said Thursday it has permanently disqualified 90 of BP’s underground storage sites from receiving government clean-up funds as a result. The state water board says BP also will pay $7.9 million as part of a settlement for the alleged double-billing.

BP spokesman Jason Ryan said the funds were reimbursement for environmental clean-up at ARCO gas stations. Ryan said BP denies any liability in the matter. BP says it will continue working with California to clean up sites of old gas stations.

The agreement bars BP from $135 million in future reimbursement for storage tank clean-up.