Video: Investigator blows whistle on Alaska oil spill

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In Prudhoe Bay, Alaska on the morning of March 2006, workers had a crude awakening - a massive pipeline leak. More than 200,000 gallons of oil blackened the frozen plains of the North Slope.

A year before that spill a lead EPA investigator from Seattle says he met with BP engineers and workers who saw it all coming.

"They said these lines are full of sludge and were susceptible to a catastrophic failure at any moment," said Scott West, EPA Special Agent in Charge, Retired.

West says they told him the danger area was near a section covered with gravel for caribou to cross and they had tried to pass the information on to their upper management.

West says one of the workers called him the following March.

"And he said OK that leaks happened at a caribou crossing on the transit line just like we predicted,” he said.

The spill sent shock waves all the way to D.C. where congress called in BP officials to explain why the line lacked proper maintenance.

"This was a very willful, deliberate, clear... premeditated if you will, decision not to do this known maintenance,” said Rep. Jay Inslee, D-Washington.

While BP shut down the line to repair it and clean up the spill, West says the EPA, FBI, Justice Department and Alaska State agencies were examining possible felony charges against high ranking BP officials.

He says in the middle of it he was called to Anchorage where the Justice Department announced a misdemeanor settlement.

"I have never seen Department of Justice shut down an investigation this long, that was this strong moving ahead with so much momentum," he said.

BP, which ended up paying a $20 million fine, issued this response to our report today:

"We have no record that any concerns about corrosion leading to an oil transit line breach in the foreseeable future ever were communicated to BP -- by BP Alaska workers, by Mr. West, or anyone else."

The Justice Department sent this response in part:

"The allegations by Mr. West that the Department improperly handled the case are not based in fact and are simply not true."

And from the EPA enforcement division, West's former agency came this response:

"EPA, along with DOJ, also concluded that further investigative efforts were unlikely to be fruitful."

West says he expected those kinds of responses but he is sticking to his story which he said he had to get off his chest as entered retirement.

He felt a $20 million, misdemeanor penalty was not enough for what that spill did to the environment and gas prices.

The case is settled and the fine has been paid, but Inslee said don't be surprised if Congress takes another look at it.

The Justice Department released the following statement:

In October of 2007, BP Exploration Alaska, Inc., agreed to plead guilty to a misdemeanor violation of the Clean Water Act to resolve criminal liability relating to pipeline leaks of crude oil. As a result of the guilty plea, BP Alaska agreed to pay $20 million which included the criminal fine, community service payments and criminal restitution.

The allegations by Mr. West that the Department improperly handled the case are not based in fact and are simply not true.  Mr. West implies that something sinister took place between June 12 and August 28, 2007. As with any investigation, there comes a point in time when further investigation is no longer warranted if it does not have a realistic chance of generating useful evidence.  In this case, the judgment by career prosecutors was that the case had been sufficiently and fully investigated to reach appropriate charging decisions.  No further investigation was likely to find evidence that would shed any new light on the essential facts of the case.  The investigators from the EPA and FBI agreed with the prosecution’s approach.

This case was an example of an excellent partnership between prosecutors from Washington D.C. and those from the U.S. Attorney’s office.

The EPA released the following statement:

"EPA takes criminal violations of the law very seriously. EPA vigorously investigates and recommends charges for both individuals and corporations whenever appropriate. Over the past two years, 70% of the criminals charged in environmental crime cases were individuals, not corporations.

In the case of BP Alaska, after a robust 18-month criminal investigation, EPA, FBI, and DOT, along with DOJ prosecutors, jointly concluded the corporation was liable for a negligent discharge of oil.

EPA, along with DOJ, also concluded that further investigative efforts were unlikely to be fruitful.  At the same time, nothing in the plea agreement for this investigation precludes prosecution of individuals, should events or evidence indicate misconduct.

This case was an example of strong teamwork among the agencies and resulted in the appropriate outcome."