MANAGEMENT UNDER UNCERTAINITY 3
Problem identification
BP petroleum, the whitening refinery in 2006 entered into the agreement with the
Indiana Department of Environmental Management (IDEM) to expand its operations in the
refinery industry. In 2007, BP formally applied to the IDEM for the discharge of waste material
and storm or cool water in Lake Michigan. The company submits its formal application to the
environmental regulatory agency (Colborn, 2011). The company with the United States sets a
common legal process. BP filed an application within 60 days to the environmental agencies for
the comment and for the approval process. The approval process suggests that if no response
were received in 60 days from the respective authority to which application is filed then the
application would become legally effective. BP satisfied the environmental authorities that the
company’s action would not harm the environment and local citizens. After the BP clarification,
IDEM and the government approved the application of BP. The company discharged five-time
more industrial waste into Lake Michigan IDEM and environmental authorities only allowed
5694 pounds of waste in the lake but the company discharged 26,621 pounds, which five times
more from the limit (Ligarski, 2012).
Many citizens and people protested against the action of BP petroleum because the
amount of mercury presented in the waste material that can affect the health of the people. After
battling, the protested company tried to remove mercury from the lake. BP also produces the bye
product of black and powdery. BP declares that it employs 19000 people in Indiana that the
supplies hundreds of retail stations. This activity of BP petroleum affects the goodwill of a
company in the oil and gas industry. The toxic mercury waste material reflects negative impacts
on the fish and people nearby (Flamme, 2013).
BP planning to expand the Whiting refinery to produce and finding the natural resources
for on which market depends. In the operation of expansion, the company’s executives
confronted competitive environment from the gulf countries. The problems faced by the BP in
the expansion are local expertise and indigenous technology, which means higher operating
expenses and cost of technical expertise (Hawthrone, 2017). Gulf countries are not supporting
British Petroleum it creates a complex environment for the company. Expansion of refineries in

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Management Under Uncertainity Assignment 2022

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