Long before BP was cutting costs — and spilling oodles of oil — into the Gulf of Mexico, it was polluting the soil in Alaska by refusing to properly maintain its pipeline system. And now your Worst Company In America has agreed to pony up $25 million to settle the federal investigation into a massive Alaska spill in Prudhoe Bay.

According to Reuters, the proposed consent decree says that BP has “started implementation and operation of some corrective measures, including replacement of the Prudhoe Bay oil transit lines, improved leak detection on the oil transit lines, and improved operation and maintenance of the Pipeline System.”

Staffers at Prudhoe Bay, where more than 250,000 gallons of oil were spilled onto the ground in 2006, have said that BP cut back severely on pipeline maintenance and inspection after it took over the aging facility. The spill was the largest (to date) oil spill on Alaska’s North Slope.

BP to pay $25 million penalty over Alaska oil spill [Reuters]

Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.