US, states announce settlement with BP over gulf oil spill

“Texas as a whole will benefit from this settlement”. Eleven men died aboard the rig and oil gushed from the site for weeks before the well was capped. The leak caused an eruption on the deck and the rig sank soon after. It will have 18 years to pay the fine. Specifically, Wilcox’s proposal sought to fund the 30-mile US 98 extension in Mobile County ($265 million) and the 24.5-mile expansion of the Baldwin Beach Express from Interstate 10 to I-65 ($202 million).

Congressman Garrett Graves, R-Louisiana, former chairman of the Louisiana Coastal Restoration and Protection Authority, said, “Months ago, an historic agreement in principle was announced between BP and state and federal agencies”.

When tentative terms were announced in July, BP put the total price tag at $18.7 billion; the final agreement resolves discrepancies (see Daily GPI, July 2). “With this recovery, we can move forward to begin rebuilding our coast and repairing the damage caused by this spill rather than dealing with the uncertainty and delays of trial and appeals”.

BP will have to pay $5.5bn in Clean Water Act penalties and nearly $5bn to five Gulf states, including Alabama, Florida, Louisiana, Mississippi and Texas. BP has previously estimated it would pay more than $1 billion annually over the majority of the payment period.

“NOAA scientists were on the scene from day one as the Deepwater spill and its impacts unfolded”.

“This agreement brings renewed hope for a fully restored Gulf of Mexico to millions of Americans who value the Gulf for its contributions to our economy, our environment and plentiful recreational opportunities”, Jewell said.

A simplified breakdown of how project submissions become a reality through Natural Resource Damage Assessment funding. “There’s an initial restoration project dealing with blue fin tuna”. It allocates funds to meet five restoration goals, and 13 restoration types created to meet these goals.

At the time, the deal was still pending court approval. Both will be available for public comment through December 4.

Comments will also be accepted online and by mail sent to: U.S. Fish and Wildlife Service, P.O. Box 49567, Atlanta, GA 30345.

The plan is available here. Not doing that may have been a negotiation point-it gives the DOJ a bigger number for its press release and lets BP tell its shareholders it’s deducting a cool $5.35 billion.

BP had earlier already settled with people and businesses harmed by the 2010 disaster. A separate civil settlement imposed a record $1 billion Clean Water Act penalty on Transocean and required the company to take significant measures to improve its performance and prevent recurrence of this conduct. And if BP files for bankruptcy, becomes insolvent or changes ownership, an acceleration clause would allow the governments to require immediate payment.