US, states finalize settlement with BP over gulf oil spill

The U.S. Justice Department on Monday said it settled its claims against oil company BP PLC for more than $20 billion (£13.2 billion).

The agreement, which still needs to be validated by a judge, must end put an end to the lawsuits against BP by the Federal government as well as five affected states (Alabama, Florida, Louisiana, Mississippi and Texas) and local authorities.

“BP is receiving the punishment it deserves, while also providing critical compensation for the injuries it caused to the environment and the economy of the Gulf region”, U.S. Attorney General Loretta Lynch said in the statement.

It also would bind the company to a massive cleanup project in the Gulf Coast area aimed at restoring wildlife, habitat and water quality. The next steps are a 60-day public comment period and court approval.

Shares of the company were up about 3.5 percent on Monday.

– $8.1 billion in natural resources damages, which includes the $1 billion BP already committed to pay for early restoration.

The Macondo well blowout and the fire on the Deepwater Horizon drilling rig on April 20, 2010 killed 11 workers. “By the time the torrent stopped, it had inflicted unprecedented damage”.

The spill fouled 1,300 miles of coastline and dumped more than three million barrels of crude into the sea, hurting fishermen and prompting overhauls of safety rules and emergency plans in one of the world’s most prolific offshore oil basins. The heads of the Environmental Protection Agency and the departments of Commerce and Agriculture joined her for the announcement. Is it unsafe for my kids to play near the shore?