TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

US, states announce settlement with BP over gulf oil spill

Attorney General Loretta Lynch, center, with, from left, U

Eric Tucker (The Jakarta Post)
Washington
Tue, October 6, 2015

Share This Article

Change Size

US, states announce settlement with BP over gulf oil spill Attorney General Loretta Lynch, center, with, from left, U.S. Coast Guard Commandant Adm. Paul Zukunft, EPA Administrator Gina McCarthy, Commerce Secretary Penny Pritzker, Lynch, Agriculture Secretary Tom Vilsack, and Deputy Interior Secretary Mike Connor, speaks during a news conference at the Justice Department in Washington, Monday, to announce resolution of federal and state claims against BP for the April 2010 Deepwater Horizon oil spill, and the restoration of natural resources in the Gulf of Mexico. (AP/Manuel Balce Ceneta) (AP/Manuel Balce Ceneta)

A

span class="inline inline-center">Attorney General Loretta Lynch, center, with, from left, U.S. Coast Guard Commandant Adm. Paul Zukunft, EPA Administrator Gina McCarthy, Commerce Secretary Penny Pritzker, Lynch, Agriculture Secretary Tom Vilsack, and Deputy Interior Secretary Mike Connor, speaks during a news conference at the Justice Department in Washington, Monday, to announce resolution of federal and state claims against BP for the April 2010 Deepwater Horizon oil spill, and the restoration of natural resources in the Gulf of Mexico. (AP/Manuel Balce Ceneta)

The Justice Department and five U.S. states on Monday announced a $20 billion final settlement of claims arising from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico.

The deal, once approved by a judge, would resolve all civil claims against BP and end five years of legal fighting over a 134-million gallon (500 million liter) spill that affected 1,300 miles (2,000 kilometers) of shoreline. It also would bind the company to a massive cleanup project in the Gulf Coast area aimed at restoring wildlife, habitat and water quality.

"BP is receiving the punishment it deserves, while also providing critical compensation for the injuries that it caused to the environment and the economy of the Gulf region," Attorney General Loretta Lynch said at a Justice Department news conference.

"The steep penalty should inspire BP and its peers to take every measure necessary to ensure that nothing like this can ever happen again," Lynch said.

The settlement, filed in federal court in New Orleans, finalizes an agreement first announced in July. The next steps are a 60-day public comment period and court approval.

In a statement, BP spokesman Geoff Morrell said the settlement total announced Monday includes amounts previously spent or disclosed by the company, and "resolves the largest litigation liabilities remaining from the tragic accident."

Among other requirements, BP would have to pay $5.5 billion in Clean Water Act penalties and nearly $5 billion to five Gulf states: Alabama, Florida, Louisiana, Mississippi and Texas.

The company would also be required to pay $8.1 billion in natural resource damages, with funds going toward Gulf restoration projects such as support for coastal wetland and fish and birds.

An additional $600 million would cover other costs, such as reimbursement for state of federal and state damage assessment costs. And up to $1 billion would go to local governments to settle claims for economic damage from the spill.

BP in 2012 settled with people and businesses harmed by the spill, a deal that's so far resulted in $5.84 billion in payouts.

A coalition of conservation organizations, including the National Audubon Society and the Environmental Defense Fund, praised the settlement in a joint statement. The groups said that while the full damage of the oil spill may not yet be known, the process "will help bring the Gulf back to the state it was before the spill, and the release of this plan is a positive step toward that end."

But Miyoko Sakashita, oceans director at the Center for Biological Diversity, said the oil spill had damaged the Gulf region in a way that money could never fix. She said the real solution would be in curbing offshore oil and gas drilling.

"All of this drilling is really just deepening our climate crisis," she said.

The spill followed the April 2010 explosion on an offshore rig that killed 11 workers.

A report by Deepwater Horizon Natural Resource Trustees '€” comprised of representatives from multiple federal agencies and the Gulf states '€” called the oil spill damages "unprecedented." The report found that deep ocean water currents carried oil from the spill hundreds of miles from the blown-out well.

Oil from the spill was deposited onto at least 400 square miles (1,000 million sq. kilometers) of the sea floor and washed up onto more than 1,300 miles (2,000 kilometers) of shoreline from Texas to Florida. The oil was toxic to fish, birds, plankton, turtles and mammals, causing death and disease and making it difficult for animals to reproduce.

Gina McCarthy, the administrator of the Environmental Protection Agency, said that besides the toll on human life, "the spill drove Gulf communities into a period of painful uncertainty, forcing questions that no American family should ever have to ask: Is my food safe to eat? Is it dangerous for my kids to play near the shore? Is the air still clean to breathe? And will my businesses ever recover?" (k)(++++)

____

Associated Press writers Rebecca Santana, Kevin McGill Janet McConnaughey in New Orleans contributed to this report.

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.