(BP photo)
MOBILE, ALABAMA – Remember that gigantic 2010 oil spill in the Gulf of Mexico that had folks glued to their television sets watching millions of gallons of crude gush into the lush, tropical waters? Well, a final settlement has been reached between the company that was responsible and local/state governments who were harmed in the catastrophe.
Britain’s BP will end up paying well in excess of $43 billion dollars in criminal fines, clean up efforts, penalties and other claims from the April 20, 2010, Deepwater Horizon oil spill in the Gulf of Mexico.
Americans watched in horror as oil gushed into the gulf, creating a gigantic oil slick that coated beaches, trees, fish, birds and other fragile wildlife. Since then, negotiations on the massive claims of damage have been on-going, and a settlement has been reached.
BP announced Thursday the agreement with the states of Alabama, Florida, Louisiana, Mississippi and Texas also includes settlement of claims made by more than 400 local government entities.
Attorney General Loretta E. Lynch called the calamity “the largest environmental disaster in our nation’s history” and said the settlement “would justly and comprehensively address outstanding federal and state claims, including Clean Water Act civil penalties and natural resource damages … while also resolving significant economic claims with the impacted state and local governments. If approved by the court, this settlement would be the largest settlement with a single entity in American history; it would help repair the damage done to the Gulf economy, fisheries, wetlands and wildlife; and it would bring lasting benefits to the Gulf region for generations to come.”
The BP Board of Directors said in a statement that it “believes that this agreement is in the best long-term interest of BP and its shareholders. The Board set out its position on the dividend at the first quarter and this remains unchanged by the agreement.”
Bob Dudley, BP’s group chief executive, said: “This is a realistic outcome which provides clarity and certainty for all parties. For BP, this agreement will resolve the largest liabilities remaining from the tragic accident and enable BP to focus on safely delivering the energy the world needs. For the United States and the Gulf in particular, this agreement will deliver a significant income stream over many years for further restoration of natural resources and for losses related to the spill.”
As told by BP, the oil spill and response went something like this:
“On the evening of April 20, 2010, a gas release and subsequent explosion occurred on the Deepwater Horizon oil rig working on the Macondo exploration well for BP in the Gulf of Mexico.
“Eleven people died as a result of the accident and others were injured. We deeply regret this loss of life and recognize the tremendous loss suffered by the families, friends and co-workers of those who died.
“The fire burned for 36 hours before the rig sank, and hydrocarbons leaked into the Gulf of Mexico before the well was closed and sealed.
“The accident involved a well integrity failure, followed by a loss of hydrostatic control of the well. This was followed by a failure to control the flow from the well with the blowout preventer (BOP) equipment, which allowed the release and subsequent ignition of hydrocarbons. Ultimately, the BOP emergency functions failed to seal the well after the initial explosions.
We regret the impacts on the environment and livelihoods of those in the communities affected. We have, and continue to, put in place measures to help ensure it does not happen again.”
BP is to pay $18.7bn (£12bn) to settle cases brought after the Deepwater Horizon disaster http://t.co/MpxieADecw pic.twitter.com/6mpETnET4r
— Sky News (@SkyNews) July 2, 2015
BP hit with record $18.7 billion fine over Deepwater Horizon Gulf oil spill http://t.co/Z0glXFrub8 pic.twitter.com/uwJrlIMTWb
— The Independent (@Independent) July 2, 2015
