In what will be, when approved, the largest environmental settlement in U.S. history, BP has agreed to pay five states and the federal government $18.7 billion to resolve environmental and economic claims stemming from the 2010 Deepwater Horizon oil spill.
The settlement, to be paid over 17 years, resolves claims by Florida, Alabama, Mississippi, Texas and Louisiana, and includes approximately $1.5 billion in compensation for Mississippi alone. This brings the total amount received by the state as a result of the disaster to $2.2 billion when previous payments are included.
As reported by WLOX, the funds coming to Mississippi include:
- Approximately $183 million in Natural Resource Damage Assessment payments, to be paid over 15 years, which will be used primarily for environmental restoration;
- Approximately $582 million in Clean Water Act penalties under the RESTORE Act. These funds will be paid over 15 years and used primarily for environmental projects, research and economic development;
- $750 million in economic damages paid over 17 years as a result of Mississippi’s own lawsuit against BP. Mississippi is scheduled to receive a payment of $150 million in 2016 and equal yearly payments of $40 million from 2019-2033. The funds will be available for appropriation by the Mississippi Legislature.
According to this Justice Department release, the settlement won’t be final until a consent decree is negotiated and a court approves the deal. Additionally, the agreement provides up to $1 billion to settle claims from more than 400 local governments across the Gulf states, with an announcement on those settlement amounts expected later in July.
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This website has been prepared by Rushing & Guice, P.L.L.C for informational purposes only and does not, and is not intended to, constitute legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice from an attorney licensed in your jurisdiction.