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BP Pays Record $18.7 Billion to Settle Claims in Gulf Oil Spill
July 2, 2015 Margaret Cronin, Fisk Laurel Brubaker Calkins and Rakteem Katakey – bloomberg
BP Plc reached a record $18.7 billion agreement to settle all federal and state claims from the 2010 Deepwater Horizon oil spill after an abrupt strategy shift in May to re-open talks, according to three people close to the matter.
The company had been committed to fighting the claims in court after negotiations fell apart in 2013. But falling oil prices and a federal judge’s recent rulings putting a potential $13.7 billion price tag on Clean Water Act violations helped motivate BP to change tactics in May, said the people, asking not to be identified because negotiations were private.
“BP was staring down a gun barrel and had to find some way to settle this,” said David Berg, a Houston trial lawyer who tracked the spill litigation but isn’t involved in it. “The total amounts are staggering,” though BP was able to “hammer the government into a payout plan that stretched out over several years.”
The agreement, while preliminary, specifies the payments will be spaced out over as long as 18 years. A record $5.5 billion will cover federal penalties under the Clean Water Act, topping the previous high of $1 billion. Louisiana, Mississippi, Alabama, Florida and Texas will also receive payouts for harm from the disaster, which claimed 11 lives and caused the worst offshore spill in U.S. history.
- Deepwater BP Oil Spill | The White House
- White House Blog: Deepwater BP Oil Spill
- 4/29/10 Press Briefing on the BP Oil Spill in the Gulf Coast
- 5/5/10 The Ongoing Administration-Wide Response to the Deepwater BP Oil Spill
- 5/11/10 Merchant Marine Academy Grad Helps Lead Evacuation of Deepwater Horizon
- 5/12/10 Fact Sheet: Deepwater Horizon Oil Spill Legislative Package
- 5/22/10 Executive Order– National Commission on the BP Deepwater Horizon Oil Spill and Offshore Drilling
- 5/25/10 The Ongoing Administration-Wide Response to the Deepwater BP Oil Spill: May 25, 2010
- 5/27/10 Deepwater BP Oil Spill: Presidential Press Conference
- 6/7/10 Remarks by the President After Meeting with Cabinet Members to Discuss the Deepwater Horizon Oil Spill
- 6/14/10 President Obama Announces Members of the BP Deepwater Horizon Oil Spill and Offshore Drilling Commission
- 7/8/10 The Ongoing Administration-Wide Response to the Deepwater …
- 4/20/11 Statement by President Obama Marking the One-Year Anniversary of the BP Deepwater Horizon Oil Spill
- 6/20/12 Major Step Forward for Gulf Coast Restoration
- 6/29/12 Major Step Forward for Gulf Coast Restoration
- 9/10/12 Executive Order — Gulf Coast Ecosystem Restoration
- 4/14/16 Interior Department Releases Final Well Control Regulations to Ensure Safe and Responsible Offshore Oil and Gas Development