BP Settles for Record $18.7 Billion in Deepwater Horizon Oil Spill

BP, the major oil distributor, has reached an agreement to pay $18.7 billion to resolve government claims connected to the 2010 Deepwater Horizon explosion. The multi-billion dollar settlement covers damages sought by the federal government, including a $5.5 billion penalty under the Clean Water Act and $7.1 billion fine or environmental damage. It also covers claims made by Alabama, Florida, Louisiana, Mississippi, Texas and 400 civic entities along the coast. BP said it has already paid $14 billion in settlements and claims related to the spill.

            This is the largest environmental settlement in U.S. history, and the largest ever by a single entity, contingent on approval by a federal judge. It follows the opinion of a federal judge that BP had engaged in “gross negligence” before the spill, making “profit-driven” decisions that showed a “conscious disregard of known risks.”

Donald Boesch, president of the University of Maryland Center for Environmental Science in Cambridge, told Nature that the settlement will have an impact on “meaningful environmental restoration” by removing uncertainty on how the resources will be used.

“Now our challenge is to make sure we don’t blow it,” said Boesch, a marine scientist and adviser to the National Academy of Science’s Gulf Research Program. “There are a lot of plans on the table. We have ideas and plans in place to address…issues, but they have lacked the resources.”

The 2010 Deepwater Horizon spilled an estimated 3.19 million barrels of oil into the Gulf Coast. It was the largest marine spill in US history, creating an environmental disaster that harmed wildlife. Since the spill, there have been reports of bottlenose dolphins and sea turtles dying in record numbers, and a range of deformities found in fish and birds living along the coast. Many scientists connect these maladies with the many gallons of oil still lingering in the region.

The oil spill also had a major impact on local businesses along the Gulf Coast. The Nation reported in April of small businesses that were still struggling to stay open or had to close down from the damage caused by the explosion five years ago, some seeking compensation from BP for their losses. Many were fisherman that relied on the Gulf’s wildlife as a source of revenue.

The Gulf Restoration Network released a statement approving the settlement, but also included some reservations. "Although $18.7 billion is a significant sum,” said Cynthia Sarthou, Executive Director of the Gulf Restoration Network, “we have serious concerns about how much of this money is actually going to be allocated towards restoring the Gulf’s environment and impacted communities."

Charlie Tebbutt, attorney with the Center for Biological Diversity, added: "While $18.7 billion looks like a lot, just remember that BP makes that amount in net profit every three months."