BP and five coastal states have agreed that the oil company will pay $18.7 billion to the states. This is a record breaking agreement and a historic milestone in the Gulf Coast’s recovery. Environmental groups feel as though the government should have helped out for more money. The company will be making payments over a span of 18 years.
Jacqueline Savitz, U.S. vice president for Oceana, has said,
“The court should not let BP get off the hook without fully compensating Americans for what was lost. A low-end settlement … would not only cheat the public, but it would send the wrong message to BP and the other companies that drill in our oceans”
Oceana is an organization to help protect the oceans.
The amount that it cost to clean up after BP’s oil spill was $29 billion which includes response and clean up of the spill. BP’s spill really effected Gulf Coast’s residents and businesses. BP had reached a similar deal in 2012 with private companies and residents who claimed they were effected by the spill. However, there was no cap on that deal, and this led to court battles about payouts.
This deal’s finer details, which was announced Thursday, are under a confidentiality order. Eventually, there will be a public opinion on this when the a federal judge decides to accept it.
The deal will include $8.1 billion to state and local governments and also a $5.5 billion Clean Water Act penalty. The states that were most effected were Alabama, Florida, Louisiana, Mississippi and Texas. Louisiana was the state that was hit the hardest.
Since Louisiana was hit the hardest they will get a larger share of the money. They will be receiving $6.8 billion.
Photo: Flickr- Marine Photobank
