Just five short years after pumping an astonishing amount of oil into the Gulf of Mexico when a deepwater rig exploded near the northern coast of the Gulf or Mexico, BP has reached a deal with the federal government. In it, Tampa stands to get $27.5 million of the $3.25 billion the deal pays Florida governments. Payouts to Florida include $2 billion for economic damages, $680 million for natural resources damages and $572 million from the Restore Act. The total settlement — $18.7 billion — pays Alabama, Florida, Louisiana, Mississippi, Texas and 400 local governments for damages surrounding the explosion.
Attorney General Pam Bondi expects Florida will receive $400 million for economic losses in early 2016, $300 million of which would help the eight counties in the Florida Panhandle most affected by the explosion, according to the Associated Press. The Florida Legislature would decide how to dole out the remaining $100 million over the next 17 years.
The $18.7 billion settlement, which still needs federal court approval, does not include the $8.5 billion paid in the 2012 class action settlements, claims from businesses or people who opted out of the 2012 settlement, or individuals asking for compensation. The settlement does include (over 15 years) $5.5 billion paid as a Clean Water Act civil penalty and $7.1 billion for natural resource damages (BP will also set aside $232 million "to add to the interest payment at the end of the 15-year span to cover costs of further natural resource damages currently unknown", according to Reuters). The settlement also includes $4.9 billion for economic claims in the five Gulf states and no more than $1 billion to local governments.
The Deepwater Horizon exploded on April 20, 2010, killing 11 workers and spewing oil into the Gulf of Mexico for 87 days before the flow was halted in July, making it one of the worst environmental disasters in U.S. history.
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U.S. Rep. Kathy Castor released the statement below following the July 2 announcement that BP agreed to a tentative settlement of $18.7 billion for claims resulting from the BP Deepwater Horizon disaster:
“Today’s multi-billion dollar settlement provides a once-in-a-lifetime opportunity to restore the Gulf of Mexico and launch a robust environmental and economic recovery for the Gulf region. The settlement is a vital part of holding BP fully accountable for its gross negligence and economic and environmental damage. Workers lost their lives and others lost their livelihoods. I personally met with small business owners, fishermen, hotel operators and tourism industry representatives who suffered tremendously from this catastrophe. Our state and local communities suffered as well.
“One of my top priorities in Congress since the 2010 BP disaster has been to work to return the Gulf of Mexico, its communities and related small businesses to better than they were before the blowout. Implementation of the new RESTORE Act, a law that directs 80 percent of the Clean Water Act penalties to restoring the Gulf, is central to the Gulf restoration effort. We have a once-in-a-lifetime opportunity to dramatically improve the environmental and economic vitality of the Gulf of Mexico with legal proceeds under RESTORE Act and the settlement announced today. The terms of today’s settlement mean that 80 percent of $5.5 billion will be appropriately directed to this restoration effort thanks to the RESTORE Act passed by Congress in 2012.”