BP To Pay $20 Billion For Spill

Oct 5, 2015

It’s settled – BP has to pay $20 billion for the gulf oil spill in 2010. The deal announced Monday finalizes civil claims and ends five years of legal fighting.

The Department of Justice says BP has to pay Clean Water Act fines and settle with the five gulf states that were impacted - Alabama, Florida, Louisiana, Mississippi and Texas.

According to the Attorney General’s office Louisiana will get $6.8 billion. That includes $5 billion for environmental damage, $1 billion for economic damage and at least $787 million for civil penalties.

The money will be distributed over 15 years.

Loyola law professor Blaine LeCesne says it’s a good deal for BP, “BP came out in a very favorable light. On the other hand, 20 billion dollars is a lot of money — but BP does have an extended period of time over which to pay it. From BP’s perspective it minimizes shareholder uncertainty.”

Louisiana already got $2 billion through agreements and grants from BP, bringing the total for the state to $8.8 billion.

Claims from people and businesses are separate. LeCesne says of the 133,000 that were made, only 60 percent of the private claims have been settled so far.

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