Texas has announced an agreement in principle between BP Exploration and Production Inc. and the states of Alabama, Florida, Louisiana, Mississippi, Texas, and the U.S. federal government. As part of the agreement, BP will pay $20.2 billion in damages and penalties, with Texas receiving more than $750 million. Upon agreeing to the terms, Governor Abbott issued the following statement:
“After five years, I’m proud to announce that Texas, along with the other Gulf States, has reached an agreement in principle with BP to resolve all the states’ claims. This settlement will allow Texas to reinvest in the Gulf community and reinvigorate the economic and environmental health of the region.”
Details Of The Settlement:
BP will pay a total of $20.2 billion in damages and penalties:
$5.5 billion in Clean Water Act penalties.
This amount will fund projects in the Gulf-Wide RESTORE Act plan.
$8.8 billion in Natural Resource Damages.
This is under the federal Oil Pollution Act.
$4.9 billion in Economic Damages to the Gulf States.
Texas will see a large amount of money that will be part of Texas’ Gulf Restoration plan. The Clean Water Act penalties and the Natural Resource Damages penalties will be a 15 year payout plan starting in 2017.
