According to the settlement agreement, BP will pay the U.S. federal government a civil penalty of $5.5 billion under the Clean Water Act and $7.1 billion to the federal and state governments for natural resource damages, over a period of 15 years.
Full Answer
How much did BP pay in the BP oil spill settlement?
In 2015 the Justice Department and Gulf coast states reached a record civil settlement with BP that totaled over $20 billion, including a $5.5 billion civil penalty under the Clean Water Act, $8.1 billion in natural resource damages and $5.9 billion in payments to state and local governments.
What was the settlement agreement with BP?
BP Settlement Agreements The BP settlement is expected to resolve most private economic loss, property damage and injury claims stemming from the Gulf of Mexico oil spill tragedy. In its agreement, BP has reached two separate settlement agreements. The first BP settlement compensates private economic losses related to the oil spill.
What does the BP settlement mean for Gulf of Mexico?
Under the final consent decree, BP will pay the trustees up to $8.8 billion, the largest recovery of damages ever for injuries to natural resources, to restore the Gulf. The settlement includes: $1 billion already allocated during early restoration which began in 2011. $7.1 billion for restoration stretching more than 15 years beginning in 2017.
How much is BP worth?
BP was worth more than $180 billion at the time of the Gulf oil spill and is still one of the largest companies in the world. But it was on the brink of collapse after the spill, and few other companies could afford the costs BP incurred.
Are BP settlement claims taxable?
Physical Injury Awards are Tax-Free. Damages for personal physical injuries or physical sickness are tax-free.
How much compensation did Deepwater Horizon survivors get?
It was largely settled when a Federal District judge approved the largest environmental damage settlement in United States history – $20.8 billion – on April 4, 2016.
How did the BP oil spill affect the economy?
Results indicate that the total economic impacts for the period 2010–2020 of foregone commercial fishing revenues and recreational fishing expenditures as a result of the Deepwater Horizon oil spill are a loss of over 25,000 jobs, $2.3 billion in industry output, $1.2 billion in total value added or gross regional ...
How much money did BP lose from Deepwater Horizon?
BP and its partners have spent $71 billion over 10 years on Deepwater Horizon disaster.
How much did BP pay families?
On Feb. 15, 2018, the Mexican government agreed to the $25.5 million payout from BP, in return for settling their lawsuit, clearing the transnational energy giant of all damages to Mexican waters.
Did anyone from BP go to jail?
(Reuters) - A former BP Plc BP. L rig supervisor who pleaded guilty to a misdemeanor charge in the 2010 Gulf of Mexico oil spill was sentenced to 10 months of probation on Wednesday, concluding a federal criminal case in which no one received prison time over the disaster.
What are the long term effects of the BP oil spill?
The long-term effects of the BP oil spill on exposed cleanup workers produced an increased prevalence of illness symptoms such as shortness of breath, headaches, skin rash, chronic cough, weakness, dizzy spells, painful joints, and chest pain 7 years after their exposure to the oil spill.
What companies profited from the BP oil spill?
FACTBOX-Companies involved in the U.S. Gulf rig accidentTransocean Ltd RIGN. SRIG. ... BP Plc BP. LBP. ... Anadarko Petroleum Corp APC. ... Cameron International Corp CAM. ... Halliburton Co HAL.N - The oilfield services company, which has headquarters in Dubai and Houston, provided a number of services on the Deepwater Horizon.
What are the economic impacts of oil?
Oil price increases are generally thought to increase inflation and reduce economic growth. In terms of inflation, oil prices directly affect the prices of goods made with petroleum products. As mentioned above, oil prices indirectly affect costs such as transportation, manufacturing, and heating.
Is BP still paying for Deepwater Horizon?
Total BP money paid out pushing $60 billion It'll cost $6.4 million, but the city has that sum covered, thanks to their settlement with BP Oil. Almost 10 years since the Deepwater Horizon disaster in the Gulf of Mexico and five years from the settlement was announced, BP oil money is still coming to Tampa Bay.
Who did BP blame for the oil spill?
Barbier attributed 67% of the fault to BP, 30% to Transocean, which owned the Deepwater Horizon drilling rig, and 3% to Halliburton, the cement contractor. “BP's conduct was reckless,” Barbier wrote in the decision, according to Bloomberg. “Transocean's conduct was negligent. Halliburton's conduct was negligent.”
Is the Deepwater Horizon well still leaking?
One oil well off the southeastern coast of Louisiana, owned by Taylor Energy, has been leaking since 2004, spilling between 300 and 700 barrels per day. The well's reserves could keep it leaking for the next 100 years if it isn't capped, meaning it will one day eclipse the Deepwater Horizon spill in terms of volume.
Did survivors of Deepwater Horizon get a settlement?
The $18.7 billion BP settlement announced Thursday does little to heal the wounds suffered by the families of the 11 crew members killed when the Deepwater Horizon exploded and sank off the Louisiana coast. While the settlement does not involve the families directly, some feel BP is getting off easy.
Is BP still paying for Deepwater Horizon?
Total BP money paid out pushing $60 billion It'll cost $6.4 million, but the city has that sum covered, thanks to their settlement with BP Oil. Almost 10 years since the Deepwater Horizon disaster in the Gulf of Mexico and five years from the settlement was announced, BP oil money is still coming to Tampa Bay.
Who went to jail for Deepwater Horizon?
In all, the Justice Department brought 48 felony charges and 2 misdemeanor charges against four BP employees: Kaluza, Vidrine, former BP vice president David Rainey, and an engineer named Kurt Mix. The result: two acquittals and two misdemeanor guilty pleas.
What happened to Donald Vidrine?
Donald J. Vidrine, who faced federal prosecution as one of two BP supervisors on the Deepwater Horizon when the drilling rig exploded in the Gulf of Mexico in 2010, killing 11 rig workers and causing the nation's worst offshore oil spill, died June 3 at his home in Baton Rouge. He was 69.
What is the BP settlement?
The BP settlement is expected to resolve most private economic loss, property damage and injury claims stemming from the Gulf of Mexico oil spill tragedy. In its agreement, BP has reached two separate settlement agreements. The first BP settlement compensates private economic losses related to the oil spill. These claims include individuals and businesses which suffered damage to wetlands, coastal property and personal property; lost profits; sustained real property sales losses; lost subsistence use; and have claims for failure to pay under BP’s Vessels of Opportunity Program. The second BP settlement compensates Gulf residents and clean-up workers who suffered medical ailments related to exposure to the oil and chemical dispersants in the weeks and months following the spill. Residents in the coastal and wetlands areas of the Gulf will be compensated for a wide range of specific medical conditions, including stomach, skin and respiratory conditions. The second BP oil spill settlement also provides periodic medical consultations over the next 21 years. Claimants are permitted to participate in either or both settlements.
What is the BP oil spill settlement?
The BP oil spill settlement holds the company fully accountable to individuals and businesses affected by the spill and requires that they fully satisfy all eligible claims. If you were harmed by the Gulf of Mexico spill, you may still be able to make a claim for compensation.
Is it too late to file a claim for BP oil spill?
Gulf of Mexico Residents: If you have been affected by the BP oil spill, it's not too late to make a claim for damages. The oil giant has reached a settlement to compensate the hundreds of thousands of individuals and business owners who were harmed by the Gulf of Mexico oil spill.
The good news for BP
When does $18.7 billion actually equal $9.16 billion? When it’s paid over 15 to 17 years. While the exact present day value of the total payout is subject to some interpretation, it will certainly equal less than $18.7 billion in 2015 dollars by the time all the checks are written.
The good news for the Gulf of Mexico
Arguably the biggest benefit of this settlement is not the total amount of money BP will have to pay, but the fact that the company will start paying as soon as the settlement is finalized, avoiding what could have become a lengthy waiting game. Until the Macondo well blew out in 2010, the highest profile U.S.
The convoluted: Where will all this money go?
There are basically three pots of money that comprise the $18.7 billion settlement: $7.3 billion is for natural resource damages, including the future damages fund; as much as $5.9 billion will go to states and Gulf Coast localities to settle claims for economic damages, primarily lost tax revenue; and the remaining $5.5 billion will be used to pay penalties under the Clean Water Act.
Conclusion
Even if all goes smoothly, the settlement will not be finalized until sometime in 2016—possibly around the time the Mark Wahlberg action-drama “Deepwater Horizon” is set to be released on September 30.
How much was the environmental damage settlement?
It was largely settled when a Federal District judge approved the largest environmental damage settlement in United States history – $20.8 billion – on April 4, 2016.
How much did BP spend on restoration of the Gulf of Mexico?
In 2011, one year after the Deepwater Horizon oil spill, BP agreed to provide up to $1 billion toward early restoration projects in the Gulf of Mexico. Since then, the Trustee Council has approved five early restoration plans, encompassing 65 projects at an estimated cost of $866 million. These projects allowed us to start restoring the Gulf before the formal damage assessment ended. Those funds are credited towards the possible final $8.8 billion total.
How many people died in the Deepwater Horizon oil spill?
Deepwater Horizon. On April 20, 2010, the Deepwater Horizon oil rig exploded off the Gulf Coast, killing 11 people and injuring 17. So began an 87-day oil spill that spewed 3.19 million barrels, or nearly 134 million gallons, into the Gulf of Mexico.
What are the effects of oil spills on dolphins?
This process involves investigating the effects of the spill on natural resources and determining the costs to restore them. Bottlenose dolphins, who had to swim through heavily oiled waters, suffered serious reproductive and adverse health effects from the oil. , some of which are still being determined.
What percentage of the oil spill liability fund is used for oil spill removal?
The remaining 20 percent , or $1.33 billion, went to The Oil Spill Liability Trust Fund, a general government fund established in 1986 to aid in oil spill removal and assessment of the damage they have caused.
How much was the Deepwater Horizon case?
history. BP pled guilty in 2012 to 14 felony counts and was fined a record $4 billion –and half directly benefits the Gulf. $4 billion.
How much money did Louisiana get from the oil spill?
Louisiana will receive more than half the funding, $5 billion, since it saw the most significant damage from the spill. Detailed allocations and project information can be found on the Trustee Council website.
What was the BP case?
In 2012 the company reached an agreement with the Justice Department to plead guilty to 14 criminal counts, including manslaughter, obstruction of Congress and violations of the Clean Water Act and the Migratory Bird Treaty Act.
How much did BP pay for the Gulf oil spill?
BP paid dearly for the reckless corporate culture of cost-cutting and excessive risk-taking that caused the spill: more than US$60 billion in criminal and civil penalties, natural resource damages, economic claims and cleanup costs. Indeed, from a legal standpoint, the legacy of the Gulf oil spill is the sheer size of the payout, which ushered in an era of multibillion dollar criminal and civil penalties for environmental and other corporate crimes.
What was the response to the Deepwater Horizon spill?
In response to the Deepwater Horizon spill, Congress passed the RESTORE Act in 2012, but this served only to ensure that civil penalties paid to the federal government by BP and its partners would be shared with Gulf coast states. The law was silent about drilling safety and future oil spills. Congress also did not act on recommendations made by the bipartisan commission that President Obama appointed to investigate the spill and offshore drilling, such as increasing energy companies’ liability limits for oil spills.
How many barrels of oil were spewed from the Macondo well?
A massive explosion killed 11 workers on the Deepwater Horizon drilling rig, and a blowout spewed more than 3 million barrels of oil from the Macondo well, located 70 miles off the coast of Louisiana. For three months the oil company, BP, struggled to contain its runaway well, which it finally capped on July 12 and permanently sealed in ...
What was the Obama administration's response to the oil spill?
The Obama administration imposed a brief moratorium on offshore drilling, reorganized the relevant offices within the Interior Department and enacted safety rules to prevent future oil spills.
How many miles of coastline did BP cover?
By that time, oil coated more than 1,000 miles of coastline in six states and covered over 40,000 square miles of the Gulf of Mexico.
When was the Deepwater Horizon trial?
Activists at the Hale Boggs Federal Building in New Orleans on the first day of the trial over the Deepwater Horizon oil rig spill, February 25, 2013. Sean Gardner/Getty Images