Today BP and the Department of Justice announced that they had reached an $18.7 billion settlement for all Clean Water Act fines, Natural Resource Damage penalties and for all claims made by gulf states and local governments for economic damages resulting from the Deepwater Horizon Oil Spill.
Louisiana will receive more than $6.8 billion from the settlement, including $5 billion for Natural Resource Damage penalties and $1 billion for state economic damages. Louisiana will also receive as much as $787 million in Clean Water Act penalties. BP will also pay for attorney fees and other costs associated with the state’s lawsuit as well as the $350 million expense to cover the cost of outstanding Natural Resource Damage Assessment.
The money will be distributed over a fifteen year period. To address Natural Resource Damages that are unknown at this time, the federal government or the Gulf States may request accelerated payment of interest on the Natural Resource Damage Payments.