After Years of Litigation, BP Agrees to $18.7 Billion in Claims and Penalties for Historic Oil Spill

In simultaneous press conferences in Alabama, Louisiana, Mississippi, and Florida, the attorneys general of the states most directly impacted by the massive 2010 BP spill announced a “global deal” to settle years of litigation with the oil giant for a total of $18.7 billion.

The settlement, largely split between the five Gulf Coast states, includes $6.8 billion to Louisiana, $3.25 billion to Florida, $2.3 billion to Alabama, $2.2 billion to Mississippi, $750 million to Texas, and $5.5 billion in Clean Water Act penalties.

“Today, I am pleased to say that after productive discussions with BP over the previous several weeks, we have reached an agreement in principle that would justly and comprehensively address outstanding federal and state claims, including Clean Water Act civil penalties and natural resource damages,” U.S. Attorney General Loretta Lynch said in a statement.  “BP is also resolving significant economic claims with the impacted state and local governments.”

Lynch said the agreement in principle would be worked into a consent decree, which would then undergo a public comment period.

“If approved by the court,” she said, “this settlement would be the largest settlement with a single entity in American history.”

Louisiana Attorney General Caldwell called the agreement a “game changer” — “the largest environmental settlement in history.”  Gov. Robert Bentley (R-AL) called it a “landmark agreement.”

Calling April 20, 2010 “a day Alabamians will never forget,” Gov. Bentley described the enormous impact the spill had on tourism, coastal businesses, and public health before providing more details about the settlement.

“The BP/ Deepwater Horizon oil spill was the worst environmental disaster in United States history, and the impact to the Alabama Gulf Coast was detrimental,” he said.

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