Success! BP Agrees to Pay $18.7 Billion for Oil Disaster

BP has finally agreed to pay for the incredible damage it caused after the headline-grabbing oil disaster in 2010. The company made overtures at responsibility in the past, but this is the farthest BP has gone toward remedying the mess it made during the Deepwater Horizon Oil Spill.

Care2 has been vocal in demanding accountability for the company. A petition garnering over 150,000 signatures was delivered to BP’s offices, but the BP refused to accept the petition.

It seems BP has run out of options and will now be paying billions of dollars in a pending settlement.

Per Claims Journal:

“About $12.6 billion in payments will go to the federal government while the rest will go to Louisiana, Mississippi, Alabama, Florida and Texas and more than 400 local government entities to cover environmental and economic damage from the spill.

BP will make the payments of about $1 billion a year over 18 years, according to the preliminary agreement, which is still subject to BP reaching definitive agreements with the states and undergoing public comment and acceptance by the court.”

The deal comes amid an incredibly tangled web of legal losses that left the company without viable avenues of recourse. Three days before the announcement of a settlement, BP’s appeal of District Court Judge Carl Barbier’s ruling was rejected by the Supreme Court. 

Justice Barbier’s initial ruling found BP was liable under the Clean Water Act. With the Supreme Court rejection, Barbier was now free to enact penalties on the company immediately.

Under the settlement deal, of which many specific details have not yet been released, BP avoids paying the absolute maximum in penalties for legal violation. This creates incentive for BP to sign off on the deal and prevents an even lengthier series of legal battles from preventing restoration efforts.

Local legal organizations are required to offer their approval of the deal before July 15. According to Reuters, the finalization of the deal will likely take months given the amount of paperwork that needs to be filed before the court can formally approve the deal.

While the legal mess isn’t over today, citizens can breathe a sigh of relief that BP has been held responsible and affected regions will begin receiving much-needed funding in the immediate future.

Photo Credit: Susan DeMark via Flickr

101 comments

Jim Ven
Jim V1 years ago

thanks for the article.

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Siyus Copetallus
Siyus Copetallus1 years ago

Thank you for sharing!

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Loesje vB
Loesje Najoan2 years ago

Good news!!

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Jeannet Away Bertelink

Its their duty......so sorry for the animals

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Elizabeth Conlan
Elizabeth Conlan2 years ago

wow, what about the animals that lost their lives

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Lawrence Dsouza
Lawrence D2 years ago

High time.

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Elizabeth Brawn
Elizabeth Brawn2 years ago

very good (-: .........and if we keep up the fight they might pay compensation for some other oil spills

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Janet B.
Janet B2 years ago

Thanks

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Paulinha Russell
Paulinha Russell2 years ago

Thank you

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Ricky Thamman
Ricky T2 years ago

"BP or not BP," preferably the latter!

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