BP To Pay $18.7 Billion For Oil Spill

Posted: Jul 2 2015, 9:27am CDT | by , in Latest Business News


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BP to Pay $18.7 Billion for Oil Spill
Photo Credit: Getty Images

In what seems to be a story that just won't stop going, BP has FINALLY reached a settlement in the oil spill that occured in the Gulf of Mexico in 2010. Dubbed "The Deepwater Horizon Disaster," 11 rig workers were killed and hundreds of millions of crude oil corrupted the habitat in the gulf. Now, BP will have to pay $18.7 billion to the states affected and the US government over the next 18 years.

This agreement is historic because it is the "largest settlement with a single entity in American history," said Loretta Lynch, US attorney general. A record $5.5 billion will be used to cover federal penalties under the Clean Water Act, Bloomberg reports. Louisiana, Mississippi, Florida, Texas, and Alabama will also receive large sums relating to the damages caused by the spill. The agreement also involved 400 local government entities, The Wall Street Journal reports.

"This agreement will resolve the largest liabilities remaining from the tragic accident," BP CEO Bob Dudley said in a statement. "For the United States and the Gulf in particular, this agreement will deliver a significant income stream over many years for further restoration of natural resources and for losses related to the spill."

But the money doesn't stop there - BP has paid over $28 billion for clean up, and they are bound to pay much more. A federal judge ruled that the spill was the result of "gross negligence" on the part of BP last September — a few months after BP won new oil contracts to explore the Gulf of Mexico.

This story is developing and we will likely have many more twists and turns.

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<a href="/latest_stories/all/all/46" rel="author">Noel Diem</a>
Noel passion is to write about geek culture.




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