Tags: bp | oil spill | claims | gulf

BP Said to Settle 2010 Gulf Oil Spill Claims With US, States

Thursday, 02 Jul 2015 09:08 AM

BP Plc reached an agreement with states and the U.S. in the 2010 Gulf of Mexico oil spill case, according to a person with knowledge of the matter.

The terms of the agreement aren’t yet available, the person said. Spokesmen for BP and the Department of Justice declined to comment.

Louisiana, Mississippi, Alabama and Florida sued BP for damages not covered by the company’s earlier settlements with businesses and individuals harmed by the worst offshore spill in U.S. history.

Gulf state attorneys general have called press conferences for this morning, without specifying the topic. The deal comes as a federal judge was weighing pollution fines under the Clean Water Act against the London-based oil company.

The deal would come on top of at least $28 billion BP has already spent on response, clean-up and compensation. The company has set aside $43.8 billion for fallout from the spill.

BP shares rose 2.8 percent to 430.95 pence at 1:24 p.m. in London.

The states sued BP under a federal law, known as the Oil Pollution Act, that holds polluters liable for municipal losses caused by oil spills. The statute requires corporations to make state and local governments whole for shortfalls in tax revenues and increased costs for services after a spill.

BP downplayed the states’ damage claims in court filings for almost two years, saying the company deserved credit for the hundreds of millions of dollars it paid an array of public entities to promote tourism, which plunged after the spill. BP also argued that state losses should be offset by increased sales and income taxes paid by thousands of cleanup workers BP employed throughout the region.

BP has pegged the cost of its so-called private claims accord with businesses and individuals at $10.3 billion, noting that the final tally will probably be significantly higher by the time all claims are resolved.


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BP Plc reached an agreement with states and the U.S. in the 2010 Gulf of Mexico oil spill case, according to a person with knowledge of the matter. The terms of the agreement aren't yet available, the person said.
bp, oil spill, claims, gulf
310
2015-08-02
Thursday, 02 Jul 2015 09:08 AM
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