Deepwater settlement detailed
The government revealed how a record $20 billion will be spent on BP oil spill.
WASHINGTON — The federal government on Monday announced the details of a record $20 billion civil settlement with British oil company BP over the 2010 explosion of the Deepwater Horizon oil rig in the Gulf of Mexico.
Attorney General Loretta Lynch called it “the largest settlement with a single entity in American history.”
“Once approved by the court, this agreement will launch one of the largest environmental restoration efforts the world has ever seen,” Lynch said at a news conference.
Here’s a closer look at where the money will go.
$5.9 billion (maximum): State and local government economic claims. This money will be paid directly to governments in Alabama, Florida, Louisiana, Mississippi and Texas to reimburse them for economic losses under an agreement separate from the federal deal with BP.
$4.7 billion: Habitat restoration and conservation. The damages will be spent by the federal government and state agencies on restoration of wetlands and coastal habitats.
$4.4 billion: Civil penalty under the Clean Water Act to the states. This money will be divided equally by the five affected states to spend on environmental restoration, economic recovery, and tourism and seafood promotion.
$1.8 billion: Wildlife restoration. This money is meant to replenish and restore wildlife, including fish, sea turtles and marine mammals such as dolphins, birds and oysters.
$1.5 billion: Monitoring, adaptive management and administrative oversight. This money will be spent on monitoring the Gulf environment, planning and any currently unknown environmental impacts from the spill that may be discovered in the future.
$1.1 billion: Contribution to the Oil Spill Liability Trust Fund. This additional Clean Water Act violation money will go to help respond to future oil spills.
$419 million: Enhancement of recreational opportunities. This will be spent on restoration of parks and other recreational facilities.