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BP Payment Plan: Texas Gets Share Of Billions Over 18 Years

With a settlement announced Thursday morning between BP and the federal government, it’s now known how much the oil giant will pay Texas and other Gulf Coast states.

 

Under federal law, BP had to pay Gulf Coast states for the environmental and economic damage caused when its off-shore drilling rig blew out and leaked crude oil in 2010. The question was how much it would pay.

In the just-revealed agreement, BP will pay what averages out to a billion dollars a year for 18 years.

The settlement came relatively quickly considering it took almost two decades to settle damages after the nation’s other mega-spill, the Exxon Valdez disaster. 

BP’s money will go to five states. Texas had the least damage and will get the smallest cut which nonetheless totals $818 million dollars according to the federal court order.

There’ve already been public hearings with more to come to decide where the money should be spent. A big portion will likely pay for restoration projects to help coastal habitat and Gulf sea creatures.

“And so we’ll be working really hard to over I presume the next several years to encourage our decision- makers to spend this money wisely in ways it was intended to be spent,” said Amanda Fuller, an attorney in Austin who works with the National Wildlife Federation.

BP North America is based in West Houston. BP remains an enormously profitable oil company but has had to sell off assets to pay for litigation and its stock shares have lost a third of their value since the spill.

 

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Dave Fehling

Dave Fehling

Director of News and Public Affairs

As Director of News and Public Affairs, Dave Fehling manages the radio news operation at Houston's NPR station. Previously, he was a reporter at the station, covering the oil & gas industry and its impact on the environment. He won top state honors for in-depth and investigative reporting as well...

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