Green

BP agrees to pay record sums to settle worst oil disaster in the Gulf

In early November 2012, the oil giant British Petroleum (BP) has agreed to admit charges and to pay a record $4.5 billion including a $1.26 billion criminal fine over a five year period to the U.S. Department of Justice to settle charges stemming from the April 2010 oil platform disaster that killed 11 employees and released estimated 4.9 million barrels of crude oil into the Gulf of Mexico.  Even with a record fine this may not be the end of the story.  More claims and civil fines for alleged violations of the Clean Water Act and other statutes costing many more billions are yet to be settled.  Court trials against individuals of BP scheduled for February 2013.

Of the total amount, $2.39 billion will go to the National Fish and Wildlife Foundation for environmental cleanup.  Another $350 million will go to the National Academy of Sciences to conduct research environmental damage to the Gulf.  These amounts are in addition to already spent $14 billion for cleanup and $9 billion for civil payouts to individuals.  BP has set aside $42 billion to cover claims stemming from the disaster and already paid out $36 billion.