Major Developments: BP Agrees to record-breaking settlement in Deepwater Horizon Oil Spill scandal, marking the largest environmental fine ever imposed
The six-year-old Deepwater Horizon Oil Spill tragedy has seen a significant development, with Attorney General Loretta E. Lynch announcing the approval of a consent decree that settles the case. This settlement, worth more than $20 billion, is part of a broader $65 billion total cost to BP from the spill and marks the largest criminal environmental resolution in U.S. history.
The consent decree, ordered by U.S. District Judge Carl J. Barbier, outlines a comprehensive settlement that includes fines, penalties, and environmental restoration efforts. BP has agreed to a $20.8 billion settlement that addresses Clean Water Act penalties and includes environmental penalties. This settlement is in the case titled United States of America v. BP Exploration & Production Inc., et al.
A key aspect of the settlement is the establishment of a $20 billion compensation fund for those affected by the spill. This fund will support medical claims, local economic losses, and long-term monitoring of medical impacts for victims affected by the spill.
BP's commitment to environmental restoration is also explicitly outlined in the consent decree. The company is expected to undertake recovery of Gulf aquatic and wildlife habitats and compensate federal, state, and local governments for damages to natural resources and economic activities affected by the spill.
The funds from the settlement will be used for ecosystem restoration, research, and education projects in the Gulf region. The Department of Justice will continue to stand with the people of the Gulf as they seek to rebuild and protect the region's marine life, coastal systems, and beaches.
The settlement includes a requirement for BP to cooperate with the Department of Justice and other federal agencies in monitoring and enforcing the consent decree. BP will also meet certain performance standards for safety and environmental protection.
The settlement includes penalties for BP's violations of the Clean Water Act, totalling $5.5 billion. Additionally, $7.1 billion will be allocated to the National Fish and Wildlife Foundation, the National Academy of Sciences, and the Gulf of Mexico Alliance.
The settlement also includes a $1 billion fund for a trust to be used for natural resource damages, and a $1 billion fund for early restoration projects. BP will also provide annual reports to the public on its progress in implementing the consent decree.
The settlement includes a $1 billion fund for a trust to be used for economic damages. Attorney General Loretta Lynch thanked her predecessor, Attorney General Eric Holder, and the federal agencies and states that developed the comprehensive restoration plan.
This settlement marks one of the most extensive environmental restoration efforts ever undertaken, launching a new chapter in the recovery of the Gulf region.
- In addition to restoring the Gulf's aquatic and wildlife habitats, the consent decree also focuses on medical-conditions, particularly those related to the Deepwater Horizon Oil Spill.
- The environmental-science field, including studies on health-and-wellness related to medical-conditions and climate-change, will benefit from a portion of the $65 billion total cost to BP from the spill, which includes funds for research and education projects in the Gulf region.
- The use of natural resources in the space-and-astronomy sector, which may be affected by climate-change, will be protected by the funds secured for the National Fish and Wildlife Foundation, a recipient of the $7.1 billion allocated from the settlement. CBD, a compound shown to have positive effects on some environmental issues, is not directly mentioned in this context, but its potential role in future restoration efforts could be a topic for exploration given the funds earmarked for environmental restoration.
