MONTGOMERY, Ala. (AP) — Alabama’s Attorney General announces today a $2 billion settlement with BP as a result of the 2010 Deepwater Horizon oil spill.
This settlement is a portion the $18.7 billion settlement between Florida, Alabama, Mississippi and Louisiana that resolves years of litigation over the spill in the Gulf of Mexico.
Attorney General Luther Strange says, “This is a major victory for the people of Alabama who will benefit for years to come.”
Thursday’s settlement announcement says BP has agreed to pay the State of Alabama $1 billion in economic damages and approximately $1 billion in natural resource damages and federal penalty monies to resolve the State’s claims.
Attorney General Strange says:
“Five years ago when I took over the State’s case against BP, I promised to make the State of Alabama whole and to do so without spending a penny on outside counsel.
Today, I am pleased to announce that both goals have been accomplished. This is a remarkable achievement for our state and a tremendous legacy for the future.”
BP has said its spill-related costs already exceed $42 billion. It’s also unclear how much BP will end up paying under a 2012 settlement with individuals and businesses claiming spill-related losses.
The spill resulted from the April 20, 2010 explosion of the Deepwater Horizon rig, which killed 11 workers and spewed well over 125 million gallons of oil into the Gulf.