WASHINGTON (Dow Jones)–BP Plc has agreed to provide $1 billion to help restore wildlife and habitats in the Gulf of Mexico as part of an agreement with the U.S. and Gulf Coast state governments, the Justice Department said Thursday.
This agreement, billed as the largest of its kind, falls on the heels of the one-year anniversary of the explosion of the Deepwater Horizon rig and the subsequent oil spill.
It also coincides with BP’s recently announced efforts to sue Halliburton Co., Transocean Ltd. and Cameron International Corp. for billions of dollars in damages. All three companies were involved, in one way or another, in the drilling project that caused the oil spill.
On Thursday, Transocean said that it filed cross-claims against BP and other parties in the oil spill.
The $1 billion agreement that BP struck with the federal and state governments–collectively known as the Natural Resource Trustees for the Deepwater Horizon oil spill–doesn’t release BP from liability for any other natural resource damages.
The money will be taken from a $20 billion fund that BP set up last year to pay for natural resource damages and to compensate victims of the spill, such as restaurant and hotel owners who lost business.
In a separate effort, the Justice Department is also looking into possible civil and criminal penalties against BP, Justice Department spokeswoman Jessica Smith said.
The trustees will use the money to rebuild coastal marshes and replenish damaged beaches, among other projects.
Under the Oil Pollution Act, federal and state government can assess injuries for natural resource damages and the trustees are currently conducting a full assessment of the damages caused by the Gulf spill. Once they assess the dollar value of those damages, the trustees will take into account any gains made by these early restoration projects, Smith said.
“This milestone agreement will allow us to jump-start restoration projects that will bring Gulf Coast marshes, wetlands, and wildlife habitat back to health after the damage they suffered as a result of the Deepwater Horizon spill,” Interior Secretary Ken Salazar said in a statement.
BP’s American depositary shares were recently up 0.4% to $46.10.
The U.S. Department of the Interior has announced a final rule that modernizes regulations governing offshore wind projects in federal waters, which could help to boost the deployment of the...
SINGAPORE, April 24 (Reuters) – Demand for liquefied natural gas (LNG) to power ships will rise this year on attractive prices, while more dual-fuel vessels join the global fleet, industry executives said....
(Bloomberg) — The Biden administration is taking steps to jump-start the fledgling offshore wind sector, outlining a five-year leasing plan that would include turbines in the far reaches of the...
April 24, 2024
Total Views: 658
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.