BP Gulf spill money flowing far inland
BATON ROUGE, La. – Clusters of landlocked municipalities more than 100 miles from the Gulf Coast have secured millions of dollars in BP money through settlements designed to compensate local governments for lost tourism dollars and other economic damage from the company’s 2010 oil spill, according to records obtained by the Associated Press.
This week, BP finished making about $687.4 million in settlement payments to 383 local government entities in the five Gulf states. Nearly $8 million of that money went to 32 government entities that are more than 100 miles from the coast, in places like the Mississippi Delta and suburbs of central Alabama, the records show.
BP’s well blowout off Louisiana’s coast triggered a deadly explosion that killed 11 rig workers and spewed millions of gallons of oil into the Gulf of Mexico, staining beaches, killing wildlife and scaring away tourists.
The company agreed last month to pay up to $1 billion to resolve economic claims by local governments, but the settlement payouts have fallen well short of that maximum amount. The records obtained by the AP provide the most comprehensive accounting of where the money went and what types of government entities received shares.
The AP analyzed minimum distances from the center point of each city or town to the coastline to determine which locations were farther than 100 miles from the coast.
Jackson, Mississippi, about 175 miles from the coast, received $1.3 million. Birmingham, Alabama, more than 200 miles from the coast, received $1 million.
Among the smaller cities receiving money is Ruleville, a Mississippi Delta city that landed $40,748. Ruleville, which is nearly 300 miles from the coast and has about 3,000 residents, said it lost revenue from sales taxes and other sources because of a drop in tourist travel after the spill.
BP’s settlements with local governments are part of its broader $18.7 billion agreement with the five Gulf Coast states and the federal government. Larger portions of settlement money are dedicated to coastal restoration work. BP already has paid billions of dollars in compensation to Gulf Coast businesses and residents who claim the spill cost them money.
July 15 was the deadline for local governments to decide whether to accept the settlement offer, which could not be renegotiated. BP, which couldn’t veto individual payments, accepted the package of settlements July 27.
Only a handful of local governments have publicly announced that they rejected a settlement offer. They are free to continue pursuing their claims, but may have to wait for a trial date if BP is unwilling to negotiate a separate deal.
The federal judge overseeing most of the spill-related litigation against BP appointed a panel of neutral parties, including former FBI Director Louis Freeh and Lafayette-based attorney Patrick Juneau, to determine the amounts of each settlement offer. The formulas and criteria used by the panel members have not been publicly disclosed.
The $687.4 million in payments doesn’t include awards to local governments that resolved their BP claims before the broader settlement was announced July 2.
Nearly $371 million – more than half of the total settlement money – was awarded to local governments in Louisiana. About $210 million is going to local governments in Florida, where the tourism industry cratered in the spill’s aftermath even though few places in the state ever felt any direct impact from BP’s oil. Local governments in Texas are getting $39.9 million, while those in Mississippi are receiving $37.3 million. Local governments in Alabama are getting $28.8 million.
The bulk of the settlement money – which was paid by BP in lump sums and can be spent on anything – is going to city and county or parish governments along the coast. Nearly $157 million, almost one quarter of the total, is going to more than 50 public school districts. Law-enforcement agencies are receiving around $21 million. Airports are getting nearly $15 million. About $6 million is going to hospitals.