Florida will receive over $3.25 billion in a nearly $20 billion settlement over a 2010 oil spill which devastated the Gulf of Mexico, Gov. Rick Scott announced Thursday.
The settlement comes at the end of a lengthy legal battle over the BP oil spill. In April 2010, the explosion of the Deepwater Horizon oil rig caused a gushing of 4.9 million barrels of oil into the Gulf of Mexico over a period of nearly 90 days. The explosion killed 11 workers and the resulting oil spill was particularly impactful on marine species and contaminated many beaches along the Gulf of Mexico.
Three years later, Attorney General Pam Bondi filed a lawsuit seeking reimbursement for the economic damages suffered by the state of Florida due to the oil spill, including lost tax revenues.
Bondi announced the news of the settlement Thursday morning in Tampa.
“In 2010, our state – and the entire Gulf region – woke up to a story that shook the nation; an oil spill that not only threatened states that depend on the Gulf for their economic livelihood, but their very way of life,” Bondi said. “Today, after just five years of negotiations, I’m pleased to announce that Florida has entered into an agreement in principle of more than $3 billion with BP for the state’s economic and environmental recovery which will benefit areas of the state most devastated by the spill.”
Florida will receive $3.25 billion of the $18.7 billion settlement. According to Gov. Rick Scott, the settlement includes $2 billion for economic damages (twice the amount of the next closest state, Alabama), $680 million for natural resource damages and $572 from the RESTORE ACT.
The settlement for Florida is more than 40 percent of the total economic loss recovery.
Louisiana will receive the most money from the settlement, getting more than $6.8 billion.
The states will begin receiving the funds from the settlement in 2016. Three-quarters of the initial set of funding for Florida ($400 million) would go toward the Triumph Gulf Coast, a board set up by the state Legislature to help the Panhandle counties most affected by the spill.
Gov. Rick Scott applauded the news.
"This agreement will help Florida implement key projects and invest in environmental priorities to keep our state beautiful,” Scott said.
Attorney General Loretta Lynch said in a statement the settlement, if approved, would be a good resolution for states impacted by the oil spill.
"If approved by the court, this settlement would be the largest settlement with a single entity in American history," she said. "It would help repair the damage done to the Gulf economy, fisheries, wetlands and wildlife; and it would bring lasting benefits to the Gulf region for generations to come."
Reach Tampa-based reporter Allison Nielsen by email at allison@sunshinestatenews.com or follow her on Twitter: @AllisonNielsen
