On April 4, 2016, a federal court in New Orleans approved the historic $18.7 billion settlement resolving all litigation with the federal government and the five Gulf states over their economic and environmental claims related to the Deepwater Horizon spill.
The settlement includes:
- A civil penalty of $5.5 billion under the Clean Water Act (CWA) payable by BP Exploration and Production Inc. (BPXP) to the United States over 15 years.
- $7.1 billion payable by BPXP to the United States and the five Gulf states over 15 years for natural resource damages (NRD). This is in addition to the $1 billion already committed for early restoration.
- A total of $4.9 billion to be paid over 18 years to settle economic and other claims made by the five Gulf Coast states.
- Up to $1 billion to resolve claims made by more than 400 local government entities. BP has accepted releases received from the vast majority of local government entities, and payments required under those releases were made during the third quarter of 2015.
This settlement did not cover the remaining costs of the 2012 class action settlements with the Plaintiffs’ Steering Committee for economic and property damage and medical claims. It also did not cover claims excluded by the 2012 settlements or claims by individuals and businesses that opted out of those settlements. Additionally, this settlement did not resolve private securities litigation pending in MDL 2185.
Since the district court approved the settlement in April, BP announced a $175 million settlement of claims from a class of post-explosion American Depository Shares (ADS) purchasers in securities litigation that had been ongoing in federal district court in Houston, payable during 2016-2017.
BP has made significant progress in resolving remaining economic loss and property damage claims from individuals and businesses. The vast majority of opt-out and excluded economic loss claims have since been settled or dismissed, and the remaining claims are due to be paid by the end of 2016.
On July 14, BP announced that following this progress, it can now reliably estimate all of its remaining material liabilities in connection with the incident. To date, BP has provisioned over $61 billion relating to the spill, including response, clean-up, economic claims, government payments, settlements and restoration.