According to the
New York Times, BP has reached a tentative settlement which covers lawsuits filed by Alabama, Florida, Louisiana, Mississippi and Texas.
The largest sums of the settlement would be paid out over 15 to 18 years, beginning a year after the settlement is finalized in federal court. BP put the value of the settlement at $18.7 billion, and the states gave similar figures; the Justice Department said the total value of the settlement could top $20 billion.
“If approved by the court, this settlement would be the largest settlement with a single entity in American history,” Attorney General Loretta E. Lynch said in a statement. “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.”
BP has been
losing big the past few weeks, unable to get fines reduced, with judges using terms like "grossly negligent" in their rulings. Other issues forcing BP's hand were the seemingly never-ending
revelations of how absolutely
catastrophic their negligence
has been.
The pressure put on BP by government agencies as well as by civilians in civil suits has been impressive and relentless. BP, not unlike other big corporations, has tried to spend their way out of having to really pay for the damage they've caused.
In court and on television commercials that blanketed the airwaves, BP highlighted its cleanup efforts aimed at reducing the long-term environmental damage to Gulf beaches and wildlife. The company said any fine over $2.3 billion would seriously strain the finances of its American subsidiary, especially at a time of lower oil prices. However, Judge Carl J. Barbier of Federal District Court in New Orleans, who presided over the cases, suggested that any fines could be paid over time.
The company has consistently attempted to portray itself as something of a victim of the legal system. For years it argued that Patrick Juneau, the compensation administrator, was doling out excessive and fraudulent payments to businesses and individuals who settled for damages with the company. But in March the company halted its legal efforts to remove Mr. Juneau. BP had estimated that it would pay $7.8 billion to the plaintiffs, but the final total is expected to be considerably higher.
The fact of the matter is BP owes the planet and everyone effected by their greed and incompetence a lot more than $18 billion. However, the fact that public pressure and a slowly changing political climate pushed the price this high is a victory in and of itself.