Gov. Jeff Landry
The multinational energy giant BP has agreed to pay the state of Louisiana a $350 million in a lump sum in compensation for economic damages resulting from the 2010 Deepwater Horizon oil rig disaster in the Gulf of Mexico.
In an Oct. 22 statement, BP will pay the $350 million amount in a single sum instead of following the terms of the energy company’s previously reached agreement to pay the state amounts equaling $373 million with no interest through 2033.
The Louisiana Record sought to obtain the text of the agreement but was told that the coastal ligation settlement remains confidential. The agreement, however, will also settle coastal erosion lawsuits brought by parishes against BP, but no specifics about the resolution of those claims were released last week..
In a prepared statement, Gov. Jeff Landry said he looks forward to a productive partnership with BP in the future, in light of the progress on resolving the legacy disputes.
“As governor, I have worked to responsibly and ethically clean up the litigation environment that has impacted one of our largest employers – the oil and gas industry,” Landry said. “This is just another step in fulfilling my promise.”
All but one of these legal cases involving energy industry defendants has not been disposed of, he said. Landry did not name which coastal erosion case he was referring to, but the Louisiana Illuminator reported that the lone active case involves Plaquemines Parish and Chevron, in which a state court awarded the parish $745 million in damages last year.
The payout of that verdict, however, is uncertain because Chevron has urged a federal appeals court to transfer the case to federal court.
“This sends a signal to job creators all over America that Louisiana welcomes jobs and economic growth while responsibly dealing with the issues of the past,” Landry said.
The settlement will apparently help to wind down many of the more than 40 legacy lawsuits filed by Louisiana parishes that accused the energy industry of decades of coastal damage due to drilling and dredging.
“The remaining coastal zone lawsuits brought by Louisiana parishes to which BP is a party will be resolved, bringing long-running litigation to a close,” the BP news release states.
BP highlighted its economic investments in Louisiana in its news release about the settlement. The company called its business dealings in Louisiana – from Haynesville to the Gulf – as central to its nationwide operations, noting that more than 800 BP workers live in Louisiana.
Last year, BP paid its vendors in Louisiana $590 million and provided more than $280 million in royalties, franchise payments and property taxes, according to the company.
More than a decade ago, BP agreed to pay $18.7 billion to federal, state and local governments to resolve claims related to the Deepwater Horizon accident. Five Gulf Coast states were earmarked to receive $4.9 billion of those funds.
In previous years, Landry has worked with oil-industry defendants to come to terms with parishes’ coastal erosion claims. The defendant companies include Shell, ExxonMobil, ConocoPhillips, Hillcorp and Freeport-McMoRan.
Coastal land loss is at a crisis state in Louisiana, according to the group Restore the Mississippi River Delta. Every 100 minutes a parcel of land the size of a football field submerges into the Gulf of Mexico, the group has reported.
