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October 5, 2015
For More Information, contact:
Luther Strange
Mike Lewis (334) 353-2199
Alabama Attorney General
Joy Patterson (334) 242-7491
Page 1 of 2

(MONTGOMERY) – Attorney General Luther Strange announced today the details of
Alabama’s settlement with BP regarding damages from the 2010 Gulf oil spill.
“After five years of litigation, I am pleased to announce that Alabama’s $1 billion settlement
with BP for economic damages is now officially approved by all parties,” said Attorney
General Strange. “In addition, the United States has lodged a consent decree that will allow the
public to comment on the global settlement of natural resource damages and federal penalties,
which if approved, will bring another billion dollars to Alabama’s coastal counties.”
On July 2, 2015, BP, the United States, and the five Gulf States announced a global agreement
that would bring approximately $2 billion dollars to Alabama for the economic and
environmental damages resulting from the 2010 oil spill. Earlier today, these Parties and the
Federal District Court overseeing the case entered multiple documents containing the final
details of this settlement.
Natural Resource Damages & Federal Penalties
The United States lodged a consent decree that contained the details of a global resolution of
natural resource damages claims against BP, as well as the United States’ civil penalty claims
against BP. Under the proposed decree, more than $295 million of natural resource damages
monies would be spent in Alabama’s coastal counties to restore Alabama’s coastal environment.
Another $1.25 billion would be spent restoring environmental conditions in the open ocean and
in region-wide projects that include Alabama’s coastal counties.
The consent decree also discloses BP’s payment of $5.5 billion in civil penalties. Under the
terms of the 2012 Congressional RESTORE Act, Alabama will receive approximately $708
million of this amount to be spent on environmental restoration, economic recovery projects,
and tourism and seafood promotion.
The governments will take public comments on these terms through December 4, 2015, via the
United States Department of Justice website: www.justice.gov/enrd/deepwater-horizon. After
considering these comments, the governments will determine whether to seek Court approval
of the consent decree.
501 Washington Avenue * Montgomery, AL 36104 * (334) 242-7300
www.ago.alabama.gov Page 2 of 2

Economic Damages

The Gulf States and BP jointly filed a separate document containing the details of their finalized
settlement of claims for economic damages. Under this settlement, BP will pay Alabama $1
billion as follows:

  • $950 million Paid by BP to the Alabama General Fund:
    o $50 million in each of the years 2016-2018
    o $53.33 million in each of the years 2019-2033
  • $50 million Paid by BP in 2016 to the Alabama Gulf State Park Project
    Attorneys Fees
    The district court also entered a separate order dictating that BP make a one-time payment of
    legal fees for public and private attorneys who represented the five Gulf States and their
    Governors. Under the order, the Alabama Attorney General’s Office will receive $10 million
    directly from BP.

Attorney General Strange lauded today’s outcome. “From the outset, I have sought to secure
the maximum amount of economic settlement money for the State of Alabama, while avoiding
Alabama taxpayers footing the bill for the litigation. The finalized settlement achieves both
goals. BP has agreed to pay Alabama $1 billion in economic damage compensation, the
majority of which will go to the state’s General Fund. On top of its $1 billion payment to the
State, BP will also pay for legal expenses incurred by the Attorney General’s office and the
Governor.” The Attorney General added that, “I am also pleased that today’s settlement of civil
penalties and natural resource damages will send approximately $1 billion to Alabama’s coastal
counties, which will allow our friends on the Gulf to continue restoring both their environment
and their economy.”
Attorney General Strange also praised the work of his office: “Today’s outcome is due in large
part to the hard work of more than 20 state attorneys and staff. Thanks to the thousands of
hours they expended on this task, my office was able to secure $10 million in legal fees from BP,
all of which will go to fill a hole in our current budget created by a funding shortfall from the
Alabama legislature.”