The Gulf Coast states and the United States Government have reached a tentative settlement with British oil company, BP, to pay about $18.7 billion over 18 years, to compensate for damages from the 2010 Deepwater Horizon oil spill, state officials said Thursday.
“This is a landmark settlement,” Gov. Robert Bentley of Alabama said. “It is designed to compensate the state for all the damages, both environmental and economic.”
The Associated Press, AP, reported that the settlement covers suits filed by Alabama, Florida, Louisiana, Mississippi and Texas as well as the federal government.
Furthermore, if accepted by a federal judge, the settlement would end a year’s long battle between BP and the U.S. Government over Clean Water Act penalties after a judge ruled that BP was grossly negligent in the nearly 134 million gallon spill.
BP oil spill
The settlement will also resolve the states’ natural resources damage claims and settle economic claims involving states and local governments in Florida, Alabama, Mississippi, Louisiana and Texas, according to an outline filed in a federal court.
“If approved by the court, this settlement would be the largest settlement with a single entity in American history; 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,” U.S. Attorney General, Loretta Lynch, said in a statement.
Nigerians react, urge FG to strengthen institutions
Reacting immediately against the backdrop of numerous oil spill cases in the country, including the infamous Ogoni oil spill, some Nigerians Thursday urged the Federal Government to emulate the United States of America in strengthening institutions, so as to protect the citizenry.
Reacting to the judgment, Senator Lee Maeba, a former Senate Committee Chairman on Petroleum, said that it is a wakeup call for the federal government to strengthen our institutions.
“Government should strengthen our institutions; this is the key. We don’t have the institutions that can give us the benchmark. The Federal Environmental Protection Agency, FEPA, should not have been scrapped in the first place. It is the equivalent of the FEPA in the United States that calculated the damage that was awarded to BP.
“In Nigeria, Shell was billed to pay $1.5 billion for the damage done to the environment in Niger Delta communities. Till now, that money has not been paid. Our justice department is weak in Nigeria. Government should show commitment to the welfare of the people,” he added.
Also speaking, Mr. Ledun Mitee, Chairman of the Board of Nigerian Extractive Industries Transparency Initiative, NEITI, argued that communities ravaged by oil spill should be compensated accordingly.
He said: “We have always made the point that lives of people are sacred no matter where they are. The system here is appalling and not encouraging. Nigeria should rise to the occasion
“It is a sad commentary on our system that people in authority – the courts, the executive and law enforcement agencies are not living up to their responsibilities.
“The agencies should be challenged so that those who suffer deprivations should be compensated commensurately because lives of people, whether in the US or Nigeria are the same,” he added.
Facts on Deepwater Horizon spill
The BP settlement in the US will likely mark the end of major litigation against BP, following the biggest offshore oil spill in U.S. history.
When the Deepwater Horizon oil rig exploded in April 2010, it killed 11 people on board and spread miles of black oil across the Gulf Coast before the underwater well was capped a few months later.
Online social change activist, dosomething.org, identified 11 major facts surrounding the oil spill, which it posted on its website, as followed:
*More than 200 million gallons of crude oil was pumped into the Gulf of Mexico for a total of 87 days, making it the biggest oil spill in U.S. history.
*About 6,000 total miles of coastline have been affected, including the coasts of Texas, Louisiana, Mississippi, Alabama, and Florida.
* Even though the gushing well was capped in July 2010, oil is still washing up on shores, which might cause long-term damages to people living in the area.
* The initial oil rig explosion killed 11 people and injured 17 others.
*President Obama announced that his administration would create a $20 billion spill response fund.
* Responders used 5.5 million feet of boom, a barrier placed in water, to collect and absorb oil.
*Of the 400 miles of Louisiana coast, approximately 125 miles have been polluted by the oil spill.
*A method of treating the oil spill is “in-situ burning” or burning oil in a contained area on the surface of the water, which has negative effects on the environment.
*Over 8,000 animals (birds, turtles, mammals) were reported dead just 6 months after the spill, including many that were already on the endangered species list.
*BP is responsible for close to $40 billion in fines, cleanup costs, and settlements as a result of the oil spill in 2010, with an additional $16 billion due to the Clean Water Act.
*Over 30,000 people responded to the spill in the Gulf Coast working to collect oil, clean up beaches, take care of animals and perform various other duties. As of 2012, the Gulf was still polluted with oil.
Events and happenings over the last six years, including responses from the US Government, its agencies, and other governmental and non-governmental organisations are pointers to what is expected of the Nigerian government to protect life, property and the environment.
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