BP announces $4.5B spill settlement with United States government

theflyonthewall.com

BP announced that it has reached agreement with the United States government, subject to court approval, to resolve all federal criminal charges and all claims by the SEC against the company stemming from the Deepwater Horizon accident, oil spill, and response. BP has agreed to plead guilty to 11 felony counts of Misconduct or Neglect of Ships Officers relating to the loss of 11 lives; one misdemeanor count under the Clean Water Act; one misdemeanor count under the Migratory Bird Treaty Act; and one felony count of obstruction of Congress. This resolution is subject to U.S. federal court approval. As part of its resolution of criminal claims with the U.S. government, BP will pay $4B, including $1.256B in criminal fines, in installments over a period of five years. BP has also agreed to a term of five years’ probation. Under the resolution with the Department of Justice, a total of $2.394B will be paid to the National Fish & Wildlife Foundation over a period of five years. In addition, $350M will be paid to the National Academy of Sciences over a period of five years. The resolution also provides for the appointment of two monitors, both with terms of four years. BP said the aggregate amount of the resolution is approximately $4.5B, with payments scheduled over a period of six years. Today's resolution is expected to result in an increase of approximately $3.85B to the $38.1B charge taken against income as of the end of September.

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