(WO) – bp has agreed to pay Louisiana about $350 million in a single early payment, covering the rest of what it owes the state under the 2015 Deepwater Horizon economic damages settlement. The deal also settles the remaining coastal zone lawsuits that Louisiana parishes filed against bp. The agreement was signed by Gov. Jeff Landry, Attorney General Liz Murrill and bp CEO Meg O’Neill.
Under the original schedule, bp owed Louisiana $373 million in equal, interest-free payments over the next seven years. The lump sum replaces those payments and makes up more than 20% of bp’s outstanding payments to the five Gulf Coast states under the economic damages settlement. The companies didn’t disclose the terms of the coastal lawsuit settlement.
“This agreement with Louisiana accelerates the delivery of our commitments and provides the state with access to these funds now,” O’Neill said.
Landry said the deal is part of his push to resolve legacy litigation against the oil and gas industry. “We have tackled legacy lawsuits, which many said was impossible. We have now disposed of claims and settled with all but one of the major defendants in these coastal cases,” he said.
bp has more than 800 employees in Louisiana and is one of the largest producers, leaseholders and investors in the U.S. Gulf. Its onshore unit, bpx energy, holds a strong position in the Haynesville. The 2015 Deepwater Horizon settlements resolved federal, state and local government claims from the 2010 accident for up to $18.7 billion, paid out over 18 years.
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