Oil giant BP has agreed to donate $1 billion toward restoring areas of coastline off the Gulf of Mexico. The news was announced Thursday by the Department of Justice, which helped broker the agreement.
BP pledged last year to help restore the Gulf after its Deepwater Horizon well exploded on April 20, killing eleven men and sending roughly five million barrels of oil spewing into the sea. By the time crews were able to cap the spill, BP had been forced to spend millions on cleanup costs and other damages.
The $1 billion donation will go to states whose beaches, marshes, wetlands and barrier islands were impacted by the disaster. Specifically, Florida, Alabama, Louisiana, Mississippi and Texas will each receive $100 million to be used on implementing restoration projects.
The National Oceanic and Atmospheric Administration and the Department of the Interior will also each select and implement $100 million worth of projects.
In a statement, Interior Secretary Ken Salazar said the funds will enable the government to hasten the process of returning the Gulf to normal.
“This milestone agreement will allow us to jump-start restoration projects that will bring Gulf Coast marshes, wetlands, and wildlife habitat back to health after the damage they suffered as a result of the Deepwater Horizon spill.”
According to the DOJ, BP is providing the restoration money voluntarily, and will continue to be held liable for damages based on government assessments. Moreover, the company will continue paying into a $20 billion compensation fund being administered by Kenneth Feinberg, who was appointed to the position by President Obama.
BP officials estimate that, to date, the spill has cost the company $42 billion. Yesterday, on the one-year anniversary of the spill, BP sued three of its well partners — Transocean, Halliburton and Cameron International Group — for damages.