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BP agree early restoration funding for Gulf of Mexico

It is one year on from the Deepwater Horizon disaster and an agreement between the Natural Resource Trustees and BP means $1 billion will be made available to help fund early restoration projects in the Gulf of Mexico.

The announcement was made yesterday in a joint press release which was issued by the states of Mississippi, Alabama, Florida, Louisiana and Texas, the Department of the Interior and the National Oceanic and Atmospheric Administration.

The funding means that work to restore the Gulf area can get underway early. Trustees will use the funding from BP for a number of projects which will help to restore and replenish some of the damage caused by the oil spill. It also means that work can get underway on projects without waiting for the completion of the Natural Resource Damage Assessment.

As the press release makes clear: "The agreement in no way affects the ultimate liability of BP or any other entity for natural resource damages or other liabilities, but provides an opportunity to help restoration get started sooner".
The agreement will mean that Mississippi will receive at least $100m for restoration projects. In a copy of a press release forwarded to me from the Mississippi Department of Environmental Quality (MDEQ), Trudy D. Fisher, Executive Director of MDEQ and Natural Resource Trustee for Mississippi, stated:
 

"Since the first day of the oil spill, one of MDEQ’s primary goals has been to make Mississippi whole for damages resulting from the oil spill. Today’s unprecedented agreement is an important first step, but it is only the first step. The harm to Mississippi’s natural resources from the oil spill is ongoing. As we continue assessing these damages, early restoration will provide an opportunity to mitigate the adverse impacts of the spill. However, it is essential that BP continue to work with the trustees in order to quickly implement these early restoration projects."

 
According to the terms set out in the agreement, the aim is to start working on projects between 2011-2012. $500m will be put into a Early Restoration Sub-account and a further $500m will placed into the account six months later.
 
Commenting on the agreement, Louisiana Governor Bobby Jindal said:
 

"This agreement is a great first step toward restoring our natural resources destroyed by the BP oil spill."

 

"We are eager to continue working with public, state and federal co-trustees and BP to quickly convert this downpayment into projects to restore our damaged coast and replace our lost wildlife. We encourage BP to continue to address the damages from this spill through early restoration efforts."

 

In a press release, BP describe the agreement as "ground breaking" and say that early restoration isn’t compulsory under the Oil Pollution Act.

 

Lamar McKay, chairman and president, BP America Inc, said:

“BP believes early restoration will result in identified improvements to wildlife, habitat and related recreational uses in the Gulf, and our voluntary commitment to that process is the best way to get restoration projects moving as soon as possible."
 
“Our voluntary agreement to accelerate restoration projects builds upon the cooperative approach BP has taken toward working with Gulf communities and regulators since the accident, and in assessing the potential injury to natural resources. We hope to work in partnership with the Trustee Council to address injured resources in the Gulf as soon as possible. We believe the early restoration projects to be funded through this agreement represent the best way forward in restoring the Gulf.”
 

On their website, BP state they have also started a $500-million study of the Gulf area. The decade long study aims to assess the long-term effects of the disaster. According to the Gulf of Mexico Oil Spill Public Report (PDF), BP have so far paid millions in claims to individuals, businesses and governments.

 

Eleven people died as a result of the explosion at the Deepwater Horizon drilling rig which occurred on April 20, 2010. The ensuing leak led to millions of gallons of oil spilling into the Gulf of Mexico.

 

On Wednesday, BP announced that it is to sue Transocean, the owner of the Deepwater Horizon oil rig for $40 billion. A separate lawsuit was filed against Cameron International, the supplier of the blowout preventer cap.

 

 

Jane210:
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