Friday, July 3, 2015

Everything You Need to Know About the BP Oil Settlement

Why BP Is Paying $18.7 Billion (July 2, 2015). The New York Times,
…By mid-August, more than 7,000 birds, sea turtles and dolphins were found dead or debilitated in the Gulf since the oil spill began. Scientists expected the ultimate environmental damage from the spill to last for years.

Stanley Reed and Clifford Krauss (July 2, 2015) After Settlement, Relief at a Diminished BP. The New York Times,
...With the settlement, BP executives breathed a sigh of relief and Wall Street analysts who cover the company declared a victory for it, albeit only compared with the potential damages it had faced. BP and the analysts emphasized that $18.7 billion — an average of just over $1 billion to be paid annually over 18 years — would be a manageable burden for a company that earned a profit of $2.6 billion in the first quarter despite low oil and gas prices....

Wall Street analysts praised the settlement for dealing with almost all of the company’s major liabilities, and its penalties are lower than many expected under the federal Clean Water Act as well as settlements with the gulf states. Payments to the states and federal government will not begin for another year, giving the company relief at a time when revenue is dropping because of the 40 percent drop in oil prices over the last year. Much of the payment will be tax-deductible

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