The agreement does not absolve BP of legal liability for the explosion and spill that began April 20, 2010. However, any restoration efforts paid for by the $1 billion will count toward the company’s liability.
The company faces fines and penalties of as much as $21 billion for the disaster. It could also face penalties under a Justice Department criminal and civil investigation.
Federal and state officials are conducting a natural resource damage assessment to measure the injury to the gulf habitat. The process could take years.
- BP to provide $1 billion for oil spill projects – Reuters (news.google.com)
- BP Agrees To Provide $1B For Gulf Restoration Projects (gcaptain.com)
- BP to provide $1 billion for Gulf projects (seattletimes.nwsource.com)
- BP Pledges $1 Billion to Restore Gulf (online.wsj.com)
- BP frees up $1bn to clean up Gulf oil spill damage (europebiz.wordpress.com)