Alabama officials vow to fight BP settlement
The BP headquarters and site of their command center is shown May 13, 2010 in Houston. (AP Photo/Pat Sullivan)GULF SHORES - Alabama political leaders today vowed to fight any deal between the U.S. Department of Justice and BP that would shift control of fine money from the 2010 oil spill to the federal government, away from the Gulf Coast states harmed by the catastrophe.
State and local elected officials said that any settlement with BP should be consistent with the Restore Act, federal legislation signed by President Barack Obama in July. The law stipulates that 80 percent of any penalties under the Clean Water Act should be distributed to the Gulf Coast states.
The Press-Register reported Oct. 1 that the Justice Department was discussing a proposal that would shift more of the fines away from Restore and toward a Natural Resource Damages assessment, a move that would give the federal government more control over how the money is spent.
The legal maneuver also would give BP a significant tax benefit, potentially saving the British oil company billions of dollars.
“We believe that Congress has spoken and that Restore is a primary, effective way to distribute the money,” U.S. Sen. Jeff Sessions, R-Mobile, said at a news conference today in Gulf Shores. “Our concern today is that the Restore Act might be diminished.”
U.S. Rep. Jo Bonner, R-Mobile, said it was “downright offensive” that the Justice Department would even consider a deal that could shortchange victims of the oil spill.
“The Restore Act is still the law of the land,” Bonner said, adding that the legislation received rare bipartisan support in Congress. "It's totally unacceptable...that the Justice Department could possibly be negotiating to the benefit of the polluter, to the detriment of the victims who live here on the Gulf Coast."
Bonner said he recognized the need for the settlement negotiations to be private but called on U.S. Attorney General Eric Holder not to structure a deal that would allow BP to deduct the fines.
"He doesn't have to disclose any confidential negotiations. No one is asking him to do that," Bonner said. "All he has to do is take that option off the table."
The Wall Street Journal and other outlets reported today that the federal government and BP were close to a deal to settle civil and criminal penalties from the oil spill.
Sources close to the discussions said negotiations have intensified over the last two weeks, coming closer to an agreement, though differences between BP and the U.S. Department of Justice could slow the momentum of the talks, the Journal reported.
BP could be liable for $5.4 billion to $21 billion in civil damages depending on the level to which the company was negligent in the disaster, a key point of contention between BP and the government.
In September, there was a $6 billion difference on a final settlement figure between the two sides, a source whose name was not reported, told the Journal.
BP and the Justice Department declined to comment on any negotiations to reach a settlement.
Alabama officials said routing fines through the NRDA process would divert more funds to Louisiana because it bore more of the brunt of the environmental damage than Alabama, Florida, Mississippi and Texas.
Today's news conference was held in the parking lot of a vacant real estate office that was in foreclosure. Organizers said the location was chosen to illustrate that the coastal recovery process is ongoing.
“We were the epicenter of economic harm from the oil spill,” said Orange Beach Mayor Tony Kennon. “Nobody wants to put this behind us more than we do, but the people victimized by BP deserve compensation."
Alabama Attorney General Luther Strange said that, outside of any talks between BP and the federal government, Alabama is continuing to pursue litigation in federal court against the parties responsible for the catastrophe.
That case, he said, is scheduled to go to trial in New Orleans in January.
“We’re absolutely ready and eager to go to trial,” he said. “We feel very good about our case.”
