The British newspaper The Sunday Times reported yesterday that oil spill settlement talks between BP and the U.S. government have stalled because the U.S. is insisting that BP pay at least $18 billion for the 2010 Deepwater Horizon disaster.
A settlement between $18 billion to $21 billion is the estimated level which the British oil giant would be required to pay if found grossly negligent under the Clean Water Act, said the paper.
Meanwhile, the Mobile Press Register is reporting that the settlement options on the table could possibly divert money away from the states (and Escambia County) to the federal coffers.
The settlement, one of several alternatives proposed by the government in recent weeks, would divert a greater portion of the fines toward a Natural Resource Damage Assessment (NRDA), reducing the amount paid in civil penalties for violating the Clean Water Act, according to the Mobile paper.
NRDA fines go to the U.S. Treasury, must be spent on restoration of wildlife and habitats and are tax deductible for BP.
Read NRDA.
