The U.S. government and BP are in settlement talks over how much the oil company will be paying as a result of the 2010 spill in the Gulf of Mexico. One possible offer apparently on the table involves diverting a greater portion of the fines toward a Natural Resource Damage Assessment and reducing the amount paid in civil penalties for violating the Clean Water Act.
Such a deal would give the federal government control of a larger portion of the estimated $18 to $21 billion. While the RESTORE Act directs 80 percent of Clean Water Act fines to the Gulf Coast states, NRDA fines are tax deductible for BP and also go into the federal treasury to used for environmental and habitat restoration.
Northwest Florida Congressman Jeff Miller (R-Chumuckla) is not a proponent of such a deal.
“I am not in favor of a settlement that disproportionately applies NRDA fines at the expense of Clean Water Act fines,†Miller said in a statement Monday.
The congressman said that such a settlement could mean less money coming into Florida.
“Depending on the formula, the higher NRDA fines would benefit Louisiana at the expense of the other Gulf States. Further, it would upset the delicate balance between environmental and economic recoveries,†Miller said. “The RESTORE Act was a carefully crafted and balanced approach. It would be unconscionable for the Administration to try to side step the RESTORE Act.â€
Regardless of the formula, the federal government and BP may not arrive at a settlement agreement until next year. The Sunday Times newspaper in London recently reported that talks were stalling, with the U.S. pushing BP for $18 million.