Over $1 billion spent on Deepwater Horizon settlement projects in Alabama
On Friday, David Rainer with the Alabama Department of Conservation and Natural Resources reported that the Deepwater Horizon settlement has paid for over $1 billion of projects in the state. Alabama Department of Conservation and Natural Resources (ADCNR) Commissioner Chris Blankenship spoke at last weekend’s Conservation Advisory Board meeting in Huntsville to update the Board on the numerous projects in the state under ADCNR oversight. “The big takeaway is we have $1 billion, $29 million in projects underway in Mobile and Baldwin counties that we are managing through our Deepwater Horizon Section,” Commissioner Blankenship said. “That is 176 individual projects. That’s a lot of money and a lot of work going on. We have six people in that section, and they’re doing a very good job of managing projects that will make generational changes on the Gulf Coast.” Blankenship said that ADCNR’s Deepwater Horizon Restoration Coordinator, Amy Hunter, and her staff oversee the projects funded by the settlement. “We never want to go through another Deepwater Horizon event, where 11 lives were lost,” Blankenship said. “It was a terrible, terrible event for our coast. However, we’re trying to do good work with the money that came from that settlement.” Among those projects are ones to replenish and protect Alabama’s living coastal and marine resources. “That includes restoration of oysters and oyster reefs,” Blankenship said. “We’re building about $30 million in artificial reefs. We’re increasing funding for research for stranding response for marine mammals and sea turtles, conservation of bird nesting and foraging habitat, as well as construction of a wildlife rehabilitation center and sea turtle triage facility in Orange Beach.” Another funding goal is to support and enhance community resilience during environmental or economic crises. The $65 million in projects includes constructing the Auburn University Gulf Coast Engineering and Research Center in Orange Beach to improve engineering in the coastal environment. The projects include a new Alabama Department of Environmental Management (ADEM) office that is under construction on the coast. The Alabama Seafood Commission is funded, as well as Fairhope’s Working Waterfront and Green Space initiative. “Resilience is important for all of our state but particularly our coastal areas,” Blankenship said. “We’re working to make us more resilient during storms or drought or economic downturns, things that make our communities stronger when we have negative impacts in our state. As an aside, Governor [Kay] Ivey, by executive order, created a resilience council just a few weeks ago, and the Commissioner of the Department of Conservation is one of the members.” Funding will also be used to provide and enhance economic development and infrastructure. Eleven projects, totaling $197.5 million, include the construction of the Africatown Welcome Center, which will house a portion of the Clotilda. The Clotilda, discovered in the Mobile-Tensaw Delta, was the last slave ship to transport slaves from Africa to the United States. Another project that received funding was the construction of a roll-on, roll-off facility that will facilitate the export of cars and trucks that are built in Alabama. Road improvements in Baldwin County are also included in this funding. There is evidence that the Deepwater Horizon oil spill has had a long-term impact on the stability of the marshy shores of the Gulf of Mexico. A recent scientific paper presented findings that the oil has impacted marsh grass has led to the soil continuing to crumble away at a faster rate than before the spill, causing the shoreline to retreat more rapidly than it would otherwise. About $401 million is being used to restore, conserve and enhance habitat in coastal Alabama. “This is primarily land acquisition,” Commissioner Blankenship said. “So far, we have acquired more than 13,000 acres of land in coastal Alabama to protect and provide recreational access. That includes the west end of Dauphin Island, Grand Bay Savanna, Pilot Town on Fort Morgan, Gulf Highlands property on Fort Morgan, which is one of the last undeveloped areas of the beach that was not part of Fort Morgan or the Bon Secour National Wildlife Refuge. It also includes multiple parcels in Weeks Bay, parcels at Dauphin Island, Oyster Bay, and we have purchased three parcels in the Three Rivers area that we have transferred to the Bon Secour National Wildlife Refuge.” Land acquisition includes tracts along the Perdido River watershed to provide a wildlife corridor from the Perdido River Wildlife Management Area to the Lillian Swamp Forever Wild property. “We have been working for the past six years to connect those wildlife management areas,” Commissioner Blankenship said. “It will be a distinct wildlife corridor with about 50 miles of river frontage. The Deepwater Horizon exploded on April 2010, leading to the release of 200 million gallons of oil being released into the Gulf of Mexico. “When that work is done, we will have well over 30,000 acres along the Perdido River for public access, hunting, hiking, canoe trails, and river frontage from near the headwaters all the way to Perdido Bay in public ownership,” Blankenship said. “We have used more than eight different funding sources to acquire this property. This shows how working together with our divisions and the Deepwater Horizon Section has been really successful at putting all this together for the people of Alabama for perpetuity.” Another $159 million is committed to improving water quality in coastal Alabama through sewer and septic tank mitigation. “We are working with the utilities to avoid sanitary sewer overflows to improve water quality,” Commissioner Blankenship said. “Using Deepwater Horizon and GOMESA (Gulf of Mexico Energy Security Act) funding, we have done several septic to sewer conversions in the coastal areas, like Fowl River, Grand Bay, and Bayou La Batre, that are really close to the water.” The effort to provide and enhance recreation and public access will receive $147 million in funding. “During the oil spill, it wasn’t just the environment that was impacted. It was also the people,” Commissioner Blankenship said. “We lost recreational access to the beaches, fishing, and a lot of other activities. As part of the Natural Resource Damage Assessment (NRDA),
Alabama Trustees approve more funds for the Bayfront Park Restoration and Improvement
The Alabama Trustee Implementation Group has approved using earned interest for the Bayfront Park Restoration and Improvement – Phases IIa and IIb Project (Bayfront Park project). The Bayfront Park project will provide enhanced recreational opportunities and benefit sea birds. This project includes shoreline stabilization, Americans with Disabilities Act-compliant parking, a pavilion, restroom facilities, and other park improvements. The additional funding was necessary. In the three years since the original budget estimate was created for the project, construction costs have increased dramatically and in an unprecedented manner. Additionally, environmental compliance work over and above what was initially anticipated was required. This delayed implementation and further increased project costs. The Bayfront Park project was approved in the Alabama Trustee Implementation Group Restoration Plan III and Environmental Assessment: Provide and Enhance Recreational Opportunities; and Birds (RPIII/EA), which was publicly released on December 20, 2019. This project includes shoreline stabilization, Americans with Disabilities Act-compliant parking, a pavilion, restroom facilities, and other park improvements. The original project budget was $4,683,304. Work began on the project in early 2022, and to date, the shoreline stabilization work has been completed. The project engineer’s estimate of the increased costs is $3,884,081. The new budget for the Bayfront Park project is $8,567,385, of which $991,723 will be funded from earned interest. With this additional funding, each of the original project elements will be completed. The Alabama Trustee Implementation Group hopes to complete the construction of this project in 2023. The funds are from the settlement from the April 20, 2010, Deepwater Horizon disaster. After the mobile drilling unit exploded, caught fire, and eventually sank in the Gulf of Mexico. This released 3.19 million barrels of oil and natural gas from the BP Exploration and Production, Inc. (BP) Macondo well, causing extensive natural resource injuries. Initial efforts to cap the well following the explosion were unsuccessful. For 87 days after the explosion, the well continuously and uncontrollably discharged oil and natural gas into the northern Gulf of Mexico. Oil spread from the deep ocean to the surface and nearshore environment from Texas to Florida, impacting the Alabama Gulf Coast. Natural resources impacted included: deep-sea coral, fish and shellfish, productive wetland habitats, sandy beaches, birds, sea turtles, and other protected marine life. The DWH oil spill prevented people from fishing, going to the beach, and enjoying typical recreational activities along the Gulf of Mexico. The DWH oil spill was subject to the provisions of the Oil Pollution Act (OPA) of 1990, which addresses preventing, responding to, and paying for oil pollution incidents in navigable waters, adjoining shorelines, and the exclusive economic zone of the United States. Under the authority of OPA, a council of federal and state “Trustees” was established on behalf of the public to assess natural resource injuries resulting from the incident and to work to make the environment and public whole for those injuries. As required under OPA, the Trustees conducted a natural resource damage assessment (NRDA) and prepared the Final Programmatic Damage Assessment and Restoration Plan/Programmatic Environmental Impact Statement (Final PDARP/PEIS). The Alabama Trustee Implementation Group includes two state trustee agencies and four federal trustee agencies: the Alabama Department of Conservation and Natural Resources (ADCNR); the Geological Survey of Alabama; the United States Department of Commerce, represented by the National Oceanic and Atmospheric Administration (NOAA); the United States Department of the Interior (USDOI), represented by the United States Fish and Wildlife Service (USFWS), Bureau of Land Management, and National Park Service; the United States Department of Agriculture(USDA); and the United States Environmental Protection Agency (USEPA) (collectively the AL TIG). To connect with the author of this story, or to comment, email brandonmreporter@gmail.com.
New report: Oil spills from offshore transportation way down
Oil and natural gas spills from tankers and pipelines in U.S. waters dropped dramatically from the last decade of the 1990s to one from 2010 through 2019, according to a federal report Wednesday. The amounts spilled and dumped in wastewater from drilling rigs and production platforms rose, but — if the disastrous 2010 Gulf of Mexico spill isn’t counted — the increase is mainly because there is more work offshore, said the National Academies of Sciences, Engineering, and Medicine. “It is evident that regulatory changes, advances in science and technology, and (for the most part) attention to safety would have helped to make North American waters less polluted with oil” without the Deepwater Horizon spill, the report said. But the BP well blew, killing 11 people and spewing millions of gallons (kiloliters) of oil into the Gulf of Mexico off Louisiana over months. Another big contributor during the past decade was the nation’s longest-running oil spill, also off Louisiana. The 497-page report was written by an international committee of academic and industry experts and reviewed by many others. “Overall, I think they have done a very comprehensive job,” said Anthony Knap, director of the Geochemical and Environmental Research Group at Texas A&M University, who was not an author or reviewer. Like a report released in 2003 this one — “Oil in the Sea IV: Inputs, Fates, and Effects” — said that oil in runoff, largely from cars and cities, is the biggest source of ocean oil pollution, with natural seeps second and spills in third place. But hard data on oil in rivers is so scarce and the range of possible amounts so huge that — although the report put the figure from the U.S. about 20 times the earlier estimate — it couldn’t say whether there was an actual increase. Increases in urban land area, population, and vehicle ownership make an increase “plausible … but it is unclear by how much,” the report said. “One of the big findings is, in general, we do not have adequate data,” committee chair Kirsi K. Tikka, of Ardmore Shipping and Pacific Basin Shipping, said in a phone interview Tuesday from London. Natural seeps of oil and natural gas from the ocean floor were estimated at nearly 30.8 million gallons (116,500 kiloliters) a year. That’s about 60% of the 1990s estimate, but the change is because recent estimates of seeps in the Gulf of Mexico and off California are more accurate, Tikka said. “We have more techniques to measure the seeps,” but those two areas are the only ones with data, she said. The spill data is the most accurate part of the report, Tikka said. “As you probably know, even on large oil spills, you never have exact numbers,” she added, “but those are the best we have available.” Spills from tanker ships fell from an average of 1.6 million gallons (6,175 kiloliters) a year in the last decade of the 1900s to 61,600 gallons (230 kiloliters) in the decade just past. Over the same period, pipeline spills went from nearly 585,000 gallons (2,210 kiloliters) a year to just under 117,000 gallons (440 kiloliters). Laws and regulations after the Exxon Valdez ran aground in 1989 near its namesake Alaska town account for much of the difference in tanker spills, Tikka said. Among other things, she noted, the Oil Pollution Act of 1990 phased in a requirement for double-hulled tankers in U.S. waters, and other countries and international bodies followed suit. Increased inspection and maintenance accounts for the reduction in pipeline spills, she said. Spills from offshore oil drilling and production rose sevenfold over the period to about 338,600 gallons (1,280 kiloliters) a year. And oil in well wastewater was estimated at about 2 million gallons (7,900 kiloliters) a year — about 2.5 times the estimate for the 1990s. The wastewater oil is likely an overestimate, Tikka said. Oil companies report the total amount of “produced water,” but not the amount of oil it held, so the report used the highest allowable percentage. “Most likely, the levels are less,” she said, adding that both figures reflect increased drilling and production. Without Deepwater Horizon, Tikka said in an email, “spillage per unit of production has decreased by 65% since the last … report, but remained relatively constant in the last 20 years.” Texas A&M’s Knap said in an email, “Just like discharges from ships, operators are far more diligent than they were in the past so a straight line from number of platforms to more oil is not a given. Republished with the permission of The Associated Press.
U.S. Treasury approves Alabama’s multiyear implementation plan for Gulf Coast recovery
A multiyear plan developed to help restore the Gulf Coast in the wake of the 2010 Deepwater Horizon oil spill has been approved by the U.S. Department of Treasury (USDT). Developed by the Alabama Gulf Coast Recovery Council (AGCRC), the plan proposes 15 activities for Direct Component RESTORE funding for a total estimated cost of $192,416,759. Now that the plan has been approved, individual grant applications must be submitted to Treasury and awarded before project activity can begin. “This is a watershed day in the reinvestment of Alabama’s Gulf Coast communities,” said Governor Kay Ivey. “The members of the Council have worked long and hard over the past year to get us to this point; at long last, oil spill funds guaranteed to the people of Alabama through the RESTORE Act are about to be invested. I am especially grateful there has been so much public input in this process.” The projects The projects proposed in the plan are all located within Mobile and Baldwin Counties. The money for the projects comes from penalties paid by companies involved in the 2010 Deepwater Horizon oil disaster in the Gulf of Mexico through the RESTORE Act, which established a trust fund to hold much of that money aside for “programs, projects, and activities that restore and protect the environment and economy of the Gulf Coast region.” All 15 projects are in accordance with the focus areas selected by 10-member Alabama Gulf Coast Recovery Council that include infrastructure projects benefiting the economy and related planning assistance. Aloe Bay Harbour Town Phases I, II and III: The purpose of this project is to enhance economic opportunities and ensure long-term economic sustainability by creating a walkable district in and around Aloe Bay, including short-term lodging, event, and retail space. Location: Town of Dauphin Island, Mobile County, Ala. Redevelop Bayou La Batre City Docks Phases I, II and III: The purpose of the project is to redevelop the City docks to breathe life back into the space. This new vision will support many areas of the local economy and will serve as a public space and meeting place for festivals and area residents and visitors to enjoy. Location: City of Bayou La Batre, Mobile County, Ala. Water Distribution System Upgrades: The purpose of the project is to replace undersized water mains with larger lines to provide adequate water pressure and fire protection for many areas within Bayou La Batre Utilities Board service area. Location: City of Bayou La Batre, Mobile County, Ala. Northwest Satsuma Water and Sewer Project: The purpose of this project will extend water and sewer under Interstate 65 via directional boring to bring potable water, fire protection, and gravity sanitary sewer access to the households currently relying on individual wells and on-site septic tanks. This project will reduce health problems due to inadequate treatment from private wells, improve water quality, as approximately 100 on-site septic tanks will be abandoned, and will provide growth opportunities for the City of Satsuma. Residences will be connected to the infrastructure by homeowners per city ordinance. Location: City of Satsuma, Mobile County, Ala. Mount Vernon Water Treatment Plant (WTP): The purpose of this project is to upgrade the Town of Mount Vernon’s 972,000 gallons per day (GPD) Water Treatment Plant to provide more reliable service, ensuring improved environmental conditions, and allowing for future growth. Location: Town of Mount Vernon, Mobile County, Ala. Mobile County Blueway Trail Development: This water-based trail development project will increase the potential for trail business and revenue income in Mobile County, increase and enhance the public’s access to local waters, protect sensitive environments along the coast, and promote nature-based tourism. Location: Mobile County, Ala. Baldwin Beach Express I-10 to I-65 Extension: The purpose of this Activity is to 1) acquire land from willing sellers as associated with an infrastructure project in conformance with the RESTORE Act and regulations; and 2) construct the 24.5-mile Baldwin Beach Express Extension from I-10 to I-65 to complete the 51-mile Baldwin Beach Express program. Location: Baldwin County, Ala. Baldwin County ALDOT Capacity Improvements: Upgrade long under-performing state corridors in the State’s fastest growing county. Location: Baldwin County, Ala. Alabama State Port Authority Automotive Logistics/RO-RO Terminal: The purpose of this project is to allow automobile and equipment manufacturers in Alabama and other neighboring states access to a more cost-effective deep-water gateway for exporting American made products, as well as importing commodities and components that support those manufacturers. This will help the nation compete in the global economy, creating jobs and improving the regional and national economy. Location: City of Mobile, Mobile County, Ala. Gulf Coast Center for Ecotourism and Sustainability: The purpose of the infrastructure project is to house a sustainably-designed ecotourism program where visitors can learn about the ecology, biodiversity, sustainability, and resource management of the northern Gulf of Mexico to raise environmental awareness and to promote conservation and stewardship of our natural resources. Location: City of Gulf Shores, Baldwin County, Ala. Historic Africatown Welcome Center: The purpose of this project is to plan, design, and build a building to serve as a welcome center and tourist destination for the Africatown community. This activity will not only help promote economic development and tourism, but also lay the foundation for national historic preservation of the rich cultural heritage of the area. Location: City of Mobile, Mobile County, Ala. Innovating St. Louis Street: Mobile’s Technology Corridor: The project purpose includes the design and reconstruction of the road bed, adjacent, and subsurface infrastructure within the St. Louis Street right-of-way. The planning, design, and reconstruction of existing utility, streetscape, roadway, and storm drainage infrastructure along St. Louis Street would represent a significant milestone for the City of Mobile. Comprehensively, this initiative correlates with broader objectives for fostering additional business development and economic revitalization opportunities within the corridor and the surrounding area. The City’s vision, in partnership with the University of South Alabama and other stakeholders, includes the creation of a “vibrant, live, work, play and learn district” in downtown Mobile. The St. Louis Street corridor is poised to become Mobile’s Downtown Technology Corridor, which will house “Innovate Mobile,” a regional science and research park. The University of South
Kay Ivey details 8 new restoration projects thanks to additional BP funds
Governor Kay Ivey announced on Monday the National Fish and Wildlife Foundation (NFWF) approved more than $48 million for eight new projects, which focus on the restoration and conservation of Alabama’s natural resources. “Alabama’s Gulf Coast is of great ecological importance to our state, and it is imperative we protect and restore those natural resources harmed by the Deepwater Horizon oil spill,” Ivey said. “Today’s announcement gets us one step closer to success. We are improving our water quality in the Bon Secour River and Mobile Bay, bolstering our fish populations with the expansion of artificial reefs, and ensuring resiliency along our coastline. Thank you to our local, state, and federal partners for developing this impressive slate of projects.” In 2013, a U.S. District Court approved two plea agreements resulting from the criminal charges against BP and Transocean as responsible parties to the Deepwater Horizon oil spill. The settlement directs a total of $2.54 billion to NFWF to establish a Gulf Environmental Benefit Fund (GEBF) over a five-year period to support ecological projects in all five Gulf States. A total of $356 million will be paid into the GEBF for conservation projects dedicated to the State of Alabama. “This announcement brings the number of NFWF GEBF-funded projects to 32 in the State of Alabama for a total investment of close to $200 million. These projects will significantly enhance long-term restoration and protection of our natural resources and will ensure the sustainability and resiliency of our coastal ecosystem. We thank NFWF and our local partners for their hard work during this year-long process,” said Alabama Department of Conservation and Natural Resources Commissioner Chris Blankenship. Alabama 2018 projects Alabama Artificial Reef and Habitat Enhancement Plan – Phase II Amount: $22.5 million This project will build on phase I of the plan to construct and enhance artificial reef habitat in Alabama’s coastal waters. Alabama’s artificial reef system provides habitat for economically important reef fishes and provides a marine environment, allowing fish populations to flourish. Over time, subsidence, storm damage, and other factors have caused deterioration of many of the state’s existing artificial reefs. Phase II of the project aims to continue to increase connectivity between habitats used by fish in early and adult life through creation or enhancement of inshore, nearshore, and offshore reef habitats. Analysis of phase I response monitoring suggests increases in the abundance of red snapper on artificial reefs post deployment. Future analysis will include examination of responses in biomass, other species of interest, and the overall marine community. Bon Secour National Wildlife Refuge Acquisition – Three Rivers Parcel Amount: $4.4 million This project will acquire and restore 236 acres of estuarine and forested shrub wetlands on Fort Morgan Peninsula. The parcel is within the acquisition boundary of the Little Point Clear Unit of the Bon Secour National Wildlife Refuge (BSNWR), bordered on the east, west, and north by Bon Secour Bay. Following acquisition, the property will be transferred to the U.S. Fish and Wildlife Service (USFWS) to become part of the BSNWR. Habitats within this unit consist of scrub/shrub, pine flatwoods, saltwater marsh, and tidal creeks, scattered with permanent and semi-permanent wetlands. Fort Morgan Peninsula is under significant and consistent threat of commercial and residential development that would result in loss of habitat and negatively impact living coastal and marine resources. Bon Secour River Headwater Restoration – Phase I Amount: $1.5 million This project will complete engineering and design plans for creating wetlands to treat urban runoff impacting downstream fisheries. The constructed wetlands will address nutrient, sediment and debris flow to improve habitat quality in the lower Bon Secour River and Bon Secour Bay, which historically has included south Alabama’s most significant and productive shellfish habitats and nursery areas for juvenile finfish. This section of the Bon Secour River encompasses major headwaters and the main channel of the Bon Secour River immediately downstream from the City of Foley. Rapid development of the City over the past two decades has contributed signficant nutrient and sediment loading to the Bon Secour River and Bay, with adverse effects to downstream fisheries. Under the proposal, the City will acquire 94 acres of undeveloped property along the Bon Secour River to construct the stormwater wetlands. Dauphin Island Causeway Shoreline Restoration: Engineering & Design Amount: $250,000 This project will fund the engineering and design of breakwaters to enhance, protect, and improve resiliency of marsh and oyster habitat adjacent to the Dauphin Island Causeway. Erosive forces, like tidal action, wave energy, and storms, provide a constant threat to the coastal habitats in this area. Productive wetland habitat has been lost along the Bay side of the Causeway, stimulating the Alabama Department of Transportation to install and rely upon riprap revetment to protect the low-lying transportation corridor. The goal of the project is to stabilize the shoreline along the Bay side of the Dauphin Island Causeway and to create/enhance aquatic, wetland, and riparian habitats in the region. The project will serve as leverage for a companion proposal submitted to the National Coastal Resiliency Fund. Deer River Coastal Marsh Stabilization and Restoration – Phase I Amount: $750,000 This project will complete engineering & design plans to stabilize and restore the shoreline and intertidal salt marsh at the mouth of Deer River, adjacent to the Theodore Industrial Canal and Mobile Bay. Intertidal marsh at the mouth of Deer River has experienced significant deterioration and loss of natural function due to erosion from heavy storms, tides, and ship wakes. In the past two decades, approximately nine acres of productive intertidal marshland and shoreline have been lost. These habitats buffer wave energy and storm surges, protecting the shoreline as well as neighboring upland and wetland habitats, preserving the long-term sustainability of the ecological services they provide. Once designed and constructed, this project will stabilize and enhance up to 5,600 feet of shoreline on Mobile Bay necessary to protect and enhance over 275 acres of existing priority coastal saltmarsh, along with the potential to create additional marsh habitat. Lightning Point Restoration Project
Alabama House to debate how to spend BP oil spill settlement
The Alabama House Ways and Means Committee approved a plan on Tuesday for spending Alabama’s settlement money from the 2010 Deepwater Horizon “BP” oil spill in the Gulf of Mexico. The plan, devised primarily by Ozark-Republican and Committee Chairman Steve Clouse, calls for the state to create a $639 million bond issue and apply the BP payments to pay off the bonds. Under the plan, $450 million of the settlement would be used for debt repayment and nearly $200 million toward road projects in coastal counties. Clouse, said paying debt early would free up state funds and provide nearly all of additional $85 million in funding requested by Alabama Medicaid, by creating a surplus of $70 million in this year’s budget and next year’s budget. The House approved a similar plan in April, but the spending proposals fell apart over a disagreement between northern and southern Alabama lawmakers over how much money should be spent on state debt versus road projects in south Alabama. House and Senate Republicans plan to meet Wednesday to discuss a workable agreement. A vote on the bill could come as early as Wednesday.
Judge: BP not to pay oil industry losses from moratorium
A federal judge ruled that BP does not have to pay for economic losses other businesses suffered when the federal government shut down deep-water drilling in the wake of BP’s catastrophic 2010 oil spill in the Gulf of Mexico. U.S. District Judge Carl Barbier in New Orleans issued his ruling late Thursday. The Obama administration imposed a six-month drilling ban in the Gulf to prevent another disaster. The offshore industry called the moratorium a costly mistake. Barbier’s ruling came in a lawsuit brought by six companies involved in offshore drilling, but plaintiffs’ lawyers said thousands of similar claims worth billions of dollars would be affected by the ruling. The case centered on whether BP was liable under the Oil Pollution Act for the loss of business caused by the moratorium. Barbier sided with BP and said the law relates only to damages caused by the spill. The judge said Congress never intended for the Oil Pollution Act “to go so far” as to hold a polluter liable for government steps, like a moratorium, “aimed at preventing similar tragedies in the future and which broadly affect an entire industry.” The Oil Pollution Act was passed in 1990 after the disastrous Exxon Valdez oil spill in Alaska and it is the principal law covering oil spills. At issue was whether BP should be made to pay for damages that were “not a direct result of an oil discharge,” Barbier wrote. Barbier said “there can be no doubt” the moratorium was imposed because the blowout occurred, but the judge said the shutdown was designed to deal with “the risk of possible future blowouts and oil spills from wells other than Macondo and was motivated by perceived weaknesses of industry-wide safety measures.” BP declined to comment Friday on the ruling. The spill has cost the company $55.5 billion, according to a recent BP regulatory filing. Brent Coon, a Texas plaintiffs’ lawyer who represents clients with moratorium claims, said in a statement Friday that the ruling was a setback. Coon’s statement said the ruling “bodes poorly for yet another massive block of claims that have been waiting for years” for compensation. In April 2010, a well being drilled by BP and its contractors blew out and led to the sinking of the offshore rig Deepwater Horizon, killing 11 workers. The blowout caused more than 130 million gallons of oil to leak into the Gulf. In 2012, BP entered into a settlement with businesses and individuals claiming losses from the spill expected to cost BP over $10 billion. Last year, BP reached an $18.7 billion agreement with governments in the five Gulf Coast states affected by the spill. Republished with permission of the Associated Press.
Opening statements to begin in trial of former BP rig supervisor
Federal prosecutors and lawyers for a Deepwater Horizon rig supervisor are ready to tell jurors what they expect to prove as 65-year-old Robert Kaluza is tried on a misdemeanor pollution charge from the BP oil spill. A jury was chosen Tuesday for what will probably be the last trial from a sweeping Justice Department investigation into the rig explosion and blowout. Opening statements were scheduled for Wednesday. U.S. District Judge Stanwood Duval told prospective jurors Tuesday that the trial will take 13 days. The well blew wild in April 2010, killing 11 workers and spewing an estimated 134 million gallons of oil into the Gulf of Mexico before the mile-deep gusher was plugged nearly three months later. Prosecutors say Kaluza and fellow supervisor Donald Vidrine botched a “negative pressure test” and missed clear signs of trouble before the blowout. Vidrine pleaded guilty to the same charge, violating the Clean Water Act, and is among 31 possible prosecution witnesses. He hasn’t been sentenced, but it’s likely no one will serve any prison time related to the spill. Both men were once charged with manslaughter of the workers who died, but federal prosecutors dropped those charges in December. Only four employees, mostly lower-ranking, were charged with individual criminal responsibility for the spill. Most of those cases unraveled before skeptical jurors and judges. The government did secure a landmark criminal settlement and record civil penalties against the energy giant BP, which BP said would cost it billions of dollars. The manslaughter charges against Kaluza and Vidrine were dropped after former BP executive David Rainey was acquitted in June of manipulating calculations to match an excessively low estimate of the amount of oil gushing into the gulf. Former BP engineer Kurt Mix once faced two felony charges for allegedly deleting text messages that prosecutors said were related to investigations of the spill. After a yearslong legal ordeal, he pleaded guilty in November to a misdemeanor charge and received no jail time. He made clear publicly that he believed he had done nothing wrong and felt vindicated. Republished with permission of the Associated Press.
Robert Bentley announces $20 million Transocean settlement
Thursday Alabama Governor Robert Bentley announced the state has agreed to a $20 million settlement with Transocean Offshore Deepwater Drilling, Inc., the company that owned the Deepwater Horizon oil rig. “The State of Alabama suffered tremendous environmental and economic losses because of the BP/Deepwater Horizon oil spill in April 2010,” Governor Bentley said. “I appreciate the entire Alabama team for working to ensure Alabama is fairly compensated. This agreement with Transocean is another positive step forward as we continue to recover from the effects of such a significant environmental and economic disaster.” The Deepwater Horizon rig explosion on April 20, 2010, which was being used by BP was one the worst offshore oil disaster in U.S. history. It killed 11 workers and spewed millions of barrels of oil onto the shorelines of many Gulf states, including Alabama for nearly three months. The result? Significant environmental and economic damages across the affected Gulf states. “I’m pleased to announce that Transocean has paid $20 million into the State’s General Fund to settle the State’s remaining claims against the company for its role in the disastrous 2010 Gulf oil spill,” said Alabama Attorney General Luther Strange. “Alabama’s recovery is due to the hard work of my staff in pursuing our case against Transocean, while they simultaneously litigated the State’s case against BP.” Attorney General Strange was the court-appointed coordinating counsel for all five Gulf States in the litigation against BP and its co-Defendants for the 2010 Deepwater Horizon oil spill. On October 5, 2015, Strange announced a final settlement of Alabama’s damages claims with BP that directed $950 million to the State’s General Fund and approximately $1 billion to Alabama’s coastal counties for economic and environmental restoration. Alabama’s settlement with Transocean resolves all claims against the rig operator that were not encompassed by the global settlement with BP.
Landmark settlement with BP over 2010 Gulf oil spill finalized
The Justice Department and five states have finalized a settlement worth more than $20 billion arising from the 2010 Deepwater Horizon oil spill in the Gulf of Mexico, federal officials announced Monday. The deal resolves all civil claims against BP and ends five years of legal fighting over the nearly 134 million-gallon spill. It requires the company to commit to a widespread cleanup project in the Gulf Coast area aimed at restoring wildlife, habitat, water quality and recreation. “BP is receiving the punishment it deserves, while also providing critical compensation for the injuries that it caused to the environment and the economy of the Gulf region,” Attorney General Loretta Lynch said at a Justice Department news conference. “The steep penalty should inspire BP and its peers to take every measure necessary to ensure that nothing like this can ever happen again,” Lynch said. The settlement filed in federal court finalizes an agreement first announced in July. The next step is a 60-day public comment period. Among other requirements, BP will be forced to pay $5.5 billion in Clean Water Act penalties and nearly $5 billion to five Gulf states: Alabama, Florida, Louisiana, Mississippi and Texas. It also requires the company to pay $8.1 billion in natural resource damages, with funds going toward Gulf restoration projects such as support for coastal wetland and fish and birds. The spill followed the April 2010 explosion on an offshore rig that killed 11 workers. BP earlier settled with people and businesses harmed by the spill, a deal that’s so far resulted in $5.84 billion in payouts. Republished with permission of the Associated Press.
Judge says BP spill damage payouts to local entities to start soon
A federal judge says BP will begin paying up to $1 billion in settlements to compensate local governments across the Gulf Coast for lost tax revenue and other economic damages they blame on the company’s 2010 oil spill. An order issued Monday by U.S. District Judge Carl Barbier said all of the payments to local governments must be made within 30 days. BP’s Macondo well blew out on April 20, 2010, leading to deadly explosions aboard the Deepwater Horizon drilling rig and the nation’s largest offshore oil spill. The federal government used a team of scientists to calculate that about 172 million gallons spilled into the Gulf. BP put the number much lower, closer to 100 million gallons. July 15 was the deadline for about 500 local governments in five states to decide whether to accept BP’s settlement offers as part of a broader $18.7 billion agreement with the five Gulf states and the federal government over damage from the spill. Barbier’s order says BP says most local government entities have accepted the settlement. A handful of local governments have not accepted to settle and are continuing to fight for more money. Among those not taking the settlement are Plaquemines Parish in Louisiana and Orange Beach in Alabama. Both locations were heavily oiled by the spill. Plaquemines, for instance, says that the compensation offered for heavy oiling of its marshland isn’t sufficient. The parish says that about 10,000 acres of parish land was heavily oiled and that in all about 40,000 acres of coastal area was damaged by the spill. Government entities are expected to receive varying amounts in compensation according to how much damage they suffered. Jefferson Parish is expected to receive about $53 million for damage it suffered, the highest expected payout so far. Coastal areas in the parish, in particular Barataria Bay, sustained a lot of damage. Republished with permission of The Associated Press.
Alabama business roundup: Headlines from across the state
Here’s a roundup of some of the top business headlines from across the state this week: AL.com: BP paying Pelham $106,760 to settle claims in Deepwater Horizon litigation BP’s landmark $18.7 billion settlement agreement involving litigation surrounding the 2010 Deepwater Horizon oil spill in the Gulf of Mexico is resulting in a $106,760 payment to the City of Pelham to resolve any claims. The Pelham City Council tonight held a special meeting to approve a resolution concerning the settlement terms and releasing BP and other parties in the case from any claims. Under terms of the settlement for Pelham, the city will receive a payment from BP Exploration and Production Inc. for $106,760, minus 15 percent for attorney’s fees paid to Gulas Law Firm as well as up to $1,000 for the out-of-pocket expenses incurred by the firm. After the 15 percent and other payment to the Birmingham-based Gulas Law Firm, the city’s share will be roughly $90,000. The settlement money will go into the city’s general fund. Council President Rick Hayes said during tonight’s special meeting the city had until July 15 to approve the release agreement and settlement terms. Hayes would not discuss any further details of the action, citing a confidentiality order in the case. Before the council’s vote, Hayes said the “judge’s order said we have to be very confidential about everything.” He declined to answer any questions about the matter after the meeting. Gov. Robert Bentley and Attorney General Luther Strange on July 2 announced that Alabama will receive $2.3 billion in the settlement with BP for environmental and economic damages resulting from the Deepwater Horizon oil spill. For Alabama, the settlement amount includes economic damages at $1 billion paid over 18 years and environmental damages of $1.3 billion. Among the other financial aspects of the settlement that involves Alabama, Florida, Louisiana, Mississippi and Texas, up to $1 billion will be paid to resolve claims made by more than 400 local government entities. The Birmingham City Council this week approved a resolution accepting a settlement totaling more than $1 million for economic losses associated with the oil spill. Birmingham Business Journal: Blue Bell to conduct first trial production runs at Sylacauga plant Blue Bell has announced it will begin trial runs at its Sylacauga location, which will be the first plant to begin work since a listeria contamination halted production across the company’s footprint in April. The Brenham, Texas-based Blue Bell Creameries notified the U.S. Food and Drug Administration and Alabama state health officials that the company hopes to begin test production of ice cream products at its Sylacauga facilities in the next several weeks, according to a report from our sister publication the Houston Business Journal. The first instance of listeria was confirmed at the Sylacauga production facility in June. The plant then laid off a third of its workforce, with 48 Sylacauga workers being temporarily laid off. While the company is optimistic about test productions, no firm dates have been set for when trial operations will begin or when products will return to markets. “When production resumes at the Sylacauga plant, it will be on a limited basis as the company seeks to confirm that new procedures, facility enhancements and employee training have been effective,” said Blue Bell in a statement. “Ice cream produced will be closely monitored and tested. Upon completion of this trial period, Blue Bell will begin building inventory to return to the market.” Birmingham Business Journal: Intermark Group lands $6M Alabama Tourism Department contract Birmingham-based Intermark Group on Monday was announced as the new agency of record for the Alabama Tourism Department’s $6 million annual advertising contract by director Lee Sentell. The agency will succeed Luckie & Co. on the account, according to a release from the Alabama Tourism Department. “Luckie has created memorable and successful campaigns based on the themes our agency has suggested, including branding ‘Sweet Home Alabama.’ Most importantly, the amount of tourism expenditures in the state has increased by 80 percent to $11.8 billion during the 12 years that Luckie has handled the account,” said Sentell. Additionally, he said the tourism department has won numerous regional and national tourism awards, including a silver award last month from the Advertising Federation of America for the Alabama Civil Rights Trail. The two Birmingham-based agencies – who are also the largest agencies in the state – were the lowest bidders among 12 companies that submitted proposals State contracts are limited to two years before rebidding, and are awarded based on a combination of agency capabilities and cost, the release said. Intermark will be tasked with creating the 2016 “year of” marketing campaign, to be announced this fall. The agency will also handle the state’s bicentennial celebration from 2017 through 2019, Sentell said that Intermark’s psychology driven marketing approach, along with their deep experience in digital marketing, makes them a great choice to carry on a long tradition in the growth of tourism in Alabama. Intermark, with 117 full-time employees, has recent brand experience with Toyota, Mohawk, Krispy Kreme, BBVA Compass, Blue Cross Blue Shield of Alabama, the U.S. Space & Rocket Center and Talladega Superspeedway. Dothan Eagle: Peanut acreage up, cotton down due to Farm Bill, diversification options Local agriculture officials said good weather and potentially promising Farm Bill provisions have resulted in a productive peanut season so far. But lower market prices and fewer financial options for commodities like cotton might cause some farmers to reconsider what they plant in future years. The Alabama Peanut Producers Association reported an estimated 215,000 planted acres of peanuts statewide, with 212,000 of those acres expected to be harvested. That number is up from the 189,000 acres of peanuts harvested last year, which the Alabama Farmers Federation said resulted in 400 million pounds of peanuts valued at $118 million. The U.S. Department of Agriculture showed the F arm B ill, formally known as the Agriculture Act of 2014, allowed producers of peanuts and some other commodities to choose between Price Loss Coverage (PLC) or Agricultural Risk Coverage
