2010 BP Oil Spill: Transocean And Gulf States Reach Settlement

The five Gulf of Mexico states have entered a settlement agreement with Transocean, the owner of the offshore deep water drilling rig involved in 2010's BP oil spill, the Associated Press reported Wednesday. Alabama, Florida, Mississippi, Louisiana and Texas will receive millions each in the agreement, although court filings note that Transocean's agreement to the settlement does not mean it admits to liability regarding the disaster that killed 11 rig workers, injured 17 more and sent an estimated 134 million gallons of oil gushing into the gulf over an 87-day period.

“The states and Transocean each have determined independently that it is in their best interests to reach a global settlement regarding the litigation,” the agreement reads. Louisiana, Mississippi, Alabama and Florida were required to sign the agreement by Sept. 1, whereas Texas had to agree by Nov. 1.

Alabama will receive $20 million from Transocean, Gov. Robert Bentley said last week. On Wednesday, Louisiana Attorney General Buddy Caldwell released documents saying the state would receive $4 million, and Texas has said it will receive $2 million. Neither Mississippi nor Florida officials have provided details of their settlements, according to the Associated Press. Transocean spokeswoman Pam Easton confirmed with New Orleans' the Times-Picayune that the settlement with the five states had been agreed upon but did not confirm the amounts.

BP reached separate agreements with the states on July 2, which involved a $20 billion settlement with the state, local and federal governments, the Times-Picayune reported. A judge had ruled in September 2014 that that Transocean’s conduct was negligent and allotted 30 percent of the fault of the accident to Transocean and 67 percent to BP.

The Deepwater Horizon semi-submersible drilling rig was located about 50 miles south of the Mississippi River’s mouth, when a blowout in the well occurred on April 20. The Deepwater Horizon sank two days later, allowing oil and gas to flow from the well for 87 days before it was capped.