Alabama to Receive Billions from BP Due to Oil Spill

Posted in Alabama Maritime News,BP British Petroleum,Deepwater Horizon,Environment,Florida Maritime News,Government,Gulf Coast,Louisiana Maritime News,Maritime Lawsuits,Mississippi Maritime News,Texas Maritime News,World Maritime News on September 27, 2010

BIRMINGHAM, AL – In an article from Reuters, Governor Bob Riley said on Monday that Alabama expects to receive billions of dollars in penalties from BP as a result of the Gulf Oil Spill.

BP and the White House will probably soon reach an agreement on how much money will be available to four Gulf states that have been affected by the spill, Riley said in a statement.

The state is setting up a Coastal Recovery Commission charged with setting priorities for its expected payment from the energy giant, Riley said.

There is a growing dispute over how states, individuals and businesses in Louisiana, Mississippi, Alabama and Florida should be compensated for losses suffered as a result of the spill.

“While we don’t know the total or how it will be divided … we have every reason to believe Alabama will suddenly have significant resources at its disposal, likely in the billions of dollars,” the statement said.

Alabama’s losses stem from diminished sales, lodging and fuel tax revenues as tourists avoided the state’s coast this summer because of the spill.

Source: Yahoo (Reuters)