BP announces $7.8-billion settlement for economic loss and medical claims

Offshore staff

NEW ORLEANS – BP has reached an estimated $7.8-billion settlement with the Plaintiffs' Steering Committee (PSC) to resolve the substantial majority of legitimate economic loss and medical claims from the Deepwater Horizon accident and oil spill.

Under the proposed settlement, class members would release and dismiss their claims against BP. The proposed settlement is not an admission of liability by BP.

The settlement, subject to final written agreement, is expected to be paid from the $20-billion trust and includes a $2.3-billion commitment the company made to help resolve economic loss claims related to the Gulf seafood industry. The proposed agreement to resolve economic loss claims also includes the fund to support continued advertising that promotes Gulf Coast tourism.

The proposed agreement to resolve medical claims involves payments based on a matrix for certain currently manifested physical conditions, as well as a 21-year medical consultation program for qualifying class members. It also provides that class members claiming later-manifested physical conditions may pursue their claims through a mediation/litigation process.

BP would also provide $105 million to improve the availability, scope and quality of healthcare in Gulf communities. This healthcare outreach program would be available to all individuals in those communities. The program would include expanding capacity to address community health needs, including primary care, mental health services, access to environmental health specialists, and enhanced training and education related to Gulf Coast health issues.

Bob Dudley, BP Group CEO, said: "From the beginning, BP stepped up to meet our obligations to the communities in the Gulf Coast region, and we've worked hard to deliver on that commitment for nearly two years. The proposed settlement represents significant progress toward resolving issues from the Deepwater Horizon accident and contributing further to economic and environmental restoration efforts along the Gulf Coast."

3/5/2012

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