Alabama and BP have agreed to settle claims from the 2010 Gulf oil spill for $2.3 billion, Gov. Robert Bentley and Attorney General Luther Strange announced Thursday.

The agreement, announced at a news conference in Montgomery, is designed to compensate the state for both environmental and economic damages as a result of the disaster.

“The BP/ Deepwater Horizon oil spill was the worst environmental disaster in United States history, and the impact to the Alabama Gulf Coast was detrimental” Bentley said. “We have reached an agreement in principle with BP to compensate the state for all of the environmental and economic damages suffered as a result of the oil spill. With the agreement announced (Thursday), we are taking a significant step forward in our state and will become a stronger, safer and more resilient state as a result of this terrible disaster.”

The BP/Deepwater Horizon oil spill began on April 20, 2010, about 100 miles off of Alabama’s coast, killing 11 people and causing oil to flow into the Gulf of Mexico. For nearly three months, an estimated 3.19 million barrels of oil flowed into the Gulf. Alabama experienced significant environmental and economic damages as a result of the oil spill.

The total value of the agreement in principle is approximately $18.5 billion for all of the affected Gulf states economic losses, the natural resource damages and BP’s Clean Water Act penalties.  Alabama’s share of this global agreement is over $2 billion. On the economic side, $1 billion will be paid to the state over the next 18 years for economic damages suffered. On the environment side, Alabama will receive approximately $1.3 billion over the next 15 years that will be used to facilitate coastal restoration projects in Alabama.

“From the first day that Gov. Bentley and I took office, we’ve worked together to secure justice for Alabama in the wake of the tragic BP oil spill,” Strange said. “That teamwork has led us to today’s record settlement and a positive legacy for the future.”

The agreement announced Thursday only relates to Alabama’s claims against BP and it does not affect the claims of other people or companies.