City to receive $586,230 from BP

Published 8:11 am Friday, August 21, 2015

Municipalities in Butler County will land $642,213 as part of a multi-state federal settlement with BP over widespread damages caused by the 2010 Deepwater Horizon disaster.

The City of Greenville, the City of Georgiana and the Town of McKenzie filed suit against BP claiming lost revenue in the form of sales tax revenue from decreased beach traffic that occurred as a result of the oil that ended up on the Gulf Coast beaches during the 2011 oil spill.

Greenville will receive $586,230 in the settlement, while Georgiana will receive $42,244 and McKenzie will receive $13,739.

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Greenville Mayor Dexter McLendon said he was reluctant at first to join the lawsuit against BP, but after discussing it with several council members and city attorney Richard Hartley, decided that it would be in the city’s best interest to file suit.

“I’m not much on suing anyone,” McLendon said. “I just don’t like that, but it did impact several of our summers and we felt we needed to do something to try and get some of the money we lost back.”

McLendon said he’s unsure of when the city will receive the funds, but that the influx of cash will be a huge benefit to the city.

“This will help us balance next year’s budget,” McLendon said. “We’re not exactly sure what we’ll use the money for, but it will probably be used for some sort of infrastructure.”

In July, Alabama agreed to a $2.3 billion settlement with BP.

The agreement 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.