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Gulf of Mexico Restoration Programs Funded by Deepwater Horizon Oil Spill Penalties

In 2010 The Gulf of Mexico experienced the worst marine oil spill in US history. This presentation will provide you with information on the various penalties paid by the responsible parties and how those fines will be used to restore the damage.
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Kristy Tavano

on 21 January 2016

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Transcript of Gulf of Mexico Restoration Programs Funded by Deepwater Horizon Oil Spill Penalties

On April 20, 2010 the Deepwater Horizon oil rig exploded causing 11 men to lose their lives and an estimated 4-5 million barrels of oil to spill into the Gulf of Mexico over the span of 87 days.
This is the largest marine oil spill in U.S. history. In total, $37.676 billion is expected to be paid in civil and criminal penalties.
Gulf of Mexico Restoration Programs Funded by Deepwater Horizon Oil Spill Penalties

By:
Gulf of Mexico University
Research Collaborative
GOMRI
NRDA
NAS
NFWF
RA1604
NAWCA
RA1605
RA1603
RESTORE Act
35% - Direct
2.5% - NOAA Science
Program
2.5% - Centers of
Excellence
DWHOS Penalties
BP 2012 Plea
Transocean 2013 Plea
Clean Water Act Fines
BP Preliminary
BP Settlement
Plan Links,
Funding Information,
http://gulfresearchinitiative.org/wp-content/uploads/Annotated-GoMRI-Master_Research-Agreement-RFPV.pdf
Master Research Agreement
RFPs
http://gulfresearchinitiative.org/request-for-proposals/rfp-v/
Phase I, II, and III
ERP and PEIS
http://www.gulfspillrestoration.noaa.gov/oil-spill/gulf-spill-data/
Gulf Environmental Benefit Fund
http://www.nfwf.org/gulf/pages/gulf-projects.aspx#.VJm6vV4DWB
http://www.nationalacademies.org/gulf/vision/index.htm
Gulf Research Program Vision
Gulf Restoration Fund
FWS Gulf Restoration
http://www.fws.gov/gulfrestoration/nawca.html
Initial Comprehensive Plan
http://www.restorethegulf.gov/sites/default/files/Initial%20Comprehensive%20Plan%20Aug%202013.pdf
Science Plan Framework
http://restoreactscienceprogram.noaa.gov/wp-content/uploads/2013/12/RESTOREScienceProgramFramework_Final_2013_12.pdf
COE Treasury Regulations
http://www.treasury.gov/services/restore-act/Documents/Centers%20of%20Excellence%20Guidance_August%202014.pdf
http://www.gulfspillrestoration.noaa.gov/restoration/give-us-your-ideas/
http://www.nfwf.org/gulf/Pages/home.aspx#.VJm8bl4DWB
Gulf States'
Restoration Projects
AL
FL
MS
LA
TX
http://www.dep.state.fl.us/deepwaterhorizon/projects_restore_act.htm
http://coastal.la.gov/oil-spill-content/oil-spill-overview/
http://www.restorealabama.org/
http://www.msrestoreteam.com/ppp/ppp.php
https://www.restorethetexascoast.org/
Submission Portals
and
Program and Project Tracking Resources
Environmental
Law Institute
Gulf of Mexico
Alliance
Restoration Programs
Gulf of Mexico Research Initiative (GOMRI)
Natural Resources Damage Assessment and
National Academy of Sciences, Gulf Program, (NAS)
National Fish and Wildlife Foundation, Gulf
North American Wetlands Conservation
BP Early Restoration Program (ERP)
Restoration (NRDA)
Environmental Benefit Fund (NFWF)
Act, Gulf Restoration Fund (NAWCA)
RESTORE Act 1603, 1604 & 1605
November 2012, BP pleaded guilty to felony manslaughter, environmental crimes and obstruction of Congress and fined $4 billion.
These funds are distributed among NFWF, NAS and NAWCA.
HTTP://GOMURC.ORG
https://www.facebook.com/GOMURC.org
https://twitter.com/GOMURC
http://gomurc.usf.edu/index.php/news-mainmenu/blog
BLOG
Thank
You!

Images:
Gulf restoration can be split into 4 main areas of concern.
Spill Response
& Restoration
Ecosystem
Monitoring
Economic
Revitalization
Energy
Safety
February 2013, Transocean pleaded guilty to a violation of the Clean Water Act for its illegal conduct leading to the Deepwater Horizon disaster in both criminal and civil courts.
They were charged with $400 million in criminal penalties, $150m of which is dedicated to acquiring, restoring, preserving and conserving the environments, ecosystems and habitat in the Gulf of Mexico damaged by the oil spill. In the civil courts they were fined $1 billion.
The various restoration programs contribute to different areas of
concern.
GOMRI
ERP
NRDA
RA1603
RA1603
RA1603
RA1604
RA1604
RA1605
RA1605
RA1605
RA1605
NFWF
NFWF
NAS
NAS
NAS
NAWCA
CWA
Deepwater
Horizon
Project Tracker
State Plans
and Programs
Search Tool
Fines
fines go to this Trust Fund to be invested. The other 20% is reinvested in the Oil Spill Liability Trust Fund
Established the Gulf Coast Restoration
Trust Fund and designates 80% of the civil penalties from the Clean Water Act
(OSLTF). The Restoration Trust Fund is distributed in the following manner:
30% - Spill Impacts
30% - Comprehensive
Plan
(RA1605)
(RA1604)
(RA1603)
Equally divided among the 5 Gulf States for ecosystem restoration, economic development and tourism promotion. Treasury administered.
For restoration activities under the Comprehensive Plan. Gulf Coast Ecosystem Restoration Council (Council) administered.
Divided among the 5 Gulf States according to a formula to implement State Expenditure Plans. Council administered. Plans require their approval.
For science, observation, monitoring, and technology program. NOAA administered.
For research on the Gulf Coast Region. Each state will have their own body that processes the CERGP. Treasury administered.
FL - Florida Institute of Oceanography
http://www.fio.usf.edu/research/restore-act
TX - led by University of Houston
TX - led by Texas A&M University
Focus: offshore energy development
Focus: sustainability, restoration and protection
Submission Portal
Current Projects
From BP's proposed settlement, they will pay $18.732 billion in fines for damage cause be the Deepwater Horizon disaster.
BP Preliminary Funds were contributed to GoMRI and NRDA ERP.
GoMRI
NRDA ERP
The GoMRI is BP’s commitment to provide $500 million in funding over the course of 10 years for independent scientific research related to the Deepwater Horizon incident. These funds are available through a competitive grant process.

GoMRI also received Year One Block Grants (2010-2011). $45 million in funding provided directly from BP to accelerate data acquisition and analysis to establish critical baseline data. The funds were distributed to Florida Institute of Oceanography ($10 million), Louisiana State University ($10 million), the Alabama Marine Environmental Science Consortium ($5 million), Northern Gulf Institute ($10 million), and the National Institutes of Health ($10 million).

On April 20, 2011 NOAA and BP reached an agreement to start restoration planning and implementation before the ongoing damage assessment was completed. This arrangement allowed up to $1 billion in restoration projects to proceed. Phase I included 8 projects totaling approximately $202 million; Phase II (spring 2013), 2 projects totaling about $9 million; and the final Phase III plan proposes $627 million for 44 new early restoration projects. NOAA is still accepting ideas.
PRESENTING:
Funds for each component are available through grants.
NRDA
The Natural Resource Damage Assessment (NRDA) is a 3 step process where the Natural Resource Trustees, a group
of federal agencies, state and Indian tribes,
evaluate the impacts of the
Deepwater Horizon oil spill
on natural resources.
Pre-assessment Phase
Injury Assessment Phase
Restoration Planning
For the Deepwater Horizon spill, NRDA activities have been divided into the below categories
Marine mammals and sea turtles
Fish and shellfish
Birds
Deep water habitat
Intertidal and near shore subtidal habitats
Shoreline habitats
Terrestrial wildlife and habitat
Human uses of natural resources
Ephemeral data is collected to determine if
injuries are or will be occurring, what resources may
be injured and whether a full injury assessment is
needed. This phase may also include studies to document
the condition of resources prior to exposure to oil.
If determine needed by the trustees, studies will be done to evaluate the extent, severity and duration of impacts from the oil spill. These studies may take several years to fully evaluate the impact and time needed for recovery.
This final phase will identify restoration actions for
natural resources harmed by the spill. The Responsible
Parties will be required to pay to fully compensate the
public for these injuries.
http://qvectors.net/fish-silhouettes-vector/
LA - The Water Institute of the Gulf

While results from the NRDA process have not yet been disclosed due to the formerly pending trial, case documents are available for viewing here:
http://www.gulfspillrestoration.noaa.gov/oil-spill/case-documents/
$7.1 billion for natural resource damages paid over 15 years. These funds will be administered by the Natural Resource Trustee Council. This is in addition to the $1 billion in Early Restoration Funds.
$232 million to address any unknown natural resource damages to be paid 15 years from date of settlement.
$4.9 billion paid to the 5 Gulf states for economic damages.
$5.5 billion in Clean Water Act Penalties.
MOEX Settlement - In June 2012 a $90 million settlement was finalized between the U.S. Department of Justice, U.S. Coast Guard, U.S. Environmental Protection Agency and MOEX Offshore 2007 LLC. MOEX owned 10% interested in the Macondao well lease. This settlement include $70 million for civil penalties and $20 million for Supplemental Environmental Projects (SEPs) focused on land acquisition and habitat protection. Alabama was the only Gulf state that did not take part in the settlement.
In May 2011, MOEX reached a separate settlement with BP agreeing to pay BP $1.065 billion. BP agreed to indemnify MOEX for claims resulting from the accident excluding civil, criminal and certain other fines.

In 2010 the Gulf Coast Claims Facility (GCCF) was established and started accepting claims in August. More than 1 million claims were processed. In June 2010 the GCCP was replaced by the Deepwater Horizon Court-Supervised Settlement Program to file medical claims and economic and property damage claims.
Medical benefits settlement was effective as of Feb. 12, 2014. The deadline to submit a claim for economic and property damages was June 8, 2015.

In October 2011, Anadarko Petroleum Company reached a settlement with BP agreeing to pay BP $4 billion. Anadarko had 25% interest in the Macondo prospect and also transferred this lease to BP as part of the settlement. BP agreed to indemnify Anadarko for claims resulting from the accident excluding civil, criminal and certain other fines.
BP Press Release on Settlement: http://www.bp.com/en/global/corporate/press/press-releases/bp-announces-settlement-with-anadarko-petroleum-company-of-claims-related-to-deepwater-horizon-accident.html

Anadarko 2011 Settlement
MOEX 2012 Settlement
Individual and Business Settlements
BP Press Release on Settlement: http://www.bp.com/en/global/corporate/press/press-releases/bp-announces-settlement-with-moexmitsui-of-claims-between-the-companies-related-to-the-deepwater-horizon-accident.html
http://www.bp.com/content/dam/bp/pdf/gulf-of-mexico/Public-Report-July-2015.pdf
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