Alabama Has Been Paid, BP Says

November 11, 2010

Representatives of BP, the oil company responsible for the Deepwater Horizon catastrophe in the Gulf of Mexico earlier this year, said it’s paid more than $657 million to the state of Alabama for claims, grands and recovery costs.

The petroleum company released those numbers among other updated figures earlier this week, and said that the largest chunk of money, roughly $420 million, went directly to individuals and businesses filing claims.

According to BP, almost $127 million was paid to people working in the Vessels of Oppurtunity program, in which boat captains and commercial fishermen helped recover the oil from the water. The company also said that $22 million was used to help the tourism industry in Alabama.

Last Friday, however, the head of Gulf Shores and Orange Beach tourism said that Baldwin County’s lodging revenues had fallen by 33%, costing them roughly $58 million.

Alabama governor Bob Riley recently chastised BP for its claims fund process, stating that it speeds up when a meeting is called to air complaints, but slows down again just after.

BP has not commented on the governor’s opinion.