BP payouts to local governments to start soon

Update:

NEW ORLEANS — A federal judge says BP will begin paying up to $1 billion in settlements to compensate local governments across the Gulf Coast for lost tax revenue and other economic damages they blame on the company's 2010 oil spill.

An order issued Monday by U.S. District Judge Carl Barbier says all of the payments to local governments must be made within 30 days.

July 15 was the deadline for roughly 500 local governments in five states to decide whether to accept BP's settlement offers as part of a broader $18.7 billion agreement with the five Gulf states and the federal government over damage from the spill.

Barbier's order says BP says most local government entities have accepted the settlement.

Original story:

The economic impact of the BP oil spill could soon result in handsome payments for local governments.

Leon, Jefferson and Wakulla counties unveiled the amount of their settlements with the oil company. They, along with more than 400 local entities, reached an up to $1-billion deal with BP for economic impacts in the wake of the 2010 spill in the Gulf of Mexico. The governments had kept the amounts private due to a confidentiality agreement that has now run its course.

Many localities reported tax-revenue losses in the aftermath of the spill.

Leon County approved a $951,342 settlement for its losses in a July 7 resolution.

Wakulla County is happy with its $434,000 to compensate for losses in ad valorem and sales taxes, said county administrator David Edwards. The county must pay 20 percent of that in legal fees and other expenses.

Jefferson County approved an about $350,000 settlement, which will amount to about $275,000 after legal fees, said County Coordinator Parrish Barwick.

The governments had about two weeks to approve or reject the settlements after BP made its July 2 offer, which included $2 billion in economic claim money for the state of Florida alone.

BP has the right to back out of the deal based on how many cities and counties accepted BP’s offer, according to Tallahassee City Attorney Lew Shelley.

The city of Tallahassee approved a $2.6-million settlement earlier this month. Shelley estimates a net payment of $1.5 to $1.6 million after legal costs.

Leon County Schools claimed lost revenue due to declining property values. Statistics suggested the district saw an influx of students when their families lost their jobs or wages along the coast.

LCS approved a $1-million settlement, which will be just under $800,000 after legal fees.

Gadsden and Franklin counties couldn’t prove any losses and didn’t file a claim as a result.