March 2013 - Parks & Recreation - 28

Restoring the Gulf
Oil spill settlement sends $1 billion to Gulf states and counties
By Maureen Hannan

O

n April 20, 2010, BP well site leaders instructed the crew of the
leased Deepwater Horizon oil rig to ignore warning signs that the Macondo oil well was not secure. The resulting uncontrolled blowout,
explosions, and fire led to the deaths of 11 crew members and the largest
oil spill in U.S. history. On January 3, 2012, the U.S. Department of Justice
(DOJ) reached a settlement with Transocean Deepwater Inc., the owner of
the rig. Transocean, under the terms of its guilty plea agreement, will pay
$1.4 billion in civil and criminal penalties. That sum includes a record $1
billion in civil penalties that will go directly into a fund to be used for Gulf
Coast restoration and recovery.
Because of recent federal legislation establishing a special distribution process under the Clean Water
Act, the five Gulf states impacted by
the 2010 disaster, as well as individual affected counties in those states,
will have unprecedented influence
over how their portions of the billion-dollar penalty will be spent. The
legislation, known as the RESTORE
Act (Resources and Ecosystem Sustainability, Tourist Opportunities,
and Revived Economies of the Gulf

26

Parks & Recreation

States Act of 2012), created a Gulf
Coast Restoration Trust Fund (RTF)
under the guardianship of the Treasury Secretary.
" This is a first-ever occurrence, "
Jordan Diamond, deputy director
of ocean programs with the Environmental Law Institute (ELI)
nonprofit research and education
center, explains. " In the past, Clean
Water Act penalties were not used
for restoration. They were limited
to [remediating] damages by the

| M A R C H 2 0 1 3 | W W W. N R PA . O R G

spill. The RESTORE Act represents
a new effort. These funds can be
used very broadly for recovery and
restoration. "
Karen Gautreaux, Louisiana field
office director for The Nature Conservancy, describes the RTF allocation formula as a complex one that
divides the money into numerous
different " pots. " Furthermore, the
state-by-state participation processes,
subject to the approval of state and
federal trustees, are all currently at
different stages.
The biggest chunk of the RTF (35
percent) will go directly to the five
Gulf Coast states-Florida, Louisiana, Texas, Mississippi, and Alabama-in equal shares for environmental and economic restoration
projects. Most of the remaining
funds will be divided between an
Interstate Restoration Council (30
percent) and the Gulf states, based



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