Florida will receive at least $3.25 billion from an $18.7 billion with BP over the 2010 Gulf of Mexico oil spill.

BP and five Gulf states announced the massive settlement Thursday, resolving years of legal fighting over the environmental and economic damage done by the energy giant's oil spill in 2010.

The roughly $18.7 billion in settlement money will be used to resolve the Clean Water Act penalties; resolve natural resources damage claims; settle economic claims; and resolve economic damage claims of local governments, according to an outline filed in federal court.

"This agreement will help Florida implement key projects and invest in environmental priorities to keep our state beautiful," Gov. Rick Scott said Thursday.

The $3.25 million Florida is expected to get includes:

  • $2 billion for economic damages
  • $680 million for natural resources damages
  • $572 million from the Restore Act, subject to approval

The Florida entities designated

The settlement also involves Alabama, Mississippi, Louisiana and Texas.

"If approved by the court, this settlement would be the largest settlement with a single entity in American history; it would help repair the damage done to the Gulf economy, fisheries, wetlands and wildlife; and it would bring lasting benefits to the Gulf region for generations to come," U.S. Attorney General Loretta Lynch said in a statement.

The settlement announcement comes as a federal judge was preparing to rule on how much BP owed in federal Clean Water Act penalties. The judge had already found that 3.19 million barrels of oil - nearly 134 million gallons - spewed into the Gulf. Individual states also were pursuing litigation.

BP PLC chairman Carl-Henric Svanberg said the settlement reflected the company's commitment to restoring the Gulf of Mexico economically and environmentally, and provided the company with closure going forward.

"It resolves the company's largest remaining legal exposures, provides clarity on costs and creates certainty of payment for all parties involved," Svanberg said.

The company had argued against a high Clean Water Act penalty, saying its spill-related costs already were expected to exceed $42 billion. It's also unclear how much BP will end up paying under a 2012 settlement with individuals and businesses claiming spill-related losses.

Costs incurred by BP so far include an estimated $14 billion for response and cleanup and $4.5 billion in penalties announced after a settlement of a criminal case with the government.

In 2012, BP reached the settlement with plaintiff's lawyers over economic and property damage claims arising from the spill. In its first-quarter earnings report for 2015, BP said it could estimate at least a $10.3 billion cost. But it also stressed that the cost could be higher, depending on how many legitimate claims were filed by a recently passed deadline.

Statements on proposed BP settlement

Sen. Bill Nelson, D-Florida

"Considering this was the worst environmental disaster in history and it was caused by gross negligence, the amount of penalties specifically for violations of the Clean Water Act could be – and, I think, should be – much larger.  Five years after the spill, we're still learning more about its environmental and economic impacts.  And it could be another five years or more before we know the full toll the spill has taken on the Gulf."

Gov. Rick Scott

"This agreement will help Florida implement key projects and invest in environmental priorities to keep our state beautiful.  I want to thank Attorney General Pam Bondi, Florida Fish and Wildlife Conservation Commission Executive Director Nick Wiley and Department of Environmental Protection Secretary Jon Steverson for their hard work on this agreement with BP.”

Attorney General Pam Bondi

"In 2010, our state – and the entire Gulf region – woke up to a story that shook the nation; an oil spill that not only threatened states that depend on the Gulf for their economic livelihood, but their very way of life. Today, after just five years of negotiations, I’m pleased to announce that Florida has entered into an agreement in principle of more than $3 billion with BP for the state’s economic and environmental recovery which will benefit areas of the state most devastated by the spill. I want to thank all of the people who came together, in common purpose, to do the right thing for our state."

Carl-Henric Svanberg, BP’s chairman

"Five years ago we committed to restore the Gulf economy and environment and we have worked ever since to deliver on that promise. We have made significant progress, and with this agreement we provide a path to closure for BP and the Gulf. It resolves the company’s largest remaining legal exposures, provides clarity on costs and creates certainty of payment for all parties involved.

“In deciding to follow this path, the Board has balanced the risks, timing and consequences associated with many years of litigation against its wish for the company to be able to set a clear course for the future.

“The Board therefore believes that this agreement is in the best long-term interest of BP and its shareholders. The Board set out its position on the dividend at the first quarter and this remains unchanged by the agreement.”

Rep. Kathy Castor

"Today’s multi-billion dollar settlement provides a once-in-a-lifetime opportunity to restore the Gulf of Mexico and launch a robust environmental and economic recovery for the Gulf region. The settlement is a vital part of holding BP fully accountable for its gross negligence and economic and environmental damage. Workers lost their lives and others lost their livelihoods. I personally met with small business owners, fishermen, hotel operators and tourism industry representatives who suffered tremendously from this catastrophe. Our state and local communities suffered as well.

"One of my top priorities in Congress since the 2010 BP disaster has been to work to return the Gulf of Mexico, its communities and related small businesses to better than they were before the blowout. Implementation of the new RESTORE Act, a law that directs 80 percent of the Clean Water Act penalties to restoring the Gulf, is central to the Gulf restoration effort. We have a once-in-a-lifetime opportunity to dramatically improve the environmental and economic vitality of the Gulf of Mexico with legal proceeds under RESTORE Act and the settlement announced today. The terms of today’s settlement mean that 80 percent of $5.5 billion will be appropriately directed to this restoration effort thanks to the RESTORE Act passed by Congress in 2012.”

Associated Press reporter Emily Wagster Pettus contributed to this report from Jackson, Mississippi.