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Deepwater Horizon A short history of funding and accomplishments post-Deepwater Horizon By Jessica R. Henkel1 and Alyssa Dausman2 1) Gulf Coast Ecosystem Restoration Council, New Orleans, Louisiana; [email protected] 2) Water Institute of the Gulf, Baton Rouge, Louisiana; [email protected] t has been a decade since BP’s Deep- settlements in research and restoration in agreements related to criminal penal- water Horizon (DWH) oil rig ex- the Gulf. For example, the $500 million BP ties between BP ($2.394 billion) and ploded and sank on 20 April 2010, voluntarily dedicated to research through Transocean ($150 million) and the U.S. Ikilling eleven workers and spreading at the Gulf of Mexico Research Initiative Department of Justice. Provisions within least 3.19 million barrels of crude into (GOMRI); the $500 million awarded to the the plea agreements directed a total of the Gulf of Mexico (Graham et al. 2011; National Academy of Sciences, Engineer- $2.544 billion to NFWF over a five-year Trustees Council 2016). In response to ing, and Medicine, Gulf Research Program period to be used to support natural re- the spill, an estimated 1.84 million gal- (NASEM-GRP) resulting from two crimi- source projects in the five Gulf of Mexico lons of dispersant was utilized (OSAT-1 nal settlements; the $100 million to the states (Figure 1). 2010). Initial efforts to stop the spill failed, North American Wetlands Conservation Accomplishments and the DWH oil spill lasted for 87 days, Fund related to fines from violation of the Since 2013, NFWF-GEBF has awarded resulting in the largest spill in United Migratory Bird Treaty Act; as well as other over $1.4 billion for 164 projects (NFWF- States history, the contamination of more settlements for billions in restoration to the GEBF 2020). NFWF has worked closely than 43,000 square miles of Gulf waters, National Fish and Wildlife Foundation’s with state and federal resource agencies and the oiling of at least 1,300 miles of Gulf Environmental Benefit Fund (NFWF- to focus their restoration investments coastal shoreline from Texas to Florida GEBF)(Figure 1). where they would do the most good for (US DOJ 2015). With these dollars, the DWH tragedy fish, oysters, birds, marine mammals, sea As a result of the DWH spill, Gulf has given way to an unparalleled oppor- turtles and other wildlife populations. of Mexico ecosystems were devastated tunity to research, restore, and preserve The awards NFWF-GEBF have made and coastal economies were disrupted. the ecosystems of the Gulf of Mexico. This to date are expected to enhance more For example, natural resources such as paper provides a short review of the his- than 100,000 acres of coastal habitats, that coastal wetlands, sandy beaches, fish and tory and accomplishments of the largest include more than 40 miles of shoreline, shellfish, sea turtles, birds, deep-sea cor- funding allocations for research and res- 800 acres of oyster beds, 2,750 acres of als, and other living coastal and marine toration that have been made as a result of each and dune habitat, and more than life were greatly injured (Baker et al. 2017; the DWH oil spill. This history provides 36,000 acres of marsh habitat (NFWF- NCRL 2019). As many as 105,400 sea an important context for the publications GEBF 2018). These activities have worked birds, 167,000 sea turtles, and 8.3 billion included in this 10-year commemoration to conserve coastal habitats and artificial oysters were lost and over 5,000 vertical issue dedicated to Deepwater Horizon. reef systems important to many species feet of water column was exposed to oil RESTORATION FUNDING of Gulf fish, address light pollution and and/or dispersant. Investigations into National Fish and Wildlife protect important sea turtle nesting public health effects on coastal residents Foundation Gulf Environmental habitats, and protect critical rookery and responders are ongoing (US DOJ Benefit Fund (NFWF-GEBF) islands and beach nesting sites for birds. 2015; Trustees Council 2016). Background In addition to the wildlife benefits of the The oil spill triggered several criminal The National Fish and Wildlife Foun- NFWF-GEBF investments, these projects and civil suits (Figure 1), including the dation (NFWF), a nonprofit “dedicated to also have generated immediate and long- largest environmental settlement in U.S. sustaining, restoring and enhancing the term benefits to coastal communities history — $20.8 billion — on 4 April 2016 nation’s fish, wildlife, plants and habitats that rely on the natural resources that (Cruden et al. 2016), termed the “Global” for current and future generations,” has were impacted by the spill. For example, settlement. The 2016 Global settlement been a conservation leader in the Gulf several NFWF-GEBF projects provide ended all civil and criminal penalty claims of Mexico for more than two decades. restoration and protection for barrier against the owners and operators of the Following the DWH oil spill, NFWF islands, beaches and marshes that protect rig — BP, Anadarko, TransOcean and responded quickly, investing nearly $23 coastal communities from the effects of Halliburton — under the Clean Water Act million between 2010 and 2012 through hurricanes (NFWF-GEBF 2018). and the Oil Pollution Act. It also included the Recovered Oil Fund for Wildlife to The NFWF-GEBF represents one of economic damage claims submitted by the benefit the natural resources of the Gulf the first major conservation and restora- five Gulf states and their local governments Coast (NFWF-GEBF 2018). NFWF then tion funding sources that arose as a result (US DOJ 2015). The 2016 Global settle- launched the Gulf Environmental Ben- of the DWH spill. Many of the activities ment, to be paid out by BP over 15 years, efit Fund (GEBF) in 2013 in response funded by the NFWF-GEBF since 2013 was in addition to other investments and to remedial orders contained in plea Shore & Beach Vol. 88, No. 1 Winter 2020 Page 11 government fund established in 1986 to aid in oil spill removal and damage as- sessment. In addition to creating the Gulf Coast Restoration Trust Fund, the RESTORE Act established a new federal entity — the Gulf Coast Ecosystem Restoration Council (RESTORE Council or Council). The Council includes the governors of the states of Alabama, Florida, Louisiana, Mississippi, and Texas, and the secretaries of the U.S. Departments of Agriculture, Army, Commerce, Homeland Security, and the Interior, and is currently chaired by the administrator of the U.S. Environ- mental Protection Agency. A total of $5.33 billion dollars resulted from 80% of the CWA penalties going to the Gulf Coast Restoration Trust Fund (from a total penalty amount of $6.659 billion [plus interest], based on CWA penalties of $1 billion [plus interest] from Transocean Deepwater Inc. and related entities; $159.5 million from Anadarko Petroleum Corporation; and $5.5 billion [plus interest] from BP). These funds are dedicated to five priorities, commonly referred to as “funding buckets”. Details of each of these buckets are listed below: Figure 1. This figure depicts n A “Direct Component,” managed a timeline showing the date, by the U.S. Treasury, for natural resource amount and location of funding allocations restoration or economic improvement resulting from the Deepwater Horizon (DWH) oil spill. Abbreviations: GOMRI = Gulf of efforts in the five Gulf states (35%, $1.86 Mexico Research Initiative; NRDA = Natural billion) (Bucket 1); Resource Damage Assessment; CWA = n A “Council Selected Restoration Clean Water Act; NFWF-GEBF = National Component” for a region-wide restora- Fish and Wildlife Foundation Gulf tion effort to restore, protect and revi- Environmental Benefit Fund; NASEM-GRP = talize the Gulf Coast according to the National Academies of Sciences, RESTORE Council’s Comprehensive Plan Engineering and Medicine, Gulf Research Program; OSLTF = Oil Spill Liability Trust Fund; NAWCF = National Wetlands Conservation Fund; (Council 2016) (30%, $1.6 billion + 50% GCRTF = Gulf Coast Restoration Trust Fund. interest) (Bucket 2); n A “Spill Impact Component” for will serve as a springboard for larger coast (Mabus 2010). Congress ultimately planning and implementing approved restoration investments and ecological passed the Resources and Ecosystem state projects, programs, and activities improvement in the Gulf in the years to Sustainability, Tourist Opportunities and (30%, $1.6 billion) (Bucket 3); come. Revived Economies of the Gulf Coast States Act (RESTORE Act) in 2012. The n The “NOAA Restore Science Pro- RESTORE Act: Restoration RESTORE Act dedicates 80% of any civil gram” for research to support the long- Background and administrative penalties paid under term sustainability of the Gulf ecosystem, On 5 October 2010, President Barack the CWA, after the date of enactment, by and the recreational, commercial, and Obama established the Gulf Coast Eco- responsible parties in connection with the charter fishing industry in the Gulf of system Restoration Task Force at the Deepwater Horizon oil spill to the Gulf Mexico (2.5%, $133.3 million + 25% recommendation of Ray Mabus, then Coast Restoration Trust Fund (GCRTF) interest) (Bucket 4); (Discussed under Secretary of the Navy and former Gov- for ecosystem restoration, economic “Research Funding”) and, ernor of the State of Mississippi (Mabus recovery, and tourism promotion in the n Establishing “Centers of Excellence” 2010). Secretary Mabus also recom- Gulf Coast region (RESTORE Act 2012). in each Gulf state through competitive mended that Congress dedicate Clean The remaining 20% (or $1.33 billion) subawards to nongovernmental orga- Water Act (CWA) civil penalties collected went to the Oil Spill Liability Trust Fund nizations and academic institutions in as a result of the DWH spill to the Gulf (listed as “OSLTF” in Figure 1), a general Page 12 Shore & Beach Vol. 88, No. 1 Winter 2020 the Gulf for science, monitoring, and “framework agreement” which BP termed matic damage assessment and restoration technology (2.5%, $133.3 million + 25% “Early Restoration” (Figure 1).
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