BP today announced that is has established a $360 million escrow account to fund immediately the construction of six sections of Louisiana barrier islands approved by the U.S. government.
The company has been directed to pay for the construction by the federal government. Since the environmental implications of the projects are not fully understood, BP assumes no liability for unexpected or unintended consequences of these projects, the company said.
Already, BP has provided $170 million to Louisiana, Alabama, Mississippi and Florida to help with their response costs and to help promote their tourism industries. The company has also paid approximately $43 million in compensation to people and companies affected by the spill.
“BP is committed to implementing the most effective measures to protect the coastline of Louisiana and reduce the impact of the oil and gas spill in the Gulf of Mexico. The federal government and the state of Louisiana have agreed that the barrier islands construction is an effective response to the spill, and we look forward to working with them on this project,” said Tony Hayward, BP’s chief executive officer.