Florida receives compensation from BP

More than six months after an explosion aboard a drilling platform killed 11 people and spilled millions of gallons of oil into the Gulf of Mexico, BP agreed Monday to pay the Florida Department of Agriculture and Consumer Services $20 million.

After the Deepwater Horizon rig ruptured in April, oil washed upon several Florida beaches and polluted Gulf waters, causing widespread consumer angst about buying seafood from the region. Florida has a robust saltwater fishing industry: revenue from in-state sales of commercially fished saltwater seafood was about $5.6 billion in 2008.

Half of the $20 million BP has pledged to give Florida during the next three years will help pay for seafood inspections. The other $10 million will go toward an advertising campaign to restore consumer confidence in seafood from the Gulf of Mexico.

"We believe this agreement is good for our citizens, good for both our commercial and recreational fishing industry and positive news for everyone who enjoys our seafood," said Charles H. Bronson, commissioner of the Florida Department of Agriculture and Consumer Services.

Some University of Maryland business students said they were pleased by the agreement.

"That they are going to pay that amount of money is good," said Wenjing Huang, who's seeking her master's degree in finance.

Huang said she was hopeful some of the money would improve the fortunes of Florida locals affected by the spill.

Junior finance and international business major Gursean Singh was more guarded in his response.

"At first thought, it sounds like a good measure," said Singh, who noted he hadn't been following news about BP closely since the oil leak was capped in July. "I don't know if that's a lot of money or not."

Singh also expressed cynicism about BP's intentions, saying he believes the company is concerned with its image above all else.

"I would think [agreeing to the payment] is PR, rather than goodwill," Singh said. "[Corporations] do things out of profit … and things they can do, they'll do."

Texas A&M University scientists Thursday declared Gulf seafood "safe to eat," but the damage has already been felt.

An Oct. 15 study commissioned by Greater New Orleans Inc. suggested the commercial fishing industry in Louisiana could experience a revenue drop of up to $172 million between 2011 and 2013.

BP's concession comes three months after Bronson originally asked the company to pay $59 million throughout the next decade. According to the agreement's terms, BP will pay slightly more than one-third of that amount in less than one-third of that length of time, with a provision allowing Florida state lawmakers to extend payments if needed.