By JESSA PEASE / Staff Writer 

PELHAM— The Pelham City Council called a special meeting July 9 to approve a release agreement with BP concerning the 2010 Deepwater Horizon oil spill in the Gulf of Mexico. The litigation will result in the City of Pelham receiving $106,760 to resolve its claims.

The state of Alabama reached an agreement in principle to settle its lawsuit with BP for damages caused on July 2, according to a report released from Gov. Robert Bentley’s office.

The report states that the total value of the agreement in principle is about $18.5 billion for all of the affected Gulf states economic losses, the natural resource damages and BP’s Clean Water Act penalties. Alabama’s portion is about $2 billion.

City Council President Rick Hayes said the council had until July 15 to approve the resolution. He was unable to speak on the subject in detail because he said the council was under an order to keep the matter confidential.

The BP/Deepwater Horizon oil spill began on April 20, 2010, about 100 miles off of Alabama’s coast, killing 11 people and causing oil to flow into the Gulf of Mexico. For nearly three months, an estimated 3.19 million barrels of oil flowed into the Gulf. Alabama experienced significant environmental and economic damages as a result of the oil spill.

Money was carved out of the agreement with Alabama for its cities and counties tied to tourism. Many people stop in Pelham on the way to the Gulf for gas, food or lodging. During the time of the oil spill, fewer people were longer traveling to the Gulf and passing through Pelham.

Pelham will receive $106,760 minus 15 percent for Gulas Law Firm’s attorney fees as well as up to $1,000 for the out-of-pocket expenses incurred by the firm.

The agreement with Alabama states that $1 billion will be paid to the state over the next 18 years for economic damages suffered, and Alabama will receive $1.3 billion over the next 15 years that will be used to facilitate coastal restoration projects in Alabama.