BP pays $60M to Louisiana for berms

VENICE, La., June 8 (UPI) -- BP paid Louisiana $60 million to start building berms in the barrier islands to protect against oil encroaching from the Gulf of Mexico spill, the company said.

The money, an initial payment, was allocated so the state could immediately begin work on a six-berm project, BP said Tuesday in a release. The total cost will be $360 million, the company said.

Oil has been leaking into the gulf since April 20 when an oil rig exploded, killing 11 workers. The rig sank two days later.

BP will make five more payments to Louisiana when state officials certify the berm project reaches certain milestones, the company said.

"We are committed to doing everything we can to protect the coastline and reduce the impact of the oil and gas spill in the Gulf of Mexico. We understand that the United States Coast Guard and the state of Louisiana want this project to proceed with urgency, so we want to ensure that funding is immediately available to begin construction of the berms," BP Managing Director Bob Dudley said.

BP has given $170 million to Louisiana, Alabama, Mississippi and Florida to help with their cleanup response costs and to help promote their tourism industries, the company said. BP said it also paid about $51 million in compensation to people and companies affected by the spill.