Barrier Islands to be Constructed

Louisiana's original proposal called for the dredging of more than 92 million cubic yards of material over a six to nine month period to build temporary barrier islands. The NIC Working Group found that implementation of the proposal in all areas approved by the Army Corps of Engineers, in the midst of an active spill, would not be prudent or provide effective protection-especially considering the complications of a major construction project occurring in the midst of a response encompassing more than 20,000 personnel and 1,300 vessels.

BP will not manage or contract directly for the construction of the island sections, nor will the company assume any liability for unintended consequences of the project. The company plans to make payments in stages based on the project's milestones.

"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.

BP already has provided USD170 million to Louisiana, Alabama, Mississippi, and Florida to help with their response costs and help promote their tourism industries. The company also has paid approximately $42 million in compensation to people and companies affected by the spill.