BP ultimately agreed with federal prosecutors to pay $20 million in fines and restitution for the first spill, the largest ever at Prudhoe Bay. The spills also led BP to replace 16 miles of transit lines.
The state of Alaska, which relies on oil taxes for about 90 percent of its revenue, sought what it would have earned in royalties from the lost production during the spills and shutdowns to replace pipe. BP argued the production wasn't lost, only delayed, and said it shouldn't have to pay anything.
Both sides agreed to arbitration to avoid expensive legal costs.