BP will pay $360 million to build barrier islands

In an effort to slow the spread of the oil spill to the shoreline, BP will pay the estimated $360 million for the federal government's barrier island proposal. 

U.S. government officials are planning the construction of six sections of the Louisiana barrier island proposal and BP will make payments in stages as the project progresses, but "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," BP said in a release. 

"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," BP CEO Tony Hayward said in a release. "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." 

BP has paid $170 million to Louisiana, Alabama, Mississippi and Florida for response costs and to promote tourism. The company has paid about $42 million in compensation to those affected by the spill, according to the release. 

The cost of the oil spill is nearing, and may surpass, $1 billion. BP reported spending $960 million in the latest figures released earlier this week.