The Alabama gulf coast is heavily developed with condo and hotel properties. Now the state wants to use Gulf Coast restoration funds to build a new beach hotel and conference center. Debbie Elliott/NPR hide caption

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Debbie Elliott/NPR

Plan To Use Gulf Oil Spill Funds For Beach Hotel Sparks Lawsuit

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BP Mobile Incident Commander Keith Seilhan talks with oil cleanup workers in Gulf Shores, Ala., in July 2010. Seilhan has settled with SEC regulators who say he avoided $100,000 in stock and options losses by trading on inside information related to the spill. Dave Martin/AP hide caption

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Dave Martin/AP

BP is scaling back its cleanup efforts from the Deepwater Horizon oilspill in areas outside Louisiana. Here, a photo from last September shows alluvial clay and tar mats on the shore of Elmer's Island, in Jefferson Parish, La. Gerald Herbert/AP hide caption

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Gerald Herbert/AP

David Rainey, a former BP vice president during the Deepwater Horizon oil rig explosion, leaves federal court after being arraigned on obstruction of a federal investigation in New Orleans on Nov. 28, 2012. A federal judge Monday dismissed the charge that Rainey obstructed a congressional investigation into the 2010 spill. Matthew Hinton/AP hide caption

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Matthew Hinton/AP