SAN FRANCISCO -- Agents for the owner of a cargo ship that dumped 54,000 gallons of oil into San Francisco Bay have agreed to pay the city of San Francisco $2 million for damages caused by the spill.

City Attorney Dennis Herrera said the agreement announced Sunday was an "initial payment" to cover the costs of the November crash, not a final settlement.

Thousands of birds died, oil-fouled beaches closed, and Northern California's crabbing season was delayed after the 900-foot Cosco Busan sideswiped the Bay Bridge, cutting a huge gash in its hull.

Herrera said the money would go toward recouping the city's cleanup costs immediately following the spill.

The agreement was reached with Hudson Marine Management Services of Pennsauken, N.J., acting on behalf of the ship's Hong Kong-based owner, Regal Stone Ltd.