BP Oil Spill Law Blog

Economic and Property Damage Settlement Agreement

Thu, 19 Apr 2012 15:48:43 -0600

Economic and Property Damage Settlement Agreement

Who is included in the Economic and Property Damages Settlement?

Sat, 10 Mar 2012 14:15:01 -0600

People and businesses who live, work, or own/lease property in the Gulf Coast Area, (the entire states of Louisiana, Mississippi, and Alabama, the four southeastern counties of Texas that lie on the water, and the panhandle and the west coast of Florida), and the adjacent Gulf Waters.

What types of claims are covered in the Economic and Property Damages Settlement?

Sat, 10 Mar 2012 14:14:20 -0600

1. Any individual or business that asserts it had an economic loss.
2. Damage to waterfront property on the beachfront or wetland areas
3. Loss of Value to anyone that sold a Gulf Coast waterfront residence during the time May 1, 2010 to December 31, 2010.
4. Loss of Subsistence Use
5. Vessels of Opportunity Charter Claims
6. Seafood Harvesting Losses

Are there economic loss claims that are not included in this settlement?

Sat, 10 Mar 2012 14:13:35 -0600

Yes. Certain types of businesses or claims are excluded in whole or in part. For example the following is a partial list: financial institutions, casinos and racetracks, oil and gas industry, insurance, defense contractors, government claims, and losses caused by the government-imposed moratorium.

If a claimant previously signed a GCCF final release, are they eligible for this settlement?

Sat, 10 Mar 2012 14:12:41 -0600

Not if the Release was signed prior to 2/27/12.

Does the claimant have to have previously filed a lawsuit or a claim with the GCCF to be eligible to participate in the Settlement Program?

Sat, 10 Mar 2012 14:11:24 -0600

No. Eligible participants will be required to submit a claim to receive compensation, but all of the claims and documentation previously submitted to the GCCF will be automatically transferred into this Settlement Program. The claimant does not need to "start over".

Where will the new settlement center be located?

Sat, 10 Mar 2012 14:09:27 -0600

The new settlement center will be based in New Orleans.

What is the general methodology for calculating Economic Loss?

Sat, 10 Mar 2012 14:08:45 -0600

Excluding the Seafood Program described below, there are a number of specific methodologies for claims by businesses and individuals taking into account such factors as type of business or employment, geographic location, and the nature of economic loss claimed.

BP Oil Spill Settlement: Q&A Concerning Economic & Medical Losses

Fri, 09 Mar 2012 19:05:00 -0600

NOTE: This FAQ is preliminary, subject to change, and is not approved by the Court

BP Oil Spill Economic Loss Settlement Money FAQ 3-9-2012.pdf

BP Oil Spill Medical Settlement FAQ 3-9-2012.pdf

Click on the PDF links above for answers to the following questions and more!

What will happen to the Gulf Coast Claims Facility?

Will Claimants who have filed claims with the GCCF have to start over and file new claims with the new settlement center?

Can a Claimant continue to file claims during the transition to the new settlement center?

Are "final" offers made from the GCCF still valid and acceptable?

What if a claimant is eligible for a quick pay settlement from the GCCF?

Whom can I contact for information about the transition process?

Who is included in the Economic and Property Damages Settlement?

What types of claims are covered in the Economic and Property Damages Settlement?

Are medical benefits included in this settlement?

Are there economic loss claims that are not included in this settlement?

If a claimant previously signed a GCCF final release, are they eligible for this settlement?

Does the claimant have to have previously filed a lawsuit or a claim with the GCCF to be eligible to participate?

Is there a limit to what BP is required to pay under the terms of the settlement?

Is the total amount BP has to pay limited to the $20 Billion Trust Fund?

I have read that there is a fund of $2.3 billion for seafood claims; is this true?

How is this settlement process different than the GCCF?

Describe the key features of the new settlement process

Where will the new settlement center be located?

When can claimants begin filing claims in the new settlement process?

When will the new settlement center be operational and processing claims?

What can a Claimant do if they are not satisfied with their payment amount?

Individuals and businesses that are eligible class members and suffered an economic loss can submit a claim.

How does the settlement account for the geographic factors?

Who is eligible to participate in the Seafood Program?

How are seafood losses calculated?

Can a Claimant appeal his Economic Loss or other determination?

BP Payment Update

Fri, 09 Dec 2011 09:25:40 -0600

As of December 9, 2011

Total Claims/Claimants:

• Total GCCF claimants: 565,515
• Total claims submitted to GCCF: 1,032,545
• Total amount paid so far $ 5,781,038,077.28

Quick Payments:

• 128,780 Quick Pay claimants have filed claims.
• 126,633 of these have received payments.
• A total of $ 1,285,535,000 has been paid in Quick Pay claims so far.

Full Review Final Payments:

• 85,252 Full Review Final Payment offers have been made with the majority made to individuals.

• 67,393 Full Review Final Payment offers have been accepted.

Individual Claimants By Amount Category:

• 64.38% of individual claimants have been paid between $0.01 - $5,000
• 18.59% of individual claimants have been paid $5,000.01 - $10,000
• About 14% of individual claimants have been paid $10.000.01-$25,000
• Less than 3% of individual claimants have received over $25,000.01
• 388,438 claims have been filed under "Lost Earnings or Profits" category. By category, this represents the largest number of claims.

Claims by Industry/State:

Number of individual claims paid by industry:

1. Food, Beverage, and Lodging: 52.12%
2. Retail, Sales, and Service: 29.24%
3. Multiple Industry/Business Types: 7.17%
4. Fishing: 4.14%
5. Seafood Processing & Distribution: 3.37%
6. Tourism: 2.38%
7. Rental Properties: 1.49%

Number of business claims paid by industry (top 5)

1.Retail, Sales, and Service: 32.5%
2.Rental Properties: 26.61%
3.Fishing: 16.83%
4.Food, Beverage, and Lodging: 9.74%
5.Multiple Industry/Business Types: 5.41%

Claims by state of residence (top 3):

Louisiana: 370,625 filed claims with 120,286 of these paid
Florida: 350,796 filed claims with 158,324 paid
Alabama: 139,405 filed claims with 53,458 paid

Source:

http://www.gulfcoastclaimsfacility.com/GCCF_Overall_Status_Report.pdf

Feinberg Shrimp-Follow Up

Thu, 01 Dec 2011 09:19:50 -0600

A new decision from Kenneth Feinberg and the Gulf Coast Claims Facility (GCCF) will double the payments shrimpers and crabbers affected by the April 2010 BP oil spill receive. Previously, all legitimate claims were paid twice their documented 2010 losses with the exception of oyster and leaseholders who are eligible for increased payments. Shrimpers and crabbers have criticized Feinberg's compensation methodology, arguing that the formula did not reflect the uncertainties and economic loss affecting the industries.

"The GCCF recognizes the ongoing uncertainty regarding the state of the commercial harvesting of shrimp and crab in the Gulf and the uncertainty of any ongoing impact from the spill," states the new methodology. "As a result of this uncertainty, the GCCF has adjusted its methodology for compensation to commercial shrimp and crab harvesters and processors to include additional compensation."

Shrimp and crab harvesters will now be compensated at four times their documented 2010 losses. The new methodology will apply to shrimpers and crabbers with open claims under GCCF review as well as new claims filed since the November 30th announcement.

The GCCF has received many claims from part-time or recreational shrimpers and crabbers. Feinberg's new methodology will require increased documentation to ensure claims are paid to true commercial shrimpers and crabbers.

Representative Cedric Richmond of New Orleans backs Feinberg's new four-times methodology but called for Feinberg to consider applying the new formula to the final payments already made to some 4,000 Gulf Coast shrimpers and crabbers under the two-times-2010-loss formula. Feinberg stated he would consider the proposal.

BP has put pressure on Feinberg to wrap up the claims process and limit payments. So far, approximately $5.7 billion has been paid to over 215,000 claimants since the 2010 spill.

More information:
The modified methodology for shrimpers and crabbers is available at
http://www.gulfcoastclaimsfacility.com/METHODOLOGYC_11302011_v2.pdf

BP Claim Denied? No Release Signed? You May File a New Claim Form and Any Supporting Documentation!

Tue, 18 Oct 2011 10:18:31 -0600

On October 14, 2011, the Gulf Coast Claims Facility ("GCCF") mailed out a letter to BP Claimants with denied claims requesting that denied claimants FILE A NEW CLAIM FORM. Apparently the GCCF feels it has improperly denied some claims. The letter states,

You previously filed a claim with the GCCF seeking damages relating to the Oil Spill. The GCCF sent you a Denial Letter that denied your claim for the reasons explained in that letter. If you think you should have been paid and can provide supporting documentation to tie your losses to the Oil Spill, you may file a new Claim Form and any supporting documents you have. The GCCF will review that claim and send you a letter explaining the outcome of that review. If you have not signed a Release and Covenant Not to Sue, you may file a new claim with the GCCF until the program ends in August of 2013.

Over the past year, numerous claimants have found the GCCF has ignored submitted supporting documentation, failed to properly add or subtract figures, failed to pay agreed settlements, held up settlements due to GCCF processing errors or has even reversed its position on denying payment for certain categories of claims.

If you received the October 14, 2011 letter and lost money because of the BP Oil Spill and you think you should have been paid, call BP Oil Spill Claims lawyer.

RESTORE the Gulf Act Passes Senate Committee

Mon, 10 Oct 2011 09:01:05 -0600

If Approved, Gulf States to Receive Millions from BP

The RESTORE the Gulf Coast States Act was approved by the Senate Committee on Environmental and Public Works on September 21, 2011. The RESTORE Act was backed by bipartisan committee approval and will now proceed to the Senate floor for a full vote.

The RESTORE Act was drafted in response to the April 2010 Deepwater Horizon oil spill which pumped approximately 4.9 million gallons of oil into the Gulf of Mexico. Louisiana Senator Mary L. Landrieu and Alabama Senator Richard Shelby introduced the legislation supported by several fellow Gulf Coast Senators.

If approved by the full Senate, the bill would ensure that funds for economic and environmental recovery are sent to the Gulf Coast States and streamline the process for receiving the funds. Current law requires responsible parties to pay penalties to the Federal Treasury and affected states are on their own. The Clean Water Act allows the EPA to collect $1,100 per barrel of oil spilled, or $4,300 per barrel if there is a finding of gross negligence, from any party found responsible for an oil spill in federal waters. Based on the estimated 4.9 million barrels of oil spilled into the Gulf of Mexico, BP could face fines between $5.4 billion and $21.1 billion. If the RESTORE Act is approved, 80% of the fines BP is required to pay under the Clean Water Act will be allocated to Gulf States affected by the spill. This funding could serve as a major economic boost to communities still struggling to clean-up coastline and businesses damaged by the spill.

We have a very strong bill with very strong support including the chair of the Environment and Public Works Committee," Louisiana Senator David Vitter said. "Louisiana and the Gulf Coast took a beating from the oil spill last summer, and the culprits - BP - are being held accountable. Our coastlines were the first line of defense against the oil spill as well as for tropical storms. It's extremely important to support the ongoing projects to build up our ecosystems and coastline."

For more information on RESTORE Act, visit

http://landrieu.senate.gov/mediacenter/pressreleases/07-21-2011-1.cfm

http://www.edf.org/sites/default/files/11714_RESTORE-Act-Summary-April2011.pdf

Dispersant Debate Continues-Report suggests chemicals in dispersants could cause cancer

Mon, 03 Oct 2011 09:04:09 -0600

A recent report on the chemical dispersants used on the BP oil spill suggests it could be years before the full range of human and environmental effects are clear. "The Chaos of Clean-up" report was recently released through a partnership between Toxipedia Consulting Services of Washington and Earthjustice, a nonprofit public interest law firm based in California. The Louisiana based Gulf Restoration Network and Florida Wildlife Federation funded the scientific review of the dispersants chemical makeup and potential effects on environmental and marine health.

The use of chemical dispersants to clean up the BP Oil spill has been the subject of debate and scrutiny since clean-up began in the summer of 2010. While some maintain that the use of nearly 1.8 million gallons of dispersants was the most efficient way to stop oil from seeping onshore and damaging coastline, others believe the potentially harmful effects of dispersants and application methods warranted careful consideration.

The report's main goal was to analyze the toxicity of various chemicals used in the dispersants in response to claims made by the EPA and BP regarding dispersants' safe toxicity levels. The name and quantity of the exact chemicals used in a dispersant product belong to dispersant manufacturers and are not released. Environmental advocates hope this report will encourage the EPA to research and release toxicity and safety information for all chemical ingredients used in oil dispersants. Without a complete list of dispersant ingredients, assessment of the effects of a dispersant product is impossible.

There is a wide range of effects associated with some of the chemicals used in dispersants. Effects may also vary depending on the environment and exposure level. The "Chaos of Clean-Up" report suggests the oil dispersants used could contain toxins and cancer-causing agents that may be harmful to humans and animals. Because a full list of dispersant ingredients has not been released, the report remains speculative. A group of Gulf Coast scientists are currently engaged in a three year BP funded research study of the effects of dispersant use.

"At this point, we cannot do anything about what already happened. What the public needs to do is make sure it never happens again", said Cynthia Sarthou of the Gulf Restoration Network. "Dispersants may not be the way to deal with oil disasters."

http://www.pnj.com/article/20110926/NEWS09/109260325/Study-shows-dispersants-BP-used-oil-spill-may-cause-cancer?odyssey=tab%7Ctopnews%7Ctext%7CFRONTPAGE

GCFF June 1st Claims Statistics For BP Oil Spill Claimants

Fri, 03 Jun 2011 15:38:08 -0600

The Gulf Coast Claims Facility (GCCF) is the official way for individuals and businesses filing claims for damages related to the 2010 Deepwater Horizon oil spill. The GCCF took over the claims process from BP in late August of 2010 and opened 35 offices in Louisiana, Florida, Alabama, Texas, and Mississippi. A claim is considered "processed" when:

• the GCCF has made an offer of payment (to which the individual has 90 days to accept or reject)
• the GCCF has made a payment
• the GCCF has sent the claimant notice of insubstantial claim documentation or proof
• the GCCF has sent the claimant notice of claim denial

In the year since the spill the GCCF has received over 860,000 claims submitted by approximately 514, 263 claimants. Over 200,000 claimants have submitted claims in Louisiana alone.

• As of June 1st, 273,053 of 298,932 total Interim and Final Claimants had been reviewed. Of these, approximately 51% had been issued a final payment with the majority (82%) of final payments being "Quick Pay". In Louisiana, nearly 100,000 Interim and Final payment claimants had been reviewed with about half receiving final payments as of June 1st.

• Of the approximately 300,000 reviewed Interim and Final Claimants, more than 75,600 claimants have been denied as of June 1st with over 32,000 denied in Louisiana.

• Approximately 32,000 total claimants including about 12,000 Louisiana claimants were notified that additional claim documentation was required. Over 26,000 total claimants remain under review.

• Of 309,345 total claimants with filed claims under Quick Pay, Interim and Full Review, about 50% have been paid as of June 1st, 2011. In Louisiana, about 46% of claims filed under this category have been paid. These numbers include individuals and businesses but do not include claimants filing under Emergency Action Payment (EAP).

Payments by Industry

• Across the Gulf Coast the majority of individual payments made were related to the Food, Beverage, and Lodging industry (52%) or the Retail, Sales, and Service industry (32%). Less than 5% of claims paid to individuals in the region were in the seafood processing and distribution or fishing industries. For business claimants, the majority of claims paid are in the retail, sales, and service (37%), rental property (26.5%), and fishing (19%) industries.

• In Louisiana, the breakdown of individual claims paid by industry echo the overall Gulf Coast trends. However, the majority of business claims paid in the state are in the retail, sales, and service (42%), fishing (34.5%), and food, beverage, and hospitality (12%) industries.

Geographic Area and Claim Approval?

The GCCF has been criticized for the lack of transparent criteria used to determine if a claim is accepted or denied. A lack of information on the criteria for payment and what demonstrates an oil spill related loss has been a source of frustration for claimants. GCCF administrator Kenneth Feinberg has stated "physical proximity from the spill will not, in and of itself, bar the processing of legitimate claims," but lists geographic proximity to the spill among requirements for claim payments, creating wiggle room in the payment of claims not based along the coastline. A breakdown of claims paid to individuals and businesses by Louisiana parish is available online at http://www.gulfcoastclaimsfacility.com/GCCF_Louisiana_Status_Report.pdf.

Despite the June 1st closing of eight Gulf Coast claim facilities, the GCCF will continue to process claims through August 22, 2013.

For questions about your GCCF Claim, Contact BP Oil Spill Lawyer.

Further References

FAQ regarding types of payment and claim filing

GCCF Final Methodology

Link to the June 1, 2011 overall and state by state GCFF reports