Latest oil-spill compensation program launched

Posted 12/13/10

SPANISH FORT, Ala. — Two weeks after emergency payments were concluded, BP oil-spill victims have been presented three additional compensation avenues.

Claims Czar Kenneth Feinberg announced Monday the Gulf Coast Claims Facility was offering …

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Latest oil-spill compensation program launched

Posted

SPANISH FORT, Ala. — Two weeks after emergency payments were concluded, BP oil-spill victims have been presented three additional compensation avenues.

Claims Czar Kenneth Feinberg announced Monday the Gulf Coast Claims Facility was offering the alternatives even though his office has paid out an estimated $2.5 billion to more than 166,000 individuals and businesses since taking over administration of the claims process from the oil giant in August.

“The goal in providing these three compensation alternatives is to give each and every eligible claimant an opportunity to choose which option is best. The choice is purely voluntary,” Feinberg said.

The options are as follows:

  • Accept a lump-sum final payment for all documented past, present and future damage. Each eligible claimant choosing this option will be required to sign a full release, however, giving up the right “to sue BP and all other alleged defendant companies arising out of the explosion and spill.”
  • Accept quarterly interim payments for documented past damage. Feinberg said this option exists for eligible claimants uncertain of the Gulf of Mexico’s future and “reluctant to accept a final payment. The interim payments will only be available once every quarter until the claims facility shuts its doors in August 2013. No release from future legal action is required with this option, but interim payments will only be made for documented past damage “not previously covered by emergency payments.”
  • Accept a one-time “quick pay” amount of $5,000 for an eligible individual or $25,000 for an eligible business. This alternative is only available to those claimants who have already received an emergency payment from the claims facility. No further documentation is required if this option is selected. However, the “quick pay” alternative does require signing the full release. First-time claimants or those whose emergency claims were previously denied are not eligible to elect this option. They can, however, file for either the lump sum, fully-documented final claim or a fully-documented interim claim.
  • Robert Allen, who has received fairly regular emergency payments from the claims office since his Gulf Shores-based charter business ground to a halt following the April 20 Deepwater Horizon incident, said he applauds being given a choice in how to receive continued reimbursement for losses, but waiving the right to sue BP still doesn’t “sit right” with him.

“I’ve been very fortunate in how I’ve been treated so far, but this is only getting started, and we don’t know what the future holds. I’m just not comfortable saying — today — that legal action is off the table,” Allen said.

In addition, Feinberg announced a program providing free legal assistance for any claimant seeking help will “soon be made available.” He has also enlisted the assistance of local residents throughout the region to assist with this next phase of compensation.

“I have listened to those claimants and others who have urged me to retain the services of respected local individuals who can be available to answer questions at the various claims offices throughout the Gulf. Their physical presence should make the claims process more transparent and consistent,” Feinberg said.