Claims Chief Sees Gulf Spill Recovery Next Year

The Gulf Coast Claims Facility (GCCF), which is overseeing claims resulting from the BP oil spill last April, says it believes the area will continue to recover this year, and that full recovery could come sooner than most predicted.

"It is anticipated that, for all businesses other than oyster harvesting, recovery will continue in 2011 with full recovery expected in 2012, said Kenneth Feinberg, administrator of the GCCF. This gradual recovery anticipates that losses in 2011 will be approximately 70 percent of  the actual documented losses in 2010."

His statement was included in a solicitation of public comment on the next phase of the claims process. GCCF has asked interested parties to respond within the next two weeks to its Announcement of Payment Options.

Final payments proposed

Under the plan, GCCF, which is administering a $20 billion fund, plans to make final payments based on twice the amount of documented 2010 damages. For individuals and businesses that have already received funds directly from BP, that amount will be deducted for their claims total.

For those engaged in oyster harvesting, the outlook and recovery period is less certain, Feinberg said. To account for that, the plan calls for compensating oyster businesses four times their 2010 losses.

The GCCF was set up jointly by the Obama Administration and BP. Feinberg says to date it has disbursed some $3.5 billion.

Seeks 'fair and credible' payment program

"The GCCF has sought a comprehensive understanding of the impact caused by the Deepwater Horizon Incident and its aftermath.  Experts retained by GCCF have pored through various reports and studies pertaining to the future of the Gulf, and have compiled an extensive list of  references," Feinberg said. "In adopting its final rules governing payment of all Final and Interim Claims, the GCCF is gathering facts from various sources in order to develop a credible and fair payment program."

Under the plan announced today, all individuals and businesses that incurred losses due to the Oil Spill are encouraged to file a Final or Interim Claim with the GCCF.  Documentation of damage attributable to the Oil Spill is essential, the document states.

Final and Interim Payments are available for those claimants who can prove their damages due to the Oil Spill, or who can establish a physical injury or death caused by the Deepwater Horizon Incident and its aftermath.

"The GCCF will not presume that a given loss was or was not caused by the Oil Spill, regardless of whether or not the claimant received an Emergency Advance Payment," Feinberg said. "Each claim stands on its own merits, and the GCCF will evaluate each submission to determine whether a loss was caused by the Oil Spill."

Push-back

Some businesses and Gulf Coast officials have expressed dissatisfaction with the GCCF claims process and have asked the courts to take over the administration of the process. Mississippi Attorney General Jim Hood filed an additional memorandum with the court today, asking it to intervene and take "all necessary action" to compel BP to meet its obligations under the Oil Pollution Act (OPA) of 1990.

"We are asking the Court to direct that all Gulf Coast Claims Facility (GCCF) claims be processed immediately, and all damages which are presently owed under OPA be immediately paid," Hood said. "Consistent with OPA, no claim should be treated as a final claim, all claims should be treated and paid as "interim" claims, interest should be paid to compensate claimants for delays in processing their claims, and BP and the GCCF should immediately cease and desist from using the Release as drafted."