Florida Seeks Changes To BP Spill Claims Process

Florida Attorney General Pam Bondi wants changes in the way the Gulf Coast Claims Facility (GCCF) is handling claims, stemming from last year's BP oil spill in the Gulf of Mexico.

After a meeting with GCCF administrator Kenneth Feinberg, Bondi said she has also filed a statement of interest with U.S. District Judge Carl Barbier of the Eastern District of Louisiana offering solutions to improve the claims process being overseen by Mr. Feinberg. The statement of interest includes comments regarding the methodology created by Mr. Feinberg to determine whether a claim is to be paid and the amount of the payment.

"The claims process needs to be fair, transparent and as quick as possible in paying bona fide claims," said Bondi. "Each claim is a person or business whose livelihood has been deeply affected by the oil spill and they need to be compensated."

Suggestions for improvement

Bondi said the claims processs could be improved by providing claims adjusters at claims offices with the authority to claims on the spot. She also called for appointment of an independent auditor to review the past and future decisions of the GCCF to ensure fairness and accountability. Claims pending since November should be paid immediately, she said.

Bondi also said better outreach to consumers and businesses making claims is needed. so that they better understand the process. She says they should receive clear explanations as to why a claim was reduced or denied.

BP isn't happy either

Meanwhile, BP is complaining that some of the claims payments made so far have been excessive. The oil company expressed its opinion in a statement Wednesday, suggesting the GCCF had used an “artificially high” estimate of present and future losses.

UK-based energy giant BP has complained the proposed Gulf of Mexico compensation payouts are too generous. That follows a statement from the GCCF earlier this month that outlined “final” claims payments, which drew fire from some businesses and state government agencies in the Gulf Coast region.

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 at the time. 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.