An oil rig in the Gulf of Mexico exploded on April 20, 2010, killing and injuring dozens of crew members. The blast aboard the Deepwater Horizon rig 50 miles off the Louisiana coast is officially the nation's most environmentally devastating offshore drilling accident ever. BP originally declared the oil spill would just have a modest impact on the Gulf Coast. It now acknowledges the event is an environmental catastrophe. Fishing in much of the Gulf has been halted. Hotels in Florida are reporting a 30% to 50% decrease in bookings. The rig belonged to Transocean, Ltd.; British oil giant BP is the leaseholder.
Within days of the blow-out, BP and other companies started the blame game, pointing fingers at each other as being responsible for the environmental disaster. Lamar McKay, chairman and president of BP America, told a senate panel that Transocean Ltd., owner and operator of the drilling rig, had "responsibility for the safety of drilling operations." Steven Newman, Transocean's president and chief executive, blamed construction giant Halliburton. He told the senators that "there was a sudden, catastrophic failure of the cement, the casing or both." An executive with Halliburton, which did the cementing at the drill site, put the blame back on BP, telling senators that it was operating under BP's plan for the well so it shouldn't be blamed. Halliburton's work was done "in accordance with accepted industry practice" and BP's plans, said Tim Probert, president of the firm's global business lines. This big business rhetoric has become predictable. Companies may follow federal guidelines, but these are minimum guidelines. Industries that make billions of dollars but subject huge regions to such devastation as oil drilling should do more than follow minimum guidelines. They owe a duty to U.S. citizens to act with even more due care than most companies. But when disasters such as this strike, they claim they did all they could to prevent the disaster. The back-and-forth finger-pointing drew the ire of several senators - one of whom accused the executives of doing a "Texas two-step" to avoid liability.
To add insult to injury, it was announced that BP knew of problems with the rig hours before it exploded. Rep. Henry Waxman of California said the oil company told the Energy and Commerce Subcommittee on Oversight and Investigations privately that the well failed a key pressure test just hours before it exploded. Yet none of the companies or executives involved suspended operations at the rig. Does putting company profits over the safety of the Southern United States represent following "accepted industry practice?" If so, U.S. consumers should be very concerned.
Yet another concern for consumers is the Gulf Coast Claims Facility. The administrator of GCCF, Ken Feinberg, was hired by BP to "administer" the funds to the persons on the Gulf Coast who were damaged by the oil spill caused by, among other, BP. Mr. Feinberg is paid $850,000 per month for his services. He claims that he represents the interests of the people of the Gulf Coast. However, since his appointment, suspicion has arisen as to just where his loyalties lie. Feinberg initially told Gulf Coast residents they would receive emergency funds within 7 days following submission of their claim with documentation. Months into the process, the GCCF has not only failed to get the emergency payment checks to many claimants, it has refused to even tell those claimants who were rejected why their claims were rejected. Feinberg promised he would be transparent in all his dealings (would be open and honest). So why does he feel the need to leave claimants in the dark as to why their claims are denied? Other notable issues claimants should be concerned about include:
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The Release Mr. Feinberg is demanding claimants sign will release every other responsible party involved in the oil spill. However, only BP is contributing money to the $20 billion fund that pays claimants. Feinberg wrote a clause into the Release which results in the claimant turning over to BP his/her right to pursue a monetary claim against any other responsible party for damages the claimant sustained in the oil spill. If a claimant signs that Release, he/she is potentially handing money to BP. BP gets money for YOUR claim!
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Besides giving YOUR money to BP if you sign the Release, GCCF/Feinberg has failed to explain to claimants that you have a right to file suit for punitive damages. Punitivedamages are those damages awarded in a court of law which are meant to "punish" in monetary terms the responsible party for that party's egregious behavior.
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Feinberg has told the Gulf Coast claimants that they should stick with him; he'll get them more money and told them not to hire a lawyer so they won't have to pay attorneys fees. What he failed to tell them is the lawyers HE hired to "give assistance" to claimants either have strong ties to the oil & gas industry and, most amazingly, that one law firm he hired to "help" claimants actually represents BP in the oil spill.
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Another tactic Mr. Feinberg is using to try to entice claimants into taking a quick lowball payment of $5,000 is by telling the claimants that he'll give them money now but that it will be years before the first oil spill cases get to trial. What he fails to tell claimants is that the trials are already set to begin in February 2012.
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How can Mr. Feinberg place a value on your claim right now? The leading scientists are very vocal in their opinions that it may be years before the full impact of the spill is known. Claimants should not be strong-armed, coerced or scared into accepting a quick payment final settlement. Claimants should be fully informed that the value of their losses is not clear at this time. Claimants can continue to file claims for interim benefits for the next 2 years. At that point, the scientific community will be in a much better position to identify the long-term environmental, ecological and economic impact the oil spill has had on the Gulf Coast.
YOUR RIGHT TO COMPENSATION
$20 BILLION ESCROW FUND ESTABLISHED BY OBAMA
August 2010. President Obama "convinced" BP to establish a $20 billion escrow fund to compensate people and businesses harmed by the BP oil spill in the Gulf of Mexico. The Obama administration appointed Ken Feinberg as the administrator of the Fund. A Massachusetts lawyer, Feinberg also lead the administration of the 9/11 Trust Fund which was set up to help compensate many victims of the terrorist actions. Feinberg took over the claims process from BP and declared that his independent claims facilities around the Gulf would be "administered in a fair and impartial manner."
The big question is whether the victims of the Oil Spill will indeed be adequately compensated for their losses by the Fund. Unfortunately, the residents of the Gulf Coast are the victims of the worst environmental disaster in U.S. history. There is no precedent for the damage caused by BP and the other companies involved in the explosion. Leading scientists do not agree yet on the impact the oil spill will have on the Gulf Coast. However, it is the consensus of leading environmental experts that the Gulf will be adversely impacted for decades.
As a victim, you are entitled to receive fair, just and reasonable compensation for all injuries and losses, past and future, you suffered as a result of the oil spill. The ultimate goal of any settlement should be to put you in the same position, as far as money can do it, that you would have been in had the oil spill not occurred. Your claim should not be based on guesswork or speculation. So while the goal of the Fund (and BP) will be to reach a full settlement with Gulf Coast residents quickly, this may not be in your best interest. Any quick settlement will only benefit the parties that caused your losses. Decisions you make regarding your oil spill case may be some of the most important issues you will face in your lifetime and should not be made without a full understanding of your legal rights.
The United States government, which established the Escrow Fund, apparently believes it would not receive adequate compensation from BP. The Justice Department says it will likely sue BP for damages from the Deepwater Horizon oil spill. Justice Departments attorneys argued in recent court documents that the U.S. government has the right to seek compensation for the cost of removing oil, economic damage such as the cost of increased public services and loss of tax revenue, as well as destruction of natural resources and assessment of that damage, just like a private party who has suffered a loss as a result of the oil contamination in the Gulf. BP has already paid the U.S. government $390 million for the cost of cleanup and recently received an additional bill for $128.5 million from the Obama administration.
IMPACT OF THE OIL SPILL ON THE FISHING INDUSTRY
The Gulf Coast region ranks as one of the most productive U.S. fisheries, especially for shrimp, accounting for more than 70 percent of a nationwide catch valued at $442 million in 2008, the last year for which federal figures were available. A third of America's oil comes from the Gulf of Mexico as does nearly all of its seafood. The blowout comes at a particularly bad time for the shrimp industry, coinciding with the very start of the season as shrimp stocks make their way from estuaries out to sea.
Because of the location of the spill, the Florida, Louisiana, and Mississippi fishing industries are all affected. The smaller fish like shrimp, crab, and oysters do not have the capability to avoid the toxic waters created by the oil. However, the oil spill will affect the entire Gulf Coast fishing industry for years.
Oil spills present the potential for enormous harm to deep ocean and coastal fishing and fisheries. The immediate effects of toxic and smothering oil waste may be mass mortality and contamination of fish and other food species, but long-term ecological effects may be worse. Oil waste poisons the sensitive marine and coastal organic substrate, interrupting the food chain on which fish and sea creatures depend, and on which their reproductive success is based. Commercial fishing enterprises may be affected permanently.
Wildlife other than fish and sea creatures, including mammals, reptiles, amphibians, and birds that live in or near the ocean, are also poisoned by oil waste. The hazards for wildlife include toxic effects of exposure or ingestion, injuries such as smothering and deterioration of thermal insulation, and damage to their reproductive systems and behaviors. Long-term ecological effects that contaminate or destroy the marine organic substrate and thereby interrupt the food chain are also harmful to the wildlife, so species populations may change or disappear from the Gulf Coast.
IMPACT OF OIL SPILL ON PROPERTY VALUE AND RECREATIONAL ACTIVITIES
The entire Gulf Coast is thickly populated. Coastal cities attract many recreational activities and related facilities that have been developed for fishing, boating, snorkeling and scuba diving, swimming, nature parks and preserves, beaches, and other resident and tourist attractions. Oil waste that invades and pollutes these areas and negatively affects human activities can have devastating and long-term effects on the local economy and society. Property values for housing tend to decrease, regional business activity declines, and future investment is risky. You will incur present and future expenses as the clean-up costs are specifically excluded in most homeowners insurance or personal property insurance. If you own a business based on tourism, you will be impacted.
OIL POLLUTION ACT
Under the Oil Pollution Act (OPA), passed in 1990 after the Exxon Valdez disaster wiped out the Alaskan fishing industry, BP and Transocean are responsible not only for the clean-up and physical injuries to Gulf Coast residents but also the impact on the fishing industry and all property affected by the oil spill. The OPA also created the national Oil Spill Liability Trust Fund which is available to provide up to one billion dollars per spill incident. Consumers not otherwise compensated may be eligible for monies under the Act for damages from the oil spill. You have valuable legal rights if you have been affected by the oil spill.
SYMPTOMS ASSOCIATED WITH EXPOSURE TO THE OIL SPILL
Physicians all along the Gulf Coast States are reporting a large increase in patients presenting with severe allergy or flu-like symptoms since the oil spill. Studies done on communities which suffered from oil spills such as this BP oil spill have shown that marine life is not the only victim of the exposure. Human contact with petroleum or exposure to its components, including inhalation of the toxic materials, may result in skin irritation and stinging or redness of eyes, sore throat, nausea, vomiting, rash, headache, dizziness or drowsiness, and breathing difficulties such as shortness of breath.
LESSONS LEARNED IN ALASKAN OIL SPILL
It is important that you assert your claim if you are in the disaster zone. Oil spill damages are not always immediately apparent, as strange as that may sound. The fate of oil residues on shore depends on the spilled oil's composition and properties, the volume of oil that reaches the shore, the types of beach and coastal sediments and rocks contacted by the oil, the impact of the oil on sensitive habitats and wildlife, weather events, and seasonal and climatic conditions. Some oils evaporate, disperse, emulsify, weather, and decompose more easily than others. The weather and seasonal and climatic conditions may accelerate or delay these processes.
A large quantity of crude oil was deposited on beaches in Prince William Sound and along the shoreline of the Gulf of Alaska after the Exxon Valdez tanker wrecked in 1989. The oil waste has been closely monitored to determine its status and its effects in the ocean and along the coast. Natural rates of biodegradation and recovery have been slower than anticipated and visible residue may persist for up to 30 years. Some of the lessons learned from the Exxon-Valdez environmental disaster include:
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Clean-up attempts can be more damaging than the oil itself, with impacts recurring as long as clean-up (including both chemical and physical methods) continues. Because of the pervasiveness of strong biological interactions in rocky intertidal and kelp forest communities, cascades of delayed, indirect impacts (especially of trophic cascades and biogenic habitat loss) expand the scope of injury well beyond the initial direct losses and thereby also delay recoveries.
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Oil that penetrates deeply into beaches can remain relatively fresh for years and can later come back to the surface and affect nearby animals. In addition, oil degrades at varying rates depending on environment, with subsurface sediments physically protected from disturbance, oxygenation, and photolysis retaining contamination by only partially weathered oil for years.
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Rocky rubble shores should be of high priority for protection and cleanup because oil tends to penetrate deep and weather very slowly in these habitats, prolonging the harmful effects of the oil when it leaches out.
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Oil effects to sea birds and mammals also are substantial (independent of means of insulation) over the long-term through interactions between natural environmental stressors and compromised health of exposed animals, through chronic toxic exposure from ingesting contaminated prey or during foraging around persistent sedimentary pools of oil, and through disruption of vital social functions (care-giving or reproduction) in socially organized species.
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Long-term exposure of fish embryos to weathered oil at parts per billion (ppb) concentrations has population consequences through indirect effects on growth, deformities, and behavior with long-term consequences on mortality and reproduction.
If you suffered a loss as a result of the oil spill, contact our law firm for a FREE CONSULTATION. Loss includes the physical injury, loss of profits or impairment of earning capacity (lost income) due to a personal injury or illness resulting from the oil spill, as well as destruction or loss of real property (your home), personal property (your boat), or natural resources, which are all compensable under the law.
Please contact us online or call our office 850-444-9500 to speak with one of our BP claim lawyers.