And In Other Oil Spill Claims News…

The Hill’s E2-Wire blog reported yesterday on updated payment options available to Deepwater Horizon claimants.

Photo by Fibonacci Blue. Some rights reserved.

The Gulf Coast Claims Facility (GCCF) is a facility that manages claims for costs and damages incurred as a result of the Deepwater Horizon oil spill. BP contributes funds to an account that are then distributed by an independent claims administrator.

Emergency payments, which were advance payments to individuals or businesses having financial hardship resulting from the spill, ended November 23, 2010. However, the GCCF just recently indicated that they will soon begin accepting claims for Interim and Final payments. There are three payment options available at this time, which are summarized here.

And what are the payment options?

  • VOLUNTARY QUICK PAYMENT FINAL CLAIM
    This claim option provides an automatic payment of $5,000 for Individuals or $25,000 for Businesses, with no further review or requirement for additional supporting documentation. However, this option requires claimants to sign a release of liability that prevents them from seeking further compensation from GCCF or in court.
  • VOLUNTARY FULL REVIEW FINAL PAYMENT CLAIM
    A Full Review Final Payment Claim will be paid in a lump sum single payment for all documented losses and damages, both past and future. A Full Review Final Payment Claim requires complete substantiation and documentation of all damages sustained in the past. This option also requires claimants to sign a release of liability that prevents them from seeking further compensation from GCCF or in court.
  • VOLUNTARY INTERIM PAYMENT CLAIM
    An Interim Payment Claim may be submitted for past losses and damages incurred as a result of the Spill – and ONLY past damages. For future losses or damages to be evaluated and paid, one must submit a Full Review Final Payment Claim. However, those submitting an Interim claim will not be required to sign a release of liability.

According to E2-Wire, the claims administrator “has encouraged oil spill victims to seek compensation through the GCCF, warning that legal battles could last for years.” As we discussed yesterday, in the case of Exxon Valdez, “years” is no exaggeration. Even BP admits in a 6-K filed last month that “claims and litigation settlements are likely to be paid out over many years to come.”

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