Archive for the ‘Deepwater Horizon’ Category

Bobby Jindal Presents “The Creature From the Oil-Black Lagoon”

via Wikipedia

via Wikipedia

There’s a lot of swampland on the Gulf Coast. A lot of that swampland has been polluted with oil. And a lot of that oil has oozed into the swamps of the legal system which is brimming over with lawsuits brought against the extraction industry. BP’s Deepwater disaster is only the most high profile case. It certainly brought a lot of public attention to the parlous state of the Gulf of Mexico and its hundreds of miles of vulnerable coastline – attention BP and its energy cohorts don’t want.

Things haven’t been going well for BP in the litigation that flowed up out of its underwater well along with all that oil. It has found it rough going even in the famously conservative and business-friendly Fifth Circuit Court of Appeals which has consistently swatted down the company’s attempts to wriggle off the liability hook. But the oil industry is nothing if not industrious. A business that hunts for oil thousands of feet below the surface of the sea will work just as hard to find a political solution to its legal problems. Now, thanks to Louisiana  governor Bobby Jindal, the oil business has what it hopes is a magic cloak to ward of further lawsuits.

Last week Jindal signed legislation designed to kill a lawsuit against almost 100 oil and gas companies.

The lawsuit was filed by the Southeast Louisiana Flood Protection Authority in an attempt to get oil and gas companies to pony up billions of dollars for damage caused by exploration and production in the vulnerable wetlands around New Orleans – wetlands that play a vital role in protecting the city from what the suit describes as the mortal threat of hurricane storm surges. The stakes for New Orleans could not be higher. The Authority filed suit to avert the dire consequences of the environmental degradation of the region’s coastline. The suit demanded that energy companies “honor their obligations to safeguard and restore the coastal treasures entrusted to them and from which they have so richly profited.” The Flood Protection Authority described the measures it demanded in its suit as essential to preserving the future of the state and its biggest city. The coastal barriers it sought to preserve have been brought to the brink of destruction over the course of a single human lifetime. Without immediate action to reverse the loss of wetlands and restore the region’s natural defenses, many of Louisiana’s coastal communities will vanish into the sea. Meanwhile, the Authority says, inland cities and towns that once were well insulated from the sea will be left to face the ever-rising tide at their doorsteps.”

Jindal’s signature has now thrown the future of that suit, and other similar actions, into doubt. The new law is specifically intended to stop the lawsuit in its tracks. It would limit enforcement of the state’s coastal zone program to the state Department of Natural Resources, a parish, a parish district attorney or the state attorney general.  The law previously allowed any government agency to file claims. The oil and gas industry lobbied strenuously to get the new law passed. Apparently the industry’s efforts were more persuasive than the state’s own attorney general who urged the governor to veto the bill, arguing that the language was both so vague and so sweeping that it would prohibit local governments from filing lawsuits against energy companies for past or future actions. A passel of legal scholars also weighed in warning that the bill would nullify lawsuits already filed against BP for damages from the oil spill by dozens of governmental entities. Environmentalists and urban planners are aghast.  The industry, on the other hand, was crowing about its bill, describing it as “a huge victory for the oil and gas industry as well as the economy for the state of Louisiana.”

The bill demonstrates how far and how deep the energy industry’s tentacles reach into the machinery of Louisiana politics. The Deepwater catastrophe brought a lot of unwelcome attention to the long-intertwined relationship between the oil and gas industry and Louisiana’s politicians. The new law is designed to restore that relationship to its historical centrality in the state’s political ecology. Whether it survives the inevitable appeals (it almost certainly won’t) is irrelevant. As a piece of of intimidating muscle flexing it’s in a class of its own: Let there be no doubt of who calls the shots in the state.

Jindal defended the bill by saying it creates “a more fair and predictable legal environment.” The good people of New Orleans can sleep easier now, secure in the knowledge that at least the legal landscape is predictable. The levees be damned.

Note: The Times-Picayune is, as always, doing yeoman’s work covering this story.

BP Oil Spill Continues to Impact Gulf Residents

Photo by Mark O'Neil. Some rights reserved.

Though much of the world seems to have moved on from the 2010 Deepwater Horizon oil spill, the struggle continues along the Gulf of Mexico. Last week, the Gulf Coast Claims Facility (GCCF) announced its final rules governing payment options and final payment methodology after receiving more than 1,440 comments from individuals and businesses. These comments range from pleas to move forward quickly to a 24-page comment from BP PLC itself, saying that Kenneth Feinberg’s allocation of the $20 billion damages fund has been overly generous.

In a recent press release, the Gulf Coast Restoration and Protection Foundation announced that qualified workers will have a second opportunity to apply for financial assistance this spring, stating that “up to 9,000 people might qualify for awards ranging from $3,000-30,000.”

There is another mammalian population that seems to be suffering from the fallout of the spill that cannot even apply for restitution. The Institute for Marine Mammal Studies (IMMS) announced this week that dead baby dolphins have been washing ashore at ten times the normal rate. Some 26 dolphins, many aborted before they reached maturity, have been found along the Mississippi and Alabama coastlines in recent weeks.

Though experts have not officially linked the spike in death rates to the oil spill, this is the first birthing season for dolphins since the oil spill last year. As institute director Moby Solangi told reporters, “this is more than just a coincidence.”

Mortality rates in the Gulf Coast dolphin population tripled last year; with a gestation period of 11 to 12 months, the baby dolphins now being found were conceived at least two months before the Deepwater Horizon exploded.

Meanwhile, in light of the continued unrest in Libya (the world’s 17th-largest oil producer) and the surrounding area, key House Republicans are urging the Obama Administration to move forward with the issuing of offshore oil-and-gas drilling permits. BP has announced this week that it will pay $7.2 billion for a stake in India’s rapidly expanding oil industry; the historic partnership with Reliance Industries Limited is slated to combine Reliance’s project management expertise “with BP’s world-class deepwater  exploration and development capabilities.”

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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