Oil Spill Information

BP Oil Spill Claims by Non-Profit Organizations

Posted by on Jun 21, 2014 in Oil Spill Information | 0 comments

In April of 2010, an explosion caused by a wellhead blowout or a failure in the pressure control system engulfed the Deepwater Horizon oil rig in flames, sinking it and resulting in the release of 4.9 million barrels of oil into the sea. This sea tragedy, which occurred off the coast of Louisiana in the Gulf of Mexico, took the lives of 11 persons, injured 16 others and was regarded as the biggest ecological disaster in the United States.

Aware of the severe harm that spills can cause to marine life, the health of coastal residents, and the gulf’s economy, BP made an estimation that the total amount necessary to cover settlement claims, clean-up costs and other legal fees would be approximately $7.8 billion.

It has become quite obvious, however, that the settlement administrator has interpreted the terms BP’s settlement agreement in a way that BP believes approves claims by people and businesses who were not even harmed by the spill. A New Orleans U.S. District Judge agreed with the administrator’s interpretation, while the 5th U.S. Circuit Court of Appeals declined BP’s request to deny an injunction on the judge’s decision.

While BP has raised its appeal to the US Supreme Court, the order to continue paying settlement claims, which have ballooned to at least $9.2 billion stays. Among the claimants that BP needs to pay are non-profit organizations, such as educational organizations, disease research organizations, pildlife preservation organizations, and historical societies. Obviously, these types of organizations depend greatly on charitable donations made by individual benefactors and a number of business owners who, in turn, may have suffered economic losses themselves due to direct or indirect effects of the spill.

While it may be understandable that BP is trying to save itself from paying business economic losses (BEL) which are not traceable to the spill, authentic claimants will have to wait indefinitely until the court’s decision is made. For organizations making non-profit oil spill claims, “indefinitely” can mean great harm to their operations, even existence. This is why many legitimate claimants have deemed the services of a BP claim appeal lawyer a necessity in helping them acquire the settlement payment, which they legally deserve, much faster.

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