Posts Tagged ‘gulf of mexico’

Feinberg Suggests: More Oil Funds Could Be Needed

Thursday, July 15th, 2010

During CNN’s State of the Union on Sunday, July 11, Kenneth Feinberg, named by President Obama to oversee the BP Oil Spill claims process, suggested that the current $20 billion fund to compensate for losses due to the Gulf Oil Spill, may not be enough.  He references the ongoing status of the spill; as the spill continues existing losses grow and new damages occur.  Feinberg suggests:

Until the oil stops, you don’t know how pervasive the oil spill will be, so you don’t know if somebody who has not been harmed at all today will be harmed by additional oil next week.

Feinberg did suggest that once the oil well is capped and the spill stopped, “…I believe we’ll be able to very quickly get a handle on the comprehensiveness of the claims population.”

More Oil Funds Could Be Needed – WSJ.com

44% of BP Oil Claims Incomplete?

Wednesday, July 14th, 2010

Earlier this week, CBS News was one of numerous news groups reporting that:

BP has decided to reduce payments to tens of thousands of people whose claim files are incomplete, the secretary of Louisiana’s Department of Children and Family Services said. Full Story

It is important to note that 40,000 claims amounts to approximately 44% of 99,000 claims filed.

Information about eligibility and filing claims with BP can be found on BP’s website (new window will open).

Mediating Oil Spill Claims

Tuesday, June 15th, 2010

It seems that everywhere you turn – even official sources like our president Barack Obama, BP CEO Tony Hayward, or US Coast Guard Admiral Thad Allen – everyone it talking about the “independent mediator” that BP is “hiring” or in their own words “appointing” to address claims not resolved satisfactorily by BP Oil Spill Claims Process.

Unfortunately if this is occurring it seems far less than transparent.  Which causes our original concerns to come to mind:

Although mediation can, without a doubt, be helpful in the resolution of claims related to damages from the oil spill, it is imperative that the tenants of mediation be upheld.

  • Mediator Neutrality – By appointing the “independent mediator”, is not BP exerting primary and initial influence on the mediator?  Parties in conflict who choose mediation ideally have equal say in who is the mediation provider.  This is one of the basic means of ensuring that the mediator is truly a neutral participant.
  • Power Equity – It is hard to imagine a fisherman, small restaurateur, the widow of a rig-worker, beach-front property owner, or even coastal town government having equal power in a dispute with the multi-national and heavily moneyed BP.  Most losses attributed to the spill, while huge to the claimant, are dwarfed by the annual profits of BP (which BP reported to shareholders as $16.5 billion in 2009).  For mediation to be successful, this inherent inequity must be addressed in the design of the BP mediation program.
  • Voluntary – Participation in mediation is voluntary.  Generally anything that can be litigated can be mediated – resulting in a resolution that is more satisfactory to both parties.  However, BP is in a position of addressing thousands of claims from people who have experienced a loss or hurt from what they see as a result of decisions or actions of BP.  It is likely that claimants will see themselves as “victims” of BP.  Filing a claim and seeking a settlement through mediation as opposed to traditional litigation may not be the claimants first choice.  Participants may find themselves in mediation without fully engaging in the process and/or voluntarily participating.

Although these are significant obstacles to mediation, BP can create a “Mediation Program” to address the damage claims resulting from the oil spill that results in claims being resolved in a “win-win” manner while still assuring BP’s continued viability in the field and the region.

Mediation Engaged to Respond to BP Oil Spill

Monday, June 14th, 2010

Oil Spill MediationLate in May, while hope remained that the “Top Kill” effort to stem the leak was working, BP announced that it would be appointing a mediator to facilitate claim resolution.

BP announced that it will appoint an Independent Mediator to review and assist in the claims process for the spill associated with the exploratory well that was being drilled by the Transocean Deepwater Horizon in Mississippi Canyon, Block 252.

Although mediation can, without a doubt, be helpful in the resolution of claims related to damages from the oil spill, it is imperative that the tenants of mediation be upheld.

  • Mediator Neutrality – By appointing the “independent mediator”, is not BP exerting primary and initial influence on the mediator? Parties in conflict who choose mediation ideally have equal say in who is the mediation provider. This is one of the basic means of ensuring that the mediator is truly a neutral participant.
  • Power Equity – It is hard to imagine a fisherman, small restaurateur, the widow of a rig-worker, beach-front property owner, or even coastal town government having equal power in a dispute with the multi-national and heavily moneyed BP. Most losses attributed to the spill, while huge to the claimant, are dwarfed by the annual profits of BP (which BP reported to shareholders as $16.5 billion in 2009). For mediation to be successful, this inherent inequity must be addressed in the design of the BP mediation program.
  • Voluntary – Participation in mediation is voluntary. Generally anything that can be litigated can be mediated – resulting in a resolution that is more satisfactory to both parties. However, BP is in a position of addressing thousands of claims from people who have experienced a loss or hurt from what they see as a result of decisions or actions of BP. It is likely that claimants will see themselves as “victims” of BP. Filing a claim and seeking a settlement through mediation as opposed to traditional litigation may not be the claimants first choice. Participants may find themselves in mediation without fully engaging in the process and/or voluntarily participating.

Although these are significant obstacles to mediation, BP can create a “Mediation Program” to address the damage claims resulting from the oil spill that results in claims being resolved in a “win-win” manner while still assuring BP’s continued viability in the field and the region.

Alabama Gov: Are Claims Being Filed with BP?

Monday, June 14th, 2010

It would not be surprising to learn that Gulf residents and business owners may be hesitant to file a claim with BP for oil spill losses.  Perhaps there is a sense of futility -  perhaps there is confusion as to how to file claims.

As of June 8,  Alabama governor Bob Riley has called in the National Guard and staff from the Alabama Emergency Management Agency to assist Alabama residents in filing claims related to losses due to the BP oil spill.  They will operate in teams throughout  Alabama coastal areas to assist residents and business owners.

BP has made information related to filing a claim available online – www.deepwaterhorizonresponse.com.  BP has continued to state that they will review all claims and make a determination within 48 hours of receipt.  All claims found to be valid will be paid within that same 48 hour window.

Additional story at WKRG

Alabama Gov: Are Claims Being Filed with BP?

Wednesday, June 9th, 2010

It would not be surprising to learn that Gulf residents and business owners may be hesitant to file a claim with BP for oil spill losses.  Perhaps there is a sense of futility -  perhaps there is confusion as to how to file claims.

As of June 8,  Alabama governor Bob Riley has called in the National Guard and staff from the Alabama Emergency Management Agency to assist Alabama residents in filing claims related to losses due to the BP oil spill.  They will operate in teams throughout  Alabama coastal areas to assist residents and business owners.

BP has made information related to filing a claim available online – www.deepwaterhorizonresponse.com.  BP has continued to state that they will review all claims and make a determination within 48 hours of receipt.  All claims found to be valid will be paid within that same 48 hour window.

Additional story at WKRG

BP Oil Spill Mediation…No News?

Tuesday, June 1st, 2010

BP Oil Spill ClaimsAlthough BP spoke of “appointing” a neutral mediator a week ago – there seems to no further mention of the planned mediation, much less how the plan will address the potential pitfalls to mediator involvement as designed by BP.  Regardless of the appointee, it is paramount that the designated mediator be just that – a mediator, not an appeals levels claims adjuster.

For true mediation to occur the mediator must be a neutral person who is chosen by the parties – both parties.  BP must create a program that supports this position not in name, but also program design.  A mediator that works for one claimant, may not be the best mediator for another.

In addition, a person with a claim against BP is going to be hard pressed to experience any interaction with BP claims adjusters as one of equal power in the resolution. Mediation does not permit this power inequity.  Mediation, even between individuals and BP, should be a focused conversation that addresses a plan for complete restitution – a plan that is deemed reasonable to both sides of the claim.

CFR is available to mediate claims against BP for damages related to the Gulf of Mexico Oil Spill, our focus remains on the promotion of efficient, effective, and fair resolution of issues.

See Also: Mediation Engaged to Respond to BP Oil Spill