BP Appeals Deepwater Horizon Payouts

Deepwater Horizon Gulf of Mexico Oil Spill

BP Appeals Deepwater Horizon Payouts

BP will argue in a U.S. court Monday that settlement payments relating to the 2010 Deepwater Horizon oil spill that could amount to billions of dollars should be blocked. The 5th U.S. Circuit Court of Appeals will hear arguments brought on behalf of BP that the terms of the mechanism used to make the payouts are being misinterpreted. 

BP believes that the terms of its 2012 settlement with the Federal authorities concerning compensation to claimants are being wrongly interpreted, leading to payouts to companies unaffected by the disaster.

Speaking to Rigzone Monday, a BP spokesman explained that the company was taking its case "a step further" to the next-highest court after previous unsuccessful appeals against how the claims system is being handled.

In April, a Federal judge denied the company's plea to halt payments from its settlement fund that was set up to reimburse businesses and individuals for losses connected to the Deepwater Horizon spill. U.S. District Judge Carl Barbier rejected BP's arguments that the fund administrator, Patrick Juneau, misinterpreted how claims should be assessed and payments calculated.

A former engineer, Jon is an award-winning editor who has covered the technology, engineering and energy sectors since the mid-1990s. Email Jon at jmainwaring@rigzone.com


Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
mack blain | Dec. 14, 2013
Stop grandstanding BP! PAY YOUR CLAIMS to all the business owners who lost out economically, and for the legal reps.... get your hands out of the cookie jars, and quit screwing it up for those who have no counsel. By the time all this is settled, we will be switching our claims from BEL to failed BEL. So thank you to all of you who just wont stop the bleeding, and let those who have truly suffered the maul be compensated.

Horizon Dreamer | Jul. 25, 2013
Its been 1 yr. 4 mo. So far, I was denied by BP.(so really 2 yrs 4 mo) Then, when this claims program started, I was like yes! I might have a chance to redeem what seemed to be a financial nightmare when I started my new business that summer. I was devastated. Where was the business? Just to mention, I own a shop that has to do with gas and diesel engines. I submitted everything I could to show my financial hardship. I never received any correspondence until recently. I had an incompleteness. An incompleteness of the same material I submitted when I did my claim. So, I submitted it again. Today, I received an incompleteness again. My book Keeper and I sat down and meticulously went over the form together not missing a single piece of information for hours! What more could they want? I have been told I never did file a claim only registered for it, and it all came down to the wrong set of passwords used for when I filed with BP. Why do I feel this is a stonewall tactic? I am not represented by an attorney because I felt my financial statements would be enough. I had good credible help putting all of this together. I heard a woman talking about how she was getting her payout within six months according to her attorney. I thought, wow must be nice? Then I hear about kick backs. Thats nice. The one I love the most is the 600k payout to Kevins Pub in Key West, Florida. A pub? Are you kidding me? This is an appalling amount of money. I want to see transparency with whom is being represented by attorneys in their pie chart. I feel nothings going to happen for the people who honestly lost out, who were seriously damaged by this spill, and reaped the financial devastation. It took my business more than a year to stand on its own without getting loans, and handouts from my family. I had no idea what the magnitude of this disaster would have on this industry I am in. People were screaming for work everywhere! I really hope Deep Water will do the right thing for the right people, and not make ridiculous payouts to places like Key West Pubs. If there is anything I cant stand in this world is abuse of power! Stop stonewalling! Thank You. So very sorry for loss of life, and the beautiful Gulf of Mexico. The wild life and the marine animals. My heart bleeds for you.

Butch | Jul. 12, 2013
BP initiated a complex chain of events that is still causing ongoing revenue loss & economic disaster across the entire GOM region. I live inland in Lafayette, LA and work for a marine and diving contractor. Like our competitors we are now barely hanging on. My little paycheck just bounced today so I expect it to be consumed by NSF fees. Back in April 2010 I had 2-1/2 years of pay in savings & the company had a couple years worth of projects on the books. All projects were put on hold when the immediate effect of having oil in the water occurred; and then nearly 90% of the project backlog never returned to active status even after the "official" moratorium was lifted. There are now three adjacent houses for sale including mine due to this long term cause & effect. The economic destruction is being amplified by ongoing BP delay tactics and maneuvering to find an escape route. My savings were finally depleted in July of 2012 despite drastic expense reduction & pursuing all available work opportunities in the GOM. Now a year later in July 2013, Im several months past due across the board & my house will be in foreclosure by the end of the month. My savings that should have been more than adequate only created a delayed reaction situation. I never imagined I’d have to file a claim, but managed to submit one just prior to the deadline. Having arrived late along with many others; my claim is caught up in the brunt of this legal battle and cant save me now. However, I am hopeful I will prevail at some future point and be awarded the means to rebuild my life. This fiasco ultimately created more economic destruction to the entire shallow water infrastructure that supports the deep water plays than it did to deep water projects. In addition...Ive previously been ordered to pay claims for debts & taxes that shouldnt have been my responsibility. However based on prior case law precedent, it was ruled that debt and other claims were not to be simply treated as a "negative asset" or even assigned a percentage of payment based on direct responsibility for an indirect chain of events. It was then determined I was only one with the ability to pay; so similar to the “moratorium side effect” I was ordered to pay an obscene amount regardless of my less than 1% direct responsibility for causing the event. Fair? absolutely not though I recovered. But my experience with the justice system is that the “greater good” is a primary consideration through interpretation of what a law or act was meant to accomplish and not actual specific wording. This is one of those times where BP has the ability to pay its debts and claims to restore the economic well being of the GOM infrastructure seriously hurt by their initiation of this dramatic chain of events through their excessive cost cutting (bonus inspired) and lack of due diligence. The alternative of redirecting those funds to profit margins or political interests is unacceptable. The additional economic damage by delay tactic litigation should also be considered since there is still no regular work unless I leave the USA All that being said...Since Macondo was such an incredibly good prospect, I don’t understand why the government doesn’t simply make BP properly drill, complete and produce the reserve to provide a dedicated long term funding resource for all claims.

James E. Smith | Jul. 8, 2013
I am certain that BP is being defrauded. I live in east/central MS., and have heard countless times of individuals and businesses filing losses and getting reimbursed for said losses. All the instances that I have heard, were bogus not only were the folks involved not impacted, but some live as far north as Tupelo, MS. Give me a brake. Outside the current administration, these sorry opportunist are the next biggest cause of inflation, and players in the demise of what was once, a GREAT nation. GOD BLESS!

Related Companies

Our Privacy Pledge

Deepwater Horizon Images
Jeff Cantrell,VP Elastec/American Marine Macondo Oil Slick (May 1) Discoverer Enterprise Smoke Rising from Horizon (Apr 22)
Macondo Subsea Oil Containment Diagram Macondo Cofferdam Structure Workers Respond to Oil Spill Oil Spill Aerial View
71 more images view image library

From the Career Center
Jobs that may interest you
Logistics Coordinator & Optimization Analyst
Expertise: Logistics Management
Location: Billings, MT
United States Odessa: Integrated Service Coordinator
Expertise: HSE Manager / Advisor
Location: Odessa, LA
Associate Category Manager or Category Manager Job
Expertise: Logistics Management|Purchasing|Supply Chain Management
Location: Denver, CO
search for more jobs

Brent Crude Oil : $51.78/BBL 0.77%
Light Crude Oil : $50.85/BBL 0.83%
Natural Gas : $2.99/MMBtu 4.77%
Updated in last 24 hours