Baldwin County takes lion's share of oil-spill compensation

By Kelli M. Dugan
Staff Writer
Posted 8/25/10

SPANISH FORT, Ala. — Of the 11 Gulf Coast counties and parishes receiving compensation in excess of $10 million from BP PLC since the April 20 Deepwater Horizon oil spill, the $52.7 million received by Baldwin County residents is the most …

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Baldwin County takes lion's share of oil-spill compensation

Posted

SPANISH FORT, Ala. — Of the 11 Gulf Coast counties and parishes receiving compensation in excess of $10 million from BP PLC since the April 20 Deepwater Horizon oil spill, the $52.7 million received by Baldwin County residents is the most substantial.

As of Monday, the oil giant paid out a total of $399 million to claimants in four states, including $97 million in Alabama.

BP spokesman Ray Melick said the company has written a total of 127,000 checks since May 3 in response to a total of 166,000 inquiry calls and 154,000 actual claims filed.

In addition to the $133 million paid in only the first three weeks of August, Melick said monthly compensation increased steadily from only $39 million in May to $93 million in June and $134 million in July.

Of the $97 million paid to Alabama claimants, more than half was received in Baldwin County, while Mobile County claimants received $33.2 million and residents in 64 of the state’s 67 counties collected the balance.

Claims czar Kenneth Feinberg—who assumed control of the claims process Monday via the Gulf Coast Claims Facility—has stated repeatedly that the almost $400 million paid out to date will not be deducted from the $20 billion escrow account funding his independent operation.

Per the new guidelines, Feinberg said both individuals and residents affected by the spill—including those who have already received payment from BP—can request emergency compensation equal to six months of losses that does not affect the claimants’ right to pursue legal action against the oil giant.

In addition to the emergency payments, claimants can also request a lump sum to cover both existing and anticipated future losses, but accepting the arrangement requires signing away their right to future litigation against BP.