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Gulf Oil Spill: Mental Health Impacts On Affected Communities Should Be Considered, Researcher Argues

By Matthew Lee, Louisiana State University (LSU):

Matthew Lee is a professor of sociology and associate vice chancellor in the Office of Research and Economic Development at LSU and has been closely involved in LSU's research response to the BP Deepwater Horizon drilling disaster. He contributed this article to LiveScience's Expert Voices: Op-Ed & Insights.

It's been three years since the Deepwater Horizon oil rig exploded in the Gulf of Mexico, killing 11 workers and forever changing the way the world views the Gulf Coast. While the $4 billion verdict against BP has finally been handed down as justice for damages, it's not going to help many of the people directly impacted by the spill's impacts. It's time for a reminder of the long-term impacts accompanying technological disasters - and for the development of a better system for addressing the mental well-being of coastal residents and their communities after these all-too-frequent events.

As a sociologist in Louisiana, I've tracked the status of these men, women and families - people who have history in their geography, whose families have worked the same jobs in the same places for generations. These people do hard, back-breaking labor to provide our nation with seafood, oil and gas. They maintain the largest port system in the world, and are exposed to some of the worst hazards imaginable - hurricanes and oil spills, just to scratch the surface.

Former BP executive's obstruction charge thrown out by judge

A federal judge on Monday dismissed one of the two counts in the indictment of a former BP executive who was charged with concealing information from Congress about the amount of oil that was leaking from the company's blown-out well in the Gulf of Mexico in 2010.

U.S. District Judge Kurt Engelhardt cited two reasons for dismissing the obstruction of Congress charge against David Rainey, who was BP's vice president of exploration for the Gulf. First, Engelhardt said the indictment failed to allege that Rainey knew of the pending congressional investigation he was charged with obstructing.

"Because it is an essential element of this crime that the defendant knew of this inquiry and investigation, the indictment must allege such knowledge. It does not," the judge wrote in his 44-page ruling. "Even construing the allegations strongly in the government's favor, it is simply impossible to ascertain from the indictment whether this essential element was presented to and found by the grand jury."

Florida Attorney General Pam Bondi demands nearly $6 billion from BP for 2010 Gulf oil disaster

Attorney General Pam Bondi said Florida is seeking $5.48 billion for lost revenue - past and future - from the Deepwater Horizon oil spill.

Bondi, who has filed a federal lawsuit against BP Exploration & Production Inc., BP America Production Co., and Halliburton Energy Services, Inc., made a settlement offer for the same amount three months ago but she said on Tuesday that the proposal has been ignored.

The lawsuit, filed Saturday in the Northern District of Florida, in Panama City, on the three year anniversary of the Deepwater Horizon disaster in the Gulf of Mexico, seeks to recoup actual and potential lost revenue from the spill that impacted: lost sales and use taxes; corporate taxes; documentary stamp taxes; cigarette surcharges; cigarette excise taxes; beer, wine, and liquor taxes; fuel taxes; rental car surcharges; and utility taxes.

A majority of the state's claim is for expected economic losses.

"We all know there is a large amount of oil still on the floor of the Gulf and they are going to be held accountable because we do not know what could be happening in the future," Bondi said.

A spokesman for BP declined to comment on the suit or Bondi's settlement offer.

Top Chef Gets $375,000 From NOLA and Louisiana (Using BP Oil Spill Recovery Funds)

Here's more news on Top Chef's decision to head to New Orleans for its eleventh season. The Times-Picayune reports that Louisiana and the city of New Orleans tourism offices are giving Bravo $375,000 to sponsor the recently announced Top Chef: New Orleans. The Louisiana Office of Tourism will contribute $200,000 while the New Orleans Tourism Marketing Corporation will contribute $175,000.

More surprising than the amount of money the government is spending to get Tom, Padma, and the cheftestapants in town is how the government got it in the first place. Instead of taxpayer funds, Louisiana's $200,000 sponsorship will be drawn from a recovery fund that oil giant BP set up after 2010's Deepwater Horizon oil spill. It's unclear at this time how Top Chef is a part of "state and local response costs and claims, and natural resource damages and related costs."

How much have other cities paid to get Top Chef?

In exchange for the money, Louisiana is getting its own season of Top Chef and guaranteed exposure for cities outside of New Orleans. A government official told the Times-Picayune that "We negotiated some things into that agreement [with Top Chef], the biggest part of which was at least two of the challenges will take place outside of the New Orleans area, to showcase other parts of the state." Was the early announcement one of the "some things" Louisiana negotiated into the contract?

BP oil spill settlement payouts surpass $2 billion mark, administrator says

The Deepwater Horizon Claims Center, which is overseeing the multibillion-dollar settlement between BP and private claimaints, has now paid out more than $2 billion to businesses and individuals who lost money as a result of the 2010 oil spill, the court-appointed claims administrator said Tuesday.

BP Oil Spill Settlements to Non-Profits: Mechanics and Lessons

In 2011, BP America's foundation made grants of $14.2 million to U.S.-based nonprofits and just short of $6 million to overseas charities. The foundation's 990 indicated three grants to Alabama-based organizations (two United Ways, one Red Cross), one in Mississippi (United Way), and none in Louisiana or Florida, the four states hardest hit by the Deepwater Horizon oil rig explosion (killing 11 workers) and subsequent oil spill in 2010.

In comparison, there were 12 BP Foundation grants to Alaskan organizations. But the Deepwater Horizon disaster occurred not in Alaska, but in the Gulf of Mexico, southeast of Louisiana, becoming the biggest oil spill in U.S. history and perhaps the nation's worst environmental disaster ever. BP's disaster slammed the Gulf Coast economy, still reeling at that point from Hurricane Katrina, with impacts on marine wildlife, fishing, tourism, and public health. Putting a dollar figure to the economic impact of the oil spill is all but impossible. However, BP is going to be shelling out loads of money to Gulf Area nonprofits-and plenty of other entities-for a very long time as a result of the devastation it caused to the entire Gulf Coast economy, enveloping nonprofits and their revenues in its wake. You can add a couple of zeroes to whatever moneys BP was used to distributing to nonprofits through its corporate foundation, however, as the costs to BP under this settlement formula are going to reach well into the billions.

Why? In past settlements of corporate wrongdoing or negligence, a fund would be created and an administrator would examine each claim on its merits to determine whether the claimant suffered injury due to the corporation's behavior. The new BP settlement, replacing the slow-moving fund that had been slogging along with payments, is different. If your nonprofit entity existed in the region of impact sufficiently long enough prior to the Deepwater Horizon disaster, and if it can demonstrate that it suffered losses, you get compensation as per a court-ordered formula regardless of the degree, if any, to which BP caused those losses. Moreover, it's not a first-come, first-served capped fund. There is no cap on BP's liabilities under this settlement.

BP's Lawsuit Deadline is fast approaching as thousands look for new spill settlements

LONDON, April 30 (Reuters) - BP Plc has been hit by over 2,200 new lawsuits seeking payback for the 2010 Gulf of Mexico oil spill in the past few weeks as individuals, companies and government bodies rushed to stake their claim before their right to do so expired.

The British oil company, whose deepwater Macondo well ruptured on April 20, 2010, killing 11 men and spilling crude into the sea for weeks, revealed the number of new claims made since March 6 in its first-quarter results on Tuesday.

The United States Oil Pollution Act of 1990, under which most of the new lawsuits were registered, has a three year statute of limitations which could make bringing further legal action difficult after the third anniversary of the disaster.

BP said it would be applying to have the new legal challenges consolidated into a trial that is already under way in New Orleans.

The first phase of the trial of BP and its partners in the well, Transocean and Halliburton, ended earlier in April, but the judge, Carl Barbier, has yet to rule on the degree of blame that will be apportioned to each party and on the level of negligence that will be applied.

Both decisions could have a big impact on the size of BP's final liability, already measured in tens of billions of dollars. His ruling, to be made without a jury as is traditional under U.S. maritime law, could come this summer.

BP's Lawsuit Deadline Is Fast Approaching As Thousands Look For New Spill Settlements

BP Plc has been hit by over 2,200 new lawsuits seeking payback for the 2010 Gulf of Mexico oil spill in the past few weeks as individuals, companies and government bodies rushed to stake their claim before their right to do so expired.

The British oil company, whose deepwater Macondo well ruptured on April 20, 2010, killing 11 men and spilling crude into the sea for weeks, revealed the number of new claims made since March 6 in its first-quarter results on Tuesday.

Lee Memorial Health System files suit against BP, citing loss of revenue

Lee Memorial Health System has filed a lawsuit against BP and others involved in the April 2010 Gulf of Mexico oil spill, claiming the loss of tourists led to a loss of revenue at the system's hospitals.

Mary Briggs, Lee Memorial Health System spokeswoman, said attorneys for the health system submitted a claim to BP's claims facility, with 90 days given to resolve the matter before a lawsuit was filed.

"BP has made no indication it intends to make an offer to resolve our claim," Briggs said.

BP's $4.2 Billion Profit Beats Forecasts

LONDON - BP reported first-quarter profit of $4.2 billion on Tuesday, after adjustment for inventory changes and one-off items, handily beating analysts' forecasts.

Even though profit was 11 percent lower than the same quarter last year, Peter Hutton, an analyst at RBC Capital Markets in London, called the report "a very positive set of results." Shares in BP rose more than 3 percent in London trading after the earnings announcement.

Mr. Hutton said BP had earned 30 percent more than analysts' forecasts thanks to start-ups in Angola and Norway and better performance in Trinidad. Mr. Hutton also said costs had been lower than expected.

The chief executive, Robert W. Dudley, said in a statement that "these strong first-quarter results demonstrate the progress BP is making."

The main disappointment in the quarter was an 18 percent year-on-year fall in production in the United States, probably reflecting the company's continued struggles to bring back its core deepwater production in the Gulf of Mexico after the blowout disaster of 2010.

BP is a much smaller company than it was before the disaster, which killed 11 people and spilled millions of barrels of oil. Since the start of 2010, BP has sold about $65 billion in assets to pay spill costs and reshape the company. Production in the first quarter, 2.3 million barrels a day, was down about 5 percent compared with the first quarter of 2012 and roughly half the output of ExxonMobil. In 2009, BP's production was 4 million barrels per day, comparable to Exxon Mobil's.