In April 2012, BP agreed to a $7.8 billion settlement. The Settlement provides relief for the entire Gulf region. Businesses, nonprofits, and individuals located in the following counties may be eligible:• All counties in Alabama • 30 counties-Gulf Coast of Florida• All parishes in Louisiana • 4 counties-Gulf Coast of Texas• All counties in Mississippi
Alabama Louisiana MississippiAll counties eligible All parishes eligible All counties eligible Florida Texas 30 Gulf Coast counties are eligible 4 coastal counties eligible
Alabama Louisiana MississippiAll counties eligible All parishes eligible All counties eligibleFlorida•30 counties eligibleTexas•4 counties eligible
The Settlement Overview• Generally, all businesses, nonprofits, and individuals located within the Gulf Coast area are eligible to participate in the claim.• Economic damages can be claimed if you lived, worked, or owned a business in Alabama, Louisiana, or Mississippi.• Certain coastal areas in Texas and Florida are also eligible.
The Settlement Economic Loss Zones• Four geographic zones (Economic Loss Zones) determine eligibility to file a claim.• Zone A is automatically presumed by the courts to have established causation.• Zones B, C, and D can demonstrate causation using a financial formula.
5 States in the Gulf Coast Region are Eligible Zone A is presumed by the courts to have established causation.Zones B, C, and D must demonstrate causation using a financial formula.
The Settlement Causation• In legal terms, “causation” means liability, or the same as saying that one is at fault and responsible for the damage.• The BP settlement is unique in that individuals and businesses with claims (claimants) are not required to prove that their economic or property damage was “caused” by the oil spill.• In the case of Zone A, the courts have presumed “causation” based on the location of either the property or the claimant. • For Zones B,C, and D, “causation” can be demonstrated by a financial formula.• Once you have established “causation,” you are eligible for a claim.
The Settlement Claim Calculation• Once “causation” is established, the amount of economic loss is determined by calculating variable profit lost during the oil spill period. • Variable profit refers to revenues less variable costs. • Monthly variable profits are compared to a historical •Alabama benchmark to determine the amount of economic loss. •Louisiana• The settlement pays for lost variable profits and includes a •Mississippi growth factor and a risk transfer premium (RTP). •Florida• The RTP is a multiplier applied to the economic loss based on •Texas the zone and industry in which the business operates.
Almost all types of businesses, nonprofits, and individuals qualify.• In summary, if you lived, worked, or operated a business or nonprofit in an Economic Loss Zone and,• You experienced a decline in revenue or income, or even if you didn’t experience a decline, you may qualify.• You don’t have to have lived or worked on or near the coast.• You don’t have to prove direct harm from the oil spill.