In other words, he said, the fund is now “current,” and anyone still calling his process slow or delay-ridden (a common complaint in the fund’s early days) “just isn’t looking at the statistics.” #

To date, the fund has paid out some $5 billion, including slightly more than $2 billion to Florida — more than any other state. #

Of some 131,794 Florida claimants in the fund’s post-emergency phase, 72,446 have received final payments and waived their right to sue BP. Only 4,405 remain under review. Feinberg said those were largely from claimants who had filed in the past few months. #

He cited several reasons for Florida’s high share of the overall payouts. For one thing, Florida has a larger population and a longer coastline than the other states. For another, its claims were concentrated more heavily in the tourism sector — which included many “indirect” losses due to false perceptions of oil-soaked beaches far from where oil actually came ashore. The fund’s treatment of those claims was a hotly contested issue during the fund’s first few months. #

Feinberg was ultimately persuaded by critics, including then-Attorney General Bill McCollum and representatives of the state’s tourism industry, to entertain claims from parts of the state where tourism suffered due the perception of oil on the beaches. #

The fund recently tightened requirements for people who continue to seek interim payments, which don’t require them to waive their right to sue. Feinberg said the changes were intended to ensure they were claiming losses that were tied to the spill, and not a languishing economy. #

He said his ultimate goal was to ensure that 90 percent of claimants receive satisfaction from his fund, and thus avoid resorting to litigation. #

So far, BP has paid out a total of $6.7 billion, including the payments through the fund and another $1.7 billion for government claims and clean-up costs, Feinberg said. The company has planned to set aside up to $20 billion to compensate losses stemming from the Deepwater Horizon oil spill. #

Since the final payment process began, the Gulf Coast Claims Facility has paid Floridians nearly $425 million in “quick payments,” in which individuals and businesses who have already received emergency payments can collect $5,000 and $25,000 respectively without documenting additional damages. #

The fund has paid Floridians another $34 million in interim payments, which allow claimants to come back for more money every three months, and $55 million in final payments, which require them to waive their right to sue. #

Feinberg said the large number of claimants were likely choosing the “quick pay” option because they felt they couldn’t document damages beyond those amounts. #

“Nobody’s required to take the $5,000,” he said. “It’s an option.” #

Fienberg said the fund has been working to resolve the problems that dogged the emergency process, in which claimants complained of “languishing” and struggling to comprehend the status of their claims. The fund has sent out tens of thousands of letters asking for additional documentation, but out of 278,636 claimants, only about 78,000 remain under review. #

He also said the facility is following through on his promise to beef up staffing at local claims offices. #

Feinberg also said the fund has received 8,000 “borderline” claims that raised suspicions of fraud, and has referred 1,000 to the Justice Department for prosecution. #

Have you filed a final or interim claim with the GCCF? Did you opt to take a “quick” payment instead? Share your story: travis(at)floridaindependent(dot)com. #

Here’s the executive summary of the report sent out today by the facility: #

Wednesday marks the first anniversary of the explosion of the Deepwater Horizon oil rig, and the oil spill claims fund is marking the occasion by tooting its own horn and dismissing its critics. #

As the one year anniversary of the Deepwater Horizon Oil Rig Explosion approaches, the Gulf Coast Claims Facility (“GCCF”) continues to process and pay thousands of claimants – both individuals and businesses – that have suffered damages as a result of the Oil Spill. The GCCF began operations on August 23, 2010, assuming control of the claims process from BP (which paid approximately 50,000 claimants an aggregate sum of $398 million over the four-month period from April 20 to August 23, 2010). #

The GCCF continues to staff 35 claims offices located in five states (Alabama, Florida, Louisiana, Mississippi, and Texas); it employs approximately 3,200 people including: claims evaluators, claims intake specialists, call centers, accountants, lawyers, administrative managers and other support personnel. The GCCF will continue to process claims through August 22, 2013. #

The following statistics and comments demonstrate the unprecedented magnitude of the task confronting the GCCF, and its success over the past nine months in processing claims submitted by individuals and businesses impacted by the Oil Spill: #

1. Since August 23, 2010, the GCCF has received approximately 857,000 claims from over 504,000 individuals and businesses.
2. Since August 23, 2010, the GCCF has approved approximately 300,000 claims for payment involving approximately 180,000 eligible individuals and businesses. During the Emergency Advance Payment (“EAP”) period from August 23 – November 23, 2010, the GCCF paid 169,035 claimants approximately $2.6 billion. Since then, the GCCF has paid an additional amount of over $1.2 billion to many of these EAP claimants as well as claimants who filed for the first time after the expiration of the EAP period.
3. Since the end of the EAP period on November 23, 2010, the GCCF has received approximately 278,000 claims and has processed approximately 72% of all submitted claims. A claim is “processed” when the GCCF has made an offer of payment (to which the claimant has 90 days to respond), when the GCCF has made a payment, when the GCCF has sent a notice to the claimant of a deficiency in the proof and documentation submitted to substantiate the claim, or when the GCCF has sent a letter to the claimant denying the claim based on a finding by the GCCF that the claimant is not eligible for any compensation.
4. Since August 23, 2010, the payment of claims breaks down as follows:

• Emergency Advance Payments – Approximately 169,000 individuals and businesses received Emergency Advance Payments of up to six months duration without requiring these claimants to release their right to sue or surrender any other legal rights. The aggregate value of these Emergency Advance Payments is $2.6 billion
• Quick Payments – 110,163 claimants (85,501 individuals and 24,662 businesses) have to date filed and accepted a Quick Payment of $5,000 for individuals and $25,000 for businesses, without any requirement that these claimants submit additional proof documenting their losses. This option is advantageous for claimants who have either already received appropriate compensation through the Emergency Advance Payment Program or cannot prove any additional damage arising out of the Oil Spill. Claimants accepting this Quick Payment option release their rights to either return to the GCCF for additional payments or file any other claims for costs or damages from the Oil Spill. The aggregate value of these GCCF Quick Payments made to date is $998,680,000.
• Final Payments – In the past eight weeks, 16,281 claimants (15,250 individuals and 1,031 businesses) have accepted a Final Payment Offer from the GCCF. In addition, the GCCF has made approximately 16,600 additional Final Payment Offers, which claimants have 90 days to accept or reject. Claimants accepting this option release their rights to either return to the GCCF for additional payments or file any other claims for costs or damages from the Oil Spill. The aggregate value of these GCCF Final Payments made to date is $222,183,102.
• Interim Payments – In the past eight weeks, 6,902 claimants (5,690 individuals and 1,212 businesses) have received an Interim Payment from the GCCF. Claimants receiving an Interim Payment do not release their rights and can return to the GCCF each quarter for additional compensation if the claimant can prove damage caused by the Oil Spill during the previous quarter. The aggregate value of these GCCF Interim Payments is $78,691,137.

Each eligible claimant – whether an individual or a business – can voluntarily elect any one of the three options referenced above (Quick Payment, Final Payment, Interim Payment). The GCCF takes no position as to which option is preferable for a particular claimant. This will depend on the circumstances surrounding each claim and the voluntary decision of the claimant as to which option is preferable. The decision is entirely that of the claimant. #

On this first anniversary of the rig explosion and Oil Spill, the GCCF emphasizes the
following additional points which have been the subject of debate over the past nine months: #

1. Those GCCF claimants who believe that the GCCF has erred in its determinations governing either eligibility or the calculation of damages have the option under OPA to submit their claim to the United States Coast Guard for independent review. To date, the Coast Guard has rendered decisions in 574 cases. In no case has the Coast Guard either differed with respect to the GCCF’s finding of ineligibility or determined that additional money was due a claimant beyond that paid to the claimant by the GCCF.
   
2. Those claimants electing the Final Payment option will be paid two times their actual 2010 documented losses (4 times actual 2010 documented losses for oyster harvesters and oyster processors) less any amounts already received from the GCCF or BP. This formula of future damages is based upon expert opinion available to the GCCF and was arrived at after all interested parties had the opportunity to comment publicly on this proposed formula. Most critics commenting on the formula opined that it was not sufficiently generous; BP publicly opined that it was too generous.The GCCF reserves the right to modify its formula for calculating future damages if warranted as subsequent events unfold. The formula is based on a reasonable prediction — not a certainty – as to the future of the Gulf and a predicted timetable for full recovery. Any claimant who believes that the formula does not adequately take into account future uncertainty may elect the Interim Payment option, which permits the filing of claims quarterly for actual documented losses, delaying the right to file a Final Claim until a future date.
   
3. There has been some public discussion concerning the disparity between claimant damages requested and amounts actually calculated and paid by the GCCF. But this difference in amounts requested versus amounts paid is not a fruitful subject for debate. Amounts requested by claimants very often bear no reasonable relationship to the damages actually proven; in one case a claimant submitted a claim demanding all $20 billion, while in another case a claimant demanded $10 billion. In general, amounts requested by many claimants are well out of proportion to the damage actually substantiated in the claimant’s submission to the GCCF. As a result, the distinction between the amount claimed and the amount paid is not a useful barometer of progress.
   
4. The GCCF has expanded and enhanced the staffing of its 35 local claims offices in the Gulf in response to criticism that these local offices were unable to respond adequately to claimant inquiries about the status of their claims or how the damage calculations were made. These local claims offices are now staffed with accountants, GCCF claims adjusters, systems personnel and local liaisons from Gulf area law firms and claims administration firms retained to meet with claimants to explain the GCCF process. These personnel are able to meet with individual claimants and provide them the type of face-to-face assistance sought by claimants.
   
5. In an effort to promote transparency concerning the claims process, the GCCF published for public comment on the GCCF website its Proposed Final Rules Governing Payment Options, Eligibility and Substantiation Criteria, and Final Payment Methodology. After reviewing all public comments, the GCCF promulgated its Final Rules on February 18, 2011, available on the GCCF website. These Final Rules detail the methodology used by the GCCF to determine both claimant eligibility and the calculation of damages. In addition, the Final Rules also provide GCCF correspondence to claimants detailing the specific reasons why the claim is ineligible or lacking necessary proof.The GCCF claims process is a unique, unprecedented attempt to compensate hundreds of thousands of eligible claimants who have suffered financial damage as a result of the tragic Deepwater Horizon Oil Rig explosion and Oil Spill. Both the volume and complexity of the claims pose a challenge to the efficiency and fairness of the claims process. The GCCF is accomplishing the objectives set out by the Administration and BP in establishing a payment program to compensate the victims of the disaster. The GCCF will continue to make whatever midcourse adjustments are necessary to promote expeditious resolution, transparency, and consistency of the claims process.

#

Instead, what the committee got was a letter from Feinberg explaining that he couldn’t make it, and that he would like to return some time in May to take questions from Florida lawmakers. Problem is, the legislature’s session ends May 6. Siplin suggested the committee could use subpoena power or other means of persuasion to get Feinberg to testify before then. #

“Frankly, I found it insulting,” said Sen. Alan Hays, R-Umatilla, who said Feinberg’s inability to show up suggested he didn’t care about the welfare of Floridians affected by the spill. “What good is it going to do to subpoena somebody who doesn’t care?” he said. #

Feinberg appeared before a House panel in February. He also met with Gov. Rick Scott and Attorney General Pam Bondi during his visit; he pledged to make improvements to the process. #

So far, the Gulf Coast Claims Facility has paid Floridians more than $1.5 billion, but most of it — nearly $1 billion — was paid during the emergency claims process, which wound down late last year, according to its latest data. Another $400 million has gone to 31,525 people and 10,620 businesses who have opted for the fund’s “quick payment” option. #

The letter stresses the urgency of making payments quickly. Last summer was a lost season for much of the Gulf Coast’s economy, and if money doesn’t start flowing soon, 2011 could be too. #

One passage is especially important to Floridians who have had their claims denied or ruled ineligible: #

In resolving claims, it is important to note that [the Oil Pollution Act, which governs the process for oil spill claims] does not create categories of eligible and ineligible claimants. Rather, in determining whether a particular damage resulted from the spill, the GCCF must examine the facts and circumstances of each claim and ascertain whether the harm asserted by the claimant occurred “as a result of’ the oil spill and is a type of harm, such as lost profits, covered by OPA. In so doing, it is relevant to consider the nature of the economy from which the claim arises. In many parts ofthe Gulf, tourism is the economic engine on which many industries and professions depend. #

Former state Attorney General Bill McCollum made a similar argument back in August, when he blasted Feinberg’s protocol for applying a stricter standard than the Oil Pollution Act. #

There businesses of all sorts — perhaps especially in the Florida panhandle — whose fortunes are closely tied to the health of the region’s tourism industry. And there claimants — see here, here and here — in some of those industries whose fortunes were damaged by the spill, but whose emergency payments were denied. #

The Justice Department’s letter continues: #

As we enter this most critical period, I urge you to take a second look at the categories of eligible and ineligible claims that the GCCF applied with respect to emergency advance payments. As noted above, OPA does not create such categories. Rules of decision regarding a particular industry that may make sense further inland may be wholly inapplicable for that industry in a purely coastal community that depends on visitors whose plans changed as a result of the spill. Communities that can demonstrate pervasive effects of the spill on their overall economy should have that evidence credited. The National Pollution Funds Center will issue its rulings based on the particular facts and circumstances of these claims, and the GCCF should, too. #

Can the panhandle demonstrate “pervasive effects of the spill” on its “overall economy?” There are studies showing it can. #

Has your claim been denied or ruled ineligible? Share your story: travis(at)floridaindependent(dot)com. #

The company set up the Gulf Coast Claims Facility (aka the GCCF), which Feinberg oversees, and pays his firm to manage the claims process as part of its obligations under the Oil Pollution Act. An ethics professor hired by the fund said in December that the arrangement was kosher and that Feinberg was “not BP’s lawyer,” but he should clarify what he meant by “independent” in his disclosures to claimants. #

Under Judge Carl Barbier’s order, Feinberg and the facility have to clearly disclose that they are “acting for and on behalf of BP in fulfilling its statutory obligations … under the Oil Pollution Act of 1990″: #

While BP may have delegated to Mr. Feinberg and the GCCF independence in the evaluation and payment of individual claims, many other facts support a finding that the GCCF and Mr. Feinberg are not completely “neutral” or independent from BP. For example, Mr. Feinberg was appointed by BP, without input from opposing claimants or the Plaintiffs’ Steering Committee (“PSC”), and without an order from the Court. Mr. Feinberg is not a true third-party neutral such as a mediator, arbitrator, or court- appointed special master. #

Bloomberg reports that lawyers for spill victims are pleased with the ruling. They’ve argued that Feinberg was misleading claimants in an effort to persuade them not to sue the company: #

“Today is a good day for the thousands of victims of the Deepwater Horizon tragedy,” Jim Roy, a lawyer for spill victims, said yesterday. “With this ruling, the court is protecting the rights of the thousands of victims of this preventable tragedy, and has unequivocally stated that Mr. Feinberg no longer has carte blanche to mislead the public on BP’s behalf.” #

Attorneys for spill victims asked Barbier to order the fund to post information on its website declaring that Feinberg, his firm and the fund are acting as “BP’s agents.” #

Here’s the full ruling: #

Judge: Feinberg is not neutral #

Claims administrator Kenneth Feinberg said the doubling of 2010 damages was intended to account for the unknown future faced by the Gulf Coast. Under the formula, areas that suffered greater losses, such as the Florida panhandle, which relies heavily on its summer tourism season, would also receive greater compensation for losses yet to occur. #

According to the Mobile Press-Register, Feinberg said he expected losses for all of 2011 to be roughly 70 percent and losses for 2012 to be 30 percent of what they were in the eight months that followed the Deepwater Horizon oil spill. He also said he would be recalculating the formula every four months, as conditions change. #

Feinberg said his team “canvassed the universe” seeking information. His formula was based largely on two studies commissioned by the fund to estimate the future economic and ecological consequences of the spill (available below), as well as consultations with various groups along the Gulf Coast. #

The fund will now be taking public comments for two weeks before the methodology is finalized. Comments will be posted on its website. #

The fund stopped making emergency payments in December, and the next round of payments has yet to begin. Has the long wait prompted more claimants to choose the facility’s “quick pay” option, in which they can accept a lump sum of $5,000 for individuals or $25,000 for businesses, in exchange for waiving their right to sue BP or seek future payments? #

“I see no evidence of that at all,” Feinberg said #

So far, the fund has made 32,465 “quick payments” in Florida, for a total of nearly $323 million — almost a third of the money the state has received overall. Roughly 46,000 Floridians have filed claims for final or quarterly “interim” payments. #

See anything in Feinberg’s formula that deserves more scrutiny? Share your thoughts: travis(at)floridaindependent(dot)com. #

Oil Spill Payment Methodology –

Oil Spill Payment Methodology #

Feinberg Oil Spill Studies –
Feinberg Oil Spill Studies #

Based on the work of environmental scientists, economists and other experts, the report acknowledges that “prediction is not an exact science” but estimates that the gulf should recover by the end of 2012. The hardest-hit oyster beds could take much longer to come back, it says. #

Based on those estimates, the damages paid out by the fund would be double the first year’s losses for most of those filing claims, less any money previously paid by the fund. Those whose living is tied to oyster beds would receive four times their 2010 losses. #

Florida officials, including state Chief Financial Officer Jeff Atwater, have sought input on Feinberg’s formulas. The Gulf Coast Claims Facility will be posting all the written comments it receives, including those from public officials, on its website, according to a news release from Feinberg’s staff. #

Feinberg will be releasing the reports and briefing reporters later this morning. #

So far, Atwater wrote, “the claims process has been a nightmare to navigate and completely lacks transparency.” #

We have been on the phone with business owners facing eviction that same day, or who could not put food on their families’ tables that night because their bank accounts had dwindled as they patiently waited for their promised claim payments. #

Atwater wrote that he wants to work with Feinberg, and let his office offer ways to improve the process and speed it up. #

The full letter:

Florida CFO Jeff Atwater’s Leter to Kenneth Feinberg –

Speaking at a Florida Restaurant and Lodging Association meeting in Tampa, Feinberg said some claimants have been reporting inconsistencies — that their neighbors and co-wokers got paid, but they didn’t, or that they got less than they felt they deserved. #

“We’ve made some mistakes,” he said, and the facility will “take another look” at those issues when those claimants seek final and interim payments. #

Feinberg stopped short of offering a formal appeals process, which some Florida officials, including former Attorney General Bill McCollum and outgoing Department of Children and Families Secretary George Sheldon, had been calling for. Right now, only claimants receiving more than $250,000 can appeal the fund’s decisions. #

Feinberg said it has taken him longer than expected to get a handle on the long-term outlook for the Gulf Coast, but that the claims fund he oversees will begin making quarterly “interim” and final payments in February. #

For some members of his audience, who had survived an oil-soaked summer and what for the Panhandle is a characteristically slow winter, the relief can’t come soon enough. Feinberg acknowledged that for many in the state’s hospitality industry, it’s almost time to start investing in things like advertising as they prepare for the coming season. #

“When am I going to get paid?” asked Jeff Stillwell, the owner of Barnacle Bill’s seafood restaurant in Tallahassee, warning that he could be out of business in a month or two if a check didn’t arrive. #

Feinberg pointed him to some of his newest hires — part of a group of Floridians who would be helping claimants get answers about the process, which he admitted had been one of the Gulf Coast Claims facility’s biggest shortcomings in the early going. #

People like Stillwell, whose businesses were struggling to shore up losses from over the summer or otherwise needed money urgently, could have their claims expedited, Feinberg said, while the facility prepares to begin issuing final and interim payments. #

So-called “quick payments” have been moving out the door, but he said he would also speed up payments for claimants who needed immediate help but didn’t want to chose that option. #

He also said he would also make public his eligibility criteria and formula for calculating damages. #

Earlier in the day, he held town-hall meetings in Panama City Beach and Fort Walton Beach. #

Judging by the standard set by some of his early appearances along the Gulf Coast, Feinberg’s was warmly received at the tourism group’s meeting. Its chairman, Keith Overton, announced that he has received a claim worth $800,000 for his Tradewinds Island Resort and said his relationship with Feinberg had moved from “hate” toward “the love side,” according to Bloomberg News. #

Now that the VoO program has ended, Martin still struggles to get by as fishing has not yet resumed in the area of the Gulf where he fishes. Here is his story as told by his fiance. I’ve edited it for clarity.

To start at the beginning, my fiance, James Martin, is a commercial fisherman. He owns and operates his own boat. At the time of the explosion he was fishing 36 miles from the Deepwater Horizon rig. He fished until the government closed everything, trying to keep making a living. He did not file a claim with BP until he HAD to, and had the hardest time getting his claim approved. He brought in every piece of paper they wanted to prove who he is and that he is a commercial fisherman. They finally gave him a check, but it was nothing compared to what he would have made if he had still been able to fish (and he only got 2 checks from BP).

When the VoO program was implemented, he took the [training] classes, got certified and got his boat to start working for clean up. At first he was just another boat trying to work, next he was made a strike team leader. This put him kinda like a supervisor with a few smaller boats under him. Then he became task force leader, with bigger boats under him. They did this because he knows these waters here in the river, the bay and also the Gulf. The VoO program paid him on time without question as long as he turned in his invoices. Now that the VoO program has been dismantled, you would think that BP would at least pick up sending him the monthly check again. But no, he hasn’t had a check since September.

After Feinberg took over, all of his paperwork was sent to Ohio, and he had to refile (8/23). We started online but it was too confusing since it is a business claim so we took it to the local GCCF office and let the agent in the office [fill out] the booklet. The booklet was complete, no pages torn out, but two weeks later we check into what is taking so long and the person at the GCCF 800-number said we didn’t send pages 2, 3,and 11.  (they lost this, not us) so we go back in to the office, complete another booklet, overnight it and wait another week.

He gets told one time it’s “under review” and should receive a check soon. Another 10 days go by, he calls again, they say they don’t have proof he is a commercial fisherman (they lost it). So we send them the documentation on the boat, his commercial hook and line license, and his reef permit.

It is now going on nine weeks since we filed his claim, we are about to lose both trucks on Friday (had to pawn titles to have money to live off of while waiting on this check). Our power will be turned off on Nov. 18 and we will be getting an eviction notice in December. His claim status online states “additional documentation needed.” What more do they need from him? They have everything, so why hasn’t he gotten even the first emergency payment?? What constitutes an emergency with those people??

He still can’t go fishing because the waters he fishes in are still closed. Someone has to do something. These communities and these people down here in southern Alabama deserve better treatment. This is our livelihood. All the fishermen and their families have been counting on BP and Feinberg to help us out, but we are the forgotten ones.

We have watched as people here that have lost nothing and have had nothing to do with fishing get checks. A friend who works in a credit union in Pensacola, Fla., had a girl come in with an $80,000 check. She told the clerk that she works at Cookies and Cream (a strip bar) and said she filed for loss of business. What? What?  Loss of business…a stripper?  Give me a break.

Also, I personally know of a man that filed as a captain of a commercial fishing boat (three trips as captain). He only fished from November until April and so far has gotten well over $100,000. A cook at the restaurant down the road from here got $40,000, and the dishwasher there got $20,000.  It is extremely frustrating and I’m not sure what will happen once we lose everything. He can’t take much more, this is gonna cause him to have a heart attack.?