Perspective: The Gulf Coast Claims Facility Limits BP’s Liability and Guarantees Continued Operation in the Gulf of Mexico
27 August 2010
In an article posted on the Donovan Law Group website, Brian Donovan, attorney, marine engineer and CEO of Renergie, Inc. contends that the structure of the Gulf Coast Claims Facility (GCCF) limits BP’s liability via the systematic postponement, reduction or denial of claims against BP; guarantees BP’s continued long-term operation in the offshore Gulf of Mexico E&P sector; and is not necessary to ensure that victims of the BP oil spill are fully compensated for incurred damages.
It was not the legislative intent of Congress for OPA to limit an oil spill victim’s right to seek full compensation from the responsible party. Unfortunately, GCCF, with the complete political and financial support of the Obama administration but without any legal authority for doing so, circumvents many of the rights provided to oil spill victims under OPA. The fact that future production payments pertaining to BP’s US oil and natural gas production, rather than hard US assets, are being used as collateral by BP guarantees BP’s continued long-term operation in the offshore Gulf of Mexico E&P sector. Ironically, the federal government has acquired a vested interest in ensuring the financial well-being of BP.
Full article is here.
"Ironically, the federal government has acquired a vested interest in ensuring the financial well-being of BP." ... as it does all the oil companies because of all the tax revenue governments rake in from oil related taxes.
"Unfortunately, GCCF, with the complete political and financial support of the Obama administration but without any legal authority for doing so, circumvents many of the rights provided to oil spill victims under OPA." ... oil spill victims can simply waive their claim to GCCF money and simply sue BP for damages.
This was a good interview with Ken Feinberg by Greta Van Susteren a while back about the GCCF....
http://video.foxnews.com/v/4276580/uncut-kenneth-feinberg
Ultimately, this sounds like an ambulance chasing attorney...except chasing oil spill victims instead...
Posted by: ejj | 27 August 2010 at 07:52 PM
It does sound a bit like complaining there will not be enough work for lawyers. Ultimately it comes down to the plaintiffs.
It they feel that they are getting justice under this system, then if has served a good purpose, this present opinion not withstanding.
Posted by: SJC | 28 August 2010 at 06:55 AM