An adult escort service received $173,000 in compensation because of the Deepwater Horizon oil spill, the McClatchy news service said.

Because of claims like that this, BP is fighting to restrict payouts from the Deepwater Horizon spill fund to those with a direct tie to the 2010 disaster.

The oil company argues that the 2012 settlement agreement has opened the door to hundreds of millions in claims that have nothing to do with the spill

“BP agreed to the deal under pressure as claims mounted from the oil rig explosion that killed 11 workers, led to the biggest environmental disaster in U.S. history and did major economic damage to businesses in the region,” McClatchy reported.

BP expected the settlement fund to cost $7.8 billion. But because of the way the fund is being administered, the cost could eventually be far more.

“BP has been ordered to pay hundreds of millions of dollars — soon likely to be billions — of fictitious and inflated losses,” the company argues. It is again asking a federal court to review the administration of the settlement fund and restrict some of the payouts.

Under the terms of the class-action settlement that BP agreed to, companies aren’t required to show the spill directly caused their losses, experts said.

“Instead, he said, BP and the plaintiffs agreed to a formula where, if a business met the criteria, iLots loss was presumed to be a result of the 2010 spill,” McClatchy reported.

Businesses in Louisiana, Mississippi, Alabama, parts of Florida’s west coast and southeastern Texas can submit claims to the fund.

“BP is taking out full-page advertisements in The New York Times, The Washington Post and The Wall Street Journal, alleging that more than $500 million has been paid in undeserving claims, some to businesses far from the Gulf and others with no real losses. BP is targeting claimants who range from celebrity chef Emeril Lagasse to a Florida RV park owner,” McClatchy said.

A BP ad says an adult escort service received $173,000 with a claim based on sloppy tax returns.

“The IRS wouldn’t accept this claim,” BP said in the ad. “But the Gulf Settlement Program did.”

U.S. District Judge Carl Barbier of New Orleans ruled on Christmas eve that the setttlement agreement is enforceable and that BP has no right to change it now.

BP is asking a federal appeals court to review the fund administration and limit the payouts to businesses that can prove damages because of the spill.


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