BP Settlement For Businesses

BP Settlement Business

The business BP settlement looks like this in its proposed version. This settlement was made more for the primary group of business that was hurt by the BP oil spill, where people with business that relied on the primary group to buy their products where let out. The business in the primary group would be the tourist industry and seafood industry. So anybody relying on tourist was obvious hurt by the 2010 BP oil spill and this BP business settlement is mostly geared towards this group of business.

We will look at what information is available right now about the BP settlement process and how it might affect your business to opt in or out of the settlement.

A Little Bit About The BP Settlement For Business

We all know how bad the GCCF was working for business with paperwork and modifications to paperwork requirements. We also know that the GCCF process was a bit of luck of the draw if you where getting paid or not. The BP business settlement reach on Friday the 2 of March 2012 promises transparency and speedy payments. I know we have hear all this before but this time the settlement process will be court supervised and I really hope that helps in getting people paid.

It does not take a rocket scientist to figure out what business was hurt by the BP oil spill and I guess now after 2 years this settlement has spend years and millions figuring that out also. So with that in mind they have agreed to pay primary business affected by the BP oil spill. The BP settlement has to reach a final form before April 16 2012 and must be submitted to the judge for approval and after the judge has approved it the BP settlement process has 30 days to get their operations ready.

I expect the BP settlement process to start paying out to victims around june 1 2012, hopefully at that time they will make the payments flow quickly to everybody that are waiting for compensation.

Who Can Use The BP Settlement Process

The BP settlement will be an opt in  or opt out process where your attorney will send you a letter after the final BP settlement is agreed on, this letter will explain to you what your attorney recommend you to do in relationship to the BP settlement. He will have looked at your case and give you a recommendation to opt in or opt out of the BP settlement. Its your choice but since many groups of business are not included in the BP settlement and since the legal BS in these kind of situations are big I would advice everybody to listed closely to their attorney in this situation. If you still need an attorney for the BP settlement fill out the form on the right hand side.

Now here is a list of business that are included in the BP settlement

  • Fishing Industry, commercial fishermen, charter fishermen, oystermen, crabbers, shrimpers etc
  • Seafood industry, seafood processing,
  • Tourist industry, Hotels, Motels, RV parks, Tour operators, Water sports rental, gift shops
  • Restaurants, catering,
  • Vacation rentals
  • Taxi Drivers
  • Construction, real estate agents, Property Managers
  • Marina

I am sure that there are many more primary industries that was affected by the BP oil spill in 2010, if your business was affected by the fewer tourist or the seafood stigma then this settlement is made for you.

Business BP Settlement Document Requirements

In the proposed Business BP Settlement the document requirements are going to be less, a whole lot less than under the GCCF. So the proposal says that you can take the worst 3 month of 2010 and compare it to the same 3 month in 2009, 2008 or 2007 what ever makes your claim the biggest.  So you would provide Profit and loss statements from 3 month of 2010 and from 3 month of 2009 or 2008 or 2007.  Also you would provide any business license or federal tax id on your business.

Here is a list of documents you should provide for the BP Business Settlement though your attorney.

  • Federal Tax Id
  • Federal Tax return for 2010, 2009, 2008,2009 (2010,2009 required)
  • State or federal license held in your business, (charter boat, commercial fishing, capt., occupational etc.
  • Profit and Loss statements for the 3 month in 2010 and for the 3 month in 2009 or 2008 or 2007
  • Address on place of business

There could come more to this list of Business BP settlement documentation but that is what I have right now.

Business BP Settlement Class Zones

In the proposed BP Business settlement the claimants are divided up into zones, its a geographical zone of where you business where located. If you business was closed to the beach you don’t have to prove causation of your losses.

The reason for the BP settlement zones are the causation issue where in some zones its stipulated or agreed to that the BP oil spill caused your damages and in other zones you still have to prove it.

In the settlement proposal there are 4 zones

  • Zone A :
  • Zone B:
  • Zone C:
  • Zone D:

Please see the BP Settlement Zone Maps

This is all about if you have to prove your losses came from the BP oil spill, if you don’t have to prove that and all you have to prove is losses that would be great. If you look at the Zones I have put up the following is true under the proposed  BP settlement agreement.

Zone A:  All business in Zone A will have presume causation so no need to prove causation no mater what your business is you just have to prove the loss in 2010

Zone B: Tourist Industry and Seafood industry gets presumed loss as the BP oil spill all other business categories have to prove the BP oil spill caused their loss

Zone C: Seafood get presumed losses but Tourist Industry and other business have to prove the cause of their losses where the BP oil spill. On a side note for all tourist industry in Zone C the tourist date from like

NAICS Association will be enough to prove cause of the loss, so not to worry if you have an attorney.

Zone D: All business have to prove causation of their loss to the BP oil spill.

Calculation Models For Business BP Settlement Claims

This is one of the most important parts of the BP settlement is the calculation models they will be using or multipliers to compensate you for your loss. Here is how they will look at business.

Tourist Business Multiplers

BP Settlement Claim TypeBP Settlement RTP and Multiplier
BP Settlement Claim TypeBP Settlement RTP and Multiplier
Tourist Business Zone ABusinesses satisfying the Tourism Definition and located in Zone A -- RTP is 2.50 Multiplier 3.5
Tourist Business Zone BBusinesses satisfying the Tourism Definition and located in Zone B -- RTP is 2.00. Multiplier 3.0
Tourist Business Zone CBusinesses satisfying the Tourism Definition and located in Zone B -- RTP is 2.00. Multiplier 3.0
Tourist Business Zone DBusinesses satisfying the Tourism Definition and located in Zone B -- RTP is 1.25. Multiplier 2.25

There will be a list of all the different business in BP Settlemnt calculations

I promise you that the BP settlement document is not easy to read and there are lots of different ways you claim can go, so make sure that you put your business claim into the attorneys by using the forms on the right hand side.

BP Settlement Calculation Example:

We have a business that calculated a loss in the worst 3 month of 2010 of $30,000 compared to the same month in 2009. Now that $30,000 profit loss is timed by 4 and it will be a yearly profit loss in 2010 of $120,000

The business is located in Zone A and will get a 2.5 multiplier or risk transfer put on his $120,000 loss and will be paid $300,000 from the BP Settlement for his  business loss because of the BP oil spill. If that same business was located in Zone B or C it would only be paid $240,000 from the BP settlement.

That is the proposed settlement agreement for the 2010 BP oil spill. The closer your are to the water the higher your multiplier will be according to the BP settlement.

 What To Do Next With Your Business BP settlement Claim

If you have not gotten an attorney yet to represent your BP claim in the settlement you should sign up now to get one. Fill out the form on the right and that will get you to an attorney. You will be able to follow all the developments here on the blog and never be left out in the dark.

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