10,620 New Orleans area businesses and individuals have filed economic loss claims with the BP Deepwater Horizon Court Supervised Settlement Program (CSSP). The CSSP began receiving claims on June 4, 2012 and will likely continue at least into the Spring of 2015. As of the date of publishing listed above, the precise claim filing deadline has yet to be set. For this reason, all businesses in the New Orleans area that experienced an economic loss as a result of the spill are encouraged to undergo an eligibility evaluation as soon as possible.
Of the 10,620 New Orleans claims currently filed, 1,111 have been paid to-date for a total of $348,000,000 resulting in an average claim value of $205,000. Assuming all 10,620 claims are paid, and no additional claims are filed, New Orleans area businesses will receive $2.1 billion over the next two years.
According to the latest U.S. Census figures, there are approximately 110,000 business and non-profit entities in the Greater New Orleans area. Through our experience in evaluating eligibility for over 2,000 companies and non-profits, we estimate that one-fourth of all New Orleans area businesses suffered a measurable economic loss as a result of the Deepwater Horizon Disaster and are eligible for compensation under this program. Conservatively, that suggests that approximately 28,000 New Orleans entities should file claims, yet to-date only 10,620 have done so, or less than 40%.
As such, this is an economic development matter of great local and regional importance. Our elected officials, Chambers of Commerce, trade groups, professional associations and economic development organizations should actively encourage eligible claimants to participate.
When considering these dynamics, all businesses in eligible BP compensation zones (yellow, purple, red and gray areas) should determine their eligibility. They owe it to their shareholders, employees and community. BP, seeking to avoid punitive damages, agreed, and is contractually obligated to pay, all businesses that experienced a loss “relating in any way to, directly or indirectly, the Deepwater Horizon Incident.” See Settlement Agreement, Section 38.57.