economic and properyt damages settlement/ medical settlement

8/2/2019 Economic and Properyt Damages Settlement/ Medical Settlement

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1

*****

******

*

Economic and Property Damages Settlement

Medical Settlement

MDL NO. 2179

IN THE UNITED STATES DISTRICT COURTFOR THE EASTERN DISTRICT OF LOUISIANA


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Structure

United States District Court (Judge Barbier)

2

Deepwater Horizon Court SupervisedSettlement Program

Claims AdministratorPat Juneau

Key Vendors1. Garden City Group

2. Brown Greer3. PWC

4. Postlethwaite & Netterville

5. Administrator may add additional Vendors


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United States District Court Retains Jurisdiction

3

GarretsonResolution Group

Medical

Structure


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Structure

United States District Court (Judge Barbier)

Vo0

Subsistence

4

Economic Loss

BusinessIndividual

Seafood

Claims AdministratorOversees

Promotional Fund

Coastal

Property Loss

Realized

Sales

VesselPhysicalDamage

Physical Damage toPersonal Property

Wetlands


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General Principles

Class Membership

Damage Ca tegory Cla im (one or more)

Geog raphica l Loc a tion

Causation Standard

Zone (Map)

Doc umentation o f Ca usa tion Presumption

% of Loss

Customer Mix Spec ific Contrac t

Doc umenta tion of Loss

Compensation Ca lc ula tion

App lica tion o f Risk Transfer Premium (RTP)5


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Geographic al Loc ation Gulf Coast Areas


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7

Geographical Loc ation


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Determination of Class Membership

Geographical Loc ation

Gulf Coast AreasLived in, wo rked in, ac c ep ted wo rk in, owne d or lea sed p rop erty in, vesselhome p orted in or land ed catc h in

Spec ified Gulf WatersUS Waters of the Gulf of Mexic o a nd a ll ad jac ent bayou, estua ries, straits andother tida l and b rac kish w a ters within Gulf Co ast Area s, as spec ific anddesc ribed in Ex. 23 (Spec ified Gulf Waters)

Damage Category

1.3 - Ind ividua ls and Entities who meet the g eographic a l desc rip tions ofSec tions 1.1 or 1.2 above a re inc luded in the Ec ono mic Class ONLY IFtheir Cla ims meet the d esc rip tions of one o r more of the Da mageCa teg ories desc ribed below.

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Damage CategoriesIndividual and Entity

Economic Damag e Category[1.3.1.2.]

Sea food Com pensation Prog ramCategory [1.3.1.1.]

Property Damage Category

[1.3.1.7. , 1.3.1.6.] Subsistenc e Damage Ca tegory

[1.3.1.3.]

Vessel of Opportunity (VoO)Category [1.3.1.4.]

Vessel Physical Damage

Category [1.3.1.5.] Coastal Real Property Damage

Category [1.3.1.6.]

Wetlands Rea l Property DamageCategory [1.3.1.7.]

Real Property Sales Damage

Category [1.3.1.8.]

Individua ls/ Employees in

Otherwise Exc luded Industries

[1.3.1.9.] Individuals/ Employees in Support

Services to Oil & Gas Industry

[1.3.1.10]

Businesses/ Employers in Otherwise

Exc luded Industries [1.3.1.11.]

Businesses/ Employers in Support

Services to Oil & Gas Industry

[1.3.1.12.]

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Economic Damages Categories

Business

Self Employed Individual

Failed Business

Start-up Business

Failed Start-up Business

Multi-Fac ility Business

VoO Charter Payment

Subsistenc e Damage

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Property Categories

Real Property Cla ims

Real Prop erty Sales Damage Claims

Coa stal Rea l Property Damage Claims

Impa ired Use and Enjoyment

Physic a l Damages to Rea l or Persona l Property

Wetlands Real Property Damage Claims Impa ired Use and Enjoyment

Physic a l Damages to Rea l or Persona l Property

Vessel Physical Damage11


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Individual Claimants

Individual Claimants (an Ind ividua l may have multip le c la ims):

I. With Contem poraneous Tax Doc uments for 2010 and Benc hmarkPeriod

II. With Pay Period or Other Earnings Doc umenta tion fo r 2010 and

Benc hmark PeriodIII. With Earnings Doc umenta tion for 2010 but w ithout Benc hmark period

Earnings

IV. Without Earnings Doc umenta tion who Submit Individua l and EmployerSworn Written Sta tements to Esta b lish Earning s

V. Individual Periodic VendorsA. Up to $12,000

B. RTP of 1 May App ly

VI. Festiva l Vendors

A. Up to $12,000

B. RTP of 1 May App ly 12


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Standard Approach

Causation

Documentation Calculate Compensation

Apply RTP (if applic able)

Deduc t Cash Credits (if applic able)

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Zone Presumptions

Presump tion ZoneA

Presumption ZoneB

Zone C Zone D

Sea food IndustryPrimary

Gets Presumption Gets Presumption Gets Presumption Gets Presumption

Secondary Gets Presumption Gets Presumption Gets Presumption

Req uired to m eet

Ca usation Nexus

Tourism Industry Ge ts Presumption Ge ts PresumptionReq uired to mee tCa usation Nexus

Req uired to m ee tCa usation Nexus

Restaurants Gets Presumption Gets PresumptionReq uired to m eetCa usa tion Nexus

Req uired to mee tCa usa tion Nexus

Other Industry Gets PresumptionReq uired to m eetCa usation Nexus

Req uired to m eetCa usation Nexus

Req uired to m eetCa usation Nexus

Causation All PresumptionSeafood/ Tourism

PresumptionSea food

PresumptionProof


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Summary of Revenue Pattern Requirements for Causation Tests

Test

Zone A

Zone B

(Non-Tourism a nd

Non-Seafood)

Zone C

(Non-Seafood)

Zone D

Down

UpDown Up Down Up Down Up

V-Test N/ A -8.5% 5% -8.5% 5% -15% 10%

Modified V-Test* N/ A -5% 5% -5% 5% -10% 7%

Down Only test* N/ A -8.50% N/ A -8.50% N/ A -15% N/ A

*= For the Mod ified V-Test and the Down Only Test, additiona l requireme nts ap ply, a s de sc ribe d in Exhibits.


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Business Economic Loss Framework

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April 20, 2010

Benc hmark Yea rs Compensation Period

2007 2008 2009 2010

Benchmark Period same monthsclaimant selected for compensationperiod averaged if use < 2009

May Jun Jul Aug Sep Oct Nov Dec

Claimants Selects any 3 months or moreconsecutive


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Risk Transfer Premium

An enhancement fac tor multip lied by theCompensa tion Amount

Ac c ounts for risk of future injury, future oiling ,uncerta inty, etc .

Works as a multip lier

If someone ha s an RTP of 2.0, it is an e ffec tivemultip lier of 3.0

Example:Compensation Am ount = $100,000

RTP = $200,000

Tota l Compensa tion = $300,000

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Real Estate Sales Losses

In q ua lified Zones

Rea lized Sa le of Residential Property

Enter Contrac t a fte r April 21, 2010 and Close BeforeDec ember 31, 2010 (Limited Exc ep tion for Contrac tsEntered before April 20, 2010)

Compensa tion = Sa les Price x 12.5% (No RTP)

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Coastal Real Property Damage

Loss of Use and Enjoyment

Property Tax Va lue Based as Norma lized Ac ross Gulf

(Tax Appra ised Va lue x 1.18%)= Norma lized Tax

Value Norma lized Va lue x (30-45%)= Base Compensa tion

Percentage Rec overy based on Oiled / Non-Oiled

Minimum of $800-$1,100 on Base depend ing upon

Zone RTP = 2.50

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Wetlands Real Property Damage

$25,000 Per Ac re Primary Oiled - 50 foot d ep th

$11,000 Per Ac re Primary Non-Oiled - 30 foot dep th

$10,000 Per Ac re Buffer- 30 foot d ep th

$4,500 Per Ac re Buffer Non-Oiled - 30 foot d ep th Based on leng th o f linea r foo ta ge of SCAT and

NRDA assessment lines

Minimum of $4500 - $35,000

RTP = 2.50

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VoO Charter Payment

WORKING VoO PARTICIPANTSBoat Size Amount of Compensation

Less than 30 feet $41,600

30 feet-45 feet $49,400

46 feet-65 feet $62,400Greater than 65 feet $88,400

NON-WORKING VoO PARTICIPANTS

Boat Size Amount of Compensation

Less than 30 feet $4,800

30 feet-45 feet $5,700

46 feet-65 feet $7,200

Greater than 65 feet $10,200

Chart A

Chart B


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Subsistence Claims

Cla imants Eligible

Natura l persons who fish or hunt to ha rvest Sea foodor Ga me in a trad itiona l or c ustomary manner, to

susta in his or her basic persona l or family needs. Thisincludes:a)Commerc ia l Fishermen

b)Sea food Crew

c )Ind ividua ls hold ing a rec rea tiona l fishing lic ense, p rovidedthey sa tisfy other elements of the c la imant definition

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Subsistence Claims

Copy of fishing lic ense (unless exc lud ed from fishing lic enserequirement)

Ident ific a tion of Fishing Area

Claim form and Supporting Affidavit re number of p eop le

relying on Sea food and Ga me harvested by c la ima nt, spec iesand amounts of Sea food and Ga me relied upon

Ad ministra tor may request a n interview

Value of lost na tural resourc es (in average post-sp ill reta ilp ric es) Ca p of $10,000 per extended family

Ad ministra tion c an exc eed c ap a fter investiga tion

RTP = 2.25

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Seafood Compensation Program

Oyster Compensa tion Plan

Shrimp Compensa tion Plan

Blue Crab/ Other Seafood Compensa tion Plan

Finfish Compensa tion Plan Seafood Crew Compensa tion Plan

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Seafood Compensation ProgramGeneral Principles

$2.3 Billion Sea food Fund

$1.9 Billion Initia l Distribution p er Neutra l s Dete rmina tion of

Fa ir and Adeq uate Comp ensation

File C la im Now and Be Compensa ted Now

Exc ep tion for Sea food Crew Ca tegory 2 and 3

Bar Date 30 Days, Post Distric t Court Ap prova l

Sec ondary Pro-ra ta Distribution o f Ba lanc e Transition Payments

Quic k Pay Payments

Estima te of Cla ims Volumes

Prior GCCF Payment Offset

Opt - out Volume 26


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Category Compensable Claims

Shrimp Vessel Owner/Commerc ial Fisherman Vessel LesseeClaims

Boa t Cap tain Claims

Oyster Lea seholder Interest Cla ims Lea seholder Lost Inc ome Claims

Vessel Owner/Oyste r Harvester Vessel Lessee

Claims


Finfish Vessel Owner/Commerc ial Fisherman Vessel LesseeClaims


Ind ividua l Fishing Quota Holder Cla ims

Blue Crab/Other Vessel Owner/ Com merc ial Fisherma n

Vessel Lessee Claims Boa t Cap tain Claims

Seafood Crew

(excluding Captains) for

all Seafood Industries

Crew Claimants with Stand ard Doc umentation

Crew Claimants with Doc umentation Supp lied by

Employer

Crew Claimants with Doc umentation Supp lied by

Non-Employer

S f d A R


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Shrimp$264.89m110.58million (lbs.)

Oyster$65.66 m21.34million (lbs.)

Fin Fish$69.81m53.15million (lbs.)

Blue Crab$42.41m54.61million (lbs.)

Other$33.35m8.86 million (lbs.)

TOTAL: $476.12 (millions)

Seafood Average Revenue2007-2009 The Gulf Coast Area

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AVERAGE

2007 20092010 REDUCTION

Revenue

(millions)

Volume

(million)

Revenue

(millions)

Volume

(millions)

Revenue

(millions)

Volume

(millions)

Shrimp $264.89 174.40 $241.50 135.10 -8.8% -22.5

Oyster $65.66 21.34 $51.62 14.81 -21.4% -30.6

Blue Crab $42.41 54.61 $39.78 39.64 -6.2% -27.4

FIN FISH $69.81 53.15 $54.98 45.21 -21.2% -14.9

Other $33.35 8.86 $43.03 8.43 29.0% -4.8

$476.12 $430.91 % DropRevenue

-9.5%

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General Approach(Vessel Owner, Vessel Lessee, Boat Captains)

Claimant Spec ificHistorical Revenue

All or Part of 2009,2008, 2007

Ad just for Non-LaborVariab le Cost

Ac tual Rec ordsRange of 12% - 54%

Revenue Loss

Presumed 31

Share

Vessel Owner/ LesseeBoa t Capta in

Apply RTP

Cash Credit Deduc tions

Final Compensation


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Loss RTPCategory 1 Tax Return 37% 2.25

Pay Period Records

2009, 2008-2009,2007-2009

Category 2 Employer Statements 37% 2.25

Work Ava ilab ility

80 million Distribution Ava ilab le

Cap of $9,500 p re-RTPCategory 3 Cla im Sta tement $5,000 None

2 Sponsor Sta tements

$5000 Fixed Amount

50 million Distribution Ava ilab le

Seafood Crew Compensation Plan3 Categories

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Compensation Methods

Ac celerated Compensation Method

Vessel Size Model for Shrimp

Oyster Leasehold Ac res

Ind ividua l Fishing Quo ta / Sha res Fin Fish

Crab Traps

Revenue Model

Trip Tic kets/ Equiva lent

Tax Returns

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Seafood Compensation Program Projection

Species BenchmarkRevenue(2007 - 2009

Average, $ Mm) Owners Captains Crew

OysterLeaseholders/

Crap TrapOwners/Quota

Holders TotalFull ExpectedCompensation

Compensation

As A % OfIndustry Total

Revenue

Shrimp $264.89 $462 $335 $81 NA $877 $1,044 3.94

Oysters

Oyster LostIncome $65.66 $76 $68 $13 $60 $218 $259 3.94

OysterLeasehold

Interest $579 $579 $689 10.49

Crab & OtherBlue Crab $42.41 $55 $28 $10 $4 $97 $116 2.73

Other $33.35 $10 $5 $2 $1 $18 $22 0.64

Fin Fish $69.81 $50 $33 $10 $50 $144 $171 2.45

Total$476.12 $654 $470 $116 $694 $1,933 $2,300 4.83

Estimated InitialCompensation ($MM)

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Seafood Compensation Program

Species

Loss

Percentage

VesselOwner/

Lessee Captain Crew

VesselOwner/

Lease Captain Crew Leaseholder

Shrimp

75' (Freezer) 35% 45% 25% 30% 8.25 7.25 2.25

Oysters 40% 40% 40% 20% 8.75 7.75 2.25 8.75

Fin Fish 25% 45% 35% 20% 6.00 5.00 2.25

Blue Crab 35% 50% 30% 20% 6.00 5.00 2.25

All other 10% 50% 30% 20% 5.50 4.50 2.25

Stakeholder Split Risk Transfer Premium

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Shrimp Compensation Plan Expedited Model


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Shrimp Compensation Plan Expedited ModelSize

QualifyingRevenue

Owner-OperatorCompensation(including RPT)

VesselOwner/CommercialFisherman Vessel

Boat CaptainCompensation

Full Expedited Model:

75' (Freezer) $400,000 $871,500 $582,750 $288,750

Reduced Expedited Model:

75' (Freezer) $290,000 $684,750 $457,875 $226,875

Class Memb er:Eligibility: Hom e Port (Panha nd le - LA - Texas Line)Historic a l Revenue ((2007-2009)Boa t Ca p ta in - Based on Spec ific VesselReduced: Revenue Lower

Proof: Trip TicketsEquivalent Rec ords

Tax ReturnsVe ssel Size 36


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Individual Claimants

Individual Claimants(an Ind ividual may have multip leclaims):

I. With Contemporaneous TaxDoc uments for 2010 and

Benc hmark PeriodII. With Pay Period or Other

Earnings Doc umenta tion fo r 2010and Benc hmark Period

III. With Earnings Doc umenta tion for2010 but Without Benc hmarkPeriod Earnings

IV. Without Earnings Documentationwho Submit Individua l andEmployer Sworn WrittenSta tements to Esta b lish Earning s

Step 1:Ca lcula te Cla ima nt sLost Earnings

Step 2:App ly Risk Transfe rPrem ium (if app lic ab le)Step 3:

Determine Cla imantsCompensation

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Reserved Claims

Economic Damageby an Entity orInd ividua l Based on

Their Employment byan Exc lud ed Entity

Bodily Injury Claims

Shareholder Claims

Moratoria LossClaims

Menhaden Claims

Punitive DamagesAga inst Ha lliburton

and/ or Transoc ean Assigned Claims

Aga inst Ha lliburtonand/ or Transoc ean

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Excluded Industries And Entities

Sta te Munic ipa lities

Opt Outs

Court Emp loyees

BP (or othe r defend ants)Employees

Banking Ind ustry

Fund s, Trusts and Other

Financ ia l Vehic les Defense Contrac tors and

Their Sub -Contrac to rs andSuppliers

Gaming Industry

Insuranc e Ind ustry

Oil & Gas Ind ustry

Rea l Esta te Developersor Sellers

BP Brand ed Fue l

GCCF Fully Released

Claims

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Transition Status

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Payments Issued 6,432 $189,107,347.91

(a) 100% Final Payments 94 $12,203,944.44

(b) Interim Payments 1,112 $17,419,111.89

(c) Business Quick Payments 828 $20,504,354.63

(d) Individual Quick Payments 869 $4,320,302.49

(e) 60% Final Payments 3,246 $134,082,371.07

TRANSITION ACTIVITYFrom Marc h 8, 2012 through April 20, 2012


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Claims Appeal Process

Cla ims c an be rec onsidered and reviewed to assureac c urac y, transparenc y, independenc e andadherenc e by the Settlement Program to the terms ofthis agreement.

1 million dollarsThree Mem ber Appea l Panel

BP and Cla imant sub jec t to filing fee

Cla imant Preva ils on BP Ap pea l, award is inc reased by5%

Court has Inherent Jurisd ic tion

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Claims ProcessingUnder Settlement Program

Must file a Cla im Form

Doc uments and information with GCCF will beautomatic a lly transferred

All payments under Settlement Program a re finalpayments with a release

A Cla imant can file multip le c la ims Onc e a Cla ima nt rec eives a payment for a Cla im, Cla ima nt

has 6 months to file a ll remaining c la ims

Cla ims Program will exp ire by the la ter of: 6 months a fter the Effec tive Date (fina l judgment a nd a ll

appeals)

April 22, 2014

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Presentment Provisions

4.2.5:

Ec onomic Class Members with exp ired offers from theGCCF who Op t Out o f the Ec onomic Class sha ll bedeemed to have sa tisfied the p resentment req uirements

under the Oil Pollution Ac t o f 1990 ( OPA )

7.3.2:

Reg ard less of whether the Ag reement bec omes effec tive,Cla ims with a sum c erta in and some d ocumenta tion

and/ or other p roo f that a re submitted to the SettlementProgram sha ll be deemed to sa tisfy p resentment and a llrequirements of 33 U.S.C. 2713.

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Settlement Value

No Cap on the Settlement

Seafood Compensa tion Program $2.3 b illion

Common Benefit/ Class Counsel Fees and ExpensesPa id by BP on top of Payments to Class Members

Administration Expenses Pa id by BP

Notic e Program and Supp lementa l InformationProgram ($5million) Pa id by BP

Gulf Tourism and Sea food Promotiona l Fund

($57million) pa id by BP Settlement Guaranteed by Two Guarantors Afte r BP

Exp lora tion and Produc tion BP North Am eric a

economic and properyt damages settlement/ medical settlement

Documents