Showing posts with label spill. Show all posts
Showing posts with label spill. Show all posts

Sunday, May 20, 2012

Fla. county approves changes after oil spill fraud

Fort Walton Beach, Fla. (AP) -- Amid a criminal investigation into the alleged misuse of funds paid by BP after the 2010 Gulf oil spill, a Florida Panhandle county made big changes Tuesday in the way it oversees spending for promotion of the area's world-famous beaches.

An attorney advising Okaloosa County commissioners said they could not wait for state auditors, the sheriff's auditors and the FBI to finish investigations into misspending of bed tax and BP funds before making the changes.

"These changes are not the end, they are merely the beginning but we feel they are crucial to the integrity of the process," attorney Greg Stewart told commissioners. They approved changes that included requiring all purchases over $25,000 by the Tourism Development Council be approved by the county's administrator or the county commission.

The move came less than two weeks after the county's former tourism director died of an apparent suicide. Investigators had unearthed more than $1.4 million in questionable spending on his home and a yacht.

The sheriff's office said last week it was expanding its inquiry, but said the investigation was ongoing did not release details.

The state is conducting forensic audits.

Also Tuesday, commissioners required that the agency's contracts conform to the rules for other county departments. Other departments require task orders detailing the purposes of the expenditures and requiring various levels of approval, Stewart said. The TDC contracts had no-such safeguards. Stewart said many other county tourism agencies in Florida require such task orders.

Interim tourism director Greg Donovan said he has spent his first week on the job fielding questions and trying to figure out the "jigsaw puzzle" that is the Okaloosa County Tourism Development Council. Donovan was the county's airport director before stepping into the interim post.

"Our first priority is to make sure we facilitate all law enforcement requests; that is paramount," he said.

But Donovan said there is another concern: What could happen if the Fort Walton Beach area falls behind in the aggressive competition to market itself as a vacation destination.

"There are thousands of communities out there competing and if you live in Tennessee and you are out there making that decision of where you are going to vacation and this location falls of the map for a year or two because of our lack of promotional capability, it will hurt us.

The TDC cancelled a plan to take an RV to South Carolina to promote the region in a "Boast the Coast" event, but the agency wants to continue a Father's Day giveaway of week's beach vacation and Jeep. Donovan told The Associated Press on Tuesday that he didn't immediately know how much the Father's Day package cost or if the money came from BP or bed tax funds. He said he would provide that information later Tuesday afternoon.

BP provided millions to Gulf counties after the oil giant's massive oil spill. Much of the money went to promote tourism along Florida's white-sand beaches after hotels, restaurants and other tourism-dependent businesses complained that the 2010 tourism season was ruined because of the perception that the oil had reached their beach.

The oil washed ashore on Pensacola Beach and tar balls and tar mats came on shore further east from Navarre Beach to Panama City. Nonstop news coverage of the spill cleanup and environmental monitoring and anxiety about the spill spreading throughout the Florida cause tourism to plummet for months.


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Saturday, May 5, 2012

Judge pushes civil trial over BP spill into 2013

NEW ORLEANS (AP) -- The federal judge who will decide whether to approve a class-action settlement of claims against BP PLC has scheduled a January 2013 trial for other claims spawned by the deadly blowout of the company's deepwater well in the Gulf Mexico.

After meeting Thursday behind closed doors with attorneys, U.S. District Judge Carl Barbier scheduled the start of the trial for Jan. 14, 2013.

The Justice Department wanted the trial to start this summer, but BP asked Barbier to wait until after he decides whether to give his final approval to the settlement agreement. Barbier is scheduled to hold a "fairness hearing" on the proposed settlement on Nov. 8, 2012.

The first phase of a three-phase trial originally was scheduled to start Feb. 27, 2012. Barbier postponed it indefinitely after BP and the Plaintiffs' Steering Committee announced they had reached a deal that would resolve billions of dollars in claims by more than 100,000 claims by people and businesses blaming economic losses on the 2010 spill off the coast of Louisiana.

In a court filing Tuesday, government lawyers argued the settlement agreement shouldn't delay a trial for claims that aren't covered by the deal. The state of Alabama also asked Barbier to set a new trial for this summer.

The proposed settlement doesn't have a cap, but BP estimates it will pay about $7.8 billion to resolve the private claims. It doesn't resolve separate claims brought by the federal government and Gulf states against BP and its partners on the Deepwater Horizon drilling rig over environmental damage from the spill.

The deal also doesn't resolve private plaintiffs' claims against Switzerland-based rig owner Transocean Ltd. and Houston-based cement contractor Halliburton.


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Sunday, April 22, 2012

Judge extends deadline for BP oil spill settlement

NEW ORLEANS (AP) -- A federal judge on Monday extended a deadline for BP and a team of plaintiffs' attorneys to file details of a proposed settlement designed to resolve billions of dollars in economic damage claims spawned by the 2010 oil spill in the Gulf of Mexico.

The company and lawyers representing more than 100,000 individuals and businesses were expected late Monday to present the formal terms of the settlement agreement to U.S. District Judge Carl Barbier in New Orleans and ask him for preliminary approval.

Early Monday evening, Barbier extended the deadline to Wednesday morning. He said the parties needed more time to finish compiling supporting documentation and exhibits.

London-based BP PLC estimates it will pay about $7.8 billion to resolve private party claims, but the proposed settlement doesn't have a cap.

The agreement announced March 2 doesn't resolve separate claims brought by the federal government and Gulf states against BP and its contractors on the Deepwater Horizon drilling rig over environmental damage from the nation's worst offshore oil spill.

BP set up a $20 billion compensation fund after the April 20, 2010, blowout of its Macondo well. The Gulf Coast Claims Facility paid out more than $6 billion from the fund before a court-supervised administrator took over the claims process on March 8.

The agreement calls for BP to pay $2.3 billion for seafood-related claims by commercial fishing vessel owners, captains and deckhands.

BP and the plaintiffs' attorneys also have said their agreement calls for paying eligible claims by cleanup workers and others who say they suffered illnesses from exposure to the oil. Many people have filed claims asserting spill-related illnesses, but none were paid by the GCCF.

The Plaintiffs' Steering Committee, which negotiated the proposed settlement, filed a class-action complaint Monday against BP on behalf of cleanup workers and coastal residents who claim they were harmed by exposure to oil or chemicals that were used to disperse the oil. The committee members also filed a separate class-action complaint against BP over the economic loss and property damages claims. The new complaints are believed to be procedural moves that pave the way for both sets of claims to be settled.


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Tuesday, April 17, 2012

Brazil shifts court for Chevron spill cases

By Leila Coimbra and Jeb Blount

RIO DE JANEIRO (Reuters) - A Brazilian judge moved two $11 billion civil cases against Chevron and drilling-rig operator Transocean related to an offshore drilling accident and spills to a different court in Rio de Janeiro, a decision that removes a crusading prosecutor from the cases.

The momentum is shifting in the legal battle stemming from a rupture in November at a well that Transocean was drilling in the Frade field, which Chevron operates.

The latest development, published in a court filing on Friday, comes on the heels of another decision in favor of the companies earlier this week from a separate court, in which a judge denied a request to bar the two companies from operating in Brazil.

Eduardo Santos de Oliveira, a federal prosecutor based in the interior of Rio de Janeiro state, filed two 20 billion reais ($11 billion) lawsuits against U.S. oil company Chevron and its contractor Transocean after a November spill of 2,400 to 3,000 barrels and a related March seep in the same field.

Friday's decision to move the two civil cases does not change the content of the charges, but it removes the cases from Oliveira's turf and hands them to another team of prosecutors.

The decision did not address the criminal charges that Oliveira also brought against the companies and 17 of their employees that could carry jail sentences up to 31 years.

Oliveira told Reuters he will appeal the decision.

"I remain convinced that they should be prosecuted here close to where the crimes occurred," he said.

Judge Tiago Pereira Macaciel said in a court filing released on Friday that "the magnitude of the environmental damage exceeds the area subject to the competency of Campos ... making it a regional damage."

Chevron Corp's head of media relations, Kurt Glaubitz, said Chevron Brasil Upstream Frade Ltd, its local subsidiary, was pleased with the court's decision.

Guy Cantwell, communications chief for Transocean, said by email that the company also questioned the validity of a second civil lawsuit, saying the charges lacked technical grounds.

Chevron owns 52 percent of the Frade field, Brazil's state-led oil company Petrobras owns 30 percent and a Japanese group led by Inpex Corp and Sojitz Corp owns 18 percent.

($1 = 1.8 reais)

(Reporting by Leila Coimbra; Writing by Reese Ewing; Editing by Carol Bishopric and Tim Dobbyn)


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