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Wednesday, June 9, 2010

Gulf residents angry about BP and claims process

Gulf residents angry about BP and claims process

AP Photo
A worker uses a suction hose to remove oil washed ashore from the Deepwater Horizon spill, Wednesday, June 9, 2010, in Belle Terre, La.

GRAND ISLE, La. (AP) -- Gulf Coast fishermen, businesses and property owners who have filed damage claims with BP over the oil spill are angrily complaining of delays, excessive paperwork and skimpy payments that have put them on the verge of going under as the financial and environmental toll of the disaster grows by the day.

Out in the Gulf of Mexico, meanwhile, the oil company Wednesday captured an ever larger-share of the crude gushing from the bottom of the sea and began bringing in more heavy equipment to handle it.

The containment effort played out as BP stock plunged to its lowest level in 14 years amid fears that the company might be forced to suspend dividends and find itself overwhelmed by the cleanup costs, penalties, damage claims and lawsuits generated by the biggest oil spill in U.S. history.

Shrimpers, oystermen, seafood businesses, out-of-work drilling crews and the tourism industry all are lining up to get paid back the billions of dollars washed away by the disaster, and tempers have flared as locals direct outrage at BP over what they see as a tangle of red tape.

"Every day we call the adjuster eight or 10 times. There's no answer, no answering machine," said Regina Shipp, who has filed $33,000 in claims for lost business at her restaurant in Alabama. "If BP doesn't pay us within two months, we'll be out of business. We've got two kids."

An Alabama property owner who has lost vast sums of rental income angrily confronted a BP executive at a town meeting. The owner of a Mississippi seafood restaurant said she is desperately waiting for a check to come through because fewer customers come by for shrimp po-boys and oyster sandwiches.

Some locals see dark parallels to what happened after Hurricane Katrina, when they had to wait years to get reimbursed for losses.

"It really feels like we are getting a double whammy here. When does it end?" said Mark Glago, a New Orleans lawyer who is representing a fishing boat captain in a claim against BP.

BP spokesman Mark Proegler disputed any notion that the claims process is slow or that the company is dragging its feet.

Proegler said BP has cut the time to process claims and issue a check from 45 days to as little as 48 hours, provided the necessary documentation has been supplied. BP officials acknowledged that while no claims have been denied, thousands and thousands of claims had not been paid by late last week because the company required more documentation.

At the bottom of the sea, the containment cap on the ruptured well is capturing 630,000 gallons a day and pumping it to a ship at the surface, and the amount could nearly double by next week to roughly 1.17 million gallons, said Coast Guard Adm.

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