BP claims czar warning - oil spill tourism losses might not qualify

A grim milestone was reached July 1 as the BP oil spill became the worst ever in the Gulf of Mexico. Hurricane Alex put a halt to cleanup efforts this week and pushed oil further onto shore. Tourism within the gulf, normally booming on 4th of July weekend, isn't expected this year. To make matters worse, government overseer Kenneth Feinberg warned that BP oil claims for oil spill tourism losses may be denied. Meanwhile, the oil spill cap remains attached in the high winds and heavy seas, but it only captures about 25 percent of the crude that continues to spew from the undersea gusher into the gulf.

Article source: BP oil claims chief says oil spill tourism losses might be denied by Personal Money Store

Feinberg – BP claims for oil spill tourism in doubt

As the oil spill within the Gulf of Mexico 2010 killed tourism for the Fourth of July weekend, the man in charge of the $ 20 billion BP oil spill claims fund bore bad news. USA Today reports that Kenneth Feinberg, appointed by President Obama to deal with claims, said companies hurt because tourists have stayed away from the Gulf may not be eligible for reimbursement. But the BP oil spill is driving away visitors and costing companies billions of dollars, said tourism officials and people who depend on the gulf tourism industry. Feinberg said that so-called indirect claims made by companies losing business because tourists believe beaches are fouled with oil are "may not be compensatory" in a statement to the House Small business Committee in Washington.

More money, faster processing are Feinberg's goal

The oil spill within the Gulf of Mexico continues to gush up to 60,000 barrels a day, a team of U.S. scientists has estimated. About 6,000 oil skimming ships are languishing in port thanks to Hurricane Alex. As the disaster continues indefinitely, CNN reports that Feinberg's priorities for economic victims of the spill are bigger checks and more efficient processing. Despite the fact that more than 80,000 claims are made, the oil company has only made good on 41,000 worth about $ 130 million. Rather than the month-to-month emergency checks going out now, Feinberg plans to have his new entity, the Gulf Spill Independent Claims Fund, send out six-month lump sum payments “to give small companies more certainty”.

Biggest fine due for worst spill ever

As the Gulf of Mexico’s white beaches turn brown, wildlife dies off and also the fishing industry implodes, The Associated Press reports that the oil that’s spewed for two and a half months from the blown-out well a mile under the sea hit the 140.6 million gallon mark, eclipsing the record-setting, 140-million-gallon Ixtoc I spill off Mexico’s coast from 1979 to 1980. Keeping track of the growing total is important, as outlined by Larry McKinney, director of Texas A and M University at Corpus Christi’s Gulf of Mexico research institute, who told AP that BP's fine grows along with the gallons.

Citations:

usatoday.com

money.cnn.com

google.com/hostednews/ap/article