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Deepwater Horizon Oil Spill Trust

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The Deepwater Horizon Oil Spill Trust is the $ 20 billion trust fund established by BP to settle claims arising from the Deepwater Horizon oil spill . The fund was established to be used for natural resource damages, state and local response costs and individual compensation. It was established as Gulf Coast Claims Facility (GCCF), announced on 16 June 2010 after a meeting of BP executives with U.S. President Barack Obama . In June 2012, the settlement of claims through the GCCF was replaced by the court supervised settlement program.

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94-619: After the Deepwater Horizon oil spill started, BP promised to compensate all those affected. Then CEO Tony Hayward stated, "We are taking full responsibility for the spill and we will clean it up and where people can present legitimate claims for damages we will honor them. We are going to be very, very aggressive in all of that." Prior to establishing the GCCF, emergency compensation was paid by BP from an initial facility. On 16 June, after meeting with President Obama, BP executives agreed to create

188-525: A $ 20 billion spill response fund. BP said it would pay $ 3 billion in third quarter of 2010 and $ 2 billion in fourth quarter into the fund followed by a payment of $ 1.25 billion per quarter until it reaches $ 20 billion. In the interim, BP posted its US assets worth $ 20 billion as bond. The amount of the fund was not a cap on BP's liabilities. For the fund's payments, BP said it would cut its capital spending budget, sell $ 10 billion in assets, and drop its dividend. After provisions of

282-473: A 125-tonne (280,000 lb) containment dome over the largest leak and piped the oil to a storage vessel. While this technique had worked in shallower water, it failed here when gas combined with cold water to form methane hydrate crystals that blocked the opening at the top of the dome. Pumping heavy drilling fluids into the blowout preventer to restrict the flow of oil before sealing it permanently with cement (" top kill ") also failed. BP then inserted

376-464: A 9% decline. On 2 August 2010, the EPA said dispersants did no more harm to the environment than the oil and that they stopped a large amount of oil from reaching the coast by breaking it down faster. However, some independent scientists and EPA's own experts continue to voice concerns about the approach. Underwater injection of Corexit into the leak may have created the oil plumes which were discovered below

470-599: A billion dollars. The request was rejected by the district judge of the United States District Court for the Eastern District of Louisiana Carl Barbier . Barbier reasoned his decision saying that "BP has not produced any evidence that would warrant the court taking the drastic step of shutting down the entire claims program." As of 30 June 2013, the total payments made from the fund amounted to $ 19.7 billion. After paying out remaining $ 300 million,

564-608: A lack of transparency. In July 2011, Attorney General Eric Holder announced that an independent audit will be performed on the GCCF. The audit was approved by Senate on 21 October 2011. In December 2011 BDO Consulting was selected as the auditor. In early 2012, auditor found that 7,300 claimants were wrongly denied or underpaid. As a result, about $ 64 million of additional payments were made. 2,600 claimants were incorrectly rejected but "can't get their money now because their files didn't include information needed to calculate their proper payment amount". On 8 March 2012, after BP and

658-478: A large oil slick began to spread at the former rig site. The oil flowed for 87 days. BP originally estimated a flow rate of 1,000 to 5,000 barrels per day [bbl/d] (160 to 790 m /d). The Flow Rate Technical Group (FRTG) estimated the initial flow rate was 62,000 bbl/d (9,900 m /d). The total estimated volume of leaked oil approximated 4.9 MMbbl (210,000,000 US gal; 780,000 m ) with plus or minus 10% uncertainty, including oil that

752-408: A letter. By late September 2010, Floridians and businesses criticized the claims process, claiming it has gotten worse under Feinberg's leadership, some saying the president and BP "should dump Feinberg if he doesn't get his act together soon". The Obama administration responded to criticism from Florida officials, including Gov. Charlie Crist and CFO Alex Sink, with a stern letter to Feinberg, saying

846-459: A local native set up a network for people to volunteer their assistance in cleaning up beaches. Boat captains were given the opportunity to offer the use of their boats to help clean and prevent the oil from further spreading. To assist with the efforts the captains had to register their ships with the Vessels of Opportunity; however, an issue arose when more boats registered than actually participated in

940-413: A month on emergency funds from Feinberg's Gulf Coast Claims Fund, and says for them it is urgent. "Bills aren't paid, they take my car, they take my insurance, they take my house, and then I can't get him back and forth to dialysis," claims the wife of the former owner of "Lafourche Seafood". On 25 September, Feinberg responded to the complaints in a news release. "Over the past few weeks, I have heard from

1034-460: A replacement blowout preventer was installed. On 16 September 2010, the relief well reached its destination and pumping of cement to seal the well began. On 19 September 2010, National Incident Commander Thad Allen declared the well "effectively dead" and said that it posed no further threat to the Gulf. In May 2010, BP admitted they had "discovered things that were broken in the sub-surface" during

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1128-425: A riser insertion tube into the pipe and a stopper-like washer around the tube plugged at the end of the riser and diverted the flow into the insertion tube. The collected gas was flared and oil stored on board the drillship Discoverer Enterprise . Before the tube was removed, it collected 924,000 US gal (22,000 bbl; 3,500 m ) of oil. On 3 June 2010, BP removed the damaged drilling riser from

1222-467: A sponge. Although that method did not remove the oil completely, chemicals called dispersants were used to hasten the oil's degradation to prevent the oil from doing further damage to the marine habitats below the surface water. For the Deep Horizon oil spill, cleanup workers used 1,400,000 US gal (5,300,000 L; 1,200,000 imp gal) of various chemical dispersants to further breakdown

1316-465: A study done in 2013 found that one of the plumes of dispersant-treated oil had reached a shelf 80 mi (130 km) off the Tampa Bay region. According to researchers, there is "some evidence it may have caused lesions in fish caught in that area". First, BP unsuccessfully attempted to close the blowout preventer valves on the wellhead with remotely operated underwater vehicles . Next, it placed

1410-667: A study from Georgia Tech and Universidad Autonoma de Aguascalientes in Environmental Pollution journal reported that Corexit used during the BP oil spill had increased the toxicity of the oil by 52 times. The scientists concluded that "Mixing oil with dispersant increased toxicity to ecosystems" and made the gulf oil spill worse. The three basic approaches for removing the oil from the water were: combustion, offshore filtration, and collection for later processing. USCG said 33,000,000 US gal (120,000 m ) of tainted water

1504-474: A team of plaintiffs' attorneys agreed to a class-action settlement, a court-supervised administrator Patrick Juneau took over administration. In June 2012, the settlement of claims through the GCCF was replaced by the court supervised settlement program. The court supervised settlement program began on 4 June 2012. It covers $ 9.6 billion of the total $ 20 billion. It is administrated by the court appointed settlement administrator Patrick Juneau. Claims through

1598-423: A total of 1,074 mi (1,728 km) had been oiled since the spill began. As of December 2012 , 339 mi (546 km) of coastline remain subject to evaluation and/or cleanup operations. The reported 3.19 million barrels of spilled oil was not the only effect of this disaster. A report detailed the release of thousands of tons of hydrocarbon gases (HC) into the atmosphere. Concerns were raised about

1692-424: Is needed in the claims process so victims can see they're being treated fairly. The DOJ also expressed concerns about the pace of the pay-out process as the interim and final claims begin. Feinberg had said claimants would have to surrender their right to sue BP to receive payments beyond emergency disbursements. The deadline to apply for emergency payments expired 23 November. But after Gulf residents complained that

1786-474: Is one of Florida's three elected state cabinet posts, along with the chief financial officer and agriculture commissioner . The current attorney general is Republican Ashley Moody , who took office on January 8, 2019. As with other elected statewide offices in Florida, the attorney general is limited to serving two consecutive four-year terms. The attorney general is second (behind the lieutenant governor ) in

1880-403: Is paying his salary, but questioned who else should pay it. Feinberg has been asked repeatedly to reveal his salary. In late July 2010, he stated that he would disclose the salary BP is paying him, after initially declining to do so. In mid-August, he said that he would disclose the amount "probably next month" but insisted he is not beholden to BP. However, in early October, he had not yet divulged

1974-424: Is suing Feinberg to get access to claims filed by coastal residents, saying he's "seeking to make the process more transparent so people will know if Feinberg is looking out for the best interests of oil spill victims or BP". Hood has stated he believes Feinberg's operation is "intentionally delaying and denying legitimate claims". Feinberg has been criticized by others about the amount and speed of payments as well as

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2068-972: The Intracoastal Waterway and on Pensacola Beach and the Gulf Islands National Seashore . In late June, oil reached Gulf Park Estates , its first appearance in Mississippi. In July, tarballs reached Grand Isle and the shores of Lake Pontchartrain . In September a new wave of oil suddenly coated 16 mi (26 km) of Louisiana coastline and marshes west of the Mississippi River in Plaquemines Parish . In October, weathered oil reached Texas. As of July 2011 , about 491 mi (790 km) of coastline in Louisiana, Mississippi, Alabama and Florida were contaminated by oil and

2162-526: The Louisiana coast. BP was the operator and principal developer of the Macondo Prospect with a 65% share, while 25% was owned by Anadarko Petroleum , and 10% by MOEX Offshore 2007 , a unit of Mitsui . At approximately 7:45 pm CDT , on 20 April 2010, high-pressure methane gas from the well expanded into the marine riser and rose into the drilling rig, where it ignited and exploded, engulfing

2256-618: The United States Department of Justice settled federal criminal charges, with BP pleading guilty to 11 counts of manslaughter , two misdemeanors , and a felony count of lying to the United States Congress . BP also agreed to four years of government monitoring of its safety practices and ethics, and the Environmental Protection Agency announced that BP would be temporarily banned from new contracts with

2350-525: The line of succession to the office of Governor of Florida . The Florida attorney general can be impeached for committing a "misdemeanor in office" by the State House of Representatives , and then convicted and thereby removed from office by a two-thirds vote of the State Senate . The Florida solicitor general is appointed by and serves at the pleasure of the attorney general. The current solicitor

2444-589: The "top kill" effort. Oil slicks were reported in March and August 2011, in March and October 2012, and in January 2013. Repeated scientific analyses confirmed that the sheen was a chemical match for oil from the Macondo well. The USCG initially said the oil was too dispersed to recover and posed no threat to the coastline, but later warned BP and Transocean that they might be held financially responsible for cleaning up

2538-537: The Coast Guard was assured that no journalists were on board. In another example, a CBS News crew was denied access to the oil-covered beaches of the spill area. The CBS crew was told by the authorities, "This is BP's rules, not ours," when trying to film the area. Some members of Congress criticized the restrictions placed on access by journalists. The FAA denied that BP employees or contractors made decisions on flights and access, saying those decisions were made by

2632-626: The Deepwater Horizon Oil Spill Trust were released 11 August 2010, it was revealed that the BP Spill Fund may be backed by future drilling revenue, using BP's production as collateral. BP pledged as collateral all royalties from the Thunder Horse , Atlantis , Mad Dog , Great White, Mars , Ursa , and Na Kika fields in the Gulf of Mexico. Two independent trustees, Kent Syverud and John S. Martin , were named to administer

2726-624: The EPA that Corexit use continued after that date and a GAP investigation stated that "[a] majority of GAP witnesses cited indications that Corexit was used after [July 2010]". According to a NALCO manual obtained by GAP , Corexit 9527 is an "eye and skin irritant. Repeated or excessive exposure ... may cause injury to red blood cells (hemolysis), kidney or the liver". The manual adds: "Excessive exposure may cause central nervous system effects, nausea, vomiting, anesthetic or narcotic effects". It advises, "Do not get in eyes, on skin, on clothing", and "Wear suitable protective clothing". For Corexit 9500,

2820-536: The FAA and Coast Guard. The FAA acknowledged that media access was limited to hired planes or helicopters, but was arranged through the Coast Guard. The Coast Guard and BP denied having a policy of restricting journalists; they noted that members of the media had been embedded with the authorities and allowed to cover response efforts since the beginning of the effort, with more than 400 embeds aboard boats and aircraft to date. They also said that they wanted to provide access to

2914-631: The Gulf. The report led by the Department of the Interior and the NOAA said that "75% [of oil] has been cleaned up by Man or Mother Nature"; however, only about 25% of released oil was collected or removed while about 75% of oil remained in the environment in one form or another. In 2012, Markus Huettel, a benthic ecologist at Florida State University, maintained that while much of BP's oil was degraded or evaporated, at least 60% remains unaccounted for. In May 2010,

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3008-473: The Justice Department to investigate the claims facility and to assume direct oversight of the process, saying he had no more trust in the new process than he had in the emergency-payment program. Feinberg had said he would hire his own adjusters, but according to Rep. Bonner, he is still using the same ones as when BP administered the fund. A spokeswoman for Feinberg said the hiring process of new adjusters

3102-527: The Smithsonian's National Zoological Park , rescued animals to help with the spill cleanup, although there were many animals found dead. Florida Attorney General The Florida attorney general is an elected cabinet official in the U.S. state of Florida . The attorney general serves as the chief legal officer of the state, and is head of the Florida Department of Legal Affairs. The office

3196-448: The USCG conducted a subsea survey; no oil coming from the wells or the wreckage was found and its source remains unknown. In addition, a white, milky substance was observed seeping from the wreckage. According to BP and the USCG, it is "not oil and it's not harmful." In January 2013, BP said that they were continuing to investigate possible sources of the oil sheen. Chemical data implied that

3290-532: The United States government. BP and the Department of Justice agreed to a record-setting $ 4.525 billion in fines and other payments. As of 2018 , cleanup costs, charges and penalties had cost the company more than $ 65 billion. In September 2014, a United States District Court judge ruled that BP was primarily responsible for the oil spill because of its gross negligence and reckless conduct. In April 2016, BP agreed to pay $ 20.8 billion in fines,

3384-481: The account. One aim of the fund was said to be minimizing lawsuits against the company. According to BP officials, the fund could be used for natural resource damages, state and local response costs and individual compensation but could not be used for fines or penalties. The Gulf Coast Claims Facility began accepting claims on 23 August 2010. At the time it was handed over to Kenneth Feinberg, BP had already paid out $ 375 million. Almost 19,000 claims were submitted in

3478-530: The amount collected in 2012. Oil continued to be found as far from the Macondo site as the waters off the Florida Panhandle and Tampa Bay , where scientists said the oil and dispersant mixture is embedded in the sand . In April 2013, it was reported that dolphins and other marine life continued to die in record numbers with infant dolphins dying at six times the normal rate. One study released in 2014 reported that tuna and amberjack exposed to oil from

3572-449: The appearance of underwater, horizontally-extended plumes of dissolved oil. Researchers concluded that deep plumes of dissolved oil and gas would likely remain confined to the northern Gulf of Mexico and that the peak impact on dissolved oxygen would be delayed and long-lasting. Two weeks after the wellhead was capped on 15 July 2010, the surface oil appeared to have dissipated, while an unknown amount of subsurface oil remained. Estimates of

3666-457: The booms would threaten wildlife. For a time, a group called Matter of Trust, citing insufficient availability of manufactured oil absorption booms, campaigned to encourage hair salons, dog groomers and sheep farmers to donate hair, fur and wool clippings, stuffed in pantyhose or tights, to help contain oil near impacted shores, a technique dating back to the Exxon Valdez disaster. The spill

3760-424: The clean-up efforts – only a third of the registered boats. Many local supporters were disappointed with BP's slow response, prompting the formation of The Florida Key Environmental Coalition. This coalition gained significant influence in the clean-up of the oil spill to try to gain some control over the situation. Containment booms stretching over 4,200,000 ft (1,300 km) were deployed, either to corral

3854-408: The containment cap was removed to replace it with a better-fitting cap ("Top Hat Number 10"). Mud and cement were later pumped in through the top of the well to reduce the pressure inside it (which did not work either). A final device was created to attach a chamber of larger diameter than the flowing pipe with a flange that bolted to the top of the blowout preventer and a manual valve set to close off

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3948-455: The delay. By early October, denied claims dropped from 528 to 116, as checks were cut and mailed to businesses that were initially told they would get no help. Along with those still waiting for money, dozens of people say they have received small fractions of the compensation they requested. To July 2011, the fund has paid $ 4.7 billion to 198,475 claimants. The total number who have filed claims stands at 522,506, many with multiple claims. In all,

4042-604: The digestion of the oil by microbes but conflicting results have been reported on this in the context of the Deepwater Horizon oil spill. Mixing dispersants with oil at the wellhead would keep some oil below the surface and, in theory, allow microbes to digest the oil before it reached the surface. Various risks were identified and evaluated, in particular, that an increase in microbial activity might reduce subsea oxygen levels, threatening fish and other animals. Several studies suggest that microbes successfully consumed part of

4136-404: The dispersants add to the toxicity of a spill, increasing the threat to sea turtles and bluefin tuna . The dangers are even greater when poured into the source of a spill, because they are picked up by the current and wash through the Gulf. According to BP and federal officials, dispersant use stopped after the cap was in place; however, marine toxicologist Riki Ott wrote in an open letter to

4230-409: The emergency payments were so small that they felt pushed into a hurried settlement to get more money, Feinberg made a concession. Under the new rules (beginning 24 November and lasting until 23 August 2013), businesses and individuals may request compensation once a quarter while they decide whether to permanently settle their claim. Still, the claims process has its critics. Alabama Rep. Jo Bonner asked

4324-538: The end of September. Others say they are getting mere fractions of what they've lost, while still others received large checks and full payments. As of 8 September 2010, 50,000 claims, 44,000 of those for lost income, had been filed. Over 10,000 claims had been paid, totaling nearly $ 80 million. By 17 September, about 15,000 claims remained unpaid. The claims were from individuals and businesses that had been fully documented and had already received loss payments from BP. Feinberg acknowledged that he had no excuse for

4418-412: The first week. Of those, roughly 1,200 claims were compensated, totaling about $ 6 million, the remaining applicants "lacked proper paperwork". Feinberg pointed out that those closest to the spill area were the most likely to receive compensation. Claimants could receive between one and six months' compensation without waiving their right to sue; only those who file for and receive a lump-sum payment later in

4512-447: The flow once attached. On 15 July, the device was secured and time was taken closing the valves to ensure the attachment under increasing pressure until the valves were closed completing the temporary measures. Transocean's Development Driller III started drilling a first relief well on 2 May 2010. GSF Development Driller II started drilling a second relief on 16 May 2010. On 3 August 2010, first test oil and then drilling mud

4606-477: The flow, the well was declared sealed on 19 September 2010. Reports in early 2012 indicated that the well site was still leaking. The Deepwater Horizon oil spill is regarded as one of the largest environmental disasters in world history. A massive response ensued to protect beaches, wetlands and estuaries from the spreading oil utilizing skimmer ships, floating booms , controlled burns and 1,840,000 US gal (7,000 m ) of oil dispersant . Due to

4700-526: The fund had nearly 1 million claims. Over its existence More than one million claims of 220,000 individual and business claimants were processed and more than $ 6.2 billion was paid out from the fund. 97% of payments were made to claimants in the Gulf States . During the transition period before the settlement of claims through the GCCF was replaced by the court supervised settlement program additional $ 404 million in claims were paid. Feinberg confirmed that BP

4794-543: The history of the petroleum industry and estimated to be 8 to 31 percent larger in volume than the previous largest, the Ixtoc I oil spill , also in the Gulf of Mexico. Caused in the aftermath of a blowout and explosion on the Deepwater Horizon oil platform , the United States federal government estimated the total discharge at 4.9 MMbbl (210,000,000 US gal; 780,000 m ). After several failed efforts to contain

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4888-472: The information as promised and when asked, declined to say how much he was compensated, only that it is a flat fee "totally unrelated" to the size of the fund and amounts paid. On 8 October 2010, it was revealed that Feinberg and his law firm have been paid more than $ 2.5 million from mid-June to 1 October. Feinberg stated, "If I haven't found you eligible, no court will find you eligible." Florida Attorney General Bill McCollum disputed Feinberg's statement in

4982-495: The information while maintaining safety. On 15 April 2014, BP announced that cleanup along the coast was substantially complete, while the United States Coast Guard work continued using physical barriers such as floating booms, the cleanup workers' objective was to keep the oil from spreading any further. They used skimmer boats to remove a majority of the oil and they used sorbents to absorb any remnant of oil like

5076-469: The largest environmental damage settlement in United States history. Deepwater Horizon was a 10-year-old semi-submersible, mobile, floating , dynamically positioned drilling rig that could operate in waters up to 10,000 ft (3,000 m) deep. Built by South Korean company Hyundai Heavy Industries and owned by Transocean , the rig operated under the Marshallese flag of convenience , and

5170-493: The manual advised, "Do not get in eyes, on skin, on clothing", "Avoid breathing vapor", and "Wear suitable protective clothing". According to FOIA requests obtained by GAP, neither the protective gear nor the manual were distributed to Gulf oil spill cleanup workers. Corexit EC9500A and Corexit EC9527A were the principal variants. The two formulations are neither the least toxic, nor the most effective, among EPA's approved dispersants, but BP said it chose to use Corexit because it

5264-417: The months-long spill, along with adverse effects from the response and cleanup activities, extensive damage to marine and wildlife habitats and fishing and tourism industries was reported. In Louisiana , oil cleanup crews worked four days a week on 55 mi (89 km) of Louisiana shoreline throughout 2013. 4,900,000 lb (2,200 t) of oily material was removed from the beaches in 2013, over double

5358-410: The new oil. USGS director Marcia McNutt stated that the riser pipe could hold at most 1,000 bbl (160 m ) because it is open on both ends, making it unlikely to hold the amount of oil being observed. In October 2012, BP reported that they had found and plugged leaking oil from the failed containment dome, now abandoned about 1,500 ft (460 m) from the main well. In December 2012,

5452-417: The oil or as barriers to protect marshes, mangroves, shrimp/crab/oyster ranches or other ecologically sensitive areas. Booms extend 18–48 in (0.46–1.22 m) above and below the water surface and were effective only in relatively calm and slow-moving waters. Including one-time use sorbent booms, a total of 13,300,000 ft (4,100 km) of booms were deployed. Booms were criticized for washing up on

5546-501: The oil. The state of Louisiana received funding by BP to do regular testing of fish, shellfish, water, and sand. Initial testing regularly showed detectable levels of dioctyl sodium sulfosuccinate , a chemical used in the clean up. Testing over 2019 reported by GulfSource.org, for the pollutants tested have not produced results. Due to the Deepwater Horizon spill, marine life was suffering. Thousands of animals were visibly covered in oil. The U.S. Fish and Wildlife Service, working with

5640-410: The oil. By mid-September, other research claimed that microbes mainly digested natural gas rather than oil. David L. Valentine, a professor of microbial geochemistry at UC Santa Barbara , said that the capability of microbes to break down the leaked oil had been greatly exaggerated. However, biogeochemist Chris Reddy said natural microorganisms are a big reason why the oil spill in the Gulf of Mexico

5734-483: The operations. Local and federal authorities citing BP's authority denied access to members of the press attempting to document the spill from the air, from boats, and on the ground, blocking access to areas that were open to the public. In some cases photographers were granted access only with BP officials escorting them on BP-contracted boats and aircraft. In one example, the U.S. Coast Guard stopped Jean-Michel Cousteau 's boat and allowed it to proceed only after

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5828-407: The people of the Gulf, elected officials, and others that payments remain too slow and not generous enough," Feinberg said. "I am implementing new procedures that will make this program more efficient, more accelerated and more generous." In less than five weeks, the dedicated $ 20 billion fund that BP set up has paid out over $ 400 million to more than 30,000 claimants. Funds allocated so far equal 2% of

5922-407: The platform. Eleven missing workers were never found despite a three-day U.S. Coast Guard (USCG) search operation and are believed to have died in the explosion. Ninety-four crew members were rescued by lifeboat or helicopter, 17 of whom were treated for injuries. The Deepwater Horizon sank on the morning of 22 April 2010. The oil leak was discovered on the afternoon of 22 April 2010 when

6016-505: The present pace of claims is "unacceptable" and directing his office to make whatever changes necessary to move things along. "The Deepwater Horizon Oil Spill has disrupted the lives of thousands upon thousands of individuals, often cutting off the income on which they depend. Many of these individuals and businesses simply do not have the resources to get by while they await processing by the GCCF" associate U.S. Attorney General Thomas Perrelli wrote. One family in Louisiana has been waiting for

6110-412: The product. Although usage of dispersants was described as "the most effective and fast moving tool for minimizing shoreline impact", the approach continues to be investigated. A 2011 analysis conducted by Earthjustice and Toxipedia showed that the dispersant could contain cancer-causing agents, hazardous toxins and endocrine-disrupting chemicals. Environmental scientists expressed concerns that

6204-515: The program will be accepted until April 2014. In March 2013, BP sued Patrick Juneau over his interpretation of the settlement agreement conditions and damage claims arguing that Juneau has compensated certain business economic-loss claims which were not seen in the agreement. In April 2013, BP requested to halt claims payouts from the fund due to a number of fraudulent damages. According to BP, more than 7000 claims were "scams". According to BP's CEO Bob Dudley , disputed claims accounts more than

6298-411: The project. By 3 October 2012, federal response costs amounted to $ 850 million, mostly reimbursed by BP. As of January 2013 , 935 personnel were still involved. By that time cleanup had cost BP over $ 14 billion. It was estimated with plus-or-minus 10% uncertainty that 4.9 MMbbl (780,000 m ) of oil was released from the well; 4.1 MMbbl (650,000 m ) of oil went into

6392-476: The released amount is not enough to pose an added cancer risk to workers and coastal residents, while a second research team concluded that there was only a small added risk. Oil was collected from water by using skimmers . In total, 2,063 various skimmers were used. For offshore, more than 60 open-water skimmers were deployed, including 12 purpose-built vehicles. EPA regulations prohibited skimmers that left more than 15 parts per million (ppm) of oil in

6486-501: The remaining claims will be compensated from the company's future profits. Deepwater Horizon oil spill The Deepwater Horizon oil spill (also referred to as the " BP oil spill ") was an environmental disaster which began on 20 April 2010, off the coast of the United States in the Gulf of Mexico on the BP -operated Macondo Prospect , considered the largest marine oil spill in

6580-456: The residual ranged from a 2010 NOAA report that claimed about half of the oil remained below the surface to independent estimates of up to 75%. That means over 100 × 10 ^  US gal (380 Ml) (2.4 million barrels) remained in the Gulf. As of January 2011 , tar balls, oil sheen trails, fouled wetlands marsh grass and coastal sands were still evident. Subsurface oil remained offshore and in fine silts. In April 2012, oil

6674-709: The response effort. All flights in the operations' area were prohibited except flight authorized by air traffic control ; routine flights supporting offshore oil operations; federal, state, local and military flight operations supporting spill response; and air ambulance and law enforcement operations. Exceptions for these restrictions were granted on a case-by-case basis dependent on safety issues, operational requirements, weather conditions, and traffic volume. No flights, except aircraft conducting aerial chemical dispersing operations, or for landing and takeoff, were allowed below 1,000 m (3,300 ft). Notwithstanding restrictions, there were 800 to 1,000 flights per day during

6768-568: The response. The first video images were released on 12 May, and further video images were released by members of Congress who had been given access to them by BP. During the spill response operations, at the request of the Coast Guard, the Federal Aviation Administration (FAA) implemented a 900 sq mi (2,300 km ) temporary flight restriction zone over the operations area. Restrictions were to prevent civilian air traffic from interfering with aircraft assisting

6862-464: The shore with the oil, allowing oil to escape above or below the boom, and for ineffectiveness in more than three- to four-foot (90–120 cm) waves. The Louisiana barrier island plan was developed to construct barrier islands to protect the coast of Louisiana. The plan was criticised for its expense and poor results. Critics allege that the decision to pursue the project was political with little scientific input. The EPA expressed concern that

6956-473: The spill developed deformities of the heart and other organs which would be expected to be fatal or at least life-shortening; another study found that cardiotoxicity might have been widespread in animal life exposed to the spill. Numerous investigations explored the causes of the explosion and record-setting spill. The United States Government report, published in September 2011, pointed to defective cement on

7050-430: The substance might be residual oil leaking from the wreckage. If that proves to be the case, the sheen can be expected to eventually disappear. Another possibility is that it is formation oil escaping from the subsurface, using the Macondo well casing as flow conduit, possibly intersecting a naturally occurring fault, and then following that to escape at the surface some distance from the wellhead. If it proves to be oil from

7144-413: The subsurface, then that could indicate the possibility of an indefinite release of oil. The oil slick was comparable in size to naturally occurring oil seeps and was not large enough to pose an immediate threat to wildlife. The fundamental strategies for addressing the spill were containment, dispersal and removal. In summer 2010, approximately 47,000 people and 7,000 vessels were involved in

7238-438: The surface. Because the dispersants were applied at depth, much of the oil never rose to the surface. One plume was 22 mi (35 km) long, more than 1 mi (1,600 m) wide and 650 ft (200 m) deep. In a major study on the plume, experts were most concerned about the slow pace at which the oil was breaking down in the cold, 40 °F (4 °C) water at depths of 3,000 ft (900 m). In late 2012,

7332-425: The top of the blowout preventer and covered the pipe by the cap which connected it to another riser. On 16 June, a second containment system connected directly to the blowout preventer began carrying oil and gas to service vessels, where it was consumed in a clean-burning system. The United States government's estimates suggested the cap and other equipment were capturing less than half of the leaking oil. On 10 July,

7426-421: The total amount that BP agreed to set aside. Feinberg has denied about 2,000 claims, another 20,000 applications were returned for more financial documentation, and about 15,000 more claims await review. Feinberg has said he's processing claims at a rate of 1,500 a day. In a letter sent 20 November by the Department of Justice (DOJ), Associate Attorney General Thomas Perrelli told Kenneth Feinberg that transparency

7520-451: The water. Many large-scale skimmers exceeded the limit. Due to use of Corexit , the oil was too dispersed to collect, according to a spokesperson for shipowner TMT . In mid-June 2010, BP ordered 32 machines that separate oil and water , with each machine capable of extracting up to 2,000 bbl/d (320 m /d). After one week of testing, BP began to proceed and, by 28 June, had removed 890,000 bbl (141,000 m ). After

7614-452: The well was capped, the cleanup of shore became the main task of the response works. Two main types of affected coast were sandy beaches and marshes . On beaches, the main techniques were sifting sand, removing tar balls, and digging out tar mats manually or by using mechanical devices. For marshes, techniques such as vacuum and pumping, low-pressure flush, vegetation cutting, and bioremediation were used. Dispersants are said to facilitate

7708-451: The well, faulting mostly BP , but also rig operator Transocean and contractor Halliburton . Earlier in 2011, a White House commission likewise blamed BP and its partners for a series of cost-cutting decisions and an inadequate safety system, but also concluded that the spill resulted from "systemic" root causes and "absent significant reform in both industry practices and government policies, might well recur". In November 2012, BP and

7802-523: The year will waive their right to litigate. By November, BP said it had sent $ 1.7 billion in checks. About 92,000 claimants had been paid or approved for payment as of 30 October 2010. The claims facility declined to reveal the total amount requested by the nearly 315,000 people who have now filed. Denied claims rose dramatically in October; some 20,000 people had been told they have no right to emergency compensation, compared to about 125 denials at

7896-490: Was also notable for the volume of Corexit oil dispersant used and for application methods that were "purely experimental." Altogether, 1.84 × 10 ^  US gal (7,000 m ) of dispersants were used; of this, 771,000 US gal (2,920 m ) were released at the wellhead. Subsea injection had never previously been tried but, due to the spill's unprecedented nature, BP, together with USCG and EPA, decided to use it. Over 400 sorties were flown to release

7990-790: Was available the week of the rig explosion. On 19 May, the EPA gave BP 24 hours to choose less toxic alternatives to Corexit from the National Contingency Plan Product Schedule and begin applying them within 72 hours of EPA approval or provide a detailed reasoning why no approved products met the standards. On 20 May, BP determined that none of the alternative products met all three criteria of availability, non-toxicity and effectiveness. On 24 May, EPA Administrator Lisa P. Jackson ordered EPA to conduct its own evaluation of alternatives and ordered BP to reduce dispersant use by 75%. BP reduced Corexit use by 25,689 to 23,250 US gal (97,240 to 88,010 L) per day,

8084-550: Was chartered to BP from March 2008 to September 2013. It was drilling a deep exploratory well, 18,360 ft (5,600 m) below sea level, in approximately 5,100 ft (1,600 m) of water. The well is situated in the Macondo Prospect in Mississippi Canyon Block 253 (MC253) of the Gulf of Mexico , in the United States' exclusive economic zone . The Macondo well is found roughly 41 mi (66 km) off

8178-452: Was collected or burned before it could enter the Gulf waters. According to the satellite images, the spill directly affected 70,000 sq mi (180,000 km ) of ocean, comparable to the area of Oklahoma . By early June 2010, oil had washed up on 125 mi (201 km) of Louisiana's coast and along the Mississippi , Florida , and Alabama coastlines. Oil sludge appeared in

8272-535: Was collected, making it the world's largest accidental spill. BP challenged the higher figure, saying that the government overestimated the prefaced volume. Internal emails released in 2013 showed that one BP employee had estimates that matched those of the FRTG, and shared the data with supervisors, but BP continued with their lower number. The company argued that government figures do not reflect over 810,000 bbl (34 million US gal; 129,000 m ) of oil that

8366-631: Was not far worse. Genetically modified Alcanivorax borkumensis was added to the waters to speed digestion. The delivery method of microbes to oil patches was proposed by the Russian Research and Development Institute of Ecology and the Sustainable Use of Natural Resources . On 18 May 2010, BP was designated the lead "Responsible Party" under the Oil Pollution Act of 1990 , which meant that BP had operational authority in coordinating

8460-406: Was pumped at a slow rate of approximately 2 bbl (320 L) per minute into the well-head. Pumping continued for eight hours, at the end of which the well was declared to be "in a static condition." On 4 August 2010, BP began pumping cement from the top, sealing that part of the flow channel permanently. On 3 September 2010, the 300- ton failed blowout preventer was removed from the well and

8554-679: Was recovered, including 5,000,000 US gal (19,000 m ) of oil. BP said 826,800 bbl (131,450 m ) had been recovered or flared. It is calculated that about 5% of leaked oil was burned at the surface and 3% was skimmed. On the most demanding day, 47,849 people were assigned on the response works and over 6,000 Marine vessels, 82 helicopters, and 20 fixed-wing aircraft were involved. From April to mid-July 2010, 411 controlled in-situ fires remediated approximately 265,000 bbl (11.1 million US gal; 42,100 m ). The fires released small amounts of toxins , including cancer-causing dioxins . According to EPA 's report,

8648-454: Was removed from the Louisiana coast. Although only "minute" quantities of oil continued to wash up in 2013, patches of tar balls were still being reported almost every day from Alabama and Florida Panhandle beaches. Regular cleanup patrols were no longer considered justified but cleanup was being conducted on an as-needed basis, in response to public reports. It was first thought that oil had not reached as far as Tampa Bay, Florida ; however,

8742-454: Was still found along as much as 200 mi (320 km) of Louisiana coastline and tar balls continued to wash up on the barrier islands. In 2013, some scientists at the Gulf of Mexico Oil Spill and Ecosystem Science Conference said that as much as one-third of the oil may have mixed with deep ocean sediments , where it risks damage to ecosystems and commercial fisheries. In 2013, more than 4,600,000 lb (2,100 t) of "oiled material"

8836-500: Was under way. According to BP's law firm, Feinberg's law firm received a total of $ 3.3 million from BP as of early November. The law firm was paid $ 850,000 a month since June 2010, and payment of this fee will continue until the end of the year; afterwards, the contract will be reviewed. In March 2011, Feinberg's law firm received an increase in the monthly wage from BP. Compensation rose from $ 850,000 to $ 1.25 million. In July 2011, Mississippi's attorney general Jim Hood announced he

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