A grim milestone was reached July 1 as the BP oil spill became the worst ever in the Gulf of Mexico. Cleanup efforts came to a halt his week as Hurricane Alex increased the amount of oil washing ashore. The booming tourism expected on the Gulf coast as the Fourth of July holiday weekend approaches is virtually non-existent. What’s more, the government overseer of BP’s oil spill claim program said oil spill tourism losses not qualify. 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.
Oil spill claims for tourism losses uncertain
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. Kenneth Feinberg, the man appointed by the Obama administration to manage the claims, said companies hurt because tourists have stayed from the Gulf might not be eligible for reimbursement, USA Today reported. But the BP oil spill is driving away visitors and costing businesses billions of dollars, said tourism officials and people who depend on the gulf tourism industry. Feinberg told the House Small business Committee in Washington that indirect claims, like those made by companies that lost revenue because wary tourists stayed home thinking a beach would be damaged, “may not be compensatory”.
Feinberg bent on improving BP oil claims process
U.S. scientists have estimated that up to 60,000 barrels a day continue to gush from the oil spill in the Gulf of Mexico. 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. About 41,000 claims are paid totally nearly $ 130 million by the oil company, but more than 80,000 have been submitted. Instead of the month-to-month emergency checks going out now, Feinberg said his new entity, the Gulf Spill Independent Claims Fund, will send out six-month lump sum payments “to give small businesses more certainty”.
BP oil spill worst ever, biggest fine
As the oil that has spilled for two and a half months turns the Gulf of Mexico’s white beaches brown and kills both wildlife and also the fishing industry, The Associated Press reports that BP’s blowout has passed the 140-million gallon Ixtoc 1 spill off the coast of Mexico 30 years ago. Keeping track of the growing total is important, according to 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.
More information accessible at these sites:
usatoday.com
money.cnn.com
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