BP Settlement Claim

by Carlton Fields

After years of litigation, BP Exploration & Production, Inc. and BP America Production Company (collectively, "BP") entered a class-wide settlement ("BP Settlement") that covers most businesses located in the Gulf Coast Region, including parts of Texas, all of Louisiana, Mississippi and Alabama, and the Gulf Coast of Florida from Pensacola to Key West (see map1 below, which generally highlights covered "Zones").

The Settlement comprises an initial fund of $20 billion ("Settlement Fund"), which is subject to increase depending on the amount of claims paid.

Your business may be entitled to make a claim against the Settlement Fund. This alert explains how we can assist in determining whether your business is covered by the BP Settlement.

Generally, there is a four-step claim submission process that requires determining:

(1) whether the claimant is a qualifying entity;

(2) whether the qualifying entity’s home office (or at least one of its branch offices/facilities/stores) is located within a prescribed Zone;

(3) whether the qualifying entity satisfies one of the various revenue threshold tests; and,

(4) if so, determining the amount of the claim.

Industries/Businesses Covered by the Settlement

Since most businesses are covered, it is easier to list, in broad terms, the industries that are not covered:

  • Fund, financial trusts, or other financial vehicles 
  • Gaming 
  • Insurance 
  • Oil and gas 
  • Defense contractors or subcontractors (if 50% of revenue is derived from defense contracts) 
  • Real estate developers 
  • Selling or marketing BP-branded fuel at anytime from April 20, 2010, through April 16, 2012

Within these broad categories of excluded industries there are unexpected exceptions—entities that are nonetheless covered by the BP Settlement. If your company or one of its branch offices is located in one of the Zones, it is a potential claimant. The BP Settlement applies to all non-excluded companies that have either a (1) home office in a Zone; or (2) a branch office/facility/store located in a Zone, even if the home office is located elsewhere. For multi-facility businesses with home offices located within a Zone, the analysis can be done on a corporate-wide or facility-by-facility basis, whichever provides the higher claim. For multi-facility businesses with home offices not located within a Zone, the analysis must be performed on a facility-by-facility basis.

Areas Covered by the Settlement

The shaded map below shows Zones covered by the BP Settlement. As it reflects, there are four Zones: A, B, C, and D. Each Zone is treated differently when determining whether an entity meets the threshold criteria for submitting a claim, and, if so, the amount of the claim.  

Map of BP Settlement Claim Zones

1The highlighted map is a general depiction of the BP Settlement Claim Zones and cannot be relied upon to determine whether a claimant is in an appropriate Zone.

Revenue Threshold Tests For Determining Eligibility

There are various revenue threshold tests used to determine whether a qualifying entity is eligible for a claim. Most simply put, an analysis is performed to determine the percentage of top line revenue decrease in three consecutive months during the period May 2010 through December 2010, compared to the same three consecutive months in 2009, an average of the years 2008 and 2009, or an average of the years 2007 through 2009. If there was a sufficient decrease in revenue under any combination, (depending on the Zone, the range is from 5 percent to 15 percent), the analysis then turns to whether there was a sufficient increase in top line revenue in 2011 for those same three months (depending on the circumstances, the range for the increase is from 0 percent to 10 percent). Once an entity satisfies the revenue threshold test, a two-step compensation test is used to determine the amount of the claim.

Compensation Tests

Step 1 of the compensation test determines the amount of decrease in variable income based on predetermined categories of fixed and variable costs. Step 2 is a formulaic analysis used to determine the amount of estimated incremental income an entity would have made in the period May 2010 through December 2010 (or some portion thereof) had there been no spill. The amounts determined in Steps 1 and 2 are then added together to determine the total claim.

What Should You Do?

If either your home office or a branch office/facility/store is located in one of the shaded areas on the map above, fill out this Revenue Threshold Test form with the monthly revenue numbers for the years 2007 through 2011, and send the form via email to Cary Wright ( cwright@carltonfields.com) or Bob Ciotti ( rciotti@carltonfields.com), or send via fax to 813.229.4133. If you have a multi-facility business, submit a spreadsheet for each branch office/facility/store within the Zones along with a corporate-wide consolidated spreadsheet. Carlton Fields will then run the information through a proprietary program to determine whether the Revenue Threshold Test is satisfied. If so, then we will request additional information to run the Step 1 and Step 2 Compensation Tests to determine the amount of the claim and begin processing the claim.

If you would like to discuss the BP Settlement further or if you otherwise have any questions, please feel free to contact Cary Wright or Bob Ciotti directly.


Written by:

Carlton Fields

Carlton Fields on:

Readers' Choice 2017
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up using*

Already signed up? Log in here

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
Privacy Policy (Updated: October 8, 2015):

JD Supra provides users with access to its legal industry publishing services (the "Service") through its website (the "Website") as well as through other sources. Our policies with regard to data collection and use of personal information of users of the Service, regardless of the manner in which users access the Service, and visitors to the Website are set forth in this statement ("Policy"). By using the Service, you signify your acceptance of this Policy.

Information Collection and Use by JD Supra

JD Supra collects users' names, companies, titles, e-mail address and industry. JD Supra also tracks the pages that users visit, logs IP addresses and aggregates non-personally identifiable user data and browser type. This data is gathered using cookies and other technologies.

The information and data collected is used to authenticate users and to send notifications relating to the Service, including email alerts to which users have subscribed; to manage the Service and Website, to improve the Service and to customize the user's experience. This information is also provided to the authors of the content to give them insight into their readership and help them to improve their content, so that it is most useful for our users.

JD Supra does not sell, rent or otherwise provide your details to third parties, other than to the authors of the content on JD Supra.

If you prefer not to enable cookies, you may change your browser settings to disable cookies; however, please note that rejecting cookies while visiting the Website may result in certain parts of the Website not operating correctly or as efficiently as if cookies were allowed.

Email Choice/Opt-out

Users who opt in to receive emails may choose to no longer receive e-mail updates and newsletters by selecting the "opt-out of future email" option in the email they receive from JD Supra or in their JD Supra account management screen.


JD Supra takes reasonable precautions to insure that user information is kept private. We restrict access to user information to those individuals who reasonably need access to perform their job functions, such as our third party email service, customer service personnel and technical staff. However, please note that no method of transmitting or storing data is completely secure and we cannot guarantee the security of user information. Unauthorized entry or use, hardware or software failure, and other factors may compromise the security of user information at any time.

If you have reason to believe that your interaction with us is no longer secure, you must immediately notify us of the problem by contacting us at info@jdsupra.com. In the unlikely event that we believe that the security of your user information in our possession or control may have been compromised, we may seek to notify you of that development and, if so, will endeavor to do so as promptly as practicable under the circumstances.

Sharing and Disclosure of Information JD Supra Collects

Except as otherwise described in this privacy statement, JD Supra will not disclose personal information to any third party unless we believe that disclosure is necessary to: (1) comply with applicable laws; (2) respond to governmental inquiries or requests; (3) comply with valid legal process; (4) protect the rights, privacy, safety or property of JD Supra, users of the Service, Website visitors or the public; (5) permit us to pursue available remedies or limit the damages that we may sustain; and (6) enforce our Terms & Conditions of Use.

In the event there is a change in the corporate structure of JD Supra such as, but not limited to, merger, consolidation, sale, liquidation or transfer of substantial assets, JD Supra may, in its sole discretion, transfer, sell or assign information collected on and through the Service to one or more affiliated or unaffiliated third parties.

Links to Other Websites

This Website and the Service may contain links to other websites. The operator of such other websites may collect information about you, including through cookies or other technologies. If you are using the Service through the Website and link to another site, you will leave the Website and this Policy will not apply to your use of and activity on those other sites. We encourage you to read the legal notices posted on those sites, including their privacy policies. We shall have no responsibility or liability for your visitation to, and the data collection and use practices of, such other sites. This Policy applies solely to the information collected in connection with your use of this Website and does not apply to any practices conducted offline or in connection with any other websites.

Changes in Our Privacy Policy

We reserve the right to change this Policy at any time. Please refer to the date at the top of this page to determine when this Policy was last revised. Any changes to our privacy policy will become effective upon posting of the revised policy on the Website. By continuing to use the Service or Website following such changes, you will be deemed to have agreed to such changes. If you do not agree with the terms of this Policy, as it may be amended from time to time, in whole or part, please do not continue using the Service or the Website.

Contacting JD Supra

If you have any questions about this privacy statement, the practices of this site, your dealings with this Web site, or if you would like to change any of the information you have provided to us, please contact us at: info@jdsupra.com.

- hide
*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.