The Gulf Oil Spill and North Carolina Workers’ Compensation Claims – Latest Breaking News Out of the White House

June 21, 2010, by Michael A. DeMayo

Most news coverage about the 2010 BP Gulf oil spill has focused, understandably, on states like Louisiana, Mississippi, and Texas because they are “in the line of fire” of the spillage. But North Carolina workers’ compensation experts and other local observers have expressed a plethora of concerns over how the spill might ultimately impact the economy of North Carolina. In particular, what might happen to local workers and employers injured by the environmental and economic fallout? Will North Carolina fishing industries suffer? If so, by how much? What about the state’s oil and gas industry — how will the BP disaster impact it and all those who depend on that industry for employment and income? And so on.

These questions about the relevance to North Carolina workers compensation remain unanswered. But a White House fact sheet released last Wednesday outlines some critical specifics regarding victim compensation for the oil spill. Per this fact sheet:

1. An independent claims facility will be established to ensure that those with recoverable claims (e.g. businesses and individuals) will be paid in a quick and transparent manner. Kenneth Feinberg – the former administrator of the September 11th Fund – will be the head administrator.

2. BP will establish an escrow account and contribute $20 billion to it to make sure that funds exist to pay injured workers, businesses, and others. BP has stated that it will not hide under the protection of the Oil Pollution Act to cap its liability.

3. BP will additionally contribute $100 million to provide support for workers rendered jobless by the oil rig disaster, and the payouts will be handled by the Disaster Unemployment Assistance Program.

4. BP will contribute another $0.5 billion to the Gulf of Mexico Research Initiative, which will explore ways and means to mitigate the environmental and economic fallout of the oil pollution and set in place long-term monitoring stations along the Gulf Coast (and presumably elsewhere – if the spill trickles out to places like North Carolina).

Although many environmental activists and Gulf Coast politicos have welcomed these concrete steps that the White House and BP have taken, some worry that they may be too little, too late.

If you or a co-worker or a family member has encountered problems with your benefits, insurer, or even the North Carolina Industrial Commission itself, it may be in your interest to connect with a trusted North Carolina workers’ compensation attorney to get a free and no obligation consultation.

More Web Resources:

Kenneth Feinberg

White House fact sheet about BP fund