Judge Grants Tentative Approval to $7.8 Billion BP Oil Spill Settlement

Published by Rhonda Miller on 02 May 2012 07:23pm
A federal judge in New Orleans granted preliminary approval Wednesday to a proposed settlement of $7.8 billion in BP oil spill claims. MPB’s Rhonda Miller reports the decision affects thousands of Mississippi residents and businesses.

Standing on the porch of his Ocean Springs home, fisherman Anthony Pizzi says he has not been able to earn a living oystering or shrimping since the oil spill. Now, at 54 years old, he’s wondering if he will ever be able to go back to fishing.

“I had to sell my 55-foot boat really cheap to survive, with bills and food.”

Pizzi says his claim with BP for loss of income was denied several times by the Gulf Coast Claims Facility, which does not exist any more. Pizzi says now his claim is part of the proposed settlement given tentative approval by U.S. District Judge Carl Barbier in New Orleans.

“Been watching the news, waiting for the judge to sign off on the suit, and then, hopefully, we’ll find out the legalities of what they’re going to offer us. But besides that, we don’t know what the paperwork means or what they’re offering us.”

That’s no surprise to Ocean Springs Attorney Robert Wiygul, whose firm is representing hundreds of clients in the BP oil spill litigation. Wiygul says the proposed settlement is 1,000 pages long.

“It’s important for people to recognize that this settlement is set up as a class action, and if you’re part of that class, and that would include business owners for example, or owners of coastal property, or fishermen, you’re going to be in that class unless you make the decision to get out of it.”

Wiygul says some groups are not included in the proposed settlement, like oil rig and casino workers. He says those claims will have to resolved through other legal action. Wiygul says he expects BP oil spill lawsuits to go on for many years.

Sierra Club back in court over Miss. Power plant

By JACK ELLIOTT JR.

JACKSON, Miss.

The Sierra Club of Mississippi is arguing in court that Mississippi Power Co. should assume the risk of building a new coal power plant, rather than customers, while an appeal trying to stop the project goes through the courts.

“If Mississippi Power thinks it is such a good idea to build this boondoggle, the company should take the risk and build the plant on its own nickel,” Sierra Club attorney Robert Wiygul said. “Instead, Mississippi Power wants the ratepayers to take all the risk.”

Mississippi Power is a unit of Atlanta-based Southern Co.

The Mississippi Public Service Commission voted Tuesday to give new approval for the coal-fired power plant in Kemper County, pushing aside opponents’ calls for a fresh look at the plant’s finances.

The commission voted 2-1 to approve the $2.4 billion plant. Southern District Commissioner Leonard Bentz and Central District Commissioner Lynn Posey, both Republicans, voted for the plant. Northern District Commissioner Brandon Presley, a Democrat, voted against it.

While Presley wrote in a three-page dissent that taking new testimony and evidence would be “an appropriate response” to the court decision, the two other commissioners disagreed. They wrote that the commission had collected volumes of testimony and evidence before initially ruling in favor of the plan.

The power plant would burn lignite mined nearby, convert it to a gas to be burned to generate power and capture carbon dioxide to be pumped underground.

The PSC had to vote for the plant again after the state Supreme Court ruled last month that regulators didn’t fully explain why they raised a cost cap from $2.4 billion to $2.88 billion. The Sierra Club, which opposes the plant, brought the lawsuit that led to that decision.

Commissioners said Tuesday’s ruling does not raise the $2.88 billion cost cap, which is meant to provide a 20 percent margin for overruns.

Mississippi Power spokeswoman Cindy W. Duvall said Thursday that the continued legal action by the Sierra Club was expected.

“We expect this type of activity from the Sierra Club right up until the Kemper Project comes online,” Duvall said. “This is what they are paid to do. No matter that this is the best option for our customers or how environmentally responsible the project is, they will continue to mislead our customers with erroneous information.”

Louie Miller, director of the Sierra Club in Mississippi, said Thursday that the commission’s decision to approve the plant amounted “to little more than putting some lipstick on the pig.”

Miller said the opponents have a judge to stay the commission’s action but “whether that keeps Mississippi Power from building depends on how the judge rules.”

Miller said opponents still want a halt to construction at the site, Mississippi Power has already spent $1.1 billion and committed another $400 million.

The environmental group opposes the plant largely because it opposes mining and burning coal, saying it produces more carbon dioxide than natural gas. Carbon dioxide contributes to global warming, scientists say.

Ex-BP worker facing 40 years: Former engineer allegedly erased texts in aftermath of oil spill

WASHINGTON — The Justice Department filed its first criminal charges related to the BP oil spill Tuesday, accusing a former company engineer of destroying records requested by prosecutors investigating the deadly 2010 oil rig explosion in the Gulf of Mexico, the worst environmental disaster in U.S. history.

Kurt Mix, 50, of Katy, Texas, was charged with two counts of obstruction of justice in a complaint unsealed in New Orleans.

Mix, a drilling engineer who worked on BP’s effort to estimate the amount of oil leaking from the blown-out Deepwater Horizon rig, allegedly deleted 300 text messages with a company supervisor detailing how BP’s controversial program to stop the leak – “Top Kill” – was failing.

Included in the information Mix allegedly deleted, according to court documents, were estimates that oil was flowing at a rate of 15,000 barrels per day.

“At the time, BP’s public estimate of the flow rate was 5,000 (barrels per day),” prosecutors said in court documents.

Before the Top Kill program started, Mix and other engineers had concluded that the effort was unlikely to succeed if the flow rate was greater than 15,000 barrels per day, according to court documents.

If convicted, Mix faces a maximum penalty of 20 years in prison and a fine of up to $250,000 on each count.

BP issued a statement saying it is cooperating with the Department of Justice and other investigations into the spill. BP “had clear policies requiring preservation of evidence in this case and has undertaken substantial and ongoing efforts to preserve evidence,” the statement said.

The charges were filed by the Justice Department’s Deepwater Horizon Task Force, based in New Orleans. The task force’s investigation is continuing.

The Deepwater Horizon oil rig exploded in the Gulf of Mexico on April 20, 2010, killing 11 men and unleashing an environmental disaster with the eventual spilling of 200 million gallons of oil.

The flow rate – or amount of oil gushing from the damaged well – was a hotly debated issue from the earliest days of the disaster, said Aaron Viles, deputy director of the Gulf Restoration Network, a New Orleans-based environmental group.

Estimates provided by BP officials and approved by federal officials were vigorously challenged by independent monitors, he said.

The criminal charges unsealed Tuesday show that BP officials knew what environmentalists were saying all along: There was more oil flowing into the Gulf than BP and government officials let on, Viles said. He said he hopes more charges are pending for higher-up BP executives.

“It was clear to anyone who knew flow rates that those estimates didn’t make sense,” Viles said. “We certainly feel vindicated.”

Orange Beach, Ala., Mayor Tony Kennon agreed.

“This validates our claim all along: They were not being honest, they were not being forthright, and they were not doing the right thing from Day One,” he said.

Kennon said he was happy to hear of the charges but hopes federal investigators implicate higher BP officials in any cover-up. The city’s tourist-driven economy lost half of its annual revenue during the spill, he said.

“To me, it shows the arrogance of a large corporation like this and what I would consider an incestuous relationship between it and Washington, D.C., to think they can get away with this,” Kennon said.

George Barisich, a St. Bernard Parish oyster harvester and shrimper and board member of the Louisiana Shrimp Association, said the charges are good news for folks looking for the deeper truths of the spill – but shouldn’t come as a surprise.

“This is just proof positive that they knew what they were doing, they knew they were taking a risk,” Barisich said. He added: “It was just a matter of time before they arrested somebody. My concern is that they’re going to try to keep the blame from the higher-ups.”

The criminal charges won’t impact a recent settlement reached between BP and a group of plaintiff attorneys, said Robert Wiygul, an Ocean Springs, Miss., environmental attorney whose firm represents fishermen and business owners in the ongoing litigation. That settlement, estimated at nearly $8 billion by BP and involving tens of thousands of plaintiffs, still needs approval from U.S. District Judge Carl Barbier.

But the new charges could affect future litigation, including liability hearings, which could propel BP’s costs for federal environmental fines and punitive damages into the tens of billions of dollars, he said.

“Any kind of criminal activity associated with a person or company seriously affects their credibility,” Wiygul said. “When you’re in court, credibility is what it’s all about.”

Swamp tour owners say opening of floodgates hurt business in 2009

THE ASSOCIATED PRESS
First Posted: March 25, 2012 – 12:12 pm
Last Updated: March 25, 2012 – 12:14 pm

BATON ROUGE, La. — Iberville and Ascension parishes should compensate the owners of Alligator Bayou Swamp Tours for opening a floodgate in 2009 that ruined their business, an attorney for the company told a state appellate court.

The Advocate reports (http://bit.ly/GUJypA) that Clay Garside, who represents Alligator Bayou Swamp Tours co-owners Frank Bonifay and Jim Ragland, made the argument this past week to a three-judge panel of the 1st Circuit Court of Appeal in Baton Rouge.

An attorney for Iberville Parish said the floodgate had to be opened to protect nearby landowners.

“One property owner in the area doesn’t like it — one,” Ryan Ours, who represents Iberville, told the court.

Bonifay, who attended the court hearing, said he is “praying a lot.”

“We lost all of our bookings. We’ve had no income for three years,” he said.

The floodgate, built in 1951, generally been kept closed.

Bonifay and Ragland, who own land next to Alligator Bayou, shut their business shortly after the gate was opened and the water receded from their land and the bayou.

Garside told Circuit Judges Edward “Jimmy” Gaidry, Michael McDonald and Jeff Hughes that Alligator Bayou Swamp Tours started in the mid-1990s.

He argued that Alligator Bayou’s navigability could have been maintained if the water level had merely been lowered to 3.8 feet to 4 feet — what he called the historical bank level — but the opening of the floodgate drained’ the bayou and left just six inches of water.

The decision by the governments of Iberville and Ascension to open the gate stemmed from complaints from nearby landowners that the closed gate kept too much water on their properties, limiting what they could do with their land.

State District Judge Thomas Kliebert Jr. ruled in June that Alligator Bayou Swamp Tours is not entitled to compensation because it had no private property rights on the bayou.

The 1st Circuit panel will rule later.

___

Information from: The Advocate, http://theadvocate.com

Swamp tour owners seek compensation


AP Reporting

Posted: Sunday, 25 March 2012 7:49AM

Iberville and Ascension parishes should compensate the owners of Alligator Bayou Swamp Tours for opening the bayou’s floodgate in 2009 and ruining the company’s business, an attorney for the firm told a state appellate court.

Clay Garside, who represents Alligator Bayou Swamp Tours co-owners Frank Bonifay and Jim Ragland, made the argument to a three-judge panel of the 1st Circuit Court of Appeal in Baton Rouge.

But an attorney for Iberville Parish said the floodgate had to be opened to protect nearby landowners.

EPA closes race track case

By Wes Helbling

Bastrop Daily Enterprise

Posted Mar 23, 2012 @ 07:30 AM

BASTROP, La. —

The USA Speedway has fulfilled the requirements of the U.S. Environmental Protection Agency to restore wetlands that were disturbed during its construction.

The USA Speedway is a dirt race track constructed in West Sterlington in 2009. The track came under investigation by the U.S. Corps of Engineers for failure to obtain the necessary Section 404 permit to discharge fill material into 2.4 acres of wetlands that is hydrologically connected to the Ouachita River, in violation of the federal Clean Water Act.

EPA Region 6 records show an administrative order was issued to Speedway owner Bobby Hobson in Aug. 2010 requiring him to remove the fill material as well as to “[r]estore the previously disturbed areas to the natural contours and elevations that existed prior to fill activities and revegetate with appropriate wetland species.”

While the restoration was completed in 2010, EPA Region 6 spokesman Dave Bary said the agency assessed Hobson an administrative penalty of $1,500 for the violation in January.

“Mr. Hobson has taken the necessary [restoration] action and paid the $1500 penalty,” said Bary. “The matter has been resolved from the EPA’s standpoint.”

The Clean Water Act violation remains an issue in a class action lawsuit against the USA Speedway, which Union Parish Clerk of Court records indicate is slated for a jury trial in October. Initially filed in 2010, the fifty-nine plaintiffs who live near the Speedway allege that dust and noise from the races pose “an unreasonable intrusion into the use and enjoyment” of their homes and have reduced their property values.

In a memorandum filed in January, plaintiffs’ attorney Clay Garside argues against the Speedway’s refusal to produce requested documentation regarding the Corps investigation on the grounds these items “do not relate to noise or dust.”

Garside writes, “In addition to being unlawful, Section 404 violations do relate to noise and dust disturbing surrounding neighbors. When the Corps considers whether to allow a property owner to fill in wetlands, it … specifically considers the potential impacts of the project to air quality and noise levels on surrounding property owners .. and might well prevent the project from going forward if there are significant adverse effects on these aesthetic values in the area.”

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Copyright 2012 Bastrop Daily Enterprise. Some rights reserved
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Alligator Bayou owners: parishes ruined our business

Iberville and Ascension parishes should compensate the owners of Alligator Bayou Swamp Tours for opening the bayou’s floodgate in 2009 and ruining the company’s business, an attorney for the firm told a state appellate court Thursday.

“They (Iberville and Ascension governments) destroyed the swamp tour business. They (the company’s owners) should be compensated,’’ Clay Garside, who represents Alligator Bayou Swamp Tours co-owners Frank Bonifay and Jim Ragland, argued to a three-judge panel of the 1st Circuit Court of Appeal in Baton Rouge.

But an attorney for Iberville Parish countered that the floodgate in Iberville was opened to protect nearby landowners.

“One property owner in the area doesn’t like it — one,’’ Ryan Ours, who represents Iberville, told the 1st Circuit panel.

Ours also argued it is a “privilege’’ to use public waterways, not a “right.’’

Bonifay, who attended the court hearing, said afterward that he is “praying a lot.’’

“We lost all of our bookings. We’ve had no income for three years,’’ he said.

The floodgate between Alligator Bayou and Bayou Manchac was built in 1951 and had generally been kept closed since its construction.

Bonifay and Ragland, who own land adjacent to Alligator Bayou, shut their business down shortly after the gate was opened and the water receded from their land and the bayou.

Garside told Circuit Judges Edward “Jimmy’’ Gaidry, Michael McDonald and Jeff Hughes that Alligator Bayou Swamp Tours started in the mid-1990s.

McDonald noted that the floodgate was in existence when the swamp tour owners bought their property.

“To me it’s like moving next to an airport and then complaining about the noise from the airplanes,’’ the judge said.

Garside argued that Alligator Bayou’s navigability could have been maintained if the water level had merely been lowered to 3.8 feet to 4 feet — what he called the historical bank level — but the opening of the floodgate “drained’’ the bayou and left just six inches of water.

Before the gate was opened, water in the bayou was high enough to permit Alligator Bayou Swamp Tours to offer the public pontoon boat tours of the scenic bayou area.

The decision by the governments of Iberville and Ascension to open the gate stemmed from complaints from nearby landowners that the closed gate kept too much water on their properties, limiting what they could do with their land and interfering with the natural rhythm of the swamp ecosystem.

State District Judge Thomas J. Kliebert Jr. ruled in June that Alligator Bayou Swamp Tours is not entitled to compensation because the company had no private property rights on the bayou.

Kliebert concluded that Alligator Bayou Swamp Tours “doesn’t have a protected, private right in a public waterway.’’

Bonifay and Ragland are seeking compensation on the basis of “inverse condemnation,’’ a legal term in which a private party can seek payment for land taken by a government entity for public use.

“This (the opening of the floodgate) is not a legal action,’’ Garside argued Thursday.

“Where is the protected constitutional right? They don’t have it,’’ Ours countered.

Gaidry, McDonald and Hughes took the arguments under advisement.

Garside said outside the 1st Circuit courthouse that Alligator Bayou Swamp Tours lost millions of dollars in capital investment and hundreds of thousands of dollars in future revenue.

Mississippi Power and Sierra Club talk about ruling

Posted: Mar 17, 2012 3:59 PM CDT
Updated: Mar 17, 2012 8:28 PM CDT

By Michelle Lady

SOUTH MISSISSIPPI (WLOX) –
The Mississippi Supreme Court unanimously ruled the Public Service Commission must go back and provide more details on why commissioners eased the financial terms under which the Kemper County Power Plant could be built.

Attorney Robert Wiygul who represents the Mississippi Sierra Club says, “Mississippi Power, I think, takes the view that this is just a minor setback, but the fact is the courts don’t reverse a $2.8 Billion decision unless something was bad, wrong with it.”

“What the supreme court said here is that the public service commission did never make a finding that this was in the public interest,” Wiygul said.

But Mississippi Power Company Officials believe they have proved their case.

Company spokesman Jeff Shepard said, “We are confident in the evidence presented in May of 2010. This isn’t a ruling against the power plant. It is a ruling against the way the Public Service Commission presented it’s ruling.”

They are so sure in fact, the company has continued with construction of the plant.

“We have a goal, and that goal is to stay on schedule, have the plant open by May of 2014,” Shepard said. “That’s what we intend to keep doing.”

But Wigyul says he believes construction will be forced to a halt in a few weeks when the supreme court decision takes effect.

“The permit for this power plant is going to be gone and at that point, according to the law, you are not supposed to be building a plant anymore. This is really a stunning reversal for Mississippi Power,” Wigyul said.

Both sides must now wait until the Public Service Commission decides what their next move will be.

Shepard said, “We feel the evidence is there. Once the order is cleaned up, to put in layman’s terms, everything will work itself out.”

Wigyul said, “The Public Service Commission has got to re-open this proceeding, and they have got to look at all the alternatives to Kemper. I’m confident, if that happens, the Public Service Commission is going to find there are better, cheaper, less risky ways to bring electricity to the coast.”

Mississippi Public Service Commissioner Brandon Presley, the only commissioner to vote against the power plant, released a statement about the ruling.

Presley said, “I personally wrote multi-page dissents in this case and am pleased today to see that those arguments were not in vain.”

Click HERE to read Presley’s full statement.

Copyright 2012 WLOX. All rights reserved.

Sierra Club files suit against MDA

Posted: Mar 15, 2012 10:24 AM CDT Updated: Mar 15, 2012 11:33 AM CDT

Gulf Restoration Network

Sierra Club – Mississippi

HARRISON COUNTY, MS (WLOX) –
The Sierra Club and Gulf Restoration Network have filed a lawsuit against the Mississippi Development Authority, challenging the regulations that have been created for oil and gas exploration in Mississippi waters.

Louie Miller with the Sierra Club called the lawsuit an “option of last resort.”

Attorney Robert Wiygul filed the legal action in Hinds County chancery court on Wednesday. He said the legal action is asking that “a modicum of common sense be applied to the creation of regulations.”

According to Wiygul, the normal course of events is “ready, aim, fire.” But in this case with MDA, it was “ready, fire, aim.”

Steve Phillips is following this story, and will have more details on the lawsuit later today on WLOX News and WLOX.com.

Copyright 2012 WLOX. All rights reserved.

USA Speedway’s future could hinge on result of October court date

By Wes Helbling

Bastrop Daily Enterprise

Posted Mar 09, 2012 @ 11:00 AM

BASTROP —

Documents on file with the Union Parish Clerk of Court indicate the fate of the USA Speedway will be decided by a jury in October.

The court date is slated for more than two years after residents initially filed a petition for permanent injunction and damages against the race track in the Third Judicial District Court in August 2010. Forty-two additional residents of the area around the track joined the petition within two months of the original filing by 18 plaintiffs.

The USA Speedway is a dirt race track constructed in 2009 in a West Sterlington neighborhood on the opposite side of the Ouachita River from the Town of Sterlington.

The petition argues, in part, that the noise and dust from the Speedway pose “an unreasonable intrusion into the use and enjoyment of Plaintiffs’ homes,” have “created or aggravated respiratory problems in Plaintiffs” and have “reduced Plaintiff’s property values.”

Court records include filings by Plaintiffs’ attorney Clay Garside of New Orleans, and attorneys Jim Norris of West Monroe and Thomas Hightower Jr. of Lafayette, representatives for Speedway owner Bobby Hobson, regarding the Defendant’s allegations that some of the plaintiffs in the suit were unaware of their inclusion.

Entered as Plaintiff’s exhibits are signed and notarized statements from the plaintiffs in question asserting they were, in fact, aware of their inclusion of the suit, and four statements documenting instances in which plaintiffs were allegedly pressured to sign statements reading, “The persons listed below were listed in a suite [sic] against USA Speedway, Bobby Hobson and Casey Hobson. They were listed without their knowledge and wish to have their names removed from the suite [sic].”

Hightower later withdrew an exception of improper joinder of parties that alleged the plaintiffs did not know they were part of the suit.

Records show in August 2011, Garside filed a motion to compel responses to discovery requests for information from USA Speedway LLC, including correspondence between Hobson and the Louisiana Department of Environmental Quality, U.S. Army Corps of Engineers and EPA.

In December, Hightower filed an answer to the original petition in which each of the allegations made against the Speedway is denied without elaboration.

In a memorandum filed Jan. 25, Garside argues against the Speedway’s refusal to answer certain items in the discovery request on the grounds these items “do not relate to noise or dust.” He writes, “[T]he central theory of

Defendant’s case is that opening a racetrack in Plaintiffs’ neighborhood does not violate any laws and Defendant can do what it likes with its property.”

In 2010, following an investigation by the U.S. Army Corps of Engineers Vicksburg District, an EPA spokesman confirmed the agency had determined USA Speedway LLC had violated Section 404 of the Clean Water Act by discharging fill material into a wetlands area without obtaining the required permit from the Corps to do so.

Garside writes, “In addition to being unlawful, Section 404 violations do relate to noise and dust disturbing surrounding neighbors. When the Corps considers whether to allow a property owner to fill in wetlands, it determines whether the project will be in the public interest. … The Corps specifically considers the potential impacts of the project to air quality and noise levels on surrounding property owners … and might well prevent the project from going forward if there are significant adverse effects on these aesthetic values in the area.”

Instead of applying for a Section 404 permit, Garside writes, “Defendant illegally filled wetlands in secret, and started up an obnoxious commercial enterprise that has materially harmed its neighbors’ enjoyment of their own homes.”

Also in January, Garside filed a motion to strike Hightower’s request for a jury trial, citing Louisiana Code of Civil Procedure to the effect that trial by jury shall not be available in an injunction proceeding. However, on Jan. 27, Third District Judge R. Wayne Smith ordered a jury trial to begin on Oct. 29 with an estimated duration of five days.

Phone calls to the offices of Garside and Hightower seeking further comment were not returned at press time.

The Speedway Web site lists the Town of Sterlington as a sponsor this season, along with Coca-Cola, Marion State Bank and several area businesses. Mufflers are mandatory for all race cars, according to the Web site.