NEW ORLEANS - BP and attorneys for more than 100,000 people and businesses presented a federal judge Wednesday with a class-action settlement designed to resolve billions of dollars in claims spawned by the 2010 oil spill in the Gulf of Mexico.
The London-based oil giant and the lawyers are asking U.S. District Judge Carl Barbier in New Orleans to give preliminary approval to the settlement agreement. The judge hasn't indicated when he will rule.
BP PLC estimates it will pay about $7.8 billion to resolve these claims, but the settlement doesn't have a cap. It will likely be one of the largest class-action settlements ever.
Alabama Attorney General Luther Strange talks with reporters in Montgomery, Ala., Wednesday. Strange said the proposed class-action settlement will speed up talk of a settlement in the suit by Alabama and Louisiana seeking to recover revenue the states have lose as a result of the oil spill.
"As in any settlement, neither side will receive everything it wants - not BP, which believes that plaintiffs' claims are subject to considerable litigation risk, and not the (Plaintiffs' Steering Committee), who maintain that they would one day obtain larger awards if their claims were to proceed to trial," the filing said.
The details of the agreement, spelled out in hundreds of pages of documents, are consistent with the deal announced last month, but the reaction was mixed, leaving open the possibility that many businesses and individuals might decide not to take part.
Dean Blanchard, a shrimp processor in Grand Isle, La., said he was disappointed. He said shrimp processors like him in the hardest-hit areas of the coast should get more money.
"They want to make it a one-size-fits-all, and it's not," he said. "They're looping too many people together."
He said he would opt out and predicted others would do the same. "I have lost millions of dollars. They can never bring me back."
Kevin Heier, a blue crab harvester, wasn't sure yet what he would do.
"Frustrating? That's an easy word for it. It's beyond frustrating," he said. "We were fine before the spill. The seafood is harder to get, it's more expensive, people aren't buying the seafood like they used to."
The agreement announced March 2 doesn't resolve separate claims brought by the federal government and Gulf states against BP and its partners on the Deepwater Horizon drilling rig over environmental damage from the nation's worst offshore oil spill.
The settlement also doesn't resolve claims against Switzerland-based rig owner Transocean Ltd. and Houston-based cement contractor Halliburton. Barbier has scheduled a May 3 hearing to discuss plans for a possible trial on the other claims.
Barbier also is expected to hold a "fairness hearing" on the settlement before deciding whether to approval it.