The Rationale behind Non-profit Oil Spill Claims

It may be difficult for some people to understand how the BP oil spill that happened in the Gulf of Mexico would affect a non-profit organization in Mont Belvue, which is more than 400 miles away. The 4 million or so barrels of oil spilled about 5 years ago off the Gulf of Mexico were a disaster of such magnitude that the direct and indirect environmental and economic costs are almost incalculable. The ripple effect was massive. From that point on, the economic landscape of nonprofits that had any operation or concern in the affected areas changed forever.

A nonprofit typically operates outside its own physical location, unlike most local businesses. A nonprofit in Texas could have operations in Alabama or Louisiana. As such, they generate revenue and spend outside their geographic area. When a disaster such as the Deepwater Horizon oil rig explosion occurs, the nonprofits are the first to render aid and provide supplies, which does not come out of thin air. According to the website of Williams Kherkher, since most of the businesses in the surrounding area were likewise affected by the event, it also meant revenues went down. It is a matter of money going out but none coming in. Many nonprofit operations came to a standstill in the months following the disaster.

Fortunately, BP Plc reacted quite fast, putting an economic settlement program in place that would quickly process economic loss claims from individuals, businesses, and nonprofits. Unfortunately, BP is now contesting the terms of its own settlement program, which has halted the awards to even Zone A (automatic compensation) claimants. The oil producer’s lawyers are also questioning each nonprofit claim, including those in Zone A. Without the help of competent oil spill lawyers, a legal wall blocks many nonprofits.

If you are an eligible nonprofit under the settlement agreement, you should be able the get compensation. Consult with an oil spill lawyer in your area as soon as possible. The deadline for making any economic and property damage claim for the BP oil spill (except for the Seafood Compensation Program, which was January 22, 2013) is June 8, 2015.

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