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Sessions to Feinberg: Alabama Needs Clear Answers on Claims Process
“It is apparent that a great deal of confusion exists regarding the claims process, the status of claims, and the process for appeal… I am writing to request that you provide me with clear and direct answers to these questions so that I may make this information available to the public.”
WASHINGTON—On behalf of his constituents, U.S. Senator Jeff Sessions (R-AL) is asking Kenneth Feinberg, the Obama Administration official tasked with administering the claims fund set up by BP, a series of questions to clarify the process of filing claims and appeals relating to the Deepwater Horizon incident.
The questions, sent to Feinberg in a letter today, are based on Sessions’ conversations with coastal mayors, individual claimants, and small business owners.
Sessions intends to make the answers he receives public by posting them on his official website www.sessions.senate.gov or via Facebook.
A text of the letter follows:
Mr. Ken Feinberg
1455 Pennsylvania Avenue, NW
Suite 390
Washington, D.C. 20004
Dear Mr. Feinberg:
As we have previously discussed, Alabama’s coastal economy is largely comprised of hundreds of small tourism-related businesses that rely heavily on the summer vacation season for revenue. These are not large corporate interests with deep financial reserves, but rather sole proprietorships and family-owned firms that have worked hard over many years to prosper and grow.
Today, more than five months after the Deepwater Horizon incident, many of these coastal businesses are fighting for their own survival. They are on the brink, struggling with serious financial challenges stemming from the oil spill and the resulting decline in tourism. The seasonal nature of the local economy means there will be little opportunity to rebound during the coming winter months, when profits are typically small or non-existent.
I am aware that you have recently accelerated payments to some Alabama claimants and altered the rules regarding geographic proximity to the spill for filing claims, decisions that are appreciated. I encourage you to continue to move expeditiously to fulfill BP’s commitment to pay those who suffered physical or economical losses as a result of this disaster.
Based on my conversations with coastal mayors, business owners, and area residents, it is apparent that a great deal of confusion exists regarding the claims process, the status of claims, and the process for appeal. This uncertainty is impeding the ability of local business owners to move forward with financial decisions and to act in the best interest of their business and their employees. It is critical that you provide area residents with certainty about the claims procedure and decision-making process so they may have the confidence necessary to plan for the future.
Much of the uncertainty seems to revolve around the following five areas. On behalf of my constituents, I am writing to request that you provide me with clear and direct answers to these questions so that I may make this information available to the public.
• The most important thing I hear is the need for the fund to be available to compensate claimants for not only losses suffered in 2010, but also losses that may occur in future years. It is my understanding that individuals have until November 23, 2010, to file for temporary emergency payments. What is the deadline, if any, to submit final settlement claims for long-term economic and/or physical damages? What is the sunset date for the claims program?
• Many people have expressed concern that past end-of-year tax information is being used to artificially limit their total payments. While I understand that documentation of past earnings is necessary to establish a revenue history, it is critical to note that higher revenues in the summer months are often offset by lower revenues in other parts of the year. In evaluating claims, do you consider the seasonal nature of the tourism industry in recognizing that past end-of-year tax information is not always an accurate measure of expected revenue in the period between Memorial Day and Labor Day?
• According to news reports, you said that you were “reconsidering how [to] provide more transparency and more information to the claimant,” and “thinking of providing a coordinator in each state who will be an ombudsman to help the claimant.” My understanding is that your agents in Alabama currently have limited authority and are often required to refer questions to officials located in other areas. You have said that “the last stop on the claims process is in Washington, D.C. All claims must go through this hub to ensure consistency.” Additionally, you have noted that there are only 25 employees in the Washington office reviewing and finalizing thousands of claims. Please explain who you have sent to Alabama, what their role and responsibilities are, and what plans you have, if any, to put claim advisors and/or decision-makers in Alabama to expedite the claims process?
• When a claim is initially paid, what information is provided to the claimant indicating the status of the full claim? Does receipt of a check for an amount less than the original claim indicate that no further payments should be expected? Or, does further evaluation of the claim continue after an initial payment has been received? What information is provided to explain this process?
• What information and process is available to those seeking to appeal their claim determination?
Please provide your answers to me by Monday, October 18, 2010. It is my intent to distribute this information as necessary to ensure that my constituents have the most up-to-date and complete information available.
Thank you for your prompt attention to this matter. I look forward to your response.
Very truly yours,
Jeff Sessions
United States Senator (R-AL)
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