Since the explosion of the Deepwater Horizon drilling rig on April 20, 2010, individuals and corporations with financial interests in the Gulf of Mexico have been watching and waiting to see the extent of damage caused by the oil flowing from the MC252 well. Waller Lansden is monitoring issues related to the Gulf Oil Spill and providing analysis as events unfold. For more information, please contact
Lela Hollabaugh at 800-487-6380.
A Generation of litigation: what to expect from Macondo
October 4, 2010
Legal wrangling regarding the BP Macondo blowout in the Gulf of Mexico can be expected to go on for years. Just how long and far-reaching the legal process will be is often not well understood by oil and gas companies that have never experienced an event of this magnitude.
“It will be a very involved, tedious, and long-term process,” says attorney Lela Hollabaugh, a litigation attorney with Waller Lansden Dortch & Davis in Nashville, Tennessee. She has been litigating cases for 19 years and working with energy companies for the last decade. She also has extensive experience in insurance litigation.
To read the complete update, click
here.
Assessing Damages to Natural Resources Caused by the Gulf Oil Spill
Update No. 9, August 6, 2010
As economic and environmental damage related to the Gulf Oil Spill begins to be evaluated, many people have questions about how the court system or BP's claim fund process will help repair the area's natural resources in order for individuals to return to work and businesses to resume operations.
To read the complete update, click
here.
The Gulf Oil Spill's Impact on Coastal Businesses and Employment
Update No. 8, July 15, 2010
Not surprisingly, the Gulf Oil Spill has impacted more than the natural environment. If the oil continues to spill into the Gulf, we will see an increase in business closings and layoffs. Temporary positions will also pop up throughout the Gulf region related to clean up efforts. This article provides practical tips for avoiding legal risks related to such layoffs and the hiring of clean up workers.
To read the complete update, click
here.
Gulf Oil Spill Likely to Spur Energy Sector Consolidation
Update No. 7, July 6, 2010
The economic impact of the Gulf Oil Spill, estimated to have cost BP $2.65 billion as of this writing and rising daily, is likely to be felt for years to come. Ripple effects of the spill will extend far beyond the local economies of the Gulf states. Oil and gas industry analysts expect an increase in consolidation activity among domestic and multinational corporations doing business in the Gulf region.
To read the complete update, click
here.
IRS Provides Guidance to Gulf Oil Spill Victims and Sets Gulf Coast Assistance Day for July 17, 2010
Update No. 6, June 28, 2010
On Friday, June 25, 2010, the Internal Revenue Service released guidance (in a question-and-answer format) to individuals and businesses affected by the oil spill in the Gulf of Mexico and announced that a special Gulf Coast Assistance Day will be held in multiple cities on Saturday, July 17, 2010.
To read the complete update, click
here.
The Gulf Oil Spill Impact on the Coastal Real Estate Market
Update No. 5, June 24, 2010
Don’t expect to see many real estate sales occurring along the Gulf Coast this year. There is no question that the Gulf Oil Spill will negatively impact real estate values, but trying to quantify the severity or the duration of the downturn is very difficult at this point in time. Most real estate investors and homeowners are going to try and wait out this crisis before making decisions on whether to buy or sell. The single most important factor which will determine the severity of this downturn is how long oil continues to flow into the Gulf. While it is impossible to predict, hopes are high that the well will be capped in August when the relief wells are completed. It is also possible, however, that oil could continue to flow into the Gulf over the winter and into the next year. The Ixtoc I exploratory oil well, which suffered a blowout on June 3, 1979 in the Gulf of Mexico, was located in waters only 160 feet deep. The flow from that well was not capped for more than 10 months. By comparison, the Deepwater Horizon Rig was located in waters more than 5,000 feet deep, and MC252 is one of the most productive wells in the Gulf of Mexico. If the leak is not contained within the next few months, the fallout for the coastal real estate markets in Louisiana, Mississippi, Alabama, and Florida could be significant.
To read the complete update, click
here.
The Gulf Oil Spill's Impact on Lenders
Update No. 4, June 17, 2010
The Gulf Oil Spill is already having an effect on the oil and natural gas drilling, tourism and fishing industries, as well as the real estate markets along the Gulf Coast. As a result, a chain reaction of loan defaults could occur as area businesses and property owners struggle with the spill's aftermath and its impact on revenue. These issues will also reverberate through related sectors that service or supply the oil and natural gas drilling, tourism and fishing industries. In addition, the real estate market, already hard hit by recent economic issues and the aftermath of hurricanes Katrina and Rita, will likely be dealt another severe blow by the loss of property value and diminished rents. As a result, commercial and residential lenders in those markets could face a dramatic increase in troubled loans that will need to be addressed through forbearances, restructurings or other means.
To read the complete update, click
here.
The Oil Spill Claims Process
Update No. 3, June 10, 2010
The Oil Pollution Act (the Act) is receiving a great deal of new attention due to the Deepwater Horizon Gulf Oil Spill. Signed in to law in August 1990 in direct response to the Exxon Valdez oil spill, the Act expands liability for parties responsible for oil spills and defines the lessee of an offshore facility as the Responsible Party. BP accepted its designation as a Responsible Party and states that it “is committed to paying legitimate claims for other loss and/or property damage caused by the Deepwater Horizon incident.” As required by the Act, BP announced a process for the presentment and payment of claims.
To read the complete update, click
here.
Companies with Ties to the Gulf Oil Spill Should Take Heed of Government’s Recently Announced Criminal and Civil Investigations
Update No. 2, June 7, 2010
Criminal and civil investigations have been launched into the Gulf Oil Spill, and Attorney General Eric Holder has pledged the Justice Department’s resources to conduct the investigation and vowed to “ensure that every cent of taxpayer money will be repaid and damages to the environment and wildlife will be reimbursed.” Because both the criminal and civil investigations into the spill are in their infancy, their exact nature and scope remain largely undefined. At a minimum, however, the investigations are likely to explore potential violations of the Clean Water Act, Refuse Act, Oil Pollution Act, Endangered Species Act, and Migratory Bird Treaty Act.
To read the complete update, click
here.
Update No. 1, June 3, 2010
British Petroleum, (BP) has reported that it has already spent nearly $1 billion on cleanup efforts, and that figure will continue to climb well beyond the date when the leaking well is finally capped. Broad legal ramifications are certain to result as businesses and property owners are affected by the spill. Based on analysis of earlier oil spills, Waller Lansden has identified some likely areas of legal concerns, and the following is a brief overview of key issues related to the Deepwater Horizon incident.
