BP, Justice Department: No need for court supervision of oil spill claims process

Both BP and the Justice Department are arguing the Gulf Coast Claims Facility (GCCF), which has been charged with doling out compensation to the victims of last year’s massive oil spill, should not be subject to court supervision.

In separate documents filed in federal court in recent days, BP and the Justice Department say such supervision is not necessary, according to Courthouse News Service. The documents were filed in response to a call by U.S. District Judge Carl Barbier for input as to whether the GCCF was adequately fulfilling its mission, the news service says.

"Judicial supervision of OPA's claims process would not promote, but instead would undermine, the fair and efficient administration of the process," the document filed by BP says, according to Courthouse News Service. The Justice Department said the GCCF "can only be measured by whether the people of the Gulf feel fairly treated," the new service notes.

The filings come amid criticism of the GCCF, which is administered by Kenneth Feinberg, a Washington lawyer who previously headed up the 9/11 Victim Compensation Fund. Gulf Coast lawmakers and public officials have alleged that Feinberg’s payment methodology does not adequately take into account the extent to which the region’s economy was hobbled by the spill and consequently will provide unfair compensation to spill victims.

After a two-week comment period in which 1,400 people gave their thoughts on a draft payment methodology, Feinberg on Friday released his final payment methodology for the last stage of the compensation process. The basic payment formula remains the same. Under the methodology, most claimants will receive twice their 2010 losses, while oyster harvesters will receive four times their 2010 losses.

The GCCF has paid out nearly $3.5 billion in emergency payments to victims of the spill. Using the new methodology, Feinberg will issue final payments. If claimants accept a final payment, they must sign a release agreeing not to sue BP or any other companies responsible for the spill.