Frustrations mount over BP claims process

June 10, 2010 at 12:00a.m.

Associated Press

GRAND ISLE, La.

The financial toll of the oil spill disaster in the Gulf of Mexico escalated Wednesday as BP’s stock plummeted to a 14-year low and fishermen, businesses and property owners who have filed damage claims with the company angrily complained of delays, excessive paperwork and skimpy payments that have put them on the verge of going under.

The oil company captured an ever-larger share of the crude gushing from the bottom of the sea and began bringing in more heavy equipment to help in the effort, including a production ship and a tanker from the North Sea that will allow the system to process larger quantities of oil and better withstand tropical storms.

The containment efforts played out as investors deserted BP amid fears that the company might be forced to suspend dividends, end up in bankruptcy and find itself overwhelmed by the cleanup costs, penalties, damage claims and lawsuits generated by the biggest oil spill in U.S. history.

Shrimpers, oystermen, seafood businesses, out-of-work drilling crews and the tourism industry all are lining up to get paid back the billions of dollars washed away by the disaster, and tempers have flared as locals direct outrage at BP over what they see as a tangle of red tape.

“Every day we call the adjuster eight or 10 times. There’s no answer, no answering machine,” said Regina Shipp, who has filed $33,000 in claims for lost business at her restaurant in Alabama. “If BP doesn’t pay us within two months, we’ll be out of business. We’ve got two kids.”

Some locals see dark parallels to what happened after Hurricane Katrina, when they had to wait years to get reimbursed for losses.

BP spokesman Mark Proegler disputed any notion that the claims process is slow or that the company is dragging its feet.

Proegler said BP has cut the time to process claims and issue a check from 45 days to as little as 48 hours, provided the necessary documentation has been supplied. BP officials acknowledged that although no claims have been denied, thousands and thousands of claims had not been paid by late last week because the company required more documentation.

At the bottom of the sea, the containment cap on the ruptured well is capturing 630,000 gallons a day and pumping it to a ship at the surface, and the amount could nearly double by next week to roughly 1.17 million gallons, said Coast Guard Adm. Thad Allen, who is overseeing the crisis for the government.

A second drilling vessel that will arrive within days is expected to greatly boost capacity. BP also plans to bring in the tanker from the North Sea on Monday to help transport oil and an incinerator to burn off some of the crude.