May 20, 2010
American Sportfishing Association Policy Alert
Update on the Gulf of Mexico Oil Spill
Information for ASA Members Seeking Deepwater Horizon Oil Spill Disaster Assistance
For more information, contact Gordon Robertson, grobertson@asafishing.org, vice president and Government Affairs lead, 703.519.9691, x237, or Mike Leonard, mleonard@asafishing.org, x230.
For up-to-date information on the Gulf of Mexico oil leak, please go to www.KeepAmericaFishing.org. ASA updates this site every day with information about the oil leak response and it has links to federal and state websites, including NOAA, as well as British Petroleum’s (BP) site.
White House Request for Funding
While the nation continues to focus on the efforts to contain the oil leak in the Gulf of Mexico, the American Sportfishing Association (ASA), is working to ensure that recreational fishing businesses are accounted for in Congressional appropriations, federal programs and through BP’s disaster response fund as the economic evaluation and assistance process evolves.
On May 12, President Obama sent a $118 million legislative package to Congress asking for additional funds for oil spill response and to help speed assistance to people and businesses affected by the spill. As a result of ASA’s discussions with the National Oceanic and Atmospheric Administration (NOAA) and NOAA’s National Marine Fisheries Service, ASA has been told that recreational fishing businesses will be included in the aid package. The aid package includes $15 million to compensate losses suffered by fishermen unable to get out on the water due to federal and state closures in the Gulf.
The Office of Management and Budget assured NOAA that this amount will include the recreational fishing industry. Congress must first act on this request. At this time we are not aware of the time table for that action but ASA is asking for swift action.
The White House legislation would also authorize new, one-time discretionary spending; expanding access to food stamp programs and creating "one-stop shopping" sites for assistance that are aimed to prevent bureaucratic delays in payments. There are several Congressional actions being proposed that relate to various aspects for providing relief to businesses damaged by the Deepwater Horizon incident. As those become effective, ASA will provide information to its members.
Requesting Assistance
The Small Business Administration (SBA) – The SBA is offering loans of up to $2 million, with an interest rate of four percent for the oil spill. The loans are intended to help businesses pay for ongoing expenses and bridge the gap until a settlement is reached with BP PLC. You may obtain information about the SBA loans and apply on line by going to www.sba.gov.
BP Compensation - In addition to Congressional action, businesses are encouraged to apply directly to the BP for compensation. Those claims will be judged on a case-by-case basis and businesses will need to have supporting documentation comparing business in 2009 with 2010.
To contact BP about a claim you must call 800-440-0858. You will be asked a series of questions about your reason for a claim. You will be provided a claim number. ASA encourages all of its members impacted by the Gulf of Mexico oil leak to retain good records from the day of the spill forward as there may be other claim opportunities in the coming months.
Raising the Cap on BP Damage Payments
The White House proposal would also raise the cap on BP, the owner of the Deepwater Horizon oil rig, could have to pay in damages. Under the Oil Pollution Act of 1990, the cap on damages beyond clean-up costs is $75 million, although that cap can be waived if the company is found to have engaged in willful misconduct or violated federal safety rules.
Legislation has already been proposed in both the Senate and House to increase the current limit of $75 million to $10 billion; however, the White House proposal does not specify a new cap but indicates this is an amount to be determined in Congress. BP has said the company will pay all legitimate claims, according to a White House fact sheet. You can read the fact sheet at www.whitehouse.gov/the-press-office/fact-sheet-deepwater-horizon-oil-spill-legislative-package.
