[StBernard] Murphy Settlement to total $330 million

[Westley Annis]

$330 million settlement deal in Katrina oil spill
Judge must still approve what Murphy Oil, plaintiffs' lawyers agreed to

NEW ORLEANS - An oil company and plaintiffs affected by the worst
environmental disaster during Hurricane Katrina said Monday they had agreed
to a $330 million settlement.

Murphy Oil, based in El Dorado, Ark., said in a statement it had reached an
agreement with the plaintiff attorneys over the spill from an oil storage
tank at its Meraux refinery in St. Bernard Parish near New Orleans. One
million gallons of oil coursed into canals and thousands of homes after
storm surge moved the tank off its base.

"Obviously, the community is eager to move forward, and so are we," said
Murphy spokeswoman Mindy West.

The proposed agreement is subject to approval from the U.S. District Court
for the Eastern District of Louisiana, which has scheduled a hearing for the
matter on Oct. 10.

The proposed settlement includes $80 million paid so far to settle roughly
2,700 household and business claims, said Sidney Torres, the court-appointed
liaison for the committee. The class consists of a total of about 6,200
claims, he said.

Another $160 million would go toward property buyouts and paying property
owners in the area, while the remaining $90 million would be for cleanup, he
said. The latter figure could rise, however, if more cleanup work is needed,
Torres said.

Terms of the proposed agreement and benefits would be paid by Murphy and its
insurers, according to a news release from the plaintiff attorneys. Torres
said attorneys' fees would be above and beyond the settlement amount, and
set by the judge.

Torres said the judge urged all parties to work toward a resolution.

"Everyone down here is struggling to recover, to return home, and this is a
very positive step," he said.