[StBernard] Judge OKs preliminiary Murphy oil spill settlement

[Westley Annis]

Judge OKs preliminiary Murphy oil spill settlement
Tue Oct 10, 2006 6:52pm ET

NEW ORLEANS, Oct 10 (Reuters) - A federal judge on Tuesday approved a
preliminary settlement worth at least $330 million to a class-action lawsuit
against Murphy Oil Corp. (MUR.N: Quote, Profile, Research) for an oil spill
that flooded hundreds of homes near its suburban New Orleans refinery during
Hurricane Katrina in 2005.

Murphy will pay about $40 per square foot to buy affected residents out of
their homes, attorneys said on Tuesday. The company would avoid a lengthy
trial and further lawsuits from homeowners if the agreement wins final
approval.

Under the proposed deal, Murphy will pay residents of Chalmette and Meraux,
Louisiana, where 25,100 barrels of crude oil flooded homes after Katrina's
floodwaters floated a crude storage tank off its base.

U.S. Judge Eldon Fallon consolidated 19 class-action lawsuits arising from
the oil spill, the worst environmental accident caused by Katrina.

Plaintiffs' attorney Val Patrick Exnicios said he was pleased with the
proposed settlement.

"It's a step toward closure," Exnicios said. "It's a step toward they're
recovering the losses they've sustained."

A Murphy Corp. spokeswoman said the company would have no comment about the
preliminary settlement.

Plaintiffs with objections will raise them in a hearing that Fallon set for
January. Once all objections are considered, a final settlement will be
approved by the court.

Plaintiffs can choose to not accept the deal and sue Murphy individually.

Murphy's shares finished up nearly 1 percent, or 46 cents, in Tuesday trade
on the New York Stock Exchange. The settlement was announced after the close
of trading, although terms of the deal had been outlined previously. 


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