[StBernard] Money for oil spill claims might not cut state grants

[Westley Annis]

Money for oil spill claims might not cut state grants
But selling home to refinery may affect Road Home aid 
Saturday, December 30, 2006
By Susan Finch

Federal housing officials have cleared up a months-old question asked by
thousands of St. Bernard Parish residents in the Murphy Oil spill area: Will
any settlement they accept from Murphy for damage to their homes be deducted
from their potential Road Home grants? 

The answer is "no" for residents who accept a settlement but are not selling
their houses to Murphy, according to a state attorney who got the word
Thursday from a HUD disaster specialist. 

The situation is more complex for residents of a four-street area near the
refinery where Murphy has offered buyouts to owners, said state Office of
Community Development attorney Dan Riess. 

"If somebody wants to choose to sell to Murphy, that is inconsistent with
the structure of Road Home provisions" that allow sale of hurricane-damaged
homes to the state, Riess said. 

He said he will continue discussions with the Louisiana Recovery Authority
and Murphy "and come to a conclusion on how to best mesh the two programs
together so people can see what's the best deal for them." 

The Department of Housing and Urban Development's conclusion, which Riess
said was relayed to him via e-mail Thursday, clears up any questions about
how Road Home grants will be affected by a proposed $330 million settlement
with 6,500 Chalmette residents and businesses involved in a class-action
lawsuit against the refinery. 

The suit stems from the spill of 1 million gallons of oil from a storage
tank that was moved off its base by massive flooding during Hurricane
Katrina. In January, U.S. District Judge Eldon Fallon consolidated 27
lawsuits against the Arkansas-based company into a class-action suit. 

The proposed settlement includes money to settle claims with property owners
and buy some property, and sets aside money for cleanup. Fallon will hold a
fairness hearing Thursday morning to decide if the settlement is fair and
approve it if he decides it is. 

The spill area is roughly bounded by Paris Road on the west; St. Bernard
Highway on the south; the 40-Arpent Canal levee on the north; and Jacob and
Mary Ann drives on the east. 

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Susan Finch can be reached at sfinch at timespicayune.com or (504) 826-3340.