[StBernard] Judge: Deal 'Fair' in Katrina Oil Spill

[Westley Annis]

Associated Press
Judge: Deal 'Fair' in Katrina Oil Spill
By CAIN BURDEAU 01.04.07, 9:17 PM ET

A federal judge on Thursday praised a proposed deal between the Murphy Oil
Corp. and thousands of St. Bernard Parish homeowners to end a legal fight
over an oil spill during Hurricane Katrina.

U.S. District Judge Eldon Fallon stopped short of final approval of the
settlement but said he would rule shortly. He left both sides confident he
would give his blessing to the $330-million deal that covers about 6,500
homes and businesses.

"The settlement is fair, reasonable and adequate," Fallon said, noting that
only two residents in the class-action suit objected.

A settlement would put to rest a slew of lawsuits filed after a massive oil
storage tank at Murphy's flooded refinery in Meraux was knocked off its
foundation during the hurricane. The tank broke, unleashing about 25,000
barrels of oil on the surrounding neighborhoods, churches, canals and
playgrounds.

Murphy concedes no wrongdoing in the settlement of one of the biggest urban
oil spills in American history. Plaintiffs had alleged that the refiner
failed to follow best practices by not filling the tank up with fluids so
that it would be stable during storms.

The settlement identifies a range of compensation for property owners,
depending on how far they were from the spill. If the deal is approved,
Murphy would seek to buy about 570 homes on the four streets next to the
refinery and tank farm.

"It's a fair settlement," said Daniel Bourgeois, a resident who lived in the
worst-hit zone next to the refinery. He declined to say how much he would
end up getting from insurance payments and a Murphy buyout. "All I can tell
you is that I'm very well compensated."

About 250 homeowners opted out of the class-action suit, and their suits
will go forward if the settlement is approved.


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