[StBernard] Murphy expands buyout zone in St. Bernard Parish

[Westley Annis]

Murphy expands buyout zone in St. Bernard Parish
Posted by bwarren July 31, 2007 3:40PM
By Bob Warren 
St. Bernard bureau 

Murphy Oil has given formal notice that it intends to expand the property
buyout program its Meraux refinery agreed to as part of the $330 million
settlement of a massive Hurricane Katrina-related oil spill. 


In the notice, filed recently in U.S. District Court in New Orleans,
Murphy's attorneys say the refinery had spent only $40 million of the $55
million set aside to purchase lots in the four-block buyout zone nearest the
refinery by June 30. Thus the company will now buy other area properties
until the money is all spent, as per the terms of the settlement. 

Murphy said it will also purchase the former Gulf Coast Bank Building at
1615 East Judge Perez Drive and renovate the property. Murphy plans to put
100 employees in this location, including staff that will be moved from the
refinery's New Orleans office. The bank has moved to a renovated location
across the street from its old building, said Kerry Miller, a New Orleans
attorney representing Murphy. 

Miller said the expansion of the buyout program does not require court
approval. 

The lawsuit against Murphy stemmed from a leak of 1 million gallons of oil
into the neighborhoods surrounding the St. Bernard Parish refinery after a
storage tank was damaged during Hurricane Katrina. 

The settlement area is bounded roughly 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. 

The buyout area included some 570 homes, Miller said. About 400 homeowners
sold their property to Murphy. 

In addition to the buyouts, affected property owners received payments based
on their proximity to the spill. 

In its recent court filing, Murphy also said: 

- It would expand the buyout zone to include properties on Jacob Drive
between the 20 Arpent Canal and the 40 Arpent Canal. Miller said this
includes 75 houses, many whose owners he expects would want to sell to
Murphy. "That's the area closest to the 40 Arpent Canal," he said. "It
suffered extensive flood damage." 

- It would enhance its offer to residents in the buy-out area who have not
sold to the company and have completely renovated their property. This is
about 80 homes, Miller said. 

- It would offer to purchase two leased properties in the settlement area
for $1 million or less.