With regards to response and removal operations carried out by local government entities, BP urges them to coordinate their activities first with the Federal On-Site Coordinator or the Unified Command center. While BP undertakes the responsibility to provide for the response and removal operations, all other direct spill response operations are transitioned over to the Unified Command. This means that Local Government Entities can be a part of the operations as long as activities are coordinated with the Unified Command center. What are the costs that can be compensated by BP?

Considered for reimbursement are costs incurred by the Local Government entity for the prevention and mitigation of the impact to natural resources within the areas affected by the Deepwater Horizon incident. This includes preventive measures and clean-up operations undertaken by the Local Government Entity. The costs may be reimbursed provided that (a) it has not yet been reported or filed as a claim and (b) actions and operations were carried out in coordination with the FOSC or with BP. These costs are required to be submitted along with complete documentation, receipts, reports, and other pertinent document that will support the costs. Included with the documentation are proofs that indicate the Response and Removal Costs were coordinated with BP or the FOSC.

If the actions or operations were not coordinated with the FOSC or BP, the claimant should then report and file the claims under the Government Entity Claims Settlement Process. They should attach explanations for the costs and why it’s necessary to undertake such actions and operations. They should also prove that the response and removal operations followed the strict guidelines and Area Contingency Plan or under the direct supervision of the Unified Command. Can an LGE include the filing of Lost Revenue Claims? Lost revenue claims may also be considered as part of the reimbursement if LGE claims revenue lost from royalties, taxes, rentals, and other fees that the Local Government Entity was not able to acquire or collect, or unable to mitigate, because of the Deepwater Horizon Incident. Lost revenue claims should be included in the report and should be filed along with the corresponding claim. Additional supporting documentation is required to be reviewed by the Claims Team. Only with the approval of the Authorization Team will the LGE receive advanced payment for costs incurred and additional Lost Revenue Claims.

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