Halliburton Energy Services, Inc./Transocean Punitive Damages & Assigned Claims Settlements

Last Updated 1/25/2021

IRS FORMS 1099 RELATED TO NEW CLASS AND OLD CLASS 2020 PAYMENTS

IRS Forms 1099 will be issued at the end of January 2021 relating to any distribution proceeds paid in 2020 to a claimant directly or that were paid to an attorney on a claimant’s behalf for the portion of the proceeds related to the Old Class (HESI-Transocean Assigned Claims Combined Settlement Fund) and/or the New Class (HESI-Transocean Punitive Damages Combined Settlements Fund) regardless of whether the payment was cashed prior to the end of 2020. NOTE: If you received payments from BOTH the Old Class (HESI/Transocean Assigned Claims Combined Settlements Fund) and the New Class (HESI/Transocean Punitive Damages Combined Settlements Fund) in 2020 that require an IRS Form 1099 be issued, you will receive two separate IRS Forms 1099.

If you received a payment(s) of $600 or more for New Class punitive damages claims during calendar year 2020, the full amount of those punitive damages payments will be included on your IRS Form 1099. All New Class awards, regardless of claim type, are reportable as all proceeds of the New Class are for punitive damages. Please consult your tax adviser if you have questions about the tax consequences of receiving punitive damages payments.

If you received payment(s) of $600 or more for Old Class assigned claims payments for reportable claim types during calendar year 2020, you will be sent an IRS Form 1099 reflecting the total of those reportable awards. Wetlands Real Property, Coastal Real Property, Oyster Leaseholder, Real Property Sales, and Vessel Physical Damage are not automatically included in the reportable amount per the IRS requirements – you must consult with your tax adviser to determine if these payments are taxable.

If you have a question or concern about your Form 1099, please review the information on the check stub that accompanied your 2020 settlement check, or contact the Settlements Program via email, Questions@GulfSpillPunitiveDamagesSettlement.com, or phone, 1-877-940-7792.

Please note that the Settlements Program can only answer general questions regarding Forms 1099, and it cannot provide you with tax advice. You should consult with your own tax advisor to determine the impact of any payments you receive from the Settlement Program on your individual tax situation.

Updating the Name on an IRS Form 1099:

If an amended Form 1099 is required, you can submit a request along with the appropriate Dissolved or Sold Business Certification or Legal Representative Certification for a Deceased, Minor, or Incompetent party and supporting documentation after the Form 1099 has been received. The forms and instructions on the documentation required are available on the Administrative Forms tab of this website. Please note, the Settlements Program is only able to issue a Form 1099 to a single recipient for each claim, so in instances where proceeds were split after distribution was made, the parties must choose one recipient for the Form 1099.

IRS Forms 1099 for Payments to an Attorney on Behalf of a Claimant:

Please note, firms received a Form 1099 for proceeds using Box 13; firms do not need to issue an additional Form 1099 to their clients as the Settlements Program is doing so.

A Form 1099 will be issued to the claimant for the year in which the funds were paid to the firm even if the attorney may not have forwarded the proceeds to the claimant in that same calendar year.

  • Old Class Claimant Forms 1099: The HESI/Transocean Settlements Program issued one Form 1099 for all Old Class payments made in 2020 to a particular claimant, regardless of the number of reportable underlying claims, in the name of the payee listed in the Old Class omnibus spreadsheet provided to firms on December 15, 2018, unless the firm has officially updated the claimant name with the Settlements Program in the interim, and that Form 1099 was mailed directly to your client at the address the Settlements Program has on file.
  • New Class Claimant Forms 1099: The HESI/Transocean Settlements Program issued one Form 1099 for all New Class payments made in 2020 to a particular claimant, regardless of the number of reportable underlying claims, in the name of the payee listed in the New Class A omnibus spreadsheet provided to firms on September 6, 2019, and in the New Class B omnibus spreadsheet provided to firms on July 13, 2020, unless the firm has officially updated the claimant name with the Settlements Program in the interim, and that Form 1099 was mailed directly to your client at the address the Settlements Program has on file.
  • Amended Forms 1099: If an amended Form 1099 is required, you or the claimant can submit a request along with the appropriate Dissolved or Sold Business Certification or Legal Representative Certification in the event the claimant is deceased, a minor, or incapacitated, and supporting documentation after the Form 1099 has been received by the claimant. The Settlements Program is only able to issue a Form 1099 to a single recipient.

NEW CLASS DISTRIBUTION B – REAL PROPERTY CLAIMS – GENERAL OVERVIEW

Mr. Juneau filed the New Class Distribution B Motion on May 20, 2020, and the Court entered its approval Order the same day. Copies of the filed documents are available on this website under the Court Documents tab in the New Class Distribution B section.

No appeals of the Court’s Order were filed, and the distribution began July 13, 2020.

Supplemental distributions occur every 8-12 weeks as holds are cleared.

The final pro rata includes the following summary chart. The pro rata applicable to each claimant’s recognized loss (inclusive of the multiplier for Coastal Real Property and Wetlands Real Property claims), is 57.9796125650968%.

Claim Category Real Property, including Coastal Real Property, Wetlands Real Property, Real Property Sales & Oyster Leaseholder
Eligible Claims Count 49,684
Reserve Claims Count as of 5/20/2020 276
All Claims –Recognized Losses Including 2.5X Multiplier (as applicable) $1,307,672,519.94
Distribution Pool Value $758,183,460.68
Final Pro Rata 0.579796125650968

NOTE: Distribution checks to individuals and entities indicate the Base Recognized Loss and the Post-Multiplier Recognized Loss (increased if the claim type was eligible for the multiplier) on the second page of the check stub. If you were represented by counsel, please contact your attorney for this information as it was transmitted to them along with your funds.

Please remember, if you are represented by counsel, the Settlements Program cannot communicate with you directly. Please contact your attorney with any questions.

Supplemental Distributions – Old Class and New Class Distribution A

Supplemental distributions occur every 8-12 weeks as holds are cleared.

Check Reissue Requests – Old Class, New Class Distribution A & New Class Distribution B

You may request a reissue of your check by submitting a request through email or US Mail containing the following information:

  • Claimant name (name on file from the claims process) *
  • Claimant address (address on file from the claims process) *
  • Claimant ID or SSN/EIN
  • Current phone number

*If you have moved or your name has changed, you must submit a Change of Address/Change of Name form along with proof of the change. If your business name has changed you must submit a Dissolved Business Certification. If the Claimant is deceased or incompetent, you must submit a Legal Representative Certification form along with proof of your authority to act on behalf of the claimant or the claimant’s estate.

All of these forms are available on the Administrative Forms tab of this website or you may call the Settlements program to request a form be mailed to you.

Uncashed and Undeliverable Check Postcards

The Settlements Program began mailing postcards on 11/20/2020 to claimants who were sent a payment by check but have not cashed the check or for whom the check was returned undeliverable. For undeliverable checks the Settlements Program attempted to locate a new address, but cannot reissue the check to that new address until it is confirmed by the Claimant and proof of the address change is provided to the Settlements Program.

If you received a postcard from the Settlements Program and you still have the check, even though it is past its printed void date, you can still deposit it to a savings or checking account. However, check cashing services will not accept the check given the expired void date. If you have the ability to deposit the check at this time please do so at your earliest convenience as the checks will be voided with the Settlement Program’s bank in the coming weeks, at which point you would have to request reissue. Later in 2021, unclaimed funds will be transferred to your state of residence as unclaimed property. The home page of this website will be updated with the date the unclaimed funds will be sent to the states once that date is available.

If you no longer have the check or if you are unable to cash the check for any reason - including change of name, dissolution of your business, or the death of the payee - please send an email to questions@gulfspillpunitivedamagessettlement.com with the claim number, name of the claimant, claimant’s address, the issue preventing you from cashing your check, and a telephone number at which you may be contacted so that we may research your question and respond. Failing to provide all information or information that matches the claimant records available to the Settlements Program may result in additional email follow up for verification of the identity of the party making the inquiry. You may also contact the Settlements Program toll free by calling 877-940-7792 for assistance.

NEW CLASS DISTRIBUTION A OVERVIEW

HESI/Transocean Punitive Damages “New Class Distribution A” Payments

Mr. Juneau filed the Motion, Memorandum in Support, and Proposed Order for Approval of Partial Distribution of the Punitive Damages Portion of the Halliburton Energy Services, Inc. and Transocean Ltd. Settlement Agreements (the “New Class Distribution A Motion, Support Memorandum, and Proposed Order”) on July 24, 2019, and the Court granted its approval the same day. No appeals of the Court’s Order were filed and the Order is now final. New Class Distribution A commenced on September 6, 2019.

The New Class Distribution A Motion, Memorandum, and Order Approving Motion for Approval of Partial Distribution of the Punitive Damages Portion of the Halliburton Energy Services, Inc. and Transocean Ltd. Settlement Agreements are available on the Court Documents tab of this site.

The final pro rata chart is included below:

NEW CLASS DISTRIBUTION A1
PRO RATAS BY CLAIM CATEGORY/TYPE

Claim Category Claim Type Final Pro Rata
Personal Property Vessel Physical Damage, Coastal Real Property - Personal Property Damage & Wetlands Real Property - Personal Property Damage 42.0432%
Personal Property >$500 3.7924%2
Charterboat Operator 10.7349%
Crew 16.8399%
Commercial Fisherman 99.3821%2
Loss of Subsistence N/A – per capita payment of $200 for eligible claimants

1 The Net Settlement Fund value available for distribution was updated prior to final calculation for distribution; review the Distribution A Support Memorandum and its exhibit for specific details.

2 For the Commercial Fishermen claim category, the Final Pro Rata is higher when compared to those of the other claim categories, but the final payment follows the stated intent of the Distribution Model as the recognized loss value for Commercial Fisherman claims transferred from DHEPDS records utilized only the initial compensation determination on Line 1 of the DHEPDS Seafood Program Eligibility Notices after a reduction for any built-in RTP, as applicable. The recognized loss also excluded supplemental and residual payments that such DHEPDS claimants received from the CSSP. This was done in order to simplify the data extractions and mathematical adjustments required to reduce the likelihood of errors. These simplified compensation amounts were also the values used to establish the New Class claim matrices for new Commercial Fisherman claims to ensure equal treatment under the Distribution Model for both new and DHEPDS transferred claims.

These pro rata percentages above were applied to each claim’s recognized loss, also known as the claim’s base compensation amount, which was provided in either the New Class Claims Reconciliation Notice or via a New Class Determination Notice to establish the distribution amount for each claim. As an example, if you had a Vessel Physical Damage Claim and you received a New Class Determination Notice with a recognized loss/base compensation amount of $12,375 the estimated pro rata share would be calculated as follows:

$12,375 recognized loss/base compensation amount
X .420432 pro rata percentage from chart above converted to decimal
$5,202.85 estimated payment

The following chart provides additional information on the relevant Claim Type abbreviations:

CRP-PPD Coastal Real Property - Personal Property Damage
WRP-PPD Wetlands Real Property - Personal Property Damage
PPD>$500 Personal Property Damage > $500
VPD Vessel Physical Damage
SUB Subsistence
CBO Charterboat Operator (Business Economic Loss for NAICS code 487210)
CBC Charterboat Crew (Individual Economic Loss for employees of businesses with NAICS code 487210)
CFC Commercial Fishing Crew
CF Commercial Fishing - Non Menhaden
MEN Commercial Fishing - Menhaden


Quick Reference FAQs regarding the New Class A Distribution:

  • REPRESENTED CLAIMANTS: Please contact your attorney with any questions; the Settlements Program cannot answer questions for individuals/entities with an attorney.
  • Any non-Real Property claims that are still subject to appeal or Court-review will be paid only after all due process rights have expired or been waived.
  • If you have an attorney, he/she received your payment. If you do not have an attorney, your payment was mailed to you.
  • Prior liens and bankruptcy trustee holds were honored pursuant to the processing already completed as part of the Old Class distribution and/or the New Class distribution. Court-approved Procedures 3 and 4 are available for review on the Court Documents tab.
  • See FAQ 95 for information regarding the notices mailed to claimants subject to liens and FAQ 96 for information regarding the lienholder notification letters.

Please review the most recent Status Report for additional details. Status Reports are available for review on the Claims Administrators’ Reports page.

New Class Court Review Determinations

Court Review Request decisions are posted on the Court Review Determinations page.

OLD CLASS DISTRIBUTION OVERVIEW

DHEPDS Assigned Claims “Old Class” Payments

The Motion for Approval of Distribution of the Assigned Claims Portion of the Halliburton Energy Services, Inc. and Transocean Ltd. Settlement Agreements and supporting documentation were filed with the Court on October 30, 2018 and Judge Barbier signed the Order on November 2, 2018. The appeal deadline passed on December 2, 2018. No appeals were filed and the initial distribution to Old Class members, consisting of all individuals and entities that have received a payment from the DHEPDS Court Supervised Settlement Program for compensatory losses associated with the Deepwater Horizon Spill, began on December 17, 2018. Copies of these documents are available on the Court Documents page. See the Old Class Distribution FAQs for additional information.

The Memorandum in Support of the Motion for Approval of Distribution of the Assigned Claims Portion of the Halliburton Energy Services, Inc. and Transocean Ltd. Settlement Agreements (the “Memo”) and its Exhibit 1 detail how claims are calculated.

For parties who received an aggregate payment from the DHEPDS Court Supervised Settlement Program across all claims or an eligible Neutrals payment after any necessary adjustments that were:

  • Less than or equal to $4,763.48, the claimant received a minimum $100 payment.
  • Greater than or equal to $6,731,771.35, the claimant received a maximum $150,000 payment
  • Between $4,763.48- $6,731,771.35, the claimant received 2.2402312936% of the total of all eligible DHEPDS payments.

For more details on what is an “eligible” DHEPDS payment, please review Exhibit 1 to the Memo in paragraphs 8-18.

Old Class Eligibility for Court-Appointed Neutrals’ Settled Claims

Per the Order and Reasons, the Court considered a payment made pursuant to the Neutrals’ process to be an “amount paid to [a] claimant by the DHEPDS Court-Supervised Settlement Program” for purposes of the DHEPDS Class Distribution Model so long as that payment was related to a claim, which, at the time of settlement and withdrawal, had not been fully and finally determined by the Settlement Program (i.e., all opportunities for Re-Review, Reconsideration and/or Appeal to the extent permissible had not been exhausted) and thus remained subject to the CSSP claims process.

GENERAL SETTLEMENTS PROGRAM OVERVIEW

Halliburton Energy Services, Inc. and Halliburton Company (“HESI”) and Triton Asset Leasing GmbH, Transocean Deepwater Inc., Transocean Offshore Deepwater Drilling Inc., and Transocean Holdings LLC (“Transocean”) each entered into separate settlement agreements being administered together to decrease administrative costs.

There are two groups included in the HESI/Transocean Settlements, the New Class that settled its punitive damage claims and the Old Class that received a settlement for claims assigned to it pursuant to Exhibit 31 of the Deepwater Horizon Economic and Property Damages Settlement (DHEPDS) Agreement. It is possible to be a member of one or both Classes.

The New Class received punitive damages associated with the Spill based on physical damages to real property and personal property and, to a lesser extent, losses related to commercial fishing, charterboat operations, and subsistence fishing or hunting during the Class Period. Most New Class members did not need to file a claim or provide any documentation to have their eligibility considered, but for those who were required to file a claim form, those forms were due on December 15, 2016 and claims can no longer be accepted.

The Old Class consists of businesses and individuals who previously filed claims for economic losses associated with the DHEPDS Court-Supervised Settlement Program.

A summary of Class Members’ Rights and Options can be accessed on this site. The HESI and Transocean Settlement Agreements are available for review or download. The Old and New Class Distribution Models can also be accessed on this site.