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

GENERAL OVERVIEW

Homepage Updated 9/6/2019

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 will receive 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 will 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.

NEW CLASS UPDATES

HESI/Transocean Punitive Damages “New Class” 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.

This initial, partial distribution will not include payments for any claims that are part of the Real Property claim category, which includes Coastal Real Property, Wetlands Real Property, Real Property Sales, and Oyster Leaseholder. These claims will not be ready for distribution until later this year, again, pending entry of a Court order approving distribution and no appeals of that Order.

Exhibit 1 to the New Class Distribution A Support Memorandum detailed the various claim types included in Distribution A, recognized loss information for each of the claim types/categories, and the dollar amounts allocated to each claim type for division among the eligible claims that established the estimated pro rata values included in Exhibit 1. The final adjustments are now complete and interest has been added. 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 will be 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 Distribution:

  • See FAQ 61 for information regarding Response Deadlines and Extension Requests
  • See the Claims Reconciliation FAQs for Common Questions associated with the New Class Claims Reconciliation Letters mailed August 24-31, 2018 or the Revised New Class Claims Reconciliation Notices sent July 17, 2019.
  • REPRESENTED CLAIMANTS: Please contact your attorney with any questions; the Settlements Program cannot answer questions for individuals/entities with an attorney.
  • If you have both Real Property and non-Real Property claims eligible for the New Class you will be paid on your non-Real Property claims that are part of the partial distribution as long as the determinations on those claims are final at the time the Distribution Motion to the Court is prepared
  • Any non-Real Property claims that are still subject to appeal or Court-review will receive further communication regarding final determination and, if deemed eligible, will be paid only after all due process rights have expired or been waived.
  • If you have an attorney, he/she will receive your payment. If you do not have an attorney, your payment will be mailed to you.
  • Prior liens and bankruptcy trustee holds will be honored pursuant to the processing already completed as part of the Old Class distribution or, for New Class only claimants, processing will be completed pursuant to Court-approved Procedures 3 and 4, which are available for review on the Court Documents tab.
  • See FAQ 95 for information regarding the notices recently mailed to claimants subject to potential liens and FAQ 96 for information regarding the lienholder notification letters.
  • We will continue to post additional details as they become available, including the pro rata for payments and the timeline to expect checks

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

Deficiency Letters

The HESI/Transocean Settlements Program continues to mail deficiency letters for New Class Distribution B claims related to Real Property on a rolling basis. Please make certain you are including your Claimant ID or a copy of the first page of your deficiency notice with your submission. If we cannot identify the claim to which a particular piece of documentation applies, it may result in denial of your claim. See Deficiency Letters on the Frequently Asked Questions page for more information.

Determination Letters

Determination letters advising on the eligibility status for the underlying Real Property sub-claims are also being sent on a rolling basis. If you disagree with the eligibility determination or valuation of the claim based on the Distribution Model, you may complete the Appeal Form included with your determination letter and return it on or before the response deadline. See Determination Letters on the Frequently Asked Questions page for more information.

New Class Court Review Determinations

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

OLD CLASS UPDATES

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 will receive a minimum $100 payment.
  • Greater than or equal to $6,731,771.35, the claimant will receive a maximum $150,000 payment
  • Between $4,763.48- $6,731,771.35, the claimant will receive 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.

Quick Reference FAQs regarding the Old Class Distribution:

  • See FAQ 61 for information regarding Response Deadlines and Extension Requests
  • You will not receive a notice with your award amount or any other communication regarding this payment prior to issuance of the payment, assuming you have at least one eligible, previously paid DHEPDS claim.
  • Payments will be issued in the same manner as your original payment. This means, in most instances, if you had an attorney, your attorney will receive your payment. If you did not have an attorney, when your last payment was made, the check will most likely be sent directly to you. If you received a 1099 for your prior payment(s), you will receive a 1099 for this payment as well.
  • If you received multiple payments from the CSSP previously, you will still receive only one aggregate payment in this distribution.
  • Prior liens and bankruptcy trustee holds will be honored.
  • If you have moved or the claimant is now deceased, please review the forms available on the Administrative Forms tab of this website.
  • Claimants who had a claim that was not yet final as of July 9, 2018 (e.g. open response deadlines, a pending DHEPDS internal program appeal, an open discretionary review with the Eastern District of Louisiana, or had been appealed to the US Court of Appeals for the Fifth Circuit will not be included in the initial distribution and will be paid in a later distribution for Reserve Claims.
  • We will continue to post additional details as they become available, including the pro rata for payments and the timeline to expect checks.

Old Class Distribution 1099s

IRS Forms 1099 were issued January 31, 2019, relating to any distribution proceeds paid in 2018 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 from the HESI-Transocean Assigned Claims Combined Settlements Fund regardless of whether the payment was cashed prior to the end of 2018.

If an amended 1099 is required, you or the claimant can submit a request along with the appropriate Dissolved Business Certification and supporting documentation after the 1099 has been received by the claimant.

1099s for Direct Claimant Payments:

The HESI/Transocean Settlements Program will issue one 1099, regardless of the number of reportable underlying claims, in the name of the payee listed on the check to the address on file. If an amended 1099 is required, you can submit a request along with the appropriate Dissolved Business Certification or Certification of Representation for a Deceased, Minor, or Incompetent party and supporting documentation after the 1099 has been received by the claimant. The forms and instructions on the documentation required is available on the Administrative Forms tab of this website. Please note, the Settlements Program is only able to issue a 1099 to a single recipient for each claim, so in instances where proceeds were split, one party will have to be decided upon to receive the 1099.

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

The HESI/Transocean Settlements Program will issue one 1099, regardless of the number of reportable underlying claims, in the name of the payee listed in the spreadsheet provided to firms on December 15, 2018, directly to the claimant address on file. If an amended 1099 is required, you or the claimant can submit a request along with the appropriate Dissolved Business Certification or Certification of Legal Representative in the event the claimant is deceased/incapacitated and supporting documentation after the 1099 has been received by the claimant. The Settlements Program is only able to issue a 1099 to a single recipient. A Form 1099 will be issued to the claimant even if the attorney may not have forwarded the proceeds to the claimant in 2018.

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

Old Class Eligibility for Court-Appointed Neutrals’ Settled Claims

Per the Order and Reasons, the Court will consider 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.