The Deepwater Horizon Economic and Property Damages Settlement Agreement consists of a main document and 49 exhibits that contain many key details. The main document states that most business economic loss claimants “must establish that their loss was due to or resulting from the Deepwater Incident.” It then immediately states: “The causation requirements for such claims are set forth in Exhibit 4B.”
This all-important Exhibit 4B, titled “Causation Requirements for Business Economic Loss Claims,” is a 17-page document that lays out a causation test for each plaintiff. It divides all businesses into four geographic zones, and different tests apply to each zone. With some exceptions, businesses must show that their revenue after the spill dropped by a defined amount and then rebounded, forming a “V” or “U” shaped curve. Once causation is established under these tests, the award is calculated using formulas from Exhibit 4C.
