bp buys travel centers of america

TravelCenters of America to be Acquired by BP for $86.00 Per Share, or Approximately $1.3 Billion

Transaction Provides Shareholders with an 84% Premium to Average Share Price of Last 30 Trading Days

WESTLAKE, Ohio--( BUSINESS WIRE )--TravelCenters of America Inc. (Nasdaq: TA), the nationwide operator and franchisor of the TA, Petro Stopping Centers and TA Express travel center brands, today announced that it has entered into a merger agreement with BP p.l.c. (NYSE: BP), pursuant to which BP will acquire all of the outstanding shares of TA common stock for $86.00 per share in cash. The sale price represents an 84% premium to the average trading price of the 30 days ended February 15, 2023 of $46.68. The total equity value is approximately $1.3 billion.

Jonathan M. Pertchik, TA’s Chief Executive Officer, made the following statement:

“ Today’s announcement that BP is acquiring TA for $86 per share is a result of the successful implementation of our turnaround and strategic plans. We have improved our core travel center business, expanded our network, launched eTA to prepare for the future of alternative fuels and improved our operating and financial results, none of which we could have accomplished without the hard work and dedication of our employees at every level.”

Today’s announcement is the culmination of a comprehensive process by TA’s Board. Following the implementation of TA’s turnaround plan and several quarters of improved operating performance, TA received unsolicited interest to acquire the Company. In response, TA’s Board hired financial and legal advisors as part of a formal process to consider a potential sale of the Company. This process ultimately included competitive rounds of bidding from potential buyers that resulted in the transaction announced today.

A condition of the sale is the approval by shareholders who own a majority of TA’s shares outstanding. Service Properties Trust (Nasdaq: SVC), which owns 7.8% of TA’s shares outstanding, and The RMR Group (Nasdaq: RMR), which owns 4.1% of TA’s shares outstanding, both have agreed to vote their shares in favor of the sale. At the closing of the transaction, TA will terminate its management agreement with RMR pursuant to the terms of the agreement and pay a termination fee to RMR that is currently estimated to be approximately $44 million. Subject to shareholder and regulatory approval, the parties are targeting closing the acquisition by mid-year 2023.

The transaction was unanimously approved by the TA Board of Directors. Citigroup acted as exclusive financial advisor to TA and Ropes & Gray as TA’s legal advisor in connection with the transaction.

About TravelCenters of America

TravelCenters of America Inc. (Nasdaq: TA) is the nation's largest publicly traded full-service travel center network. Founded in 1972 and headquartered in Westlake, Ohio, its over 18,000 team members serve guests in 281 locations in 44 states, principally under the TA®, Petro Stopping Centers® and TA Express® brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, travel stores, car and truck parking and other services dedicated to providing great experiences for its guests. TA is committed to sustainability, with its specialized business unit, eTA, focused on sustainable energy options for professional drivers and motorists. TA operates over 600 full-service and quick-service restaurants and nine proprietary brands, including Iron Skillet® and Country Pride®. For more information, visit www.ta-petro.com .

Additional Information and Where to Find It

This communication may be deemed solicitation material in respect of the proposed acquisition of TravelCenters of America Inc. (“TravelCenters”) by BP Products North America Inc. (“Parent”). This communication does not constitute a solicitation of any vote or approval. In connection with the proposed transaction, TravelCenters plans to file with the U.S. Securities and Exchange Commission (the “SEC”) and mail or otherwise provide to its stockholders a proxy statement regarding the proposed transaction. TravelCenters may also file other documents with the SEC regarding the proposed transaction. This document is not a substitute for the proxy statement or any other document that may be filed by TravelCenters with the SEC.

BEFORE MAKING ANY VOTING DECISION, TRAVELCENTERS’ STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT IN ITS ENTIRETY WHEN IT BECOMES AVAILABLE AND ANY OTHER DOCUMENTS FILED BY TRAVELCENTERS WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE THEREIN BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED TRANSACTION BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND THE PARTIES TO THE PROPOSED TRANSACTION.

Any vote in respect of resolutions to be proposed at a TravelCenters stockholder meeting to approve the proposed transaction or related matters, or other responses in relation to the proposed transaction, should be made only on the basis of the information contained in TravelCenters’ proxy statement. Stockholders may obtain a free copy of the proxy statement and other documents TravelCenters files with the SEC (when available) through the website maintained by the SEC at www.sec.gov . TravelCenters makes available free of charge on its investor relations website at investors.ta-petro.com/investors copies of materials it files with, or furnishes to, the SEC.

The proposed transaction will be implemented solely pursuant to the Agreement and Plan of Merger, by and among TravelCenters, Bluestar RTM Inc. and Parent, dated as of February 14, 2023 (the “Merger Agreement”), which contains the full terms and conditions of the proposed transaction.

Participants in the Solicitation

TravelCenters and certain of its directors, executive officers and certain employees and other persons may be deemed to be participants in the solicitation of proxies from TravelCenters’ stockholders in connection with the proposed transaction. Security holders may obtain information regarding the names, affiliations and interests of TravelCenters’ directors and executive officers in TravelCenters’ Annual Report on Form 10-K for the fiscal year ended December 31, 2021, which was filed with the SEC on February 23, 2022, and its definitive proxy statement for the 2022 annual general meeting of stockholders, which was filed with the SEC on April 7, 2022. To the extent the holdings of TravelCenters’ securities by TravelCenters’ directors and executive officers have changed since the amounts set forth in TravelCenters’ proxy statement for its 2022 annual general meeting of stockholders, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Investors may obtain additional information regarding the interests of participants in the solicitation of proxies from TravelCenters’ stockholders in connection with in the proposed transaction, which may, in some cases, be different than those of TravelCenters’ stockholders generally, by reading the proxy statement relating to the proposed transaction when it is filed with the SEC and other materials that may be filed with the SEC in connection with the proposed transaction when they become available. These documents (when available) may be obtained free of charge from the SEC’s website at www.sec.gov and the investor relations page of the TravelCenters’ website at https://investors.ta-petro.com/ .

Warning Regarding Forward Looking Statements

This communication contains “forward-looking statements,” including statements containing the words “expect,” “intend,” “plan,” “believe,” “will,” “should,” “would,” “could,” “may,” and words of similar meaning, as well as other words or expressions referencing future events, conditions or circumstances. Statements that describe or relate to Parent’s or TravelCenters’ plans, goals, intentions, strategies, or financial outlook, and statements that do not relate to historical or current fact, are examples of forward-looking statements. Examples of forward-looking statements include, without limitation, the effect of the announcement of the proposed transaction on the ability of TravelCenters to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom TravelCenters does business, or on TravelCenters operating results and business generally; risks that the proposed transaction disrupts current plans and operations and the potential difficulties in employee retention as a result of the proposed transaction; the outcome of any legal proceedings related to the proposed transaction; the occurrence of any event, change or other circumstances that could give rise to the termination of the Merger Agreement, including circumstances requiring a party to pay the other party a termination fee pursuant to the Merger Agreement; the ability of the parties to consummate the proposed transaction on a timely basis or at all; the satisfaction of the conditions precedent to consummation of the proposed transaction, including the ability to secure regulatory approvals on the terms expected, at all or in a timely manner; the ability of Parent to implement its plans, forecasts and other expectations with respect to its business after the completion of the proposed transaction and realize expected benefits; business disruption following the proposed transaction. Forward-looking statements are not guarantees of future performance, and there are a number of important factors that could cause actual outcomes and results to differ materially from the results contemplated by such forward-looking statements, including those factors listed in the section entitled “Risk Factors” in Item 1A of TravelCenters’ Annual Report on Form 10-K filed with the SEC on February 23, 2022, and those factors detailed from time to time in TravelCenters’ other SEC reports including quarterly reports on Form 10-Q and current reports on Form 8-K. TravelCenters does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as otherwise required by law.

Investor Contact: Stephen Colbert TravelCenters of America [email protected]

Media Contacts: Tina Arundel TravelCenters of America [email protected]

Andrew Siegel / Jack Kelleher Joele Frank 212-355-4449

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Yahoo Finance

Travelcenters stock pops 70% after bp announces $1.3 billion deal to buy company, the deal comes amid bp's efforts to boost is convenience and electric charging business through the end of this decade..

TravelCenters of America ( TA ) stock rose as much as 70% on Thursday after the company announced BP’s ( BP ) North America subsidiary would buy the fuel and service center operator in a $1.3 billion, all-cash deal.

BP said in a release acquiring TA's "strategically-located network of highway sites" complements its off-highway locations, as the oil giant scales up its convenience and mobility business.

TA operates around 280 locations across 44 states, including more than 600 full-service and quick service restaurants. BP operates around 8,000 off-highway locations.

"Over time, [this deal] will allow us to advance four of our five strategic transition growth engines," BP CEO Bernard Looney said in a statement. "By enabling growth in EV charging, biofuels and RNG and later hydrogen, we can help our customers decarbonize their fleets. It’s a compelling combination."

The deal values TravelCenters at $1.3 billion, or $86 per share, an 84% premium to the company's average stock price over the last month.

"Today's announcement is the culmination of a comprehensive process by TA's Board," TravelCenters company said in a release.

"Following the implementation of TA's turnaround plan and several quarters of improved operating performance, TA received unsolicited interest to acquire the Company. In response, TA's Board hired financial and legal advisors as part of a formal process to consider a potential sale of the Company. This process ultimately included competitive rounds of bidding from potential buyers that resulted in the transaction announced today."

TravelCenters was called out by the White House in Wednesday's announcement on new standards for a national EV charging network, with TA and Electrify America teaming up to install around 1,000 EV chargers at 200 of TA's locations.

BP has been ramping up its EV charging investment, seeing it as a growth opportunity for the brand as it diversifies its offerings. BP announced earlier this week it plans to invest $1 billion into EV charging in the U.S. by 2030, including working with car rental firm Hertz to build EV infrastructure at Hertz rental locations.

BP says acquiring TA will support BP's target of $1.5 billion in EBITDA by 2025 in its convenience and EV charging business, with a longer-term goal of $4 billion in EBITDA by 2030.

Pras Subramanian is a reporter for Yahoo Finance. You can follow him on Twitter and on Instagram .

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Trump's hush money trial resumes as ex-National Enquirer boss testifies

Bp to buy travelcenters for $1.3 billion in u.s. fuel retail drive.

• Oops! Something went wrong. Please try again later. More content below

(Reuters) -BP will buy truck fueling provider TravelCenters of America Inc for about $1.3 billion, the companies said on Thursday, as the British energy giant seeks to expand its retail network in a bet on biofuels and electric vehicle charging.

Shares of the U.S. truck stop operator surged about 70% to $84.3 in morning trading, hovering near BP's per share cash offer of $86. BP shares closed 1.4% higher in London trading.

TravelCenters owns a network of about 281 highway sites across 44 states and offers services beyond fueling, including truck maintenance, restaurants, travel stores, and parking, which account for 70% of the business's profit margin, BP said.

It sells around 150,000 barrels of oil per day, 90% of which is diesel, BP said.

The services complement BP's existing convenience and mobility business and will help in expanding its offers including electric vehicle charging, biofuels, renewable natural gas (RNG) and later hydrogen, the company said.

BP has been pushing to boost its investments in convenience, bioenergy and EV charging. In 2022, it acquired U.S. biogas producer Archaea for $4.1 billion in a bet on the expansion of low-carbon fuels and recently announced plans to invest $1 billion in EV charging across the U.S. by 2030.

On Wednesday the Biden administration set new standards to disburse $7.5 billion in federal funds for the expansion of a national electric vehicle charging network along routes that TravelCenters of America operates in.

"While we expect that traditional fuels demand will remain a material part of the energy mix through the decade, demand for lower carbon mobility solutions is growing rapidly," BP Chief Executive Bernard Looney told analysts.

Electric vehicles are rapidly ramping up around the world, but battery technology to power trucks remains limited. BP plans to offer hydrogen as a truck fuel in the longer-term, Looney said.

Convenience is one of BP's five strategic transition growth engines. By 2030, the London-listed company aims for around half its annual investment to go into these growth areas.

The acquisition of TravelCenters is expected to add to BP's earnings before interest, taxes, depreciation, and amortization immediately, growing to around $800 million in 2025, the company said.

BP expects the deal to offer a return on investment of over 15%, Looney said.

(Reporting by Arunima Kumar and Mrinalika Roy in Bengaluru, Ron Bousso in London, and Laura Sanicola in Washington; Editing by Sriraj Kalluvila, Bernadette Baum and David Gregorio)

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Bp to Buy TravelCenters of America for $1.3 Billion

The cash deal accelerates the energy company’s move back into convenience retail.

February 16, 2023

WESTLAKE, Ohio—Bp has agreed to acquire TravelCenters of America Inc., the nationwide operator and franchisor of the TA, Petro Stopping Centers and TA Express travel center brands, for roughly 1.3 billion, the companies announced today.

Bp will acquire all of the outstanding shares of TA common stock for $86 per share in cash. The sale price represents an 84% premium to the average trading price of the 30 days ended February 15, 2023, of $46.68. The total equity value is about $1.3 billion.TravelCenters owns a network of about 281 highway sites across 44 states.

“Today’s announcement … is a result of the successful implementation of our turnaround and strategic plans. We have improved our core travel center business, expanded our network, launched eTA to prepare for the future of alternative fuels and improved our operating and financial results, none of which we could have accomplished without the hard work and dedication of our employees at every level,” said Jonathan M. Pertchik, the CEO of TA.

The move accelerates bp’s reentry into the retail landscape. In 2021, bp took full ownership of Thorntons, including about 200 c-stores. As Fuels Market News detailed in its fall 2022 cover story, “Return of the Majors?” , bp began its withdrawal from convenience retail in late 2007 as it switched to a franchise network model, but marked a return to direct company-operated retail sites with the Thorntons acquisition.

Bp has five strategic “transition growth engines.” They are convenience, EV charging, bioenergy, renewables and hydrogen.

“This is bp’s strategy in action,” said Bernard Looney, bp CEO. “We are doing exactly what we said we would, leaning into our transition growth engines. This deal will grow our convenience and mobility footprint across the US and grow earnings with attractive returns. Over time, it will allow us to advance four of our five strategic transition growth engines. By enabling growth in EV charging, biofuels and RNG and later hydrogen, we can help our customers decarbonize their fleets. It’s a compelling combination.” 

In January, TA announced plans to deploy 1,000 EV chargers across 200 locations. Yesterday, bp announced plans to invest $1 billion in EV charging in the United States by 2030.

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BP completes $1.3 billion purchase of Westlake-based TravelCenters of America

• Published: May. 16, 2023, 12:21 p.m.

BP Products North American paid $1.3 billion for TravelCenters of America, headquartered in Westlake. (File photo) The Plain Dealer

• Mary Vanac | Cleveland Business Journal

WESTLAKE, Ohio - TravelCenters of America Inc. on Monday completed its $1.3 billion sale to BP Products North America Inc., a Houston subsidiary of British oil company BP.

As part of the acquisition, shares of Westlake, Ohio-based TravelCenters (Nasdaq: TA) were delisted from the Nasdaq Stock Market.

In February, the BP unit offered to pay $86 a share for the outstanding shares of TravelCenters, which operated or franchised about 280 TA, Petro Stopping Centers and TA Express travel centers nationwide.

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bp Completes Acquisition of TravelCenters of America

BP Products North America Inc. today completed its $1.3 billion acquisition of TravelCenters of America Inc. The acquisition marks "a milestone for the U.S. in the growth of bp's strategic convenience and mobility business," according to bp.

The transaction:

• Adds a network of about 280 travel centers, located on major highways across United States
• Almost doubles bp's global convenience gross margin
• Brings growth opportunities for four of bp's five transition growth engines, including EV charging via bp pulse, convenience, biofuels/ renewable natural gas (RNG) and, later, hydrogen
• Adds EBITDA immediately, expected to grow to around $800 million by 2025

"We are thrilled to welcome the TravelCenters of America team to bp and give a turbo-boost to our convenience and mobility business in the U.S.," said Emma Delaney, executive vice president customers and products, bp. "Combining TA's sites on U.S. highways with our brilliant retail network off the highway immediately expands our offer and doubles our global convenience gross margin.

"By integrating bp pulse, our fast-growing EV charging business, along with biofuels and renewable natural gas businesses—and in time, hydrogen—we can help America's vital fleets and logistics companies decarbonize."

• bp is  No.  7  and TravelCenters of America is  No. 29   on  CSP’s  Top 40 updat e  to the  2022 Top 20 2  ranking of U.S. convenience-store chains by company-owned store count. Watch for the updated list in June.

In February, bp announced it had agreed to acquire TA, subject to required approvals. Having received those approvals and with the transaction complete, TA's strategically located network of highway sites complements bp's existing predominantly off-highway convenience and mobility business in the US, the company said, enabling TA and bp to offer fleets and consumers a seamless nationwide service.

The company said the transaction will provide options to expand and continue to develop convenience and mobility offers through four of bp's five transition growth engines:

• EV charging
• Convenience

“Convenience is one of five strategic transition growth engines that bp intends to grow rapidly through this decade,” the company said. “By 2030, bp aims for around half its annual investment to go into these transition growth engines; with around half of its anticipated cumulative $55 billion-$65 billion transition growth engine investment going into convenience, bioenergy and EV charging.

With the close of the acquisition, TravelCenters of America common shares have been converted into the right to receive $86 per share.

TravelCenters of America is a nationwide operator and franchisor of the TA, Petro Stopping Centers and TA Express travel center brands.

bp listed a total of 20,700 retail sites in first-quarter 2023, and 2,450 strategic convenience sites, which it defines as retail sites that sell bp-branded vehicle energy including bp, Aral, Arco, Amoco, Thorntons and bp pulse, and carry one of its strategic convenience brands. As of year-end 2022, bp had  1,224  company-owned and -operated c-store sites in the United States.

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BP acquires TravelCenters of America in $1.3bn deal

BY Fraser Tennant

As part of its aim to significantly grow investment throughout this decade, petroleum company BP is to acquire the publicly traded full-service travel centre network TravelCenters of America Inc. in a transaction valued at $1.3bn.

Under the terms of the merger agreement, BP will acquire all of the outstanding shares of TravelCenters common stock for $86 per share in cash. The sale price represents an 84 percent premium to the average trading price of the 30 days ended 15 February 2023 of $46.68.

The acquisition of TravelCenters complements BP’s existing convenience and mobility business and will help expand its offers, including electric vehicle charging, biofuels, renewable natural gas (RNG) and hydrogen.

A condition of the sale is the approval by shareholders who own a majority of TravelCenters’ outstanding shares: Service Properties Trust, which owns 7.8 percent and The RMR Group, which owns 4.1 percent. Both have agreed to vote their shares in favour of the sale.

At the closing of the transaction, which has been unanimously approved its board of directors, TravelCenters will terminate its management agreement with RMR pursuant to the terms of the agreement and pay a termination fee to RMR that is currently estimated to be approximately $44m.

“The announcement that BP is acquiring TA is a result of the successful implementation of our turnaround and strategic plans,” said Jonathan M. Pertchik, chief executive of TA. “We have improved our core travel centre business, expanded our network, launched our specialised business unit eTA to prepare for the future of alternative fuels and improved our operating and financial results, none of which we could have accomplished without the hard work and dedication of our employees at every level.”

Founded in 1972 and headquartered in Westlake, Ohio, TravelCenters’ over 18,000 team members serve guests in 281 locations in 44 states, principally under the TA, Petro Stopping Centers and TA Express brands. TravelCenters’ offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, travel stores, car and truck parking and other services.

Subject to shareholder and regulatory approval, the transacting parties are targeting closing the acquisition by mid-2023.

News: BP to buy TravelCenters for $1.3 bln in U.S. fuel retail drive

BP buys TravelCenters of America in $1.3B deal

Oli Scarff/Getty Images News

BP ( NYSE: BP ) on Thursday agreed to acquire TravelCenters of America ( NASDAQ: TA ) for $86/share in cash, valuing the operator of travel centers and truck service facilities in North America at ~$1.3B; shares are halted.

The $86/share sale price represents an 84% premium to the average trading price of the 30 days ended February 15.

The acquisition will add ~280 TravelCenters of America ( TA ) sites spanning 44 U.S. states into the BP ( BP ) portfolio.

BP ( BP ) expects the deal will immediately add EBITDA , growing to ~$800M in 2025.

The sale must be approved by shareholders who own a majority of TA's shares outstanding; Service Properties Trust ( SVC ), which owns 7.8% of shares outstanding, and RMR Group ( RMR ), which owns 4.1% of shares outstanding, both have agreed to vote their shares in favor of the sale.

Earlier this week, BP ( BP ) unveiled plans to spend $1B by 2030 on electric vehicle charge points across the U.S .

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TravelCenters of America, the Westlake, Ohio-based truck stop operator, on Thursday said it has agreed to be sold to the North American subsidiary of the British oil giant BP plc for $16 per share, or $1.3 billion. 

The deal is subject to shareholder approval but represents an acquisition multiple of six times trailing 12 months EBITDA, or earnings before interest, taxes, depreciation and amortization. 

TravelCenters (TA) is a major operator of restaurants, with some 278 facilities across the country under three brands: TA, TA Express and Petro Stopping Centers. Those facilities operate more than 450 restaurants and more than 150 full-service restaurants, in addition to other services such as retail and petroleum sales. About 70% of the company's profit margin is generated by its convenience store business. 

Restaurants generated $87.5 million in revenue in the third quarter, up 9.5% over the past year. It operates 19 quick-service brands such as Arby's, A&W, Dairy Queen, Starbucks and Burger King. Full-service brands include IHOP, Black Bear Diner and concepts such as Iron Skillet. 

TA’s strategically located network of highway sites complements bp’s existing predominantly off-highway convenience and mobility business, enabling TA and bp to offer fleets a seamless nationwide service, it said. In addition, BP's global scale and reach will, over time, bring advantages in fuel and biofuel supply as well as convenience offers for consumers, said the company. It will provide options to expand and develop new mobility offers including electric vehicle (EV) charging, biofuels, renewable natural gas (RNG) and later hydrogen, both for passenger vehicles and fleets.

“This is BP's strategy in action,” said Bernard Looney, CEO of London-based bp. “We are doing exactly what we said we would, leaning into our transition growth engines. This deal will grow our convenience and mobility footprint across the U.S. and grow earnings with attractive returns. Over time, it will allow us to advance four of our five strategic transition growth engines. By enabling growth in EV charging, biofuels and RNG and later hydrogen, we can help our customers decarbonize their fleets. It’s a compelling combination.”

Dave Lawler, chairman and president of BP America, Chicago, said, “Subject to approvals, we look forward to welcoming the TA team to bp. TA's amazing nationwide network of on-highway locations combined with bp's more than 8,000 off-highway locations have the potential to offer travelers and professional drivers a seamless experience for decades to come.”

As part of the transaction, TA will enter into amended lease agreements with Service Properties Trust, establishing long-term real estate access, and bp looks forward to continuing TA’s existing strong relationship with SVC.

Jonathan Maze contributed to this report. 

This story was reprinted from Restaurant Business sister publication CSP Daily News. 

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Once praised, settlement to help sickened BP oil spill workers leaves most with nearly nothing

A cleanup worker picks up blobs of oil in absorbent snare on Queen Bess Island at the mouth of Barataria Bay near the Gulf of Mexico in Plaquemines Parish, La., June 4, 2010. (AP Photo/Gerald Herbert)

Thousands of ordinary people who helped clean up after the 2010 BP oil spill in the Gulf of Mexico say they got sick. A court settlement was supposed to help compensate them, but it hasn’t turned out as expected. (AP video by Gerald Herbert and Kristin M. Hall)

Thousands of workers who helped clean up after the 2010 BP oil spill in the Gulf of Mexico say they got sick — and despite a massive court settlement, many haven’t been helped. (Source: Federal Court Records) (AP Animation: Donavon Brutus)

FILE - A cleanup worker picks up blobs of oil in absorbent snare on Queen Bess Island at the mouth of Barataria Bay near the Gulf of Mexico in Plaquemines Parish, La., June 4, 2010. (AP Photo/Gerald Herbert, File)

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FILE - Oil leaks in the Gulf of Mexico southeast of Venice on Louisiana’s tip, as the Deepwater Horizon oil rig burns on April 21, 2010. (AP Photo/Gerald Herbert, File)

Former boat captain John Maas poses for a portrait on Wednesday, April 26, 2023, in Nashville, Tenn. Thousands of people who helped clean up after the 2010 BP oil spill in the Gulf of Mexico say they got sick, including Maas. Attorneys familiar with the issue say he’s the only one who has received a settlement after suing. (AP Photo/George Walker IV)

FILE - A plane drops chemicals to help disperse oil from a leaking pipeline that resulted from an explosion and collapse of the Deepwater Horizon oil rig in the Gulf of Mexico near the coast of Louisiana, April 27, 2010. When a deadly explosion destroyed BP’s Deepwater Horizon drilling rig in the Gulf of Mexico, tens of thousands of ordinary people were hired to help clean up the environmental devastation. These workers were exposed to crude oil and the chemical dispersant Corexit while picking up tar balls along the shoreline, laying booms from fishing boats to soak up slicks and rescuing oil-covered birds. (AP Photo/Patrick Semansky, File)

FILE - Workers head to the beach to clean up oil residue in Grand Isle, La., May 30, 2010. When a deadly explosion destroyed BP’s Deepwater Horizon drilling rig in the Gulf of Mexico, tens of thousands of ordinary people were hired to help clean up the environmental devastation. (AP Photo/Jae C. Hong, File)

FILE - Workers use absorbent pads to remove oil that has washed ashore from the Deepwater Horizon spill, June 6, 2010, in Grand Isle, La. When a deadly explosion destroyed BP’s Deepwater Horizon drilling rig in the Gulf of Mexico, tens of thousands of ordinary people were hired to help clean up the environmental devastation. (AP Photo/Eric Gay, File)

Paul Loup IV poses for a photo in his home with his wife Sallie Loup in Hurley, Miss., Monday, Jan. 29, 2024. Thousands of ordinary people who helped clean up after the 2010 BP oil spill in the Gulf of Mexico say they got sick, including Loup, the former beach cleanup worker. (AP Photo/Gerald Herbert)

John Maas poses for a portrait on Wednesday, April 26, 2023, in Nashville, Tenn. Thousands of people who helped clean up after the 2010 BP oil spill in the Gulf of Mexico say they got sick, including Maas. Attorneys familiar with the issue say he’s the only one who has received a settlement after suing. (AP Photo/George Walker IV)

FILE - A crew member looks at the oil slick in the aftermath of the Deepwater Horizon oil rig collapse, Thursday, May 6, 2010 in the Gulf of Mexico. (AP Photo/Gerald Herbert)

FILE - A brown pelican is covered in oil on the beach in the aftermath of an oil spill at East Grand Terre Island along the Louisiana coast on June 3, 2010. When a deadly explosion destroyed BP’s Deepwater Horizon drilling rig in the Gulf of Mexico, tens of thousands of ordinary people were hired to help clean up the environmental devastation. These workers were exposed to crude oil and the chemical dispersant Corexit while picking up tar balls along the shoreline, laying booms from fishing boats to soak up slicks and rescuing oil-covered birds. (AP Photo/Charlie Riedel, File)

FILE - Workers shovel oil that washed up from the deadly explosion of the Deepwater Horizon oil rig on Fourchon Beach in Port Fourchon, La., May 24, 2010. (AP Photo/Patrick Semansky, File)

FILE - A worker shovels oil from the Deepwater Horizon oil spill off Fourchon Beach in Port Fourchon, La., May 24, 2010. When a deadly explosion destroyed BP’s Deepwater Horizon drilling rig in the Gulf of Mexico, tens of thousands of ordinary people were hired to help clean up the environmental devastation. These workers were exposed to crude oil and the chemical dispersant Corexit while picking up tar balls along the shoreline, laying booms from fishing boats to soak up slicks and rescuing oil-covered birds. (AP Photo/Patrick Semansky, File)

FILE - A worker walks through the water as a berm system is constructed in the aftermath of the gulf oil spill on the northern end of the Chandeleur Islands, La., July 15, 2010. When a deadly explosion destroyed BP’s Deepwater Horizon drilling rig in the Gulf of Mexico, tens of thousands of ordinary people were hired to help clean up the environmental devastation. (AP Photo/Dave Martin, File)

When a deadly explosion destroyed BP’s Deepwater Horizon drilling rig in the Gulf of Mexico, 134 million gallons of crude erupted into the sea over the next three months — and tens of thousands of ordinary people were hired to help clean up environmental devastation from the biggest offshore oil spill in U.S. history.

These workers were exposed to crude oil and the chemical dispersant Corexit while picking up tar balls along the shoreline, laying booms from fishing boats to soak up slicks and rescuing oil-covered birds.

Recognizing that some members of cleanup crews had likely become sick, BP agreed to a medical claims settlement two years after the 2010 disaster. Experts hailed it as “an extraordinary achievement” that would compensate workers fairly with little hassle.

But it hasn’t turned out that way.

The effort has fallen far short of expectations, leaving many workers who claimed lasting health effects stranded with little or no payment.

Through the settlement, BP has paid ill workers and coastal residents a tiny fraction — $67 million — of the billions the company has spent on restitution for economic and environmental damage . The vast majority — 79% — received no more than $1,300 each.

Many workers claiming illnesses from the spill were forced to sue — and they’ve fared worse. All but a handful of roughly 4,800 lawsuits seeking compensation for health problems have been dismissed.

Attorneys familiar with the cases say they are unaware of any that have gone to trial and know of only one that’s been settled. Former boat captain John Maas received $110,000 from BP for his lung ailments in 2022, according to a confidential copy of the settlement.

The repeated failures demonstrate how extremely difficult it is to prove to a court that a specific illness is caused by chemical exposure — even when those chemicals are recognized causes of illness more generally.

AP AUDIO: Once praised, settlement to help sickened BP oil spill workers leaves most with nearly nothing.

Thousands of ordinary people who helped clean up after the 2010 BP oil spill in the Gulf of Mexico say they got sick. A court settlement was supposed to help compensate them, but it hasn’t turned out as expected. AP correspondent Jaime Holguin reports on the story behind the story.

An Associated Press investigation that included dozens of interviews with cleanup workers, attorneys and experts, and a review of voluminous court filings revealed:

—A single switched word in the settlement prevented thousands of workers from receiving anything over the minimum of $1,300 each. To get more, they had to file individual lawsuits — an option that almost always led to defeat.

—Most federal judges hearing those cases required a level of proof connecting chemical exposure to worker illnesses that the lead government epidemiologist studying the spill says is likely impossible to meet.

—Big law firms representing dozens or even thousands of workers failed their clients in various ways. After BP accused one firm of manufacturing medical claims, its cases were dismissed in big batches.

Robin Greenwald, one of the plaintiffs’ attorneys who negotiated the settlement, said even her firm has not been able to win a single medical case against BP.

“I wanted people to get their day in court and they win or lose at trial,” said Greenwald, a former federal environmental prosecutor. “Let a jury decide. ... But they weren’t even given the chance to do that.”

BP declined to comment for this story, citing ongoing litigation 14 years after the spill.

A plane drops chemicals to help disperse oil from a leaking pipeline that resulted from an explosion and collapse of the Deepwater Horizon oil rig in the Gulf of Mexico near the coast of Louisiana, April 27, 2010. (AP Photo/Patrick Semansky)

GETTING SICK

After the explosion on April 20, 2010, the spill was spectacular. A camera live-streamed the rupture on cable news, showing the world in real time gushing oil that wouldn’t stop. Oil floated on the Gulf and washed ashore, covering plants, birds and other animals.

To break up oil, roughly 1.8 million gallons of Corexit were dropped from planes and sprayed from boats — far more than previous U.S. oil spills. The manufacturer said it was safer than dish soap.

But lab research on human tissue and animals has revealed Corexit can damage cells that protect the airways and cause scarring that narrows breathing tubes, according to Dr. Veena Antony, a University of Alabama professor of pulmonary and critical care medicine who has studied Corexit’s effect on lung tissue. Over time, she said, the process can make it harder and harder to breathe.

“I genuinely believe that there was harm done and we didn’t realize the harm was being done — and now people are suffering,” said Antony, who testified as an expert witness in one suit against BP. “I would not, at the present time, put my hand even in Corexit without wearing double gloves.”

Workers head to the beach to clean up oil residue in Grand Isle, La., May 30, 2010. (AP Photo/Jae C. Hong)

Workers use absorbent pads to remove oil that has washed ashore from the Deepwater Horizon spill, June 6, 2010, in Grand Isle, La. (AP Photo/Eric Gay)

The current producer of Corexit, ChampionX, said the dispersant was pre-approved by the government for use on oil spills and the manufacturer had no role in deciding when or how to spray it.

Oil itself has long been known to cause illness. One of its toxic components is benzene , which can cause conditions ranging from skin irritation to cancer.

But now researchers, including Dale Sandler at the National Institutes of Health, are finding that spill workers exposed to amounts of oil assumed safe have suffered from dizziness, nausea, lung problems and heart attacks .

“The exposures on average were still pretty low,” said Sandler, an epidemiologist leading the GuLFSTUDY, a major effort to quantify workers’ exposure and track health woes over years. “What surprised us is that we did see a wide range of health effects that were associated with these exposures.”

Sandler said the study is the largest ever of an oil spill and is ongoing. “We’re looking at long-term risks like diabetes, cancer incidence,” she said.

What researchers have found so far is echoed by other studies, including one involving about 3,500 Coast Guard responders. The responders who reported breathing oil fumes were 40% to 50% more likely to have chronic obstructive pulmonary disease-like symptoms and sinus problems compared to those who said they didn’t breathe fumes. And responders who reported exposure to both oil and Corexit were more than twice as likely to suffer shortness of breath.

A PROMISING SETTLEMENT

Proving to a court that a specific person’s illness was likely caused by their exposure to oil or Corexit can be difficult.

Yet the settlement for medical claims was supposed to make it easier for workers: BP would agree exposure to the spill could cause a host of known health issues — and workers suffering from them could file claims for payment. Initially, attorneys advocating for the settlement said it could help as many as 200,000 possibly injured workers and residents.

The settlement also included $105 million from BP for regional health outreach and free health checkups for exposed workers every three years for 21 years.

But things quickly went awry.

The third-party administrator hired to handle claims, Garretson Resolution Group, initially rejected 78% of roughly 37,000 claims. After many were resubmitted, around 36% still were rejected and claimants received nothing.

Greenwald was especially frustrated her clients’ claims were repeatedly deemed deficient. “We had many a meeting with Garretson’s team to try to shake them loose of some of their narrow reading and obsession with deficiencies,” she said. “We clearly knew the claim form. We negotiated it.”

Matthew Garretson, founder of Garretson Resolution Group, defended his claims handling in an email, saying, “it was the process the parties agreed upon and we had to administer the settlement exactly in the way the parties’ Settlement Agreement mandated.” The company was paid roughly $115 million to $120 million for administering claims and for the outreach program and medical checkup effort as of 2018, he said.

There was a bigger problem.

A brown pelican is covered in oil on the beach in the aftermath of an oil spill at East Grand Terre Island along the Louisiana coast on June 3, 2010. (AP Photo/Charlie Riedel)

A worker shovels oil from the Deepwater Horizon oil spill off Fourchon Beach in Port Fourchon, La., May 24, 2010. (AP Photo/Patrick Semansky, File)

At the most basic level, workers could submit affidavits attesting to their medical problems and collect $1,300 — and residents could collect $900. About 18,000 received that much.

Those with longer-term illnesses who had proof from medical tests could collect up to $60,700, or more if they had been hospitalized.

But few people had that proof. Forty of about 23,000 with approved claims collected the maximum award — less than 0.2%.

Many people lacked health insurance or easy access to a doctor and the required medical tests — a problem U.S. District Court Judge Carl Barbier, who approved the settlement, acknowledged in a hearing.

“Speaking for south Louisiana, I know — you’re dealing with people who are probably at the lower end of the socioeconomic scale. Most of these people, I feel sure, likely have no health insurance,” he said.

Even when people did seek medical attention, doctors untrained in treating chemical exposures often did not link illnesses to a patient’s cleanup work in medical records, according to Greenwald.

Paul Loup IV poses for a photo in his home with his wife Sallie Loup in Hurley, Miss., Monday, Jan. 29, 2024. (AP Photo/Gerald Herbert)

THE NATIONS CLIENTS

The Nations Law Firm, based in Houston, represented thousands of workers like Paul Loup IV, who helped clean an oil-contaminated beach in Pascagoula, Mississippi for several months.

Loup, 68, says he now has chronic respiratory issues, making it hard to stand or speak at length. He quit his job as a procurement manager because it involved too much travel.

The firm had wanted to help clients collect more than the settlement’s $1,300 minimum, so it developed a plan to obtain needed medical proof.

It was an assembly line. Out-of-state nurse practitioners who were paid $20 per plaintiff entered medical histories based on information the law firm — not a doctor — provided. Firm-designed forms listed illnesses that paid more under the settlement — and doctors could simply circle them. The forms included a statement linking a patient’s illness to oil spill work — with a line for the doctor to sign. Doctors didn’t keep their own patient records.

While such a process might seem suspect, firm founder Howard Nations said in an interview that he met with the claims administrator Garretson to try to develop an acceptable one.

Garretson rejected the claims — not based on the process, but on a deadline.

Workers shovel oil that washed up from the deadly explosion of the Deepwater Horizon oil rig on Fourchon Beach in Port Fourchon, La., May 24, 2010. (AP Photo/Patrick Semansky)

THE DEADLINE AND A SWITCHED WORD

The settlement was designed to make it easy to collect money for illnesses that surfaced quickly after crude oil exposure. People with diseases that can show up years later — such as cancer — would be forced to file individual federal lawsuits.

Early settlement drafts defined this second group as people with a disease that “manifests” after April 16, 2012. However, a later draft changed the word “manifests” to “diagnosed.”

In 2014, BP seized on that change to argue no one diagnosed after the deadline could receive an award for a long-term illness through the settlement.

That meant two people could have the same illness, but the one who got a diagnosis before the deadline could file a claim for compensation while the other would need to file a suit instead.

Judge Barbier said that’s not how he was led to believe the settlement he okayed would work.

“It is rather strange … that the court would approve a settlement, a class settlement that really doesn’t settle thousands of claims and requires them to file another lawsuit,” Barbier said at a 2014 hearing. “I mean, it doesn’t sound like much of a settlement.”

BP attorneys said any other interpretation would invite fraud, allowing opportunistic law firms to pay for a medical diagnosis after the deadline to get a settlement claims payout. They also said the word change was requested by the workers’ own attorneys, and Stephen Herman, co-lead counsel for plaintiffs’ attorneys, testified they didn’t recall how it happened.

Despite his doubts, Barbier said he had to follow the settlement language.

His ruling forced thousands of workers out of the relatively easy administrative claims process into federal courts throughout the South.

Former boat captain John Maas poses for a portrait on Wednesday, April 26, 2023, in Nashville, Tenn. (AP Photo/George Walker IV)

THE FEDERAL LAWSUITS

The ruling was devastating for Nations clients whose only option was to file federal lawsuits.

After BP attorneys alleged in Mississippi federal court that the firm manufactured medical diagnoses, Nations agreed to dismiss its cases by the dozens. In an interview, Nations did not deny BP’s allegations but said the cases were unwinnable without an adequate expert witness.

Loup, the former beach cleanup worker, said he didn’t know until informed by a reporter last year that his case had been dismissed years earlier. “I call (Nations) every six months or so ... and they’ve just said it’s going to take some time,” he said.

Another Nations client was Jeff Herring, the deckhand of Maas, the boat captain believed to be the only person whose case reached a settlement.

When their boat was sprayed with Corexit, Herring started throwing up so badly an ambulance was called to pick him up. Although released from the hospital after a few days, he developed chronic sinus and respiratory problems, according to his lawsuit.

Months later, a doctor at an oil spill medical station referred him to a specialist, and he was hospitalized again, said Herring, now 39. An X-ray found spots on his lungs, and he was supposed to go to New Orleans for further testing but never did.

“That would have took another two weeks being in a hospital over there,” he said. “I couldn’t because I had to get back to work.”

Noting he had no insurance, Herring said he received about $8,000 through the claims process — not enough to even pay hospital bills.

Herring’s suit was thrown out in 2020 along with 235 other Nations cases, but he said he wasn’t told.

Howard Nations said the firm communicated with clients about the status of their cases and although the individual suits were dismissed, he intends to go back to Judge Barbier with new arguments.

Oil leaks in the Gulf of Mexico southeast of Venice on Louisiana’s tip, as the Deepwater Horizon oil rig burns on April 21, 2010. (AP Photo/Gerald Herbert)

EXPERT WITNESSES

Other law firms met a different obstacle:

Workers filing individual lawsuits have to prove they were exposed to enough oil or dispersant to — more likely than not — cause their illness.

The workers’ experts relied on studies, such as those from the National Institutes of Health and the Coast Guard, that found people exposed to oil and Corexit were more likely to develop certain illnesses.

But BP’s experts maintained workers needed to show exactly how much oil and dispersant they had inhaled or ingested and that it was sufficient to cause their sickness.

Greenwald, the attorney who helped craft the settlement, said meeting such a standard is almost impossible: “I mean, ‘How deep did you breathe? Right at the moment you were standing there, was the wind blowing?’” she said. “What mortal human would be able to testify about that?”

Most judges have sided with BP, rejecting workers’ experts as unreliable and effectively ending the cases.

Sandler, the NIH epidemiologist, said its researchers went to great lengths to develop data on exposure like nothing ever been done before. “I’m not sure that they’ll ever meet the standards that the court is imposing on what constitutes evidence,” she said.

It also can be difficult to find an expert witness who knows the science but doesn’t have a conflict of interest through work with the oil industry.

The Falcon Law Firm brought on Jerald Cook, a retired Navy physician trained in occupational and environmental medicine, as an expert on numerous cases. He was rejected again and again by judges as BP poked holes in his professional history and work.

“Your report really doesn’t balance the evidence favoring your conclusions with the evidence that disfavors your conclusions; isn’t that fair?” a BP attorney asked Cook in a deposition.

“Yeah. I think that’s — that’s fair,” Cook replied.

He declined comment, and Falcon did not reply to requests for comment.

Some law firms that took on hundreds of cases have simply buckled under the strain, begging judges for more time so their overloaded experts could produce reports.

A worker walks through the water as a berm system is constructed in the aftermath of the gulf oil spill on the northern end of the Chandeleur Islands, La., July 15, 2010. (AP Photo/Dave Martin)

LOOKING FORWARD

It’s not completely over.

The Downs Law Group, which has lost hundreds of cases against BP, is appealing in the 5th and the 11th U.S. Circuit Courts of Appeals, hoping they’ll rule federal district judges have misconstrued the level of proof needed for toxic exposure cases. One of those judges said the issue is “very ripe for the Supreme Court to resolve.”

“It has a broader reach than the BP oil spill,” said Jason Clark, a Downs attorney. “If the burden is one that’s too high for any plaintiff to meet, then a lot of people who are exposed ... are never going to see justice.”

Meanwhile, Downs is talking to thousands of people interested in suing over illnesses such as cancer that emerged years after the spill, Clark said.

Sandler, the NIH epidemiologist, said the high burden of proof demanded by most judges means “people can’t win.”

“I think at the end of the day, did the oil from the oil spill make people sick? Yes,” Sandler said. “Now, courts may view this from a very different lens, but from a public health standpoint — yes, the oil spill made people sick.”

A crew member looks at the oil slick in the aftermath of the Deepwater Horizon oil rig collapse, Thursday, May 6, 2010 in the Gulf of Mexico. (AP Photo/Gerald Herbert)

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