But news of possible compensation for damages from El Dorado, Ark.-based Murphy Oil Corp. has already inspired the 36-year-old to move back into her one-story Marietta Drive home. She even bought new blue shutters.

“It’s like living in the country,” Schwartz said of the abandoned homes. “You’re still in the city but it’s quiet like in the country.”

The neighborhood chaos comes courtesy of Hurricane Katrina, which toppled a nearby Murphy Oil storage tank and sent 1 million gallons of oil coursing into nearby canals and homes.

Schwartz is one of roughly 6,200 property owners in St. Bernard Parish involved in a class-action lawsuit against Murphy Oil settled last Monday for $330 million. A federal judge is expected to sign off on the logistics Oct. 10, eliminating the need for a civil trial.

“Obviously, the community is eager to move forward, and so are we,” said Mindy West, Murphy Oil spokeswoman.

But one question remains for Murphy Oil: How can it compensate for the multimillion-dollar payout and the devastating public relations fallout?

The proposed settlement includes $80 million already paid to settle roughly 2,700 household and business claims, said Sidney Torres III, the plaintiff’s lead lawyer. Another $160 million will cover property buyouts and paying property owners in the area. The remaining $90 million is earmarked for cleanup, he said.

Homeowners could receive $25,000 to $30,000 on average in compensation, Torres said.

‘Big hit’

Murphy Oil’s insurance will likely fund the settlement payments, said West, but the $50 million dedicated to buying surrounding properties will be a capital expense.

“That’s a big hit for anyone,” said Bruce Lanni, an analyst from A.G. Edwards & Sons Inc., who monitors Murphy Oil from California. “Nobody wants to deal with that. Companies the size of Murphy have bounced back before from similar losses, but it’s not always easy. They may have to increase their rates or change their business model to recoup.”

Equity analysts Charles LaPorta of Standard & Poor’s in New York thinks it’s less of a problem. He believes the $50-million buyout fund will be viewed as a land acquisition, LaPorta said.

“It won’t be an immediate deduction to the quarter’s income and will be absolved over 10 years,” LaPorta said. This thing is behind them now. It’s removed an overhang that would hold back their stock. Those who were scared already bailed when the spill was announced.”

Early this year, Murphy Oil signed a Malaysian contract to sell natural gas at an initial rate of up to 300 million cubic feet per day for up to 15 years.

“That is going to be the company’s main driver for now,” LaPorta said. “When this thing starts going, it’s going to be a monster. That’s basically what investors are looking at now.”

Before Monday’s settlement, Murphy announced a 60 cent per share dividend on an annualized basis, representing a 33.3 percent increase over last year’s 45 cent dividend.

Shares of Murphy Oil opened at $47.09 Thursday on the New York Stock Exchange.

Speedy resolution

Energy stock analyst Peter Ricchiuti, assistant dean at Tulane University’s A.B. Freeman School of business, said the company still faces uncertainty.

“They are going to have to absorb the loss and move on, which could mean a hit to stockholders. But as of yet we haven’t seen any evidence of that,” Ricchiuti said, adding the big Malaysian drills are one factor holding the company steady.

The November 2005 spill was the worst environmental disaster caused by hurricanes Katrina and Rita, which damaged offshore oil and gas platforms throughout the Gulf of Mexico. It created the largest environmental class action lawsuit in Louisiana history, Torres said. A speedy resolution suited both sides.

The agreement “potentially would be one of the earliest resolutions ever experienced in a Louisiana class-action lawsuit of this nature,” Torres said in a joint statement by attorneys for Murphy Oil and the plaintiffs.

Public relations consultant Howard Rueben of Howard Ruben Public Relations in Los Angeles said a speedy resolution is “exactly the right move.”

“You don’t want people in St. Bernard meddling over this for years to come,” said Ruben. “You want them to forget about it, move on and not rally against a business that may not leave the area for some time. Besides the financial aspect, it was a smart move to hurry this thing up.”

Chalmette residents such as Johnny Lewis, who could net roughly $29,000 in compensation, said the quick resolution doesn’t matter.

“The neighborhood has disappeared off the face of the Earth,” Lewis said. “I’m 70 years old and all I ever had, my roots, are gone.”

Lewis said he was fighting air pollution from nearby Chalmette Refining LLC when he left.

“Why should I go back and fight some more?”

Schwartz understands why neighbors may not return. She and her husband, Ernest, considered moving north of Lake Pontchartrain before deciding it was too costly.

She’s content in her one-story home with the new blue shutters and new found peace and quiet.

“Murphy lived up to their bargain and cleaned up everything,” she said. “This is my home. I’ve lived her all my life.”•

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