A settlement is in
the works for at least three of the
class-action lawsuits filed against
Shell Oil Products and its
affiliates in the wake of a tainted
gas problem that damaged more than
53,000 vehicles in southeastern
Louisiana in May.
Attorneys have
spent recent weeks negotiating a
deal that would define who is
eligible for damages from the Shell
companies and how much those damages
are worth, according to a document
filed in federal court in New
Orleans.
The cases involved
in the potential settlement
originally were filed in state
courts in Orleans, Jefferson and St.
Charles parishes but later moved to
the U.S. Eastern District Court.
If the parties
involved in the negotiations fail to
reach an agreement by Oct. 15, then
they will choose a mediator who will
hammer out a deal.
Daniel Becnel Jr.,
a Reserve attorney representing
plaintiffs in one of the cases, said
the number of claims made through
the class-action suits could reach
500,000.
Some drivers in
the New Orleans region started
having problems with their fuel
gauges in mid-May after Shell
delivered a batch of gasoline to
more than 200 local gas stations
that contained elemental sulfur and
hydrogen sulfide.
The contaminates
are highly corrosive to silver and
can damage vehicles with silver
electrical contacts in their
fuel-gauge sensor units.
The problem caused
some fuel sensors to deliver false
readings, making motorists think
their fuel tanks were full when they
weren't. In some cases, vehicles ran
out of gas even though their gauges
indicated fuel was in the tanks.
The tainted gas
was manufactured at the Motiva Norco
Refining plant and was distributed
in early May, mostly to stations
operating under the Shell, Texaco
and Chevron brands. Some of the gas
was shipped to stations in
south-central Florida.
Most of the
stations stopped selling the tainted
gas when Shell discovered the
problem. But by then, tens of
thousands of motorists had bought
the fuel.
Shell has been
paying to repair fuel gauge sensor
units damaged by the gas. The work
can cost between $200 and $1,000,
depending on the car model.
Becnel
said Shell has acted in good faith
since disclosing the tainted gas
problem.
"Shell is doing
the right thing. They are continuing
to fix people's gas gauges," he
said.
But
Becnel
said the class-action settlement
should cover more, such as potential
damage from the gas to other parts
of vehicles, even for people who
already have accepted a settlement
check from Shell for fuel gauge
repairs.
No deadline has
been set for settling the cases.
The agreement to
negotiate the deal was signed by
attorneys representing motorists as
well as those representing Shell and
its affiliates.
Shawn Frederick, a
spokesman for Shell Oil Products,
said that the company doesn't
comment on pending litigation.
