Anchorage Daily News

KODIAK -- Damage awards stemming from the 1989 Exxon Valdez oil spill were scheduled to be in the mail next week, but the payments could be stalled for a month or more. The settlement, which was slashed in June by the U.S. Supreme Court from $2.5 billion to no more than $507.5 million, will be distributed to more than 32,000 plaintiffs, of which 80 percent are Alaska fishermen.

"Some obstacles have arisen and the soonest we will see checks is mid-November, and it may roll over to December," said Andrew Ott, a plaintiff attorney in Kodiak.

Ott defined one of the "obstacles" as complex accounting procedures over the payment distributions. Another snag comes from a threat by "a very small claimant group that is unhappy with their share," Ott said.

"They are having it reviewed by the 9th Circuit Court of Appeals and we are waiting for that outcome. In the meantime, they might throw in an objection to any authorization for distribution to the rest of the claimants until they say their share has been confirmed or changed," he said.

"At this stage, the distribution allows for the remaining plaintiffs to receive their portion of the shares, and the objector's portion can be put in a reserve fund until their issue is resolved," Ott said. "In the meantime, the court has to give process whenever something is filed in court, so there may be a delay of 30 days or so until that ruling occurs. It is a fairly minor issue, but it does eat up a little bit of time."

Whenever the plaintiffs do get their settlements, they will also get some tax relief as part of the $700 billion bailout package passed this month by Congress. It will allow plaintiffs to income average their awards over three years, contribute up to $100,000 to retirement plans, and exempt payments of self employment or payroll taxes on any Exxon awards.

"We recognize that waiting 19 years to get settlements from Exxon is tough enough, but having to turn a good portion over to Uncle Sam is adding insult to injury. And the timing of this in allowing for some tax relief is just about perfect," said U.S. Sen. Lisa Murkowski, R-Alaska, who pushed through the tax relief measure with Alaska Sen. Ted Stevens.

Murkowski said in a phone interview that she was not happy to vote for the massive Wall Street bailout, but she felt it was necessary to provide a financial assist to U.S. credit markets.

"Having the Exxon tax relief included made it a bit easier to swallow," she said.

Exxon is challenging payment of a possible additional $488 million in interest payments on the damages, and the tax breaks will also apply to that settlement.

"That is now on a briefing schedule with the 9th Circuit Court of Appeals and they may come out with a ruling by year's end, but more likely in early 2009," attorney Ott said.

FUEL RELIEF FIZZLES

Congress failed to OK a bill aimed at giving U.S. fishermen a fuel tax break. The two-year measure would have given fishermen an extra tax deduction based on the difference between fuel prices paid on Labor Day 2004, adjusted for inflation, and prices paid this year.

"The Finance Committee was faced with so many different bills that the fuel tax relief bill simply didn't rise to the top of the stack." Murkowski said.

"I do intend to see what I can do in the next Congress to introduce legislation that would again provide relief to fishermen, whether in the form of fuel assistance, or maybe some kind of consideration if you work, for example, to retrofit an engine."

DIVING FOR DOLLARS

October marks the start of dive fisheries for sea cucumbers, geoduck clams and urchins.

"These are pretty hard-core fishermen diving in the winter weather in the Gulf of Alaska. But for a lot of these guys it's an important piece to their overall annual fishing livelihood," said fishery manager Nick Sagalkin at Kodiak.

About 14 local divers compete for 140,000 pounds of cukes around Kodiak; smaller fisheries occur at Chignik and along the Alaska Peninsula.

Southeast boasts the biggest dive fisheries -- 175 divers are targeting more than 1 million pounds of sea cucumbers, valued at more than $2.50 a pound.

Divers can also scoop up 5.4 million pounds of sea urchins, valued at about 33 cents a pound. Giant geoduck clams are the most lucrative dive fishery, and this year's quota is 869,000 pounds. The clams, which can weigh up to 10 pounds, fetch $3.50 to $3.90 a pound if live, and less than $1 if processed.

About 60 divers are on the grounds, said regional manager Bill Donaldson. The combined dive fisheries were valued at $7 million at the Southeast docks last year.

Laine Welch is a Kodiak-based fisheries journalist. Her Fish Radio programs can be heard on stations around the state. Her information column appears every other Sunday. This material is protected by copyright. For information on reprinting or placing on your Web site or newsletter, contact msfish@alaska.com.

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