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Exxon Valdez Oil Spill (EVOS) Litigation

Exxon Valdez Oil Spill (EVOS) Litigation. Bruce Gabrys, CPA, MBA MIKUNDA, COTTRELL & Co. CPA’s, Inc. (907) 278-8878 (office) (907) 223-6798 (cell) February 25, 2008. BRUCE J. GABRYS. Certified Public Accountant Commercial Fisherman (F/V Blue Chip II) Exxon Valdez Oil Spill Claimant.

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Exxon Valdez Oil Spill (EVOS) Litigation

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  1. Exxon Valdez Oil Spill (EVOS) Litigation Bruce Gabrys, CPA, MBA MIKUNDA, COTTRELL & Co. CPA’s, Inc. (907) 278-8878 (office) (907) 223-6798 (cell) February 25, 2008

  2. BRUCE J. GABRYS • Certified Public Accountant • Commercial Fisherman (F/V Blue Chip II) • Exxon Valdez Oil Spill Claimant

  3. TYPES OF CLAIMANTS • Fishermen & Crewmembers • Fish Processors • Tender Vessels • Cannery Workers • Subsistence Users • Oiled Land Owners • Recreational Business Owners • Native Corporations • Municipalities • Aquaculture Associations

  4. SETTLEMENT COMPONENTS • Compensatory Damages (lost income, vessel & permit devaluation) • Accrued Interest on Award • Punitive Damage Award • Attorney Fees*

  5. Punitive Damages Plus Interest (5.9%) Gross Award Less Deductions: 3% Case Mgmt Fee Seattle Seven Native Corporations 19.4% Attorney Fee Estimated Costs To Claimants B/4 Taxes 2,500,000,000 2,200,000,000 $4,700,000,000 141,000,000 501,000,000 211,300,000 745,600,000 40,000,000 $3,061,100,000 Estimated Punitive Damage Award

  6. Dollar Amount $4.0 Million to $800,000 $800,000 to $400,000 $400,000 to $80,000 $80,000 or Less Total Number of Individuals 840 927 3,779 27,988 33,534 Size of Individual Awards

  7. Where Claimants Live

  8. EVOS Litigation • March 23, 1989 Exxon Valdez Spills 11 Million gallons of Crude Oil into Prince William Sound • 1994 Jury Awards $5 Billion in Punitive Damages • 2006 After 12 Years of Appeals Ninth Circuit Court Reduces Punitive Award to $2.5 Billion • 2007 Exxon Appeal to the Supreme Court is Granted • Oral Arguments Set for February 27, 2008 • Decision Expected by June 2008. If Upheld, Money will be Distributed in Late 2008 or Early 2009

  9. Issues Before Supreme Court • Punitive Damages Only Issue • Compensatory Damages Already Resolved and Paid • 1818 Decision in The Amiable Nancy Supreme Court Case (Actions of the Captain) • Clean Water Act (Does it Preempt Punitive Damage Awards) • Justice Alito has Recused Himself from Case, Owns Exxon Stock

  10. Estate Planning Issues • Over 6,000 Claimants Have Died Since 1989 Exxon Valdez Oil Spill • Closed Estates: Will Need to be Reopened • Open Estates: Letters Testamentary or Letters Administration Must be Dated Within 12 Months of Settlement Award Distribution • See Exxon Qualified Settlement Fund Handout

  11. PROPOSED TAX LEGISLATION “EVOS Tax Treatment Act” • Senator Murkowski is Working Hard for EVOS Claimants! • IRA Contribution Up to $100,000 • Three Year Income Averaging • Exempts Award from Self Employment Tax • Includes Beneficiaries of Estates • Resolves Attorney Fee Deduction Issue • Claimant Tax Savings Over $200 Million • Not a Done Deal Yet, Needs Your Support!

  12. MIKUNDA, COTTRELL & Co., CPA’s QUESTIONS? BRUCE GABRYS, CPA MIKUNDA, COTTRELL & Co. CPA’s 3601 C Street, Suite 600 Anchorage, AK 99503 (907) 278-8878 (office) (907) 223-6798 (cell) bgabrys@mcc-cpa.com

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