How does the Spill affect the value of your property?

The BP Deepwater Horizon Oil Rig exploded April 20th, crumbled and sank two days later into the Gulf of Mexico claiming at least eleven lives, precipitating what has become the worst environmental disaster the U.S. has ever faced, if not the world!

Most environmental disasters - hurricanes, earthquakes, or wildfires - lie largely beyond human control. But some of the world's most lethal calamities have been caused at the hands of people. The pursuit of more (and more efficient forms of) energy, food, and building materials have depleted parts of the globe.

So who is responsible, and how does this affect the value of your property?

This is not an easy question - certainly, on the face of it British Petroleum (BP) has taken the brunt of the blame and responsibility - and clearly the media has come crashing down on this corporate behemoth with large pockets, albeit shrinking ones!

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However, BP is not the only player with just 65% ownership of the Mississippi Canyon Block 252 License, where the well was drilled. The other partners include Anadarka Petroleum Corporation with 25% ownership and Mitsui & Co., Ltd with the remaining 10% - all who are proportionally liable.

And let's not forget the operators and contractors. BP leased the Deepwater Horizon rig from Transocean - the world's largest offshore drilling firm. Cameron International Corp, a subsidiary of Transocean provided the Blowout equipment that failed. And Halliburton Energy Services, Inc. (remember Dick Cheney) provided drilling services on the rig. Halliburton was in the process of cementing the wellhead when the blowout occurred.

Lets step back a moment to your property.

What are the detrimental conditions - and how do they affect your value?.

Well, if your property has oil splashing up on your beach - you have an immediate and direct effect. You can no longer enjoy the pristine coastline. Your multi-million dollar property is now in question. How many years will you have to keep your kids inside - no longer being able to enjoy what you had paid a premium for. And if you own a marina, or a fishing camp - your income has come to a grinding halt. Income being one of the key elements of valuing a commercial property. These are all conditions that can be valued - and lead to the loss of value incurred by the spill - which gives you some right to claim damages.

If your customer had a booking for a conference in your hotel on the beach in Clearwater, Florida for next year - and due to the uncertainty of the spill - cancelled. You have cause for alarm - and a direct effect on your bottom line.

The last element is the unknown. How many more days, months till the well is trully "killed". How much is floating around in the Gulf - and when will it be washed to shore in Naples, or Miami - or carried by the tides to Boston!

So how much IS your property worth today vs April 19th, 2010 - how much will it be worth April 20th 2011, 2020?

What is the cost to remedy, what is the value of the loss of use, when will we be able to enjoy our margarita watching the sun go down over the horizon - without the intoxicating smell of oil?

Do you have property affected by the spill?