BP completed negotiations with the Justice Department Monday that establishes the $ 20 billion BP oil spill compensation fund. $ 3 billion in the fund go directly towards oil spill within the Gulf of Mexico 2010 victims. BP agreed to set up the oil spill fund after meeting with president Obama on June 16. So far, BP said its oil spill costs have totaled $ 6.1 billion, including $ 319 million paid out in BP oil spill claims. You will find still 100,000 individuals that hope their claims will soon be answered. And the lawyers still aren’t certain how the fund will work.
BP fund for oil spill better than thought
BP said it would make the first deposit into the BP oil spill fund by the end of September. Robert Dudley, who replaces Tony Hayward as BP’s chief executive officer on Oct. 1, told Bloomberg that making the deposit ahead of schedule emphasizes the company’s commitment to “making it right within the Gulf.”. Obama explained with this announcement in June that anyone who feels wronged may sue the company on their own, and BP has to look after economic damage and cleanup costs still. BP could be responsible for putting one more $ 5 billion within the fund each year for at least 4 more years. Within the fourth quarter of every year, $ 2 billion more will have to be paid with a BP deposit of $ 1.25 billion per quarter until having reached $ 20 billion.
BP getting stopped when fulfilling claims
Checks from the BP oil spill fund could be cashed for free at New Orleans-based Whitney National Bank, which has 160 branches along the Gulf Coast. By the end of this month, Kenneth Feinberg who was appointed by the government as an administrator of the fund, explains that a BP oil claims facility could be up and running.
BP said that 145,000 oil spill claims had been filed through Aug. 7. It has paid 103,900 claims worth $ 319 million. The gulf of Mexico oil spill 2010 has left the economy devastated while numerous individuals hope that BP will keep anything alive until the economy can help itself. You will find nevertheless 100,000 individuals hoping their claims can soon be fulfilled. Individuals think the BP claims process was made to make it harder to get claims fulfilled. Numerous companies are just waiting for Feinberg to get into his position so the fund can be under his control instead.
Hard to figure out BP oil spill fund
While the BP oil spill fund has been highly publicized, the actual information of what is going on with the fund are murky. The BP oil spill fund seems difficult to access for those lawyers and clients who are trying to be a part of the program, reports the Legal Broadcast Network (LBN). Lawyers don’t know how to get the oil claim payments or how to stop the tax hit. And numerous oil spill claimants may not be aware that legal fees on BP oil spill claims aren’t tax deductible. The individuals running the fund haven’t answered any of these questions says LBN.
Additional reading
Bloomberg
bloomberg.com/news/2010-08-09/bp-20-billion-oil-spill-compensation-fund-agreement-completed-with-u-s-.html
NPR
npr.org/templates/story/story.php?storyId=129074745
Legal Broadcast Network
thelegalbroadcastnetwork.squarespace.com/the-lbn-blog/2010/8/9/the-bp-oil-spill-compensation-fund-what-is-next-ken-feinberg.html
