Justice Department negotiated with BP Monday making certain the $ 20 billion BP oil spill fund was available. Victims of the oil spill within the Gulf of Mexico 2010 will be able to access some of the $ 3 billion put within the fund specifically for them. 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. There are still 100,000 people that hope their claims will soon be answered. And the lawyers still aren’t sure how the fund will work.
Better than expected is the BP oil spill fund schedule
BP said it would make the initial deposit to the BP oil spill fund by the end of September. BP is showing a strong commitment to “making it right in the gulf” by getting ahead of schedule on the deposits, according to Bloomberg who spoke with Robert Dudley who’ll replace on October 1, Tony Hayward. Obama explained in June that BP is nevertheless responsible for cleanup and economic damage, and individuals nevertheless may sue the company whenever they feel the right to do so. BP agreed to pay $ 5 billion into the oil spill fund in each of the next four years. Within the fourth quarter of annually, $ 2 billion more will need to be paid with a BP deposit of $ 1.25 billion per quarter until having reached $ 20 billion.
BP claims process bogging down
BP checks can be cashed at any of the 160 branches of the New Orleans-based Whitney National Bank on the coast for free. A BP oil claims facility, as outlined by eh appointed administrator of the fund, Kenneth Feinberg, could be open by the end of this month.
By the time August 7 hit, 145,000 oil spill claims had already been filed. 103,900 claims totaling $ 319 million were paid already. The gulf of Mexico oil spill 2010 has left the economy devastated when many individuals hope that BP will keep everything alive until the economy can help itself. 100,000 individuals still want their claims to be filled. Numerous think that with the BP claims process, it is hard to really get anything done. Numerous companies are just waiting for Feinberg to get into his position so the fund could be under his control instead.
Fund for BP oil spill difficult to work with
Even though everyone knows about the BP oil spill fund, hardly any person knows how to access it. The Legal Broadcast Network (LBN) reports that very few lawyers or clients have any clue as to how the BP oil spill fund is going to work or if it makes sense to participate. The tax hit is a big concern for lawyers who do not even know how to get payments for their clients. And many oil spill claimants may not be aware that legal fees on BP oil spill claims are not tax deductible. LBN said these questions remain to be answered, or even asked, of the individuals running the fund.
Further 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
