Justice Department negotiated with BP Monday making certain the $ 20 billion BP oil spill fund was available. $ 3 billion in the fund go directly towards oil spill in the Gulf of Mexico 2010 victims. The fund was set up after BP and Obama met and discussed the situation on June 16. The total BP bill is about $ 6.1 billion which includes a portion paid for oil spill claims which was about $ 319 million. Claims have nevertheless been filed by one more 100,000 people waiting for an answer. All of the lawyers are confused as to how they can access the fund.
Oil spill fund schedule better off than expected
The oil spill fund is supposed to have its first deposit from BP made 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 in 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 take care of economic damage and cleanup costs still. BP can be responsible for putting an additional $ 5 billion in the fund annually for at least 4 more years. An additional $ 2 billion could be paid in the fourth quarter this year, and BP will deposit $ 1.25 billion per quarter until the $ 20 billion is reached.
BP claims process bogging down
160 branches along the gulf coast of New Orleans-based Whitney National Bank plan to cash BP checks for free. A BP oil claims facility, according to eh appointed administrator of the fund, Kenneth Feinberg, can be open by the end of this month.
By the time August 7 hit, 145,000 oil spill claims had already been filed. It has paid 103,900 claims worth $ 319 million. The gulf of Mexico oil spill 2010 has left the economy devastated when many people hope that BP will keep every little thing alive until the economy can help itself. 100,000 individuals nevertheless want their claims to be filled. Many say they are getting the runaround from the BP claims process. 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
Nobody knows how the BP oil spill fund works although it is publicized enough that everybody knows about it. According to the Legal Broadcast Network (LBN), no clients or lawyers can determine how to become a part of the BP oil spill fund. The tax hit is a big concern for lawyers who don’t even know how to get payments for their clients. Legal fees on the checks being handed out aren’t tax deductible. According to LBN, the questions are unanswered by those in charge of 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
