BP gets many claims from the oil spill causing $ 3 billion to be put within the fund

BP completed negotiations with the Justice Department Monday that establishes the $ 20 billion BP oil spill compensation fund. $ 3 billion within the fund go directly towards oil spill within the Gulf of Mexico 2010 victims. Obama and BP had a meeting on June 16 which is when BP decided the fund needed to be set up. The total BP bill is about $ 6.1 billion which involves a portion paid for oil spill claims which was about $ 319 million. Claims have still been filed by one more 100,000 individuals waiting for an answer. All of the lawyers are confused as to how they can access the fund. Resource for this article – BP oil spill fund gets first $ 3 billion deposit as claims pile up by Personal Money Store.

BP oil spill fund deposit ahead of schedule

By the time September is over, BP is supposed to have the deposit put into the BP oil spill fund. 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 in June that BP is nevertheless responsible for cleanup and economic damage, and individuals still may sue the company whenever they feel the right to do so. $ 5 billion will be put within the fund annually for the next four years. To reach the $ 20 billion that BP has promised, there may also be $ 1.25 billion put in every quarter with an added $ 2 billion in the last quarter of every year.

Claims process slowed down for BP

Checks from the BP oil spill fund will be cashed for free at New Orleans-based Whitney National Bank, which has 160 branches along the Gulf Coast. Kenneth Feinberg, the government-appointed administrator of the fund, said a BP oil claims facility should be in operation 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. NPR reports the oil spill within the Gulf of Mexico 2010 has numerous coastal residents fighting for their economic survival, and they expect BP to keep them afloat. You will find nevertheless 100,000 people hoping their claims can soon be fulfilled. People think the BP claims process was made to make it harder to get claims fulfilled. Many businesses are just waiting for Feinberg to get into his position so the fund can be under his control instead.

Fund for BP oil spill difficult to work with

While the BP oil spill fund has been highly publicized, the actual details of what is going on with the fund are murky. 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. It also seems to be a problem that the oil spill claims being fulfilled have legal fees that aren’t tax deductible. According to LBN, the questions are unanswered by those in charge of the fund.

More on this topic

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