Thursday, August 12, 2010

BP gets numerous 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. 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. 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 includes a portion paid for oil spill claims which was about $ 319 million. But more than 100,000 people are still waiting to hear about their claims. All of the lawyers are confused as to how they can access the fund. Article resource – 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

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 in the Gulf.”. When president Obama announced the BP oil spill fund in June, he said its creation doesn’t limit BP’s liability for cleanup costs and economic damage, and it doesn’t supersede the rights of individuals or states to sue the company. $ 5 billion will be put in the fund annually for the next four years. Within the fourth quarter of yearly, $ 2 billion more will have to be paid with a BP deposit of $ 1.25 billion per quarter until having reached $ 20 billion.

BP claims process having a hard time being fulfilled

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 will be up and running.

BP said that 145,000 oil spill claims had been filed through Aug. 7. 103,900 claims totaling $ 319 million were paid already. According to NPR, residents expect BP to keep them alive economically from the Gulf of Mexico oil spill 2010. There are still 100,000 individuals hoping their claims can soon be fulfilled. People think the BP claims process was made to make it harder to get claims fulfilled. You will find some businesses waiting for Feinberg to take over before they even try to get their claims taken care of.

BP oil spill fund with no information

Although everybody knows about the BP oil spill fund, hardly everyone 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. Lawyers handling oil spill claims wonder about the ability of their clients to structure oil claim payments over time to lower the tax hit. Legal fees on the checks being handed out aren’t tax deductible. As outlined by LBN, the questions are unanswered by those in charge of the fund.

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



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