BP to begin oil fund payments in August

The $US20 billion ($A22.61 billion) that BP has set aside to pay for losses caused
by the Gulf of Mexico oil spill will start making payments in early August.
Ken Feinberg, who is in charge of paying individuals and businesses for lost income,
told a meeting of government officials in Louisiana on Thursday that he expected a
seamless transition from BP management to his administration.
"My goal is to improve that system," Feinberg said. "I'm determined to come up with
a system that is more beneficial to the people using it."
BP currently has 35 offices in the Gulf Coast area accepting claims. The oil company
will turn the entire operation over to Feinberg and not be involved in any of the
claims against the $US20 billion fund, except to supply more money if it's needed,
Feinberg said.
The offices will be open for three years, and claims can be filed at any time, he
said. Once filed, they must be paid within 90 days, Feinberg said.
The fund has not been tapped yet, but Feinberg said by the end of the first week of
August his group would be ready to make payments.
There are still some issues to settle, Feinberg said. One of them is how much
transparency the fund should have. Data from the program will be available, but
there is still debate on providing names of people applying.
Feinberg, who was in charge of the compensation paid to families of victims in the
September 11, terrorists attacks, said he worried that making names public or
turning them over to government agencies would have a chilling affect on applicants.
"I do not want to create barriers to people participating," he said.
Feinberg said anyone who has a claim and can document it should apply.
BP has committed to paying up to six months lost wages. They are also offering to
reach lump sum settlements for other, potentially larger claims, such as commercial
fishermen convinced their business won't recover for years. Those claims will be
mediated by Feinberg. If that lump sum payment is accepted, the recipient must sign
an agreement not to sue BP.
Anyone who doesn't accept a settlement can still claim the six months loses without
losing their right to seek more in a lawsuit, Feinberg said.
"I believe that any claimant in Louisiana who is eligible is making a mistake, a big
mistake, not to come into this program," he said.