[StBernard] BP Creates $20 Billion Escrow Fund for Oil Spill Claims

[Westley Annis]

BP Creates $20 Billion Escrow Fund for Oil Spill Claims

 

Following a meeting with President Obama Wednesday, BP agreed to create a
$20 billion claims fund over the next three and a half years. The fund will
be available to satisfy legitimate claims including natural resource damages
and state and local response costs and does not represent a cap on BP
liabilities, but it will be available to satisfy legitimate claims. Further
and more detailed terms regarding the establishment and operation of the
claims fund will be finalized and announced by BP in the near future.

 

"I think that it is an act of good faith that assures the financial recovery
of Louisiana," St. Bernard Parish President Craig Taffaro said in response
to the news of the fund. "Particularly if it is protected by a clawback
provision, that if there is a bankruptcy issue the escrow money can't be
recaptured. It will go a long way to give some piece of mind to the
commercial fishermen and businesses that have been affected by the oil
spill." 

 
BP official Carl-Henric Svanberg said: "We appreciated the constructive
meeting conducted by the President and his senior advisers and are confident
that the agreement announced today will provide greater comfort to the
citizens of the Gulf coast and greater clarity to BP and its shareholders.
We welcome the administration's statements acknowledging that BP is a strong
company and that the administration has no interest in undermining the
financial stability of BP. This agreement is a very significant step in
clarifying and confirming our commitment to meet our obligations."


Chief Executive Tony Hayward said: "From the outset we have said that we
fully accepted our obligations as a responsible party. This agreement
reaffirms our commitment to do the right thing. The President made it clear
and we agree that our top priority is to contain the spill, clean up the oil
and mitigate the damage to the Gulf coast community. We will not rest until
the job is done."