BP Oil Spill

Compensation has begun to be paid out to the victims of the BP oil spill; the fund of 12.9 billions has been prepared and has now begun accepting applications for compensation claims. The independent administrator Kenneth Feinberg stated that the compensation claims would be granted quickly and would be higher in value than those granted within a court. Although people wishing to claim compensation from this pot of money must also give up their rights to sue the oil giants BP. The fund is intended to reimburse the Gulf of Mexico residents and businesses for loss of wages, personal injury, loss of profits and also the cost of clean ups. There have already been claims worth 368 million dollars paid out by BP. The oil spill began on the 20th April after the BP leased Deepwater Horizon drilling rig exploded. The leak has caused widespread disruption along the US Gulf Coast. In total there has been an estimated 206 million gallons of oil which flowed into the Gulf before BP capped the leak last month. The spill has disrupted the area greatly, with fishing and tourism being impacted upon to a great extent. A claims programme named the Gulf Coast Claims Facility was set up during June after BP feared they would not meet the demands of President Barack Obama to reimburse the Gulf Coast resident for their losses. The new pot of money made available to deal with the claims is understood to be able to issued emergency six month payment cheques within four eight hours of receiving the claims from an individual, and it is also believed to be able to deal with business claims within seven days.