Emile Percle
July 2, 2010Wednesday, July 7
July 7, 2010
With more than a hundred south Louisianans on hand, Sen. Mary Landrieu and Ken Feinberg, administrator of the Independent Claims Facility, held a public meeting in Larose Friday to discuss use of BP’s $20 billion escrow account fund.
After receiving acclaim for serving as Special Master of the U.S. Government’s September 11th Victim Compensation Fund, Feinberg was named overseer of the oil spill fund by President Barack Obama.
Before the final details of the Gulf Coast Program are set in stone, Landrieu asked Feinberg to hear comments and concerns from the locals who are most affected.
“A program like this cannot be designed or administered from Washington,” said Feinberg. “You have to come down here, hear what people say and take the time to listen.”
The $20 billion fund will be divided into $5 billion over the next four years, and Feinberg said if $20 billion over four years or $5 billion in any particular year is insufficient, BP will replenish the fund.
“It is not a capped $20 billion,” said Feinberg.
Feinberg said the escrow fund could be dipped into for claims, clean up and resource recovery.
Separate from the escrow fund, Feinberg said BP has set aside $100 million for claims directly or indirectly related to the deepwater drilling moratorium.
“Unfortunately, $100 million is just a drop in the bucket compared to our total loss, but at least it exists,” said Landrieu.
Discussions between Obama, Feinberg and BP have not been finalized yet regarding whether BP will replenish the fund when it runs out.
Residents can continue filing claims through the local BP Claims Offices, as Feinberg said his program will merge into and eventually replace the current BP claims program over the course of the next 30 days.
But Feinberg said no claims offices will be closed, no cash will stop flowing and no one will need to come back to the claims office during the transition process.
“BP’s claims process is not perfect, but it’s a beginning, and I am not going to re-invent the wheel,” said Feinberg. “I’m building on what’s already been accomplished… We’re going to transition from the BP program to the Gulf Coast Program independently administered by me.”
Residents will be able to file claims online in two or three weeks, according to Feinberg.
He added that the claims office staffs will grow, and jobs will be filled with local people.
“I have to make sure that the people on the ground that are evaluating the claims are local, diverse, understand and are sensitive to local needs,” said Feinberg. “I have pledged I will do that.”
Feinberg looks to speed up the process of claimants receiving checks as well.
“I assure you, your claim will be immediately processed. It might take a few days, but not weeks,” said Feinberg to local residents in Larose. “BP has been paying those claims fairly quickly. We will accelerate that process for individual claims and business interruption claims.”
The administrator stressed that all claim money currently being dolled out is considered emergency money and comes with no obligation.
“Do I lose the right to take BP to court? Absolutely not. Do I lose any other rights? Absolutely not,” said Feinberg. “This money is emergency money designed to tie you over until the leak stops, and then when that happens, we can evaluate your long term needs.”
He added the Gulf Coast Program will consider paying claimants in multi-month lump sums, rather than have them worry if next month’s check is going to come in or not.
When the leak stops and the long-term effects of the spill are clearer, Feinberg said claimants will be invited to the claims facility, and a worker will help them calculate their long-term losses.
“Not just right now, but for the next year, two years, five years,” he said. “We will give you a choice. You can take a check from the [Gulf Coast Program] facility. If you take the check, you sign a piece of paper than says you can’t sue BP. That is your voluntary choice.”
Feinberg said claimants will need to bring documentation to show how much they are losing for the current emergency payments, and they will need to show how much they stand to lose for the long-term payment when it becomes available.
Sen. Mary Landrieu introduces Independent claims facility Administer Ken Feinberg in Larose Friday. Feinberg answered questions from residents and presented details about BP’s $20 billion fund. * Photo by RICHARD FISCHER
