Only a Fraction of BP’s Compensation Fund Used So Far
Last August, a $20 billion fund was established to compensate victims of the BP oil spill. The money was provided by BP and is to be independently administered by Ken Feinberg. Yet one year after the largest oil spill in U.S. history dumped over 200 million gallons of oil on into the Gulf Coast, only $3.8 billion of that fund has been paid out to victims.
Currently, the Gulf Coast Claims Facility has approved approximately 300,000 out of the 857,000 claims filed by businesses and individuals in the area who suffered damages as a result of the disastrous oil spill. The low claim approval rate and small percentage of the fund utilized so far has raised criticism that the BP oil claims fund is rejecting too many applicants and providing smaller awards than is warranted.
The fund will pay claims until August 2013; however, analysts estimate that at the rate the fund is being administered, it will not be exhausted by the end date. It is uncertain what will happen to any of the remaining money, although it is unlikely that BP will bet it back.
BP spent more than $40 billion in 2010 in relation to the oil spill. This figure includes the $20 billion earmarked for the fund as well as another $20 billion which paid for cleanup costs and fines associated with the incident.
If you have suffered damages as a result of the BP oil spill, you may be entitled to receive compensation from the Gulf Coast Claims Facility. Due to the large number of claims being processed, it is best to file your claim as soon as possible in order to expedite the receipt of your compensation.