Monday, August 9, 2010

BP (NYSE:BP) Deposits First $3 Billion Into $20 Fund

After what seemed to many a long period of time, BP (NYSE:BP) has made its first deposit into the escrow fund made to compensate individuals and businesses affected by the Gulf oil spill. The first deposit is $3 billion.

BP will pay out $5 billion a year over the next four years to bring the total to $20 billion.

Commenting on the escrow account, incoming CEO Dudley said this, "The purpose of the escrow account was to assure those adversely affected by the spill that we indeed intend to stand behind our commitment to them and to the American taxpayers.

"Establishing this trust and making the initial deposit ahead of schedule further demonstrates our commitment to making it right in the Gulf Coast."

Final negotiations on the fund were finished Monday, according to the U.S. Department of Justice.

After fund administrator Kenneth Feinberg make a final decisions, a panel of three judges will be in place to hear appeals of those decisions claimants disagree with.

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