Wednesday, August 4, 2010

BP (NYSE:BP), Escrow Fund Division of Labor for Claims Becoming Clearer

For those confused by the claims being processed by BP (NYSE:BP) at this time, and those which will be processed by the BP escrow fund, which will be overseen by Kenneth Feinberg.

BP said today it will submit many of the decisions for individuals and businesses to Feinberg and the escrow fund.

The reasoning, according to Darryl Willis, of the BP Claims Team, was this, "There are several thousand claims not clearly within the guidelines of the Oil Pollution Act which guides BP's claims process. Ken and his team are the claims experts. It is right that they will make the decisions on these claims."

How that breaks down practically, will be for BP to take care of claims more directly and geographically close to the oil-affected areas. Businesses like beach-front condos, fisherman and shrimpers are the types of claims BP will continue to process.

Claims to be handled by Feinberg will be those further away from the immediate oil areas, seafood processing businesses not in the five state Gulf region, restaurants, businesses related to tourism, victims of Obama's moratorium, and values of properties outside the area as well.

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