Monday, 09 August 2010 12:24
Is BP Spill Recovery Fund Secure Despite $3 Billion Deposit?
Written by  {ga=staffwriters}

steve_sabludowsky01Summary:  BP has deposited $3Billion of the $20B of the amount that President Obama and the company agreed upon in June.  However, there are numerous questions remaining about the security of the outstanding amounts owed and the collectability of the remaining balance for the claims and damages related to the Gulf of Mexico oil spill from the Deepwater Horizon rig. 


While BP has deposited 3B into the Gulf fund escrow account what about the other 17 billion dollars?  Also, does the 20 billion dollars cap the total amount of which it will be liable?  

In a press statement today, BP said, “On June 16, following consultations with the U. S. Government, BP announced that it would transition the claims process required under the Oil Pollution Act of 1990 to an independent claims facility managed by Kenneth Feinberg and create a $20 billion escrow account to satisfy claims resolved by that facility and certain other claims, including natural resource damages and state and local response costs. BP announced at the time that the first deposit of $3 billion to the account would occur by the end of the third quarter. BP has decided to make this deposit early to demonstrate its commitment to meet its pledge to restore both the livelihoods of those affected by the oil spill and the environment.

An additional $2 billion deposit will be made in the fourth quarter of 2010. Thereafter, $1.25 billion will be deposited per quarter until a total of $20 billion has been deposited.”
The Justice Department also issued a press release today.  In that release, it said, “We have made clear that the company still needs to ensure that the necessary funds will be available if something happens to the subsidiary that established the trust and we look forward to completion of an appropriate security arrangement in the near future”.

Thus, important questions remain.
BP has said it is acting in good faith and perhaps it is do just that.  But, for now, here are some of my questions:
How exactly will BP ensure the US that the funds will be available?
What is to occur if there is a default?  What rights does the US have to proceed against the BP subsidiary or the parent company or companies?
What type of security instrument can US obtain and feel comfortable with given the fact there is still 17B outstanding?
Is there any interest or penalties on money owed now or in the event of default?
What does BP mean when it stated, “and certain other claims, including natural resource damages and state and local response cost”  Exactly what claims and damages are covered by the 20B?  What claims and damages are not covered by the claims escrow trust fund?

President Obama, the justice department, the Department of the Interior and  Kenneth Feinberg should quickly and specifically address the unanswered questions and post an FAQ on all relevant Internet sites so the world can fully understand the limitations and responsibilities of all parties involved in the tragic oil spill tragedy.

by Stephen Sabludowsky, J.D and Publisher of

Discuss the BP oil spill trust below.  What questions do you have about the fund?  How would you rate the Obama administration on this issue?

Talk about "Hot Issues" in the BuzzForum

Login to post comments
  • Cat Fights on the Hot Cement Confederate New Orleans statues
  • Ex-Saints, Bears, Bills, NFL Exec, Jim W. Miller discusses NFL Draft tomorrow
  • Trump's new plan; Curtains on tax returns release; 40% say Trump-Russia; Probing Obama admin
  • Watch Louisiana Governor Edwards talk about CAT Tax failure

catRarely, have I seen few issues that have generated as much raw heat, tension, and passion than the Confederate monuments controversy. 

Just as existed during the real civil war, where brothers battled brothers, social media is the battleground, particularly Facebook, pitting friend against friend.

On one side of the tense divide, there are those who are protecting the New Orleans civil war era monuments.  Burnt in effigy, forever, is the symbol of Mayor Mitch Landrieu for up-ending what the monument protectors consider to be the loving civil society of New Orleans.

Lately, events have turned somewhat militaristic.

Some protectors of the Confederate monuments have been staying vigilant, in person and online, even surveilling during the wee hours of the morning, waiting for the next Mayor Landrieu attack. On Sunday morning, with protections of snipers, masked workers and a dumbstruck audience, the worst of all of the monuments was cut and carried., the Liberty Monument. 

Read More

miller nfl live2 5It’s D-Day or Draft Day tomorrow in the NFL.

More specifically, Thursday represents the first day of the NFL draft 2017.

Read More


trump curtainsThe major President Trump news of the day focuses upon taxes, not only the tax cuts he is proposing but his own taxes, which he obviously, refuses to unveil.


Read More

edwards play money 1

At a press conference today, Louisiana Governor John Bel Edwards said the CAT Tax did not pass the House Ways and Means Committee.  The Governor, in addressing the media said that "the fate of that bill was decided long before we unveiled it".

Read More


Sen. Appel talks budget, economy


Dead Pelican

Optimized-DeadPelican2 1 1