President Obama delivered a statement following today’s White House meeting with BP executives, where the company agreed to establish a $20 billion escrow fund to help pay for spill claims, and he offered some details about the fund and how it will work.
Obama said that the $20 billion set aside for the fund is not a liability cap, but it “will provide substantial assurance that claims people and businesses have will be honored.”
“This fund does not supersede either individuals’ rights or states’ rights to present claims in court,” Obama said. “BP will also continue to be liable for the environmental disaster it has caused and we are going to continue to make sure that they address it.”
He said the fund will be an escrow account administered by an “impartial, independent third-party.” Ken Feinberg will run the process, and “there will be a three-person panel to adjudicate claims that are turned down.”
The president said that BP had voluntarily agreed to establish a $100 million dollar fund to compensate unemployed oil rig works affected by the deepwater drilling moratorium.
Obama added that he emphasized to BP’s Chairman that he needs to keep in mind the individuals affected by the spill in the Gulf.
