News24

BP oil spil: Gulf recovery in 3 years

2011-02-02 22:13

New Orleans - The Gulf of Mexico should largely recover from BP's oil spill within three years, and all settlement offers to victims who lost revenue from the disaster will be based on that assessment, the administrator of the $20bn compensation fund said on Wednesday.

Attorney Kenneth Feinberg said the Gulf Coast Claims Facility used "various data and expert reports" to determine that a 30% recovery is likely in 2011 with full recovery in 2012. He notes, however, that the oyster business will take longer.

The fund was set up by BP in August to compensate residents, fishermen and business owners for lost revenue following BP's oil well blow out off Louisiana. It has so far paid about $3.3bn to 168 000 claimants, but many are still waiting for any money, and thousands of others claim they were short changed.

Feinberg has faced repeated criticism about the slow pace of payments and the small size of checks to victims.

He said on Wednesday that final settlement offers, based on the recovery assessment, will be twice an individual's or business's documented 2010 losses. Oyster harvesters will be offered four times their documented 2010 losses.

Documents released by Feinberg on Wednesday show he based the assessment on expert opinions from a Texas professor and a consulting firm.

"I think I have canvassed the universe," Feinberg said. "I admit it is not certain."