Wednesday, June 16, 2010

White House Unveils BP Deal

A White House agreement has BP setting aside $5 billion a year for four years. The first $5 billion is due in 2010. BP will set aside $20 billion in U.S. assets as assurance.

Oddly, a 2007 report cited BP America's $20 billion investment into Gulf of Mexico deepwater fields (see page 6). Simply coincidence, or will BP be out of the Gulf of Mexico?

The future $20 billion in escrow funds will be used to "pay claims adjudicated by the independent claims facility, as well as judgments and settlements, natural resource damage costs, and state and local response costs." It didn't say what would happen to any remainder, but it would likely revert to BP.

Jamie Gorelick attended the deal making session, as BP's lawyer.

She also sits on BP America's External Advisory Council.

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