Louella Hebert
July 23, 2010
Janice Bergeron
July 27, 2010
He’s now called the “$20 Billion Man,” and in front of a packed auditorium Thursday at the Houma-Terrebonne Civic Center filled with residents, state and local representatives and members of the fishing industry, Kenneth Feinberg explained his plan to get that $20 billion where it belongs – into the pockets of those affected by the oil disaster.
“First, the program that I’m administrating is a private program. I am not working for the government of the United States or the governor of Louisiana. I am working for the people of Louisiana,” Feinberg said.
The program, being a $20 billion BP fund to pay all spill-related claims, will be turned over from BP to Feinberg within the next few weeks, and will undergo significant changes to expedite claims. It will be a transparent system, and the method Feinberg will be using to calculate the claims will be public, so anyone can challenge it if they choose to.
“We’re going to set up an infrastructure that is going to systematically, consistently make it easier to file, to find out where your claim is, and process that claim,” Feinberg said.
“This is about helping people in the Gulf,” he said. “This program is, I’m convinced, the way to go. I don’t want to get fancy here, I want to get the money out to the people who need it.”
And if the people need more than $20 billion, according to Feinberg, they will get it.
“If the $20 billion is not enough, BP has agreed that it will honor any and all of its financial obligations of any and all claims arising out of the spill above $20 billion. So the money is there,” Feinberg said.
BP has already paid $150 million in spill-related claims, but the process has been slow and inefficient, according to Joe Harrison, state representative of District 51.
“The delays have been ridiculous,” Harrison said. “This has got to be better than what we have, it can’t get any worse.”
“[BP] hasn’t been as effective as they should be in processing business claims,” Feinberg admitted, with an applause break from the audience. Feinberg explained he will work to review all claims once he takes over the program. Claims that have been waiting to be processed will also take priority once he steps in, as well.
Feinberg also explained emergency payments will be paid within 48 hours as long as the losses can be corroborated, and payments can be received monthly or in a 6-month sum. Lump sum payments for total losses will also be given out on a case-by-case basis after Feinberg determines a dollar amount for loss of income on each claim – but it comes at a price.
“If you like the amount of the check, you have to sign a paper that says you won’t sue BP,” Feinberg said.
If workers aren’t satisfied with the amount of money Feinberg offers, they have a right to refuse the money.
“This program is entirely voluntary,” he said. “Nobody has to come into the program. If you think this is a trick, it isn’t; but if you think that, don’t do it. You can go file a lawsuit but I’m telling you, you’ll litigate for years you may not win.”
Feinberg also mentioned a $100 million that will be allocated to rig workers affected by the moratorium, but unlike the $20 billion, this sum is capped at $100 million and does not include businesses affected by the moratorium.
“That’s not part of my program,” Feinberg said, but hopes to have more information regarding rig workers soon.
“There’s local emotion involved in this, so we have to listen to what people are saying,” he said. “I will come back as often as necessary. I want to try and help. I’ve got this money to distribute, but I can only help if the claim is filed.”
Kenneth Feinberg, the Obama Administration’s appointee to divvy up BP funds, told a packed Houma-Terrebonne Civic Center Thursday that claims will soon be finalized. JENNA FARMER
