Lucas,
We supported President Obama's announcement that BP would set aside $20 billion in an escrow fund to pay economic damages to people and business affected by the BP oil disaster.
Unfortunately, negotiations between the Obama administration and BP to structure the compensation fund for victims of the disaster have resulted in flaws that could significantly undermine its purpose.
Send President Obama an email urging him to fix the fund.
The details reveal a plan that could threaten full compensation for victims and potentially benefit BP by creating an incentive to continue, and maybe even expand, risky oil production in the Gulf.
The devil is in the details:
- The fund appears to be capped at $20 billion - contrary to what fund administrator Ken Feinberg has said, during a discussion right here at Public Citizen headquarters, was his understanding of BP's plans.
- The fund will also be used to dole out reimbursements for state and local response, and natural resource harms - limiting the amount available to victims.
- BP aims to make a subsidiary that has no apparent assets other than Gulf oil leases the party responsible for paying all costs of the disaster. To that end, BP proposes to pay off its liabilities from the Gulf disaster exclusively with revenue from Gulf oil and gas production.
- The trust agreement for the fund lacks any disclosure requirements, allowing all transactions related to the fund to be done without public oversight.
We expect a corporation like BP to look out for its own interests. But we demand that our government stand up for the people's interests!
Send President Obama an email urging him to fix the fund.
Public Citizen has not allowed the fund's flaws to be papered over. Our scrutiny of the fund's structure has been brought to the attention of the administration and now it is your turn to let the President Obama know that victims of disaster have suffered enough.
Thanks for all you do,
Allison Fisher
Organizer, Energy Program
P.S. Learn more: Read Public Citizen's Politico op-ed on the BP trust fund.