BP pays first $3 billion to victims' fund

NEW ORLEANS, Aug. 9 (UPI) -- BP said Monday it had made an initial deposit of $3 billion to its $20 billion fund for victims of the massive oil spill in the Gulf of Mexico.

The international oil giant had promised to make the first payment by Sept. 30 but did so earlier "to demonstrate its commitment to meet its pledge to restore both the livelihoods of those affected by the oil spill and the environment," the company said in a statement.

"We indeed intend to stand behind our commitment to (spill victims) and to the American taxpayers," said incoming Chief Executive Bob Dudley, who is leading BP's gulf restoration efforts. "Establishing this trust and making the initial deposit ahead of schedule further demonstrates our commitment to making it right in the Gulf Coast."

BP said the account would be overseen by a new trust headed by former U.S. District Judge John Martin and Kent Syverud, dean of the Washington University School of Law. Citigroup Inc. will serve as corporate trustee. Attorney Kenneth Feinberg, who represented Sept. 11 terrorist attack victims, serves as administrator of the fund.

The Obama administration welcomed news of BP's initial payment.

"We are pleased that BP made an initial contribution and has taken an important step toward honoring its commitment to the president and the residents and business owners in the gulf region," said Associate Attorney General Tom Perrelli.

Perrelli said the Obama administration has made clear to BP officials the company will be required to pay more if spill-related damages increase.

BP said an additional $2 billion deposit will be made in the fourth quarter of 2010 and thereafter, $1.25 billion will be deposited each quarter until the total reaches $20 billion.