BP claims process enters final phase

WASHINGTON, Nov. 24 (UPI) -- The final settlement phase has begun in negotiating lump-sum settlements for people affected by the BP oil spill in the Gulf of Mexico, administrators said.

Kenneth Feinberg, who is administering the $20 billion BP fund, is to announce the rules for the settlements Wednesday, The New York Times reported.

Fund estimates indicate more than $2.2 billion is being paid to about 150,000 individuals and businesses with documented claims.

"I have received a wide range of views about every issue under the sun," Feinberg said of his consultations with lawyers, state attorneys general and the Justice Department about the rules.

The document -- of which the Times obtained a copy -- details a program that will run for three years.

People seeking reimbursement won't have to give up their right to sue BP or other companies involved with the spill until they accept a final offer, the booklet said. However, anyone accepting the final settlement will give up the right to file future claims, among other things.

The document addresses the sticky claims problem of proximity to the spill, or claims filed by people and businesses not directly affected by the spill, such as Florida's tourism industry, which took a hit because of the spill.

Feinberg has said he would consider such claims, and he is releasing a memorandum by a Harvard Law School professor arguing that proximity claims "would not be entitled to recover" through the courts.

Lawyers litigating BP in federal court were skeptical about the rules, the Times said. Stephen Herman, a member of the steering committee of plaintiffs' lawyers in the litigation, said people filing claims must have more details about how the process will work because "these are the claims we pay or don't pay. This is the basis we use to determine compensation."