Obama: BP Will Fund Escrow to Pay Claims

'Substantial' sum will be run by 3rd party, expedite claims
By Newser Editors and Wire Services
Posted Jun 13, 2010 11:50 AM CDT
Workers load bags of contaminated sand as they clean up oil from the Deepwater Horizon spill along the beach, Sunday, June 13, 2010, in Grand Isle, La..    (Eric Gay)
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(Newser) – President Obama will demand that BP create a special account with "substantial" reserves to pay Gulf oil claims and will take other steps aimed at aiding the region, David Axelrod said today. Coast Guard Adm. Thad Allen told Face The Nation that an outside contractor will run the account and handle claims more quickly than they are now. "We've been very concerned about the claims process," he said. "This is not a core function of an oil producing company." Elsewhere on the Gulf spill:

  • Obama, set to visit the Gulf Coast tomorrow and Tuesday, also plans an Oval Office address Tuesday night after his return. He meets at the White House with BP execs Wednesday.
  • BP's board was to meet tomorrow to discuss deferring its second-quarter dividend and putting the money into escrow until the company's liabilities from the spill are known.
  • Obama meets with BP execs, including the company's chairman, on Wednesday.

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