In a press release dated July 28, 2010, BP said it expects to pay at least $60 million in advance payments next month to claimants across the Gulf Coast who have lost income or net profit because of the oil spill in the Gulf of Mexico.

Having already doled out $256 million to date for claims -- including $30 million in the last seven days -- BP will begin issuing advance payments by the end of the week. Claimants will receive checks about 30 days after receiving July payment.

"Our focus has been and remains on getting money into the hands of people who need it to pay their living expenses," said Darryl Willis of BP's claims team. "This advance payment program recognizes the importance of replacing income that has been lost."

BP said the reason for this latest announcement is to ensure that claimants understand that while the company will be transitioning its claim process to Ken Feinberg and the new Gulf Coast Claims Facility during August, this transition will not impact August advance payments.

"We are encouraged that a number of fishing areas have been reopened by both state and federal governments," said Willis. "We hope this allows many who make their living in the Gulf to be able to begin doing so again. We also know that the Gulf represents a lot more than making a living; for many it is their way of life. We will be here for as long as it takes to make things right, and that means providing these advance monthly payments for loss of income to fishermen, crabbers, shrimpers and many others."

BP reports that it has paid more than $237 million to individuals and businesses for loss of income or net profits since May. Those receiving payments and the amounts received to date include the following: fisherman ($39 million); shrimpers ($23 million); oyster harvesters ($8 million); and charter boat owners ($6 million). Meanwhile, more than $117 million has been funneled to individuals and businesses in a variety of occupations, including those who work as deck hands and in seafood processing.

The company began making Interim advance payments in May. Deckhands were advanced $2,500 per month, while boat captains were advanced $5,000.

According to BP's web site, the company required only minimum documentation of deck hands, boat captains, shrimpers, and other parties to dispatch the initial payment. However, claimants must provide additional documentation to support their loss of income claim, as subsequent payments are based on actual income.

BP has 36 claim offices and one mobile claim office in the Gulf Coast states, with 1,600 professionals comprising its claim team. To date, the company has received 133,000 claims and has issued more than 83,000 checks in the 12 weeks since it began making claim payments on May 3, 2010.

Source: BP

Special Reports /

BP Claim Payments Surpass $256 Million

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