New Gulf Coast Claims Facility to Open: 8 Biggest Questions Answered

(Aug. 20) -- On Aug. 23, Ken Feinberg, the administrator of the $20 billion Gulf Coast compensation fund, will take control of the claims process for those affected by the BP oil spill. Until now, BP has been handling the hundreds of thousands of claims that have already been entered, with many complaining that their claims have been held up for months or only partially paid.

The new Gulf Coast Claims Facility is unlikely to resolve all the problems -- and indeed may create new controversies -- but Feinberg has pledged to speed up the process.

Surge Desk has the essential details on the new Gulf Coast Claims Facility.

1. Will people who've already filed a claim have to refile?
Yes and no. The claims already filed with BP will be transferred to the new claims centers, so nobody has to refile those. But claimants do have to file a new form with the Gulf Coast Claims Facility beginning Aug. 23.

2. How do those affected by the spill file a claim?
Claimants can pick up forms at one of the 35 claims centers or online at www.gulfcoastclaimsfacility.com.

3. How long will it take to receive a payment?
Feinberg says that individuals will get their money in two days and that businesses will get theirs in seven days.

4. How long will new claims be accepted?
Feinberg says there will be a three-month emergency period in which claimants can accept emergency payments. After those three months, claimants will have to decide if they want to accept a final settlement from BP or file a lawsuit. Feinberg said Thursday that the Gulf Coast Claims Facility would help people find lawyers if they want. For those who accept final settlements, any emergency payments they have received will be deducted from the final settlement check. The three-month time limit may force people to decide whether to take a settlement long before the extent of the damage is actually known.

5. Does taking the money mean surrendering the right to sue BP at a later date?
During the three-month emergency period, claimants will not have to waive their right to sue BP. But after the three months are up, claimants who accept their final settlement offer will have to waive their right to take the oil giant to court -- and possibly other companies involved in the accident, according to the The New York Times. If they turn their settlement down, their claim will be reviewed by a panel and a second determination will be made. If that second determination is also not acceptable, the claimant can then sue BP without having to give up any emergency funds received.

6. How much money has BP paid out already?
BP says it has paid $368 million in claims.

7. Who gets priority in receiving compensation?
Priority will be given based on geographic proximity to the oil spill. Hotels and restaurants on beaches where oil came ashore, for example, will do better than tourist attractions inland, and fishermen and seafood processors will have an easier time than inland fishing-equipment suppliers, according to the Times. But there's at least one twist: $60 million of the fund will be put aside to compensate real estate brokers and agents who might otherwise not be eligible for compensation.

8. Who won't be reimbursed?
People will not be reimbursed for lost property value, for income lost due to the Obama administration's moratorium on deep-water drilling, for mental health claims or for businesses that were not near the oil spill but lost tourism revenue because of predictions that the oil slick would reach them.

Information relating to claims will be hosted at www.gulfcoastclaimsfacility.com beginning Aug. 23 at 12:01 a.m.