With the second advance payments, BP estimates it will have spent about $84m for loss of income or net profit through June, based on the claims it has received to date. According to the company, this number will grow as additional claims are filed.
Doug Suttles, chief operating officer of BP Exploration and Production, said: “We deeply regret the impact the oil spill has had on individuals and businesses, and understand the need for quick and reasonable compensation. We hope these payments will assist individuals, businesses and the communities impacted.”
BP said that about 14,000 individuals and businesses in Louisiana, Mississippi, Alabama and Florida have received an initial advance payment for loss of income or net profit to date.
With the second payment, about 7900 individuals and businesses in Louisiana will have received about $50m for loss of income or net profit by the end of June. The numbers for Alabama are about 3000 claimants receiving about $16m, in Mississippi about 1900 individuals and businesses receiving about $10m, and in Florida about 1200 claimants receiving about $8m. BP expects these numbers will grow as claims continue to be filed during the month.
The second advance payment will be the same amount as the first payment received and no check will be reduced. Individuals and businesses will receive their second payment about 30 days after their initial advance payment was received.
BP is still conducting evaluations of losses by claimants. Payment adjustments may be required in the future when evaluations are completed. However, BP will not seek repayment if it overpaid advances. Loss of income or net profit payments are made in advance because individuals and businesses need to pay their bills, the company said.
Claimants, who have provided documentation that demonstrates their loss of income or net profit was larger through May than the initial advance payment received, will also receive a supplemental payment for those losses.
