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Onceoilingoftheshorelinehadoccurred,SCATsassessedthedamage
anddevelopedclean-upmethodsforeachtypeandareaofimpact,
includingtreatmentplansdesignedtooptimizeoilremovalwithminimal
intrusionandimpacttothemarsh.Thousandsofpersonnelorganizedinto
operatingteamsweremobilizedfortheclean-upefforts.
Beach-cleaningoperationswereundertakenincollaborationwith
residentsfromthehighestimpactedcommunities,withalmost11,000
communityrespondersbeingtrainedinbeachclean-upefforts.
Throughoutthisresponse,BPmetwithlocalofcialsand
organizedtownhallsandinformationsessionsinthecoastalcommunities.
Astheresponsecontinued,BPopenedcommunityoutreachandclaims
centresineachofthecoastalcountiesandestablishedtelephonecalllines
forallactivities.
BPhascommittedtopayalllegitimateclaimstoindividuals,
businessesandgovernmentsandtoestablisha$20-billiontrustfund,
followingconsultationwiththeUSgovernment.AspartoftheUSNatural
ResourceDamageAssessment(NRDA)process,BPisworkingwith
federalandstatetrusteestoidentifywildlifeandhabitatsthatmayhave
beeninjured;torestoretheenvironmentbacktoanobjectivebaseline
condition;torestoreaccesstoanduseofthenaturalresources;andto
compensateforlossescausedbytheincident.Finally,BPhasprovided
long-termfundingforresponseprojects,researchandcommunitysupport
programmesaspartofourlong-termcommitmenttotheGulf.
TheFoodandDrugAdministration(FDA),theNOAA,andstate
agenciesalsoconductedsheriestestingandmonitoringthroughoutthe
response.Thesetestingandmonitoringprogrammesincludedsmelland
edibletissuetestsforoildetection.Approximately89,000squaremilesof
federalsherieswereclosedatthepeakoftheresponse;asof1February
2011,99.6%offederalsherieswereopentoshing.Todate,BPhas
committed$127millionforongoingmonitoring,marketing,andtourism
supportintheGulfStates.
Restoration,researchandotherdonations
InconjunctionwiththeGulfofMexicoAlliance(apartnershipofthestates
ofAlabama,Florida,Louisiana,MississippiandTexaswiththegoalof
signicantlyincreasingregionalcollaborationtoenhancetheecologicaland
economichealthoftheGulfofMexico),wehaveestablishedtheGulfof
MexicoResearchInitiative(GRI)providing$500milliontostudyandmonitor
thespill’spotentiallong-termimpactsontheenvironmentandlocalpublic
health.Specically,the10-yearprogrammewillexaminethespreadand
fateoftheoilandothercontaminants,thedegreeofbiodegradation,
effectsofthespillonlocalecosystems,anddetection,clean-upand
mitigationtechnology.Whilethedetailsoftheprogrammewerebeing
developed,BPawardedaseriesoffast-trackgrantstoveresearchgroups,
totalling$40million.BPandtheGulfofMexicoAllianceappointedanequal
numberofresearchscientiststothegoverningboardoftheGRIand,in
December,theGRIhelditsrstmeeting.
BPhasnowcontributedatotalof$260millionunderits
agreementtofundthe$360-millioncostofsixbermsintheLouisiana
barrierislandsproject.
BPhasestablisheda$100-millioncharitablefundtosupport
unemployedrigworkersexperiencingeconomichardshipasaresultofthe
moratoriumondeepwaterdrillingimposedbytheUSfederalgovernment.
TheRigWorkerAssistanceFundwillbeadministeredthroughtheGulf
CoastRestorationandProtectionFoundation,asupportingorganizationof
TheBatonRougeAreaFoundation.
InlinewithBP’spreviouscommitmenttodonateitsshareofthe
revenue(netofroyaltiesandtransportationcosts)fromthesaleof
recoveredoiltotheNationalFishandWildlifeFoundation(NFWF),total
donationstodatehaveamountedto$22million.
Claimsprocessandtrustfund
BPinitiallyestablishedaclaimsprocessinaccordancewiththe
requirementsoftheOilPollutionAct1990(OPA90),allowingclaimants
tomakeaclaimagainstBPasoneofthedesignatedresponsibleparties.
BPhasendeavouredtopromptlypayalllegitimateclaimsincludingthose
fromindividuals,businessesandgovernmententities.BPpaid$399million
inclaimpaymentstoindividualsandbusinessesbefore23August2010,
whentheadministrationoftheseclaimswastransferredtotheGulfCoast
ClaimsFacility(GCCF)headedbyKennethFeinberg.MrFeinbergwas
jointlyappointedbyBPandthePresidentoftheUnitedStatestomanage
theGCCF.AccordingtoGCCFstatistics,asof31December2010,468,869
claimantshadsubmittedclaimsand$2,776millioninpaymentshadbeen
made.BPcontinuestoevaluateandpayclaimsfromgovernmententities.
Stateandlocalgovernmententities,asat31December2010,hadreceived
$550millionthroughthetrustfund(seebelow)andBPdirectlytocover
claimsandresponseandremovaladvancesandpayments.
InsupportofthesettlementofclaimsBPestablishedthe
DeepwaterHorizonOilSpillTrust(Trust),andcommitted$20billiontothe
Trustoveraperiodofthree-and-a-halfyears.Whilefundsarebuilding,BP
hassecureditscommitmentstotheTrustbygranting,conveying,and/or
assigningtotheTrustrstpriorityperfectedsecurityinterestsinproduction
paymentspertainingtocertainGulfofMexicooilandnaturalgas
production.During2010,BPmadepaymentstotheTrusttotalling$5billion
andiscommittedtomakingadditionalpaymentsof$1.25billion,inoneor
moreinstalments,duringandpriortotheendofeachcalendarquarter
commencingwiththerstcalendarquarterof2011andcontinuinguntil
thelastcalendarquarterof2013.Thetrustfundisavailabletosatisfy
legitimateindividualandbusinessclaimsadministeredbytheGCCF,state
andlocalgovernmentclaimsresolvedbyBP,naljudgmentsand
settlements,stateandlocalresponsecosts,andnaturalresourcedamages
andrelatedcosts.Finesandpenaltieswillbepaidseparatelyandnotfrom
theTrust.PaymentsfromtheTrustaremadeascostsarenallydetermined
orclaimsareadjudicated,whetherbytheGCCF,orbyacourt,orasagreed
byBP.TheGCCFevaluatesallindividualandbusinessOPA90claims,
excludingallgovernmentclaims.TheestablishmentofthisTrustdoesnot
representacaporooronBP’sliabilities,andBPdoesnotadmittoa
liabilityofanyamountintheTrust.TheTrustagreementprovidesforthe
termoftheTrusttocontinueuntil30April2016,subjecttotherightofthe
IndividualTrusteestoextendorexpeditethisexpirydateundercertain
circumstances.AnyamountsleftintheTrustoncealllegitimateclaims
havebeenresolvedandpaidwillreverttoBP.SeeFinancialstatements
–Note2onpage158,Note37onpage199andNote44onpage218for
furtherinformationontheTrustandoncontingentliabilitiesarising
fromtheincident.SeeProceedingsandinvestigationsrelatingtotheGulf
ofMexicooilspillonpages130-131forinformationonlegalproceedings.
36BPAnnualReportandForm20-F2010