BP’s current estimate of the total cost of those elements of the PSC settlement that can be estimated reliably, which for business economic loss (BEL) claims only includes claims for which eligibility notices have been issued by the DHCSSP, is $9.6 billion. This provision excludes any future business economic loss claims not yet received or not yet processed by the DHCSSP. If BP is successful in challenging the claims administrator’s interpretation of the EPD Settlement Agreement, the total cost of the PSC settlement will, nevertheless, be significantly higher than the current estimate of $9.6 billion. That’s because the current estimate does not reflect business economic loss claims not yet received, nor those claims not yet processed.
There are a significant number of business economic loss claims that have been received, but have not yet been processed. And further claims are very likely to be received. If BP is ultimately unsuccessful in challenging the claims administrator’s interpretation of the EPD Settlement Agreement, a further significant increase to the total cost of the PSC settlement will be required. In addition to the current challenge before the Fifth Circuit, BP is continuing to evaluate further available legal options to challenge the District Court’s rulings and their effect.
However, there can be no certainty as to how the dispute will ultimately be resolved or determined. To the extent that the costs of the PSC settlement cause the aggregate amounts provided for under the Trust to exceed $20 billion, such costs will be charged to the income statement. The PSC settlement is uncapped except for economic loss claims related to the Gulf seafood industry. If you need any additional information relating to this subject, contact Sandra Walters at 1-800-898-2034, and she will have a lawyer contact you.
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