The U.S. Justice Department and BP announced Monday that they have finished negotiations to implement a $20 billion fund for victims of the Gulf oil spill and that BP has made a $3 billion initial deposit.
Associate Attorney General Tom Perrelli said the department is pleased that BP made an initial contribution and had taken "an important step toward honoring its commitment to the president and the residents and business owners in the Gulf region."
The company still needs to ensure that all the necessary funds will be available if something happens to the BP subsidiary that established the trust and that the Justice Department looks forward to completing an appropriate security arrangement in the near future, said Perrelli.
Bob Dudley, chief executive of BP's Gulf Coast Restoration Organization, said that establishing the trust and "making the initial deposit ahead of schedule further demonstrates our commitment to making it right in the Gulf Coast." BP had said it would make the deposit by the end of September.
An additional $2 billion deposit will be made in the fourth quarter of 2010. Thereafter, $1.25 billion will be deposited per quarter until $20 billion has been deposited.