Judge intervenes after BP balks at paying $130M in costs for claims administrator

  • Updated: August 6, 2013 - 3:40 PM

NEW ORLEANS — BP is balking at paying more than $130 million in fees for the court-supervised administrator of its multi-billion dollar settlement with Gulf Coast businesses and residents after the 2010 Gulf oil spill.

A federal magistrate has scheduled a hearing Wednesday for BP to show why it shouldn't be ordered to fund claims administrator Patrick Juneau's proposed third-quarter budget.

In a letter dated Monday, a BP claims official said the company cannot determine if Juneau's budget request is reasonable without more documentation. The official also claimed the settlement program has been plagued by poor productivity and excessive costs.

Separately, BP has asked a judge to suspend all settlement payments while former FBI Director Louis Freeh investigates alleged fraud in the program.

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