Oil spill claims methodology called too generous

NEW ORLEANS (AP) — The administrator of the $20 billion fund for Gulf oil spill victims, under fire for red tape and delays, has been told by a business that his methodology for final payments is actually too generous.

A document purporting to be from a major business has been posted on the Gulf Coast Claims Facility’s website. The name of the business and other identifying references have been removed, making it impossible to determine if it came from BP.

The document says Kenneth Feinberg’s methodology artificially inflates future expected losses for victims of the spill.

It claims there is no factual basis to assume Gulf-wide claimants will experience losses this year equaling 70 percent of their 2010 losses and losses in 2012 equaling 30 percent of 2010 losses.