Obama Mortgages the Gulf of Mexico to BP

In a deal that has sweeping, long-term implications for millions of people living and working along the US Gulf Coast, the Obama administration has agreed to base the payments by BP to the oil disaster fund on the oil giant’s profits from its drilling operations in the Gulf.

On Monday, BP made its first deposit into the disaster fund, which is overseen by "claims czar" Kenneth Feinberg, while top executives visited the White House to discuss the longer-term financial commitment. The initial sum was $3 billion, with another $2 billion to be paid during the fourth quarter of 2010. Thereafter, BP will deposit $1.25 billion each quarter for the next three years, bringing the total up to its original pledge of $20 billion.'

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