BP's costs hit nearly $4 billion

The cost of the oil spill response has risen to almost $4 billion as BP works to maintain the well cap. 

Total costs hit $3.95 billion, which include for containment, relief-well drilling, grants to the Gulf states, claims paid and federal costs, BP reported Monday. 

Almost 116,000 claims have been filed by those individuals and businesses affected along the Gulf coast. More than 67,500 payments have been made, totaling $207 million, BP reported Monday. 

Kenneth Feinberg, who is overseeing a $20 billion fund to pay damage claims, is expected to begin work on the independent Gulf Coast Claims Fund within the next couple of weeks.

Feinberg has urged those affected by the oil spill to file claims during the initial phase when payments will equal six months of compensation for losses. 

Last week, he said he is "determined to come up with a system more generous and more beneficial than if you file a lawsuit."

Those affected will only waive their right to sue if they accept a final lump-sum payment. They can still sue if they accept emergency payments.

The claims fund will operate for three years and will allow businesses and individuals to be compensated for not only damage from the oil spill but for lost tourism money and health insurance. 

So far, fishermen and shrimpers have received the bulk of the claims payments. About $80 million has been paid for loss of income to those who are out of work because of the massive spill, including deckhands and employees of seafood processing plants, according to BP. 

BP began mailing letters to 48,000 claimants, about 5,000 a day, who haven't provided the necessary documentation. Oldest claims will be dealt with first, according to Darryl Willis, with the BP claims team.