Claim Number: 

Claimant: 

Type of Claimant: 

Type of Claim: 

Claim Manager: 

Amount Requested: 

FACTS: 

CLAIM SUMMARY I DETERMINATION 

915081-0004 

Clean Gulf Associates Services, LLC 

OSRO 

Removal Costs 

$272,819.46 

Oil Spill Incident: The United States Coast Guard (USCG) Sector New Orleans reports that on 

August 27, 2014, a sheen was reported emanating from a flow-line leak on a shut in well located at 

Garden Island Bay, near Venice, LA. Garden Island Bay drains directly into the Gulf of Mexico, both 

of which are navigable waterways of the US. 1 

This incident was reported to the National Response Center (NRC) via Report# 1093583.2 

Description of removal actions performed: Clean Gulf Associates Services, LLC (CGA) was 

contracted by the Responsible Party (RP), Dune Energy to perform cleanup and removal actions that 

included the use of boats, skimmers, sorbents and personnel.3 CGA's daily field logs demonstrate 

that from 8/28/14 through 9/10/14, they provided personnel, material and equipment daily in order to 

perform skimming operations and remove any and all recoverable oil from surface waters as well as 

provide containment boom that was utilized daily.4 Additionally, MST3 of Sector New 

Orleans provide a Pollution Investigator statement dated 1116/14 which describes the response actions 

performed which was to contain and recover all oil on site. The statement further provides that CGA's 

recovery operations continued until 9/10/14 and the site was finally cleared on 9/29/14 after disposal 

had been completed by OMI. Coast Guard stated that at the conclusion of the cleanup, 240bbls of oil 

were recovered. 5 

Several site visits by the USCG Incident Management Division (IMD), Louisiana Department of 

Environmental Quality (LA DEQ), Louisiana Department of Natural Resources (LA DNR), and the 

Louisiana Oil Spill Coordinator's Office (LOSCO) were conducted during this cleanup period. On 

September 29, 2014, the USCG IMD, LOSCO and LA DEQ all made a final site visit and agreed that 

the RP could remove all sorbent and hard boom on site in order to conclude cleanup efforts.6 

Dune made three payments for Invoice 970390-001and970390-002 ~one on December 10, 2014 in 

the amount of $136,409.73, the second on January, 05, 2015 in the amount of $100,000.00, and a 

final on February, 02, 2015 rendering payment in full for both invoices.7 Subsquently, the Trustee for 

the Dune Liquidating Plan informed the Claimant that all three payments paid to CGA were prepetition payments and must be returned to the Trustee. 8 The Claimant paid the requested funds to 

1 See USCG Sector New Orlean Case Report # 698677, opened 8/27/2014. 2 See RC Report # 1093583 opened 8/27/2014. 

3 See Invoice Dailie for this incident included with the claim by the Claimant on 8/31/2017. 4 See CGA Invoice Dailies from 8/28/14 thorugh 9110114. 5 See USCG PI Statement ofMST3 dated 1116/14. 

6 See USCG PI Statement ofMST3 dated I 1/6/14. 7 See OSL TF Claim Form dated August 3 1, 2017, NPFC Claim # 915081-0004 . 8 See letter to Clean Gulf Associates from Anderson Toblin PLLC dated July, 01, 2016. 

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on August 22, 2017.9 

Responsible Party: The Responsible Party (RP) is Dune Operating Company (Dune), located in 

Venic_e LA, Garden Island Bay. Shortly after this oil spill incident, the RP filed for Chapter 11 

Bankruptcy. 10 RP Dune sold all of its assets to Trimont, including the Garden Island Bay field. 

The Claim: On August 31, 2017, CGA presented a removal cost claim to the Oil Spill Liability Trust 

Fund (OSLTF or the Fund) which was identified as NPFC Claim# 915081-0004; requesting 

reimbursement of their uncompensated removal costs in the amount of $272,819.46 for the services 

provided from August 28 through September 10, 2014. 11 The Claimant presented its costs to Dune 

via the following invoices: 970390-001 ($178,250.84), dated September 15, 2014 and 970390-002 

($94,568.62), dated September 29, 2014. 

APPLICABLE LAW: 

Under OPA 90, at 33 USC§ 2702(a), responsible parties are liable for removal costs and 

damages resulting from the discharge of oil into navigable waters and adjoining shorelines, as 

described in Section 2702(b) of OPA 90. A responsible party's liability will include "removal 

costs incurred by any person for acts taken by the person which are consistent with the National 

Contingency Plan". 33 USC§ 2702(b)(l)(B). 

"Oil" is defined in relevant part, at 33 USC§ 2701(23), to mean "oil of any kind or in any form, 

including petroleum, fuel oil, sludge, oil refuse, and oil mixed with wastes other than dredged 

spoil". 

The Oil Spill Liability Trust Fund (OSL TF), which is administered by the NPFC, is available, 

pursuant to 33 USC§§ 2712(a)(4) and 2713 and the OSLTF claims adjudication regulations at 33 

CFR Part 136, to pay claims for uncompensated removal costs that are determined to be 

consistent with the National Contingency Plan and uncompensated damages. Removal costs are 

defined as "the costs of removal that are incurred after a discharge of oil has occurred or, in any 

case in which there is a substantial threat of a discharge of oil, the costs to prevent, minimize, or 

mitigate oil pollution from an incident". 

Under 33 USC §2713(b)(2) and 33 CFR 136.103(d) no claim against the OSLTF may be 

approved or certified for payment during the pendency of an action by the claimant in court to 

recover the same costs that are the subject of the claim. See also, 33 USC §2713(c) and 33 CFR 

136.103( c )(2) [claimant election]. 

33 U.S.C. §2713(d) provides that "If a claim is presented in accordance with this section, 

including a claim for interim, short-term damages representing less than the full amount of 

damages to which the claimant ultimately may be entitled, and full and adequate compensation is 

unavailable, a claim for the uncompensated damages and removal costs may be presented to the 

Fund." 

Under 33 CFR 136.105(a) and 136.105(e)(6), the claimant bears the burden of providing to the 

NPFC, all evidence, information, and documentation deemed necessary by the Director, NPFC, to 

support the claim. 

Under 33 CFR 136.105(b) each claim must be in writing, for a sum certain for each category of 

uncompensated damages or removal costs resulting from an incident. In addition, under 33 CFR 

9 See OSLTF Claim dated August 3 1 2017 NPFC Claim #- 915081-0004. 

10

see letter to CGA from Anderson Toblin PLLC dated July 0 I, 2016. 

11 See OSLTF Claim dated Augu t 31 , 2017, PFC Claim #- 915081 -0004. 

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136, the claimant bears the burden to prove the removal actions were reasonable in response to 

the scope of the oil spill incident, and the NPFC has the authority and responsibility to perform a 

reasonableness determination. Specifically, under 33 CFR 136.203, "a claimant must establish -

(a) That the actions taken were necessary to prevent, minimize, or mitigate the effects of the 

incident; 

(b) That the removal costs were incurred as a result of these actions; 

( c) That the actions taken were determined by the FOSC to be consistent with the National 

Contingency Plan or were directed by the FOSC." 

Under 33 CFR 136.205 "the amount of compensation allowable is the total of uncompensated 

reasonable removal costs of actions taken that were determined by the FOSC to be consistent 

with the National Contingency Plan or were directed by the FOSC. Except in exceptional 

circumstances, removal activities for which costs are being claimed must have been coordinated 

with the FOSC." [Emphasis added]. 

DETERMINATION OF LOSS: 

A. Overview: 

1. USCG Sector New Orleans, as the FOSC for this incident, determined that the actions undertaken 

by the Claimant are deemed consistent with the NCP. 33 U.S.C. §§ 2702(b)(l)(B) and 

2712(a)(4); 12 

2. The incident involved the report of a discharge of "oil" as defined in OPA 90, 33 U.S.C. § 

2701(23); 

3. Dune Operating Company is the designated Responsible Party (RP) but has since filed 

Bankruptcy for which the CGA has not filed a Proof of Claim for the costs subject of this claim; 

4. The claim was submitted within the six year period of limitations for claims. 33 U.S.C. § 

2712(h)(l); 

5. In accordance with 33 CFR § 136.105(e)(12), the claimant has certified no suit has been filed in 

court for the claimed uncompensated removal costs; 

6. The NPFC Claims Manager has thoroughly reviewed all documentation submitted with the claim 

and determined which of the removal costs presented were for actions in accordance with the 

NCP and that the costs for these actions were indeed reasonable and allowable under OPA and 33 

CFR § 136.205. 

B. Analysis: 

The National Pollution Funds Center (NPFC) Claims Manager reviewed the actual cost invoices and 

dailies to confirm that the Claimant had incurred all costs claimed and that all costs were supported 

by the record, were compensable "removal actions" under the Oil Pollution Act (OPA) and the claims 

regulations at 33 CFR 136, whether the costs were incurred as a result of the actions, whether the 

actions taken were determined by the FOSC to be consistent with the NCP or directed by the FOSC, 

and whether the costs were adequately documented and reasonable. 

CGA provided a well-documented claim to show the actions it performed were for OPA related costs 

and that the work that they performed mitigated the effects of the oil that was discharged from the 

compromised well/flow-line. Additionally, the USCG Sector New Orleans confirmed what actions 

were performed for this incident. Based upon the evidence in this claim submission for the actions 

12 See USCG Sector New Orleans Case Report# 698677, opened 8/27/2014. 

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undertaken by CGA along with the USCG's statement, the Claims Manager hereby determines that 

the Claimant has incurred $272,819.46 of uncompensated removal costs and that that amount is 

payable by the OSL TF as full compensation for the reimbursable removal costs incurred by CGA and 

submitted to the NPFC under claim #915081-0004. 

C. Determined Amount: 

The NPFC hereby determines that the OSLTF will offer $272,819.46 as full compensation for the 

claimed removal costs incurred by the Claimant and submitted to the NPFC under claim 915081-

0004. 

AMOUNT: $272,819.46 

Claim Supervisor:

Date of Supervisor's review: 10/03/2017 

Supervisor Action: Approved 

Supervisor's Comments: 

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