CLAIM SUMMARY/DETERMINATION FORM

FACTS

On or about 20 April 2010, the Mobile Offshore Drilling Unit Deepwater Horizon (Deepwater Horizon) 

exploded and sank in the Gulf of Mexico. As a result of the explosion and sinking, oil was discharged. 

The Coast Guard designated the source of the discharge and identified BP as a responsible party (RP). 

BP accepted the designation and advertised its OPA claims process. On 23 August 2010, the Gulf Coast 

Claims Facility (GCCF) began accepting and adjudicating certain individual and business claims on 

behalf of BP.

CLAIM AND CLAIMANT

On 13 December 2011, Henry Lee, (the Claimant), presented an Optional Oil Spill Liability Trust Fund 

(OSLTF) Claim Form to the National Pollution Funds Center (NPFC) seeking $36,972.00 in loss of 

profits and impairment of earnings capacity that allegedly resulted from the Deepwater Horizon oil spill.

The Claimant did not provide a description of the nature, extent or cause of damages claimed.1

The Claimant did not provide an explanation regarding the calculation of their sum certain of $36,972.00.

APPLICABLE LAW

The Oil Pollution Act of 1990 (OPA) provides that each responsible party for a vessel or facility from 

which oil is discharged into or upon the navigable waters or adjoining shorelines or exclusive economic 

zone is liable for removal costs and damages. 33 U.S.C. § 2702(a). Damages include the loss of profits 

or impairment of earning capacity due to the injury, destruction or loss of real property, personal property, 

or natural resources, which shall be recoverable by any claimant. 33 U.S.C. § 2702(b)(2)(E).

The OSLTF, which is administered by the NPFC, is available to pay claims for uncompensated damages 

pursuant to 33 U.S.C. § 2712(a)(4) and § 2713 and the OSLTF claims adjudication regulations at 33 

C.F.R. Part 136. With certain exceptions a claim must first be presented to the responsible party. 33 

U.S.C. § 2713(a). If the claim is either denied or not settled by any person by payment within 90 days 

after the date on which it was presented, the claimant may elect to commence an action in court or present 

the claim to the OSLTF. 33 U.S.C. § 2713(c).

Pursuant to the claims regulations, 33 C.F.R. § 136.233, a claimant must establish the following to prove 

loss of profits or impairment of earning capacity:

(a) That real or personal property or natural resources have been injured, destroyed, or lost.

(b) That the claimant’s income was reduced as a consequence of injury to, destruction of, or loss of 

property or natural resources, and the amount of that reduction.

(c) The amount of the claimant’s profits or earnings in comparable periods and during the period 

when the claimed loss or impairment was suffered, as established by income tax returns, financial 

1 Optional OSLTF Claim Form received 13 December 2011

Claim Number N10036-1606

Claimant Henry Lee 

Type of Claimant Private (US) 

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $36,972.00

 
statements, and similar documents. In addition, comparative figures for profits or earnings for the 

same or similar activities outside of the area affected by the incident also must be established.

(d) Whether alternative employment or business was available and undertaken and, if so, the amount 

of income received. All income that a claimant received as a result of the incident must be 

clearly indicated and any saved overhead and other normal expenses not incurred as a result of 

the incident must be established.

Under 33 U.S.C. § 2702(b)(2)(E) and 33 C.F.R. Part 136, a claimant must prove that any loss of income 

was due to injury, destruction or loss of real or personal property or of a natural resource as a result of a 

discharge or substantial threat of a discharge of oil. Under 33 C.F.R. § 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 C.F.R. § 136.235, the amount of compensation allowable for a claim involving loss of profits or 

impairment of earning capacity is limited to the actual net reduction or loss of earnings or profits suffered. 

Calculations for net reductions or losses must clearly reflect adjustments for:

(a) All income resulting from the incident;

(b) All income from alternative employment or business undertaken;

(c) Potential income from alternative employment or business not undertaken, but reasonably 

available;

(d) Any saved overhead or normal expenses not incurred as a result of the incident; and

(e) State, local, and Federal taxes.

DETERMINATION OF LOSS

The Claimant’s Submission to the OSLTF

In support of his claim, the Claimant presented the following documentation to the NPFC:

- OSLTF Claim Form signed 02 December 2011 and received 13 December 2011;

- 2010 Form 1099-MISC from Acme Truck Line, Inc.;

- 2010 Form 1099-G from Louisiana Workforce Commission;

- 2010 Form 1099-MISC from Blood Out Productions;

- 2010 Profit and Loss Statement;

- 2010 Form 1040 Individual Tax Return;

- 2010 Form W-2 Wage and Tax Statement from Triple F. Oilfield Service, LLC;

- 2010 Form W-2 Wage and Tax Statement from Henry Howard Services, LLC;

- 2010 Form W-2 Wage and Tax Statement from Acme Truck Line, Inc., LLC;

- 2010 Form 1099-R from Southern Farm Bureau Life Insurance Company.

Prior to presenting this claim to the NPFC, the Claimant filed a Full Review Final (FRF) Claim with the 

GCCF for loss of profits and impairment of earnings capacity on 12 September 2011 in the amount of 

$36,972.00.2

 The Claimant was assigned Claimant ID # 1631200 and Claim ID # 9487805. The FRF 

Claim was denied on 21 September 2011.3

Based upon the evidence provided by the Claimant, it appears that the Claimant’s GCCF claim is the 

same as the claim before the NPFC, in that the Claimant is seeking $36,972.00 in loss of profits and 

impairment of earnings capacity that allegedly resulted from the Deepwater Horizon oil spill. The NPFC 

deems that the Claimant’s GCCF claim was properly presented to the RP and properly presented to the 

NPFC. Accordingly, this Claim Summary Determination for NPFC claim N10036-1606 considers and 

addresses the claim presented to the responsible party; specifically, GCCF Claim ID # 9487805 (FRF).

2 Report from the GCCF dated 01 February 2012.

3 GCCF Denial Letter dated 21 September 2011.

 
NPFC Determination

Under 33 C.F.R. § 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. The NPFC considered all documentation presented by the Claimant.

The claim is denied because the Claimant failed to prove that the alleged loss in the amount of $36,972.00 

is due to the injury, destruction or loss of property or natural resources as a result of a discharge or 

substantial threat of a discharge of oil.

The Claimant failed to provide any information that would provide a connection between the Deepwater 

Horizon oil spill and his alleged loss of profits and impairment of earnings capacity. The Claimant 

included in his submission to the NPFC, financial information from 2010, but did not include a 

description of the nature and extent of damages claimed, how the incident caused the damage, or actions 

taken by the Claimant to avoid or minimize damages.

Nevertheless, in an effort to verify the effect of the Deepwater Horizon oil spill on the Claimant’s income, 

the NPFC made a formal request for additional information.4

 The NPFC requested the following items: a 

letter of explanation by the Claimant’s employer indicating how damages were a direct result of the 

Deepwater Horizon oil spill, signed copies of tax returns for 2008-2009 including all schedules, all 1099s 

for 2008-2009, W-2 forms for 2008-2009 from all employers and the most recent pay stub for all 

employers in 2011. This letter was delivered to the Claimant’s address on 20 December 2011.5 As of the 

writing of this determination; no response has been received from the Claimant regarding any of the 

above listed items. Accordingly, the Claimant failed to provide a description of the nature, extent and 

cause of damages claimed, or a complete accounting of income from 2008-2009 that would prove a loss 

occurred due to the oil spill. Further, the Claimant has provided no evidence to describe the causal 

relationship between his alleged loss and the Deepwater Horizon oil spill.

This claim is denied because the Claimant failed to meet the burden to demonstrate that there was an 

alleged loss in the amount claimed and that the alleged loss was a result of a discharge or substantial 

threat of a discharge of oil. 

Claim Supervisor: NPFC Claims Adjudication Division

Date of Review: 2/7/12

Supervisor’s Actions: Denial approved

Supervisor’s Comments:

4 NPFC Request for Additional Information dated 13 December 2011.

5 United States Postal Service, Tracking # 70111570000148028108, delivered 8:45am on 20 December 2011.