CERTIFIED MAIL-RETURN RECEIPT REQUESTED 5890/DWHZ 

Number: 7011 1570 0001 4802 8696 10 February 2012 

USA FutureTech, Inc. 

Attn: 

2891 New Hanover Square Rd. 

Gilbertsville, PA 19525 

 Re: Claim Number: N10036-1609 

Dear Captain Dunlap: 

The National Pollution Funds Center (NPFC) in accordance with the Oil Pollution Act of 1990, 33 U.S.C. 

§ 2701 et seq. (OPA) and the associated regulations at 33 C.F.R. Part 136, denies payment on your claim 

number N10036-1609 involving the Deepwater Horizon oil spill. Please see the enclosed Claim 

Summary/Determination Form for further explanation. 

You may make a written request for reconsideration of this claim. The reconsideration must be received 

by the NPFC within 60 days of the date of this letter and must include the factual or legal basis of the 

request for reconsideration, providing any additional support for the claim. If, however you find that you 

will be unable to gather particular information within the time period, you may include a request for an 

extension of time for a specified duration with your reconsideration request. 

Reconsideration of the denial will be based upon the information provided. A claim may be reconsidered 

only once. Disposition of that reconsideration in writing will constitute final agency action. Failure of 

the NPFC to issue a written decision within 90 days after receipt of a timely request for reconsideration 

shall, at the option of the claimant, be deemed final agency action. All correspondence should include 

claim number N10036-1609. 

Mail reconsideration requests to:

Director (ca)

NPFC CA MS 7100 

US COAST GUARD

4200 Wilson Blvd, Suite 1000 

Arlington, VA 20598-7100 

Sincerely,

Claims Adjudication Division

National Pollution Funds Center

U.S. Coast Guard 

Enclosures: (1) Claim Summary/Determination Form 

U.S. Department of 

Homeland Security

United States

Coast Guard

Director

United States Coast Guard

National Pollution Funds Center

NPFC CA MS 7100

US COAST GUARD

4200 Wilson Blvd., Suite 1000

Arlington, VA 20598-7100

Staff Symbol: (CA)

Phone: 1-800-280-7118

E-mail: arl-pf-npfcclaimsinfo@uscg.mil

Fax: 202-493-6937
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 16 December 2011, Billy Wayne Dunlap, on behalf of USA FutureTech, Inc. , (collectively 

the “Claimant”), presented an Optional Oil Spill Liability Trust Fund (OSLTF) Claim Form to 

the National Pollution Funds Center (NPFC) seeking $78,748.00 in loss of profits and 

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

The Claimant is a small business that performs construction/remodeling and environmental 

remediation in the New Orleans area.1

 The Claimant asserts reduced business due to the 

Deepwater Horizon oil spill.2 The Claimant attributes the loss of business to the general 

economic conditions in the New Orleans area and the economic “ripple effect” from the 

Deepwater Horizon oil spill’s influence on the commercial fishing market and tourism industry.3

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 

1 Letter of claim explanation from the Claimant to the NPFC, dated 2 December 2011. 2 Letter of claim explanation from the Claimant to the NPFC, dated 2 December 2011.

3 Letter of claim explanation from the Claimant to the NPFC, dated 2 December 2011.

Claim Number N10036-1609

Claimant USA FutureTech, Inc.

Type of Claimant Private (US) 

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $78,748.00

 
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 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:

- Letter of claim explanation from the Claimant to the NPFC, dated 2 December 2011;

- GCCF letter and information packet dated 28 October 2010;

- Claimant’s GCCF claim packet dated 23 November 2010;

- Email from the GCCF to the Claimant, dated 8 December 2010; 

- Screenshot of the Claimant’s On-line “Claimant Information”; 

- GCCF Claim Form; 
- Summary of Options for Submission of Final and Interim Payment Claim, dated 17 

December 2010; 

- Letter from GCCF to Claimant, dated 26 January 2011; 

- Letter from GCCF to Claimant, dated 31 January 2011; 

- 2010 Form 1099-MISC from V.A. Financial Services Center; 

- GCCF denial letter dated 22 April 2011;

- GCCF follow-up to denial letter dated 12 October 2011;

- 2010 Form 1120 Federal Income Tax Return;

- 2009 Form 1120 Federal Income Tax Return;

- 2008 Form 1120 Federal Income Tax Return;

- 2007 Form 1120 Federal Income Tax Return;

- USA FutureTech, Inc. worksheet on earnings and profits from 2006-2010.

- Incorporation documents and general information on USA FutureTech;

- Airline Oaks Trailer Park lease agreement dated 2 February 2010;

- Storage facility invoices from 2007-2009;

- Various documentation of the Claimant’s submission of “Dualzorb” to according the 

requirements of the NCP; 

- Various internet/newspaper articles regarding Deepwater Horizon oil spill;

- Oxford International report entitled “Potential Impact of the Gulf Oil Spill on Tourism”;

- Claimant’s letter in response to requested additional information, dated 12 January 2012;

- Claimant’s “Labor and Material Lien” dated 26 April 2010;

- Sales Invoices from the 2008, 2009, and 2010; 

- Contract agreement for “renovations” dated 7 July 2006;

- 2006 Form 1099-MISC from Litton Loan Servicing 

- 2007 Form 1099-MISC from Litton Loan Servicing;

- Contract agreement dated 6 November 2006;

- 2006 Form 1099-MISC from SSA;

- USA FutureTech, Inc. “Assumptions Made Worksheet.” 

Prior to presenting this claim to the NPFC, the Claimant filed Full Review Final claim for loss of 

earnings with the GCCF on 8 December 2010 in the amount of $78,748.00.4

 The Claimant was 

assigned Claimant ID # 03226905 and Claim # 9058583 (FRF1). This claim was denied by the 

GCCF.5

Based upon the evidence provided by the Claimant, it appears that the subject matter for the 

Claimant’s GCCF claim regarding loss of earnings is the same as the subject matter of his claim 

before the NPFC, i.e., that due to the Deepwater Horizon oil spill, the Claimant experienced 

reduced earnings in his construction business. 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 N10036-1609 considers and addresses the 

earnings claimed in the claim presented to the responsible party regarding loss of earnings, 

specifically; GCCF Claim #9058583 (FRF1). 

4 Report from the GCCF dated 2 February 2012.

5 Report from the GCCF dated 2 February 2012.

 
NPFC Determination

The claim is denied. 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.

This claim is denied because the Claimant failed to prove he suffered a financial loss due to the 

Deepwater Horizon oil spill. The Claimant asserted that homeowners were “unable to carry out 

home improvement construction service due to the spill and unable to continue with 

improvement on property due to the potential loss of revenue.”6 The Claimant contends that the 

spill created a “ripple effect” that caused homeowners and businesses to reduce their spending on 

renovations, expansions, and new construction.7 As well, the Claimant notes that, because of a 

decrease in property values, there has been an increase in home foreclosures which has decreased 

homeowners’ willingness to make improvements to their homes.8 

However, the Claimant concedes that “[t]he economy is to blame for some of the decline in the 

construction line of business across the nation....”9

 Also, when asked about the reason for the 

significant variance in earnings from year to year, the Claimant responded “Over the past three 

years, the availability of funds for contracting jobs is smaller and resources are harder to find.”10 

Furthermore, the Claimant did not provide any documentation of contracts or projects that were 

cancelled specifically due to the Deepwater Horizon oil spill. Accordingly, the Claimant failed 

to prove that any individual loss he experienced occurred as a result of the Deepwater Horizon 

oil spill, as opposed to other factors such as the declining national housing market and other 

economic factors. 

This claim is denied because the Claimant failed to meet his burden to demonstrate a loss in the 

amount claimed or that the alleged loss 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.

Claim Supervisor: NPFC Claims Adjudication Division

Date of Supervisor’s Review: 2/10/12

Supervisor’s Actions: Denial approved

Supervisor’s Comments:

6 Letter of claim explanation from the Claimant to the NPFC, dated 2 December 2011.

7 Letter of claim explanation from the Claimant to the NPFC, dated 2 December 2011.

8 Letter of claim explanation from the Claimant to the NPFC, dated 2 December 2011. 9 Letter of claim explanation from the Claimant to the NPFC, dated 2 December 2011.

10 Claimant’s letter in response to requested additional information, dated 12 January 2012.