CLAIM SUMMARY / DETERMINATION FORM

Date : 3/30/2010 

Claim Number : N08057-057 

Claimant : New Orleans Paddlewheels, Inc.

Type of Claimant : Corporate 

Type of Claim : Loss of Profits and Earning Capacity 

Claim Manager : 

Amount Requested : $111,132.13 

I. Facts 

On the morning of July 23, 2008, the tank barge DM 932 sank as a result of a collision and 

discharged oil into the Mississippi River, a navigable waterway of the United States. 

Approximately 282,828 gallons oil1 were released into the Mississippi River and the resulting 

spill response, coordinated by the FOSC Unified Command, initially closed the river to vessel 

traffic and later, when reopened, managed traffic. 

II. Responsible Party

American Commercial Lines LLC (ACL), the Responsible Party (RP), owned the barge at the 

time of the incident and is a responsible party under the Oil Pollution Act. 

III. The Claimant and the Claim 

New Orleans Paddlewheels, Inc. (NOP) submitted a claim into the National Pollution Funds 

Center (NPFC) for physical and economic damages sustained as a result of the DM 932 oil spill. 

At the time of the collision, the M/V Creole Queen (owned and operated by NOP) was in 

business providing tours to groups and individually-ticketed customers. It was docked at the 

Poydras Street Wharf, where the vessel utilized an electrical feed to power the vessel and had 

ready access to water and sewage disposal. Following this spill, operations were relocated away 

from the customary berth at Poydras Street Wharf so that limited operations could commence 

once the Mississippi River was open for operations.2 

As a direct result of the spill, NOP claims the M/V Creole Queen sustained damage to its air 

filtration system which needed to be cleaned and repaired. 

NOP also claims economic losses due to additional fuel, signage, transportation and labor 

expenses incurred as a direct result of the spill and the operator’s efforts to minimize damages. 

Additionally, walk-up sales were curtailed and pre-paid and pre-booked tickets were refunded.3

 

IV. APPLICABLE LAW

Claims may be presented first to the Fund if the President or his delegated representative has 

advertised or notified claimants that the Fund is accepting claims resulting from an oil discharge. 

33 U.S.C. §2713(b)(1)(A). 

 

1 See House Subcommittee Hearing on DM 932 Oil Spill, dated 9/15/2008

2 See Claim Submission Forms, submitted to the NPFC by DeSalvo, Blackburn and Kitchens, LLC for NOP on 

9/17/2009 3 See Claim Submission Forms, submitted to the NPFC by DeSalvo, Blackburn and Kitchens, LLC for NOP on 

9/17/2009

(b) (6)
The uses of the OSLTF are described at 33 U.S.C. §2712. It provides in relevant part that: 

“(a) Uses generally

The Fund shall be available to the President for –

(4) [T]he payment of claims in accordance with section 2713 of this title for uncompensated 

removal costs determined by the President to be consistent with the National Contingency Plan 

or uncompensated damages; . . .

(b) Defense to liability for Fund

The Fund shall not be available to pay any claim for removal costs or damages to a particular 

claimant, to the extent that the incident, removal costs, or damages are caused by the gross 

negligence or willful misconduct of the claimant.”

Damages include damages for injury to natural resources, injury to or economic losses from the

destruction of real or personal property, loss of subsistence use of natural resources, Government 

loss of revenues, loss of profits or earning capacity as a result of loss or destruction of real or 

personal property or natural resources, and costs of increased public services. 33 U.S.C. 

§2702(b). Damages are further defined in OPA to include the costs of assessing the damages. 

33 U.S.C. §2701(5).

Damage claims must be presented within 3 years after the date on which the injury and its 

connection with the discharge in question were reasonably discoverable with the exercise of due 

care. 33 U.S.C. §2712(h)(2).

In any case in which the President has paid an amount from the OSLTF for any removal costs or 

damages specified under 33 U.S.C. §2712(a), no other claim may be paid from the Fund for the 

same removal costs or damages. 33 U.S.C. §2712(i).

Congress directed the President to promulgate regulations “for the presentation, filing, 

processing, settlement, and adjudication of claims...” 33 U.S.C. §2713(e). Those regulations are 

found at 33 CFR Part 136. 

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

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

the claim. Further, a claim presented to the Fund should include, as applicable:

“[T]he reasonable costs incurred by the claimant in assessing the damages claimed. This 

includes the reasonable costs of estimating the damages claimed, but not attorney’s fees or other 

administrative costs associated with preparation of the claim.” 33 CFR 136.105(e)(8).

With regard to claims for loss profits and impairment of earning capacity, the NPFC must 

independently determine that the proof criteria in OPA and the implementing regulations, at 33 

CFR Part 136, are met, including the general provisions of 33 CFR 136.105, and the specific 

requirements for loss of profits and earning capacity claims in Subpart C, 33 CFR 136.231, et 

seq. 

Pursuant to the provisions of 33 CFR 136.231, claims for loss of profits or impairment of earning 

capacity due to injury to, destruction of, or loss of real or personal property or natural resources 

may be presented to the Fund by the claimant sustaining the loss or impairment. 

“In addition to the requirements of Subparts A and B of this part, a claimant must establish the 

following—
(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 the 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 receives 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.” 33 CFR 136.233 (a) – (d)

If a third party claimant or an RP is able to establish an entitlement to lost profits, then 

compensation may be provided from the OSLTF. But the compensable amount is limited to the 

actual net reduction or loss of earnings and profits suffered. Calculations for net reductions or 

losses must clearly reflect adjustments for the following: all income resulting from the incident; 

all income from alternative employment or business undertaken; potential income from 

alternative employment or business not undertaken, but reasonably available; any saved 

overhead or normal business expenses not incurred as a result of the incident; and state, local, 

and Federal tax savings. 33 CFR 136.235 (a) – (e).

Under 33 CFR 136.115(d), the Director, NPFC, will, upon written request of the claimant or the 

claimant's representative, reconsider any claim denied. The request for reconsideration must be 

in writing and include the factual or legal grounds for the relief requested, providing any 

additional support for the claim. The request for reconsideration must be received by the NPFC 

within 60 days after the date the denial was mailed to the claimant or within 30 days after receipt 

of the denial by the claimant, whichever date is earlier.

V. DETERMINATION OF LOSS: 

A. Overview:

1. FOSC coordination has been established under the Federal Project by way of 

Incident Action Plans and United States Coast Guard (USCG) Pollution Reports 

under Federal Project Number N08057.

2. Real or personal property or natural resources have been injured, destroyed, or 

lost; specifically oil was released into and injured the Mississippi River, a natural 

resource of the United States.

3. The incident involved the discharge and continuing substantial threat of discharge 

of “oil” as defined in OPA 90, 33 U.S.C. § 2701(23), to navigable waters.

4. 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.

5. The claim was submitted on time.

6. The claimant seeks $111,132.13 in loss of profits, as a consequence of the 

additional fees and costs due to additional fuel, signage, transportation and labor 

expenses, as well as refunded pre-paid and pre-booked tickets.

7. The claimant asserts that, if not for the oil spill, NOP would not have incurred the 

claimed loss of profits and additional expenses, as stated in Section A, Sub-point 

6 above.
8. Presentment of costs to the RP was made by NOP, prior to the submission of the 

claim. The NPFC also made presentment of costs to the RP for which the RP 

responded denying these costs.

9. In the process of adjudicating this claim, the NPFC Claims Manager collected 

additional information from the claimant to document what took place at the time

of the incident.

B. Causation:

The Barge DM 932 oil spill did in fact release significant amounts of oil into and causing 

damage and injury to the Mississippi River, a natural resource of the United States. The 

resulting damage, injury and removal response disrupted shipping in and out of the Mississippi 

River. At the time of the spill, many vessels were detained and most river operations ceased. 

The M/V Creole Queen was, in fact, one of these vessels. The USCG provided POLREPS to 

substantiate that the Mississippi River was either closed to vessel traffic or open to limited traffic 

during the response period.4

C. Additional Fuel Costs

NOP is claiming that the oil spill directly caused them loss of profits in the amount of 

$17,643.81. The M/V Creole Queen was relocated to the Orange Street Wharf, where no landbased power was available (as it was at the Poydras Street Wharf). The normal “day” aboard 

the Creole Queen is 12-13 hours out of a 24-hour day. While operations were up and running 

during the spill period, the Creole Queen was operating on a 24 hour day basis.5 NOP states that 

the increased diesel fuel and lube consumption is due to powering the generator and for shifting 

the vessel to and from the Orange Street Wharf. 

NOP claims additional fuel costs totaling $17,533.81* (see following page for explanation) as a 

result of the additional 3787 gallons of diesel fuel consumed. NOP breaks down the fuel costs as 

follows:

#2 Diesel= 4.395/gal6 3787 X $4.395 = $16,643.87

Freight Diesel = $.059/gal 3787 X $.059 = $223.43

 

 Subtotal: $16,867.30

LA State Sales Tax = 4% of total diesel $16,643.865 X .04 = $665.75

Total ($16,867.298+ $665.755): $17, 533.05* (see following 

page)

Divided by 3787 gallons: $4.63 per gallon

The breakdown of the additional 3787 gallons of fuel is broken down even further, as follows, 

based on the cost of $4.63 per gallon:7

 4 Polreps 1-21; documenting river closures and traffic management through August 18, 2008. 5 See Fuel Loss Explanation and Spreadsheet, in the supplemental documents submitted by NOP to the NPFC on 

2/25/2010 6 See Retif Oil and Fuel Invoice, submitted to the NPFC with the claim by DeSalvo, Blackburn and Kitchens, LLC 

for NOP on 9/17/2009 7 See “Standby Time,” “Total Standby Hours,” “Fuel Burned in Standby” and “Standby Cost Per Day,” in the Fuel 

Usage Breakdown taken from the M/V Creole Queen Log Book, submitted to the NPFC by Oats and 

Hudson Louisiana for NOP on 11/04/2010
Date Standby Time Total Standby Fuel Burned Standby Cost

Hours in Standby Per Day

7/28/2008 10:00 to 19:00; 10 hours 101 gallons $467.63

22:00 to 24:00 hours

7/29/2008 00:00 to 19:00; 21 hours 211 gallons $976.93

22:00 to 24:00 hours

7/30/2008 00:00 to 19:30; 19.5 hours 197 gallons $912.11

22:00 to 24:00 hours

7/31/2008 00:00 to 19:00; 21 hours 211 gallons $976.93

22:00 to 24:00 hours

8/01/2008 00:00 to 24:00 hours 24 hours 242 gallons $1120.46

8/02/2008 00:00 to 19:30; 19.5 hours 197 gallons $912.11

22:00 to 24:00 hours

8/03/2008 00:00 to 19:00; 21 hours 211 gallons $976.93

22:00 to 24:00 hours

8/04/2008 00:00 to 24:00 hours 24 hours 242 gallons $1120.46

8/05/2008 00:00 to 19:00; 21 hours 211 gallons $976.93

21:00 to 24:00 hours

8/06/2008 00:00 to 24:00 hours 24 hours 242 gallons $1120.46

8/07/2008 00:00 to 24:00 hours 24 hours 242 gallons $1120.46

8/08/2008 00:00 to 19:00; 21 hours 211 gallons $976.93

21:00 to 24:00 hours

8/09/2008 00:00 to 24:00 hours 24 hours 242 gallons $1120.46

8/10/2008 00:00 to 24:00 hours 24 hours 242 gallons $1120.46

8/11/2008 00:00 to 24:00 hours 24 hours 242 gallons $1120.46

8/12/2008 00:00 to 24:00 hours 24 hours 242 gallons $1120.46

8/13/2008 00:00 to 24:00 hours 24 hours 242 gallons $1120.46

8/14/2008 00:00 to 06:00 hours 6 hours 59 gallons $273.17

Total: 376 hours 3787 gallons $17,533.81*

*As the total number of gallons remains the same for the calculations, and the estimated cost per gallon totals 

approximately $4.63, the NPFC will consider $17,533.81 to be the most accurate when considering additional fuel 

costs, as opposed to the $17,533.05 total determined using the fuel invoice.

NOP is claiming that a total of 10 gallons of lube was used during this additional run time that 

would not have been consumed otherwise. At a cost of $55.00 per 5-gallon pail, the total lube 

claim amounts to $110.00.

8

 Adding $110.00 to the diesel fuel total amounts to $17,643.81 in 

additional fuel costs.

D. Extraneous Transportation Costs

NOP states that, once the M/V Creole Queen was relocated to the Orange Street Wharf, it 

became necessary to transport the patrons from the Poydras Street Wharf to the dock at the 

Orange Street Wharf. NOP therefore contracted with New Orleans Tours to transport patrons 

between wharfs. NOP is claiming $9,500.00 in additional busing charges.9

 8 See Wes-Pet., Inc. Lube Costs affidavit, dated 2/25/2010, submitted to the NPFC by NOP on 2/26/2010 9 See New Orleans Tours invoices, submitted to the NPFC with the claim by DeSalvo, Blackburn and Kitchens, 

LLC for NOP on 9/17/2009
NOP breaks down these costs as follows: 

Date Invoice Number # of Units Cost per Unit Fuel Surcharge Total Charge 

7/28/2008 27429 3 $475.00 $285.00 $1710.00 

7/29/2008 27442 1 $475.00 $95.00 $570.00 

7/30/2008 27448 9 $475.00 $855.00 $5130.00 

8/01/2008 

8/02/2008 

8/03/2008 

8/05/2008 

8/08/2008 27467 3 $475.00 $95.00 $1520.00 

8/09/2008 27481 1 $475.00 $95.00 $570.00 

Total Extraneous Transportation Costs: $ 9500.00 

 

E. Additional Staff

NOP asserts that the delay resulted in a necessary increase of staff required for preparing and 

monitoring the new gangway at the Orange Street Wharf, as well as assisting with assisting with 

loading patrons on to buses. The claimed additional labor costs totaled $2778.80.

10 

NOP breaks down these costs as follows: 

Employee # of Additional Hours Rate per Hour Additional Staff Costs

34 $29.00 $986.00 

35.5 $26.00 $923.00 

8 $16.85 $134.80 

21 $35.00 $735.00 

Total Overtime Combined Additional Staffing Costs: $2778.80 

F. Filtration System Repair

NOP claims that work was required to ventilate the vessel and sanitize the vessel’s air filtration 

system, repair costs of which caused them a claimed loss of approximately $1269.08.

11 NOP 

breaks down these costs as follows: 

Materials:

Item Cost per Item Total Cost 

 

10 See Additional Staff Hours, submitted to the NPFC by Oats and Hudson Louisiana for NOP on 1/29/2010 and 

email from Mr. to Ms. , NPFC, dated 3/10/2010 11 See Filter Cost Explanation and M/V Creole Queen Log Book entry, dated 7/11/2008, submitted to the NPFC 

with the claim by DeSalvo, Blackburn and Kitchens, LLC on 9/17/2009 and Filter Parts List and Cost 

Explanation, submitted to the NPFC by Oats and Hudson Louisiana for NOP on 11/04/2010

(b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6)
4 cases of filters, Grainger Part # 6B957 $104.52 $418.08 

2 rolls of filters, Grainger Part # 6U585 $152.00 $304.00 

2 cases of Odor Eliminator $123.50 $247.00 

Total: $969.08 

Labor Costs: 

Position Rate Per Hour Number of Hours Total Cost 

Chief Engineer $36.00 6 $216.00 

Oiler $12.00 7 $84.00 

Total: $300.00 

Total Filtration Repair Costs: $1269.08 

G. Payments Made to Sick Employees

NOP claims that, due to the vapors caused by the oil spill, numerous employees were forced to 

leave work. NOP paid a total of $758.00 to its employees who were unable to work. 

H. Vessel Shifting Expenses

NOP asserts that, due to the forced relocation, the vessel was required to staff additional crew so 

it could be prepared to shift once ordered to do so by the USCG. Additionally, as the vessel was 

made to shift on August 6, 2008 to lift potable water and purge its sewer storage tanks. These 

shifting expenses amount to approximately $1974.00.*12 

NOP breaks down these costs as follows: 

On 7/28/2008, NOP crews worked the following schedule awaiting the Coast Guards approval to 

shift to the Orange Street Wharf location: 

Position Hours Worked Rate per Hour Total Cost 

Captain 09:00 to 16:30 hours 2-trips at $120 per trip $240.00 

Mate 09:00 to 16:30 hours 2-trips at $105 per trip $210.00 

Deckhands 

12:30 to 16:30 hours $10.00 per hour $40.00 

 12:30 to 16:30 hours $10.00 per hour $40.00 

12:30 to 16:30 hours $10.00 per hour $30.00 

 12:30 to 16:30 hours $10.00 per hour $40.00 

Engineer 09:00 to 16:30 hours 2-trips at $100 per trip $200.00 

Oiler 12:30 to 16:30 hours $12.00 per hour $48.00 

Dockman 12:30 to 16:30 hours $10.00 per hour $40.00 

 

 

12 See NOP Compensation Report for the time period 7/15/2008 through 7/31/2009 and NOP Compensation Report 

for the time period 8/01/2008 through 8/15/2008, the Vessel Shifting Support Letter written by Mr. 

, all submitted to the NPFC by NOP on 3/26/2010

(b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6)

(b) (6)

(b) (6)
Total for 7/28/2008: $888.00 

On 8/06/2008, NOP crews worked the following schedule awaiting the Coast Guards approval to 

shift back to the Poydras Street Wharf: 

Position Hours Worked Rate per Hour Total Cost 

Captain 10:45 to 16:30 hours 2-trips at $120 per trip $240.00 

Mate 09:30 to 16:30 hours 2-trips at $105 per trip $210.00 

Deckhands 

09:30 to 16:30 hours $10.00 per hour $70.00 

 09:30 to 16:30 hours $10.00 per hour $70.00 

09:30 to 16:30 hours $10.00 per hour $70.00 

 09:30 to 16:30 hours $10.00 per hour $60.00 

Engineer 09:00 to 16:30 hours 2-trips at $100 per trip $200.00 

Oiler 08:30 to 16:30 hours $12.00 per hour $96.00 

Dockman 09:30 to 16:30 hours $10.00 per hour $70.00 

 

Total for 8/06/2008: $1086.00 

Total Claimed Shifting Expenses:* $1974.00 

*NOP Vessel Shifting Costs actually total $2,041.00 due to a discrepancy in the actual pay rate of three employees, 

Mr. , Mr. and Mr. . Captain figured Mr. and Mr. 

in at $10.00 per hour and at $12.00 per hour when, in actuality, Mr. and Mr. pay rates 

are $13.00 per hour and Mr. pay rates are $12.00 per hour. There is an underestimation of $33.00 for Mr. 

 (11 hours at $3.00 per hour difference), an underestimation of $12.00 for Mr. (12 hours at $1.00 per 

hour difference) and an underestimation of $22.00 for Mr. (11 hours at $2.00 per hour). As NOP does not 

wish to change their claimed amount of $1974.00 to $2041.00, the NPFC does not object.

 

I. Additional Signage 

NOP claims that $559.15 in additional signage was necessary in order to alert patrons that the 

M/V Creole Queen was no longer operating from her normal location at the Poydras Street 

Wharf.13 NOP breaks down these costs as follows: 

Product Quantity Price per Unit Subtotal

Custom Sign 2 $217.50 $435.00 

Custom Design 1 $85.00 $85.00 

Subtotal: $520.00 

Taxes: $39.15 

Total Additional Signage Costs: $559.15 

J. Relocation of Scheduled Events

 

13 See O.P.A. Graphics Invoice, dated 8/21/2008, submitted to the NPFC with the claim by DeSalvo, Blackburn and 

Kitchens, LLC for NOP on 9/17/2009

(b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6) (b) (6)
NOP claims that an event scheduled for July 24, 2008, needed to be moved from the original site 

on the M/V Creole Queen to a space at the New Orleans Board of Trade due to both the 

condition of the M/V Creole Queen and the Mississippi River. The cost for renting out this 

space totaled $1500.00.

14 

Furniture, linen set-up and catering were also necessary, costs totaling approximately 

$1362.29.

15 NOP breaks down these costs as follows:

Item Quantity Price per Unit Total

Folding Chairs 130 $2.00 $260.00

60” Round table 18 $9.50 $171.00

120” Black Round Linen 30 $15.00 $450.00

Labor: Set up tables/chairs 1 $87.00 $87.00

Labor: Set up Linens 1 $90.00 $90.00

Morning Delivery 1 $180.00 $180.00

Pick Up Charge 1 $35.00 $35.00

Subtotal: $1273.00

Taxes: $79.29

Total Event Rental Costs: $1352.29

Total Rental Fees for New Orleans Board of Trade: $1500.00

The combined total claimed loss for the relocation of the NCSL Gospel Brunch equals $2852.29. 

Normal food, beverage and staff labor costs do not need to be addressed here, as they remained 

the same. 

K. Pre-Paid Ticket Refunds

NOP states that, due to the condition of the vessel, the wide-spread pollution, and the unhealthy 

conditions that existed after the oil release, vessel interests were forced to refund passenger 

tickets between July 23, 2008 and July 28, 2008. The total claimed loss of profits due to prepaid ticket refunds amount to $ 43,273.50.

16 

NOP breaks down these costs as follows:

Total Number of Cancellations for Voyages Due to Oil Spill from 7/23 through 7/28/2008: 739

Rate per Person Pax Count Total Loss

$16.00 21 $336.00

$17.00 42 $714.00

$20.00 19 $380.00

$25.00 2 $50.00

$32.00 19 $608.00

$38.00 64 $2432.00

 14 See Pigeon Caterers Invoice, dated 7/28/2008, submitted to the NPFC with the claim by DeSalvo, Blackburn and 

Kitchens, LLC for NOP on 9/17/2009 15 See Event Rental LLC Invoice, dated 7/23/2008, submitted to the NPFC with the claim by DeSalvo, Blackburn 

and Kitchens, LLC for NOP on 9/17/2009 16 See NOP Database Reservation List for 6/01/2008 through 8/01/2008 and Explanation of Average Bar Costs,

submitted to the NPFC by Oats and Hudson Louisiana for NOP on 11/04/2009 
$42.00 60 $2520.00

$46.00 97 $4462.00

$50.00 49 $2450.00

$51.00 15 $765.00

$59.00 121 $7139.00

$95.00 80 $7600.00

Private Party 150 $8275.00

Total Pax Count: 739 Total Loss: $37,731.00

When adding the claimed loss in bar beverage services sales, $5542.50 (739 (number of 

cancellations) X $7.50 (average bar) = $5542.50), the total claimed loss in Pre-Paid Ticket Sales 

totals approximately $43,273.50.

L. Lost Revenue

NOP claims that, in addition to pre-paid and pre-booked ticket sale refunds, they also incurred 

profit damages due to loss of walk-up ticket sales. They state two reasons for this: First, walk-up 

ticket sales at the Poydras Street Wharf were curtailed and Second, patrons did not want to travel 

to the Orange Street Wharf. NOP estimates this loss to be approximately $30,523.50, a cost 

based on average revenues for this time period from previous years. 

NOP breaks down these costs as follows:

Date Per-Cap Total Group Total

7/23/2008 0 0

7/24/2008 30 38

7/25/2008 48 236

7/26/2008 82 0

7/27/2008 0 0

7/28/2008 39 252

7/29/2008 53 35

7/30/2008 66 86

8/01/2008 47 118

8/02/2008 66 18

8/03/2008 70 183

8/05/2008 33 101

8/08/2008 66 202

8/09/2008 92 0

Totals: 692 1269

NOP calculates that, based on a five-year average,17 the percentage of Per Cap Passengers (walkup and pre-booked sales) amounts to approximately 54% of total sales, and Group Sales (Non 

Per-Cap) amounts to 46% of total sales. NOP uses the group sale total of 1269 for the spill 

period, 7/23/2008 through 8/10/2008, to calculate what the total number of sales, Per-Cap and 

Non Per-Cap, would have been. If 1269 would have been 46% (the Non Per-Cap total for the 

spill period) of the total, then the estimated total of passengers (Per-Cap and Non Per-Cap), if not 

 17 See NOP Sales Statistics Summary from 1/01/2004 through 12/31/2009, submitted to the NPFC by NOP on 

2/25/2010
for the oil spill, should have been 2759 (1269 X 100 = 46x; 126900/46 = 2759). 54% of 2759 

equals 1490 (2759 X .54 = 1489.86, or 1490). As NOP canceled cruises on 7/24, 7/25, 7/26 and 

7/27/2008, and the pre-booked sales were refunded, they are not claiming these dates as part of 

their Per-Cap profit loss. The total number of pre-booked passengers from 7/23 through 

7/27/2008 total 160; 1490 – 160 = 1330, then, represents what the total number of Per-Cap 

passengers should have been for 7/28 through 8/09/2010. Of these estimated 1330 Per-Cap 

passengers for 7/28 through 8/10/2008, 532 people were actual paying customers who set off on 

the M/V Creole Queen for a cruise. The difference, and thus the estimated number of walk-up 

sales curtailed during the spill time, is 798 passengers (1330 – 532 = 798). 798 passengers 

multiplied by the average fare per person ($55.0018) totals $43,890.00. In addition to this total, 

NOP also calculates a loss of $5985.00 per person in lost beverage sales ($7.50 X 798).19 

Combining these totals equals $49,875.00.

NOP estimates that food and labor costs average roughly $22.00 per person, or 40%,20 Saved 

food/labor costs total approximately $17,556.00 (798 X $22.00 = $17,556.00). Additionally, bar 

beverage service costs average roughly $2.25 per person, or 30%. Saved bar beverage service 

costs total approximately $1795.50 (798 X $2.25 = $1795.50). When subtracting these saved

expenses from the total amount of profit from lost Per-Cap passengers, the total amounts to an 

approximate loss of $30,523.50.

M. Analysis:

New Orleans Paddlewheels, Inc. submitted a claim with which they were able to demonstrate 

that the M/V Creole Queen was indeed negatively impacted and operations were both canceled 

and limited by the DM 932 oil spill. After researching and reviewing the claim, the NPFC has 

determined that some, but not all, of NOP’s claimed lost profits are valid and compensable. The 

determination of compensable and denied costs is as follows:

Compensable Costs:

1. All additional fuel and lube costs, totaling $17,643.81, are determined valid and 

compensable.

2. All extraneous transportation costs, totaling $9,500.00, are determined valid and 

compensable.

3. All additional staffing costs, totaling $2778.80, are considered valid and compensable. 

4. All filtration repair costs, totaling $1269.08, are considered valid and compensable.

5. All vessel shifting expenses, totaling $1974.00, are considered valid and compensable.

6. All additional signage costs, totaling $559.15, are considered valid and compensable.

7. All costs incurred by the relocation of the scheduled NCSL Gospel Brunch, totaling 

$2852.29, are considered valid and compensable.

8. All claimed lost revenue for curtailed walk-up passenger sales, totaling $30,523.50, are 

considered valid and compensable.

Partially Compensable Costs:

NOP claims that, due to pre-paid ticket refunds, they are entitled to the full price of the ticket, 

plus the average cost of $7.50 per passenger for bar beverage service. However, for each 

 18 See NOP Database Reservation List for 6/01/2008 through 8/01/2008, submitted to the NPFC by Oats and 

Hudson Louisiana for NOP on 11/04/2009 19 See NOP Explanation of Average Bar Costs, submitted to the NPFC by Oats and Hudson Louisiana for NOP on 

11/04/2009 20 See Pigeon Caterers Invoices dated 5/30/2008, 7/9/2008 and 8/14/2008, submitted by NOP on 2/25/2010
passenger that canceled, NOP realized a both saved expense of $22.00 per person in food and 

labor costs and a saved expense of $2.25 per person in bar beverage service costs. When 

multiplying these costs by the total number of canceled passengers, the saved food and labor 

costs total $16,258.00 (739 X $22.00 = $16,258.00), and the saved bar beverage service costs 

total $1662.75 (739 X $2.25 = $1662.75). Total saved expenses equal $17,920.75 ($16,258.00 + 

$1662.75 = $17,920.75). Subtracting this from the original claim of $43,273.50 begets a new 

total of $25,352.75 (43,273.50 - $17,920.75 = $25,352.75). Thus, the total amount of profits lost 

due to pre-paid ticket refunds as determined by the NPFC to be valid and compensable equal 

$25,352.75.

Denied costs:

At this time, per OPA regulations, claims into the NPFC do not cover personal injury. 

Therefore, the $758.00 in payments to sick employees has been denied.

N. Determination: 

The NPFC hereby determines that the OSLTF will pay $92,453.38 as full compensation for the 

lost profits incurred by the Claimant as a result of the increased expenses incurred during the DM 

932 oil spill and submitted to the NPFC under claim # N08057-057. All increased expenses 

claimed are for charges paid for by the Claimant without mitigating or offsetting increases in 

revenues for the voyage in question. The lost profits determined are for damages as that term is 

defined in OPA and, are compensable damages, payable by the OSLTF as presented by the 

Claimant.

VI. DETERMINED AMOUNT: $92,453.38

Claim Supervisor: Tom Morrison

Date of Supervisor’s review: 

Supervisor Action: 

Supervisor Comments: