U.S. Department

of Homeland Security

United States

Coast Guard

Director

National Pollution Funds Center

U.S. Coast Guard Stop 7100

4200 Wilson Blvd, Suite 1000

Arlington, VA 20598-7100

Staff Symbol: (CN)

Phone: 

E-mail: f @uscg.mil

16480 

October 17, 2014 

MEMORANDUM

From: Fredy Hernandez

CLAIMS MANAGER, NPFC

To: Cynthia Dohner 

Authorized Official, Department of the Interior 

Subj: Claim: N10036-OI21 – Deepwater Horizon Oil Spill Assessment 

1. On April 3, 2014, the Oil Spill Liability Trust Fund (OSLTF or the Fund) received a claim from the 

Department of the Interior for costs to assess potential natural resource injuries resulting from the 

Deepwater Horizon oil spill (N10036-OI21). The claim totals $1,180,200 to implement the 2014 Sea 

Turtle Nesting Plan ($1,026,261 to implement the study and $153,939 as contingency funding). 

2. The NPFC is issuing the enclosed determination and offer to pay $1,026,261 to implement the 2014 

Sea Turtle Nesting Plan. This determination was made in accordance with the Oil Pollution Act (OPA, 

33 U.S.C. §2701 et seq.) and the OPA regulations (33 C.F.R. Part 136 and 15 C.F.R. Part 990). A copy 

of the determination and offer to pay the amount of $1,026,261 is enclosed.

3. If you accept this offer, please complete the enclosed Acceptance/Release Form and return to:

Director (cn)

 National Pollution Funds Center 

U.S. Coast Guard Stop 7100 

 4200 Wilson Boulevard, Suite 1000

Arlington, VA 20598-7100 

4. If we do not receive the signed Acceptance/Release Form within 60 days of the date of this memo, the 

offer is void. If the settlement is accepted, your payment will be transferred to you via the IntraGovernmental Payment and Collection System within 30 days of receipt of the Release Form. Please 

provide account information and instruction for the transfer of funds to your Damage Assessment 

Restoration and Revolving Fund Account with the signed Form. 

 

5. If you wish to seek reconsideration of this decision the process for doing so is found in the enclosed 

determination. If you have any questions about this determination, please feel free to contact me at 703-

872-6054. 

# 

Enclosures: (1) NPFC determination 

 (2) Acceptance/Release Form
NPFC DETERMINATION

 Claim Number and Name: N10036-OI21, Deepwater Horizon Oil Spill Assessment

 Claimant: Department of the Interior

 Type of Claim: Natural Resource Damage Assessment, Upfront Assessment Costs

 Claim Amount: $1,180,200

 Offer Amount: $1,026,261

 Determination Date: 17 October 2014

 NPFC Claim Manager: Fredy Hernandez

Summary of the Incident and Claim

On April 20, 2010, the Deepwater Horizon mobile offshore drilling unit exploded and sank, 

discharging an estimated 2101 million gallons of oil into the Gulf of Mexico until the well was 

capped on July 15, 2010. Responders to the discharge dispensed approximately 1.84 million 

gallons of dispersants2 to keep, or delay, the oil from reaching sensitive shorelines. The U.S. 

Coast Guard designated the source of the spill as an offshore facility located on an area leased by 

BP Exploration & Production, Inc. (BP). BP accepted the designation and advertised its claims 

process pursuant to the Oil Pollution Act (OPA). 

Upon notification of the spill, the Department of the Interior (DOI), along with the Department 

of Commerce, represented by National Oceanic and Atmospheric Administration, and five Gulf 

Coast states3, acting as natural resource trustees designated under OPA and appropriate state 

laws, initiated an assessment of natural resource damages resulting from the discharges and 

response to discharges of oil. By the August-September 2010 period, the trustees observed over 

950 miles of oiled shoreline habitat, 400 oiled sea turtles, 1,500 oiled birds4, and identified 

numerous other natural resources at risk to include fish, marine mammals, oysters, and 

associated habitats. The trustees have continued to work together to develop and implement 

assessment plans to determine the nature and extent of these losses. 

On April 3, 2014, DOI presented a claim to the Fund to implement their 2014 Sea Turtle Nesting

Plan. The claim totals $1,180,200, which includes $1,026,261 to implement the study and 

$153,939 as contingency funding. This determination presents the NPFC’s findings with respect 

to these claimed costs. 

Jurisdictional Information

The NPFC first considered whether the claimed damages arose from an incident as defined by 

OPA. 33 U.S.C. §2701 et seq. To be covered, the incident must involve a discharge, or a 

substantial threat of discharge, of oil from a vessel or facility into navigable waters of the United 

States after August 18, 1990. Based on the information summarized above, the NPFC has 

1 "Deepwater Horizon Oil Spill Early Restoration Plan." Gulf Spill Restoration Publications. National Oceanic

and Atmospheric Administration. 2

 1.07 million gallons on the surface and 771,000 gallons sub-sea. “The Ongoing Administration-Wide Response 

to the Deepwater BP Oil Spill.” Deepwater Horizon Incident Joint Information Center. 3 The state trustees participating in the assessment are Louisiana, Mississippi, Alabama, Florida, and Texas. 4

 Federal Register, Vol. 75, No. 190, Pgs. 60800-60802

 
determined that the activities included and approved in this determination are for natural 

resource damages resulting from an OPA incident.

Claimant Eligibility

Federal natural resource trustees are designated by the President, pursuant to OPA (33 U.S.C. 

§2706 (b)(2)), with responsibility to assess damages to natural resources under their trusteeship 

and to develop and implement plans for the restoration, rehabilitation, replacement, or 

acquisition of the equivalent of those injured natural resources. 33 U.S.C. §§2706(c)(1)(A) and 

(C). Also, pursuant to 33 U.S.C. §2702(b)(2)(A), damages for natural resources, including the 

reasonable costs of assessing the damages, shall be recoverable by a United States trustee. A 

trustee may present a claim for the reasonable costs of assessing natural resources damages 

separately from a claim for the cost of developing and implementing plans for the restoration, 

rehabilitation, replacement, or acquisition of the equivalent of the natural resources damaged. 33 

C.F.R. §136.207(b).

This claim for natural resource damage assessment (NRDA) costs was submitted by DOI. DOI, 

under the authority of the Secretary of the Interior, is an appropriate federal natural resource 

trustee pursuant to the President’s designation of federal trustees under OPA, Executive Order 

12777 (56 Fed. Reg. 54757, October 22, 1991), and Subpart G of the National Oil and 

Hazardous Substances Pollution Contingency Plan (40 C.F.R. §300.600) and Section 1006(b)(2) 

of OPA. 33 U.S.C. §2706(b)(2).

General Claim Presentment Requirements

Claims to the Fund must be presented in writing to the Director, NPFC, within three years after 

the date on which the injury and its connection with the incident in question were reasonably 

discoverable with the exercise of due care, or in the case of natural resource damages under 

section 2702(b)(2)(A) of OPA, if later, the date of completion of the natural resource damage 

assessment under section 2706(e) of OPA. 33 U.S.C. §2712(h)(2), 33 C.F.R. §136.101(a)(1)(ii). 

This claim is for costs associated with implementing a damage assessment plan to determine the 

nature and extent of damages to natural resources resulting from the incident. The assessment 

was not complete under section 2706(e) when the claim was received on April 3, 2014; 

therefore, the claim was received within the period of limitations for claims.

In accordance with OPA, the OSLTF is available to pay claims for uncompensated removal costs 

consistent with the NCP and uncompensated damages. 33 U.S.C. §2712(a)(4). Damages include 

natural resource damages, which are damages for injury to, destruction of, loss of or loss of use 

of natural resources, including the reasonable costs of assessing those damages, and shall be 

recoverable by a United States, State, Indian tribe, or foreign trustee. 33 U.S.C. §2702(b)(2)(A). 

The measure of natural resource damages is the cost of restoring, rehabilitating, replacing, or 

acquiring the equivalent of, the damaged natural resources, the diminution in value of those 

natural resources pending restoration, plus the reasonable cost of assessing those damages. 33 

U.S.C. §2706(d)(1)(A)-(C). Costs shall be determined with respect to plans adopted under 33 

U.S.C. §2706(d)(1). Plans shall be developed and implemented under this section only after 

adequate public notice, opportunity for a hearing, and consideration of all public comment. 33 

Page 2 of 7
U.S.C. §2706(c)(5). DOI states that the 2014 Sea Turtle Nesting Plan that forms the basis of this 

claim was published on the DOI gulf spill restoration website on February 3, 2014, thereby 

meeting this requirement5

. DOI states that they have not received any comments on their Plan6. 

Claim Presentment to the Responsible Party

With certain exceptions, claims to the NPFC for damages must be presented first to the 

responsible party (RP). 33 U.S.C. §2713(a). If a claim is presented in accordance with §2713(a) 

and is not settled by payment by any person within 90 days after the date upon which the claim 

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)(2). 

DOI presented its 2014 Sea Turtle Nesting Plan and claim for implementation costs to BP on 

February 1, 20147. The plan identified potential injuries to natural resources resulting from the 

incident, described the assessment approach, need for the activity and how it relates to the 

NRDA process, data collection and deliverables to be produced, level of effort, timeline, and cost 

estimates for contractors. The Plan presented to BP on February 1, 2014, did not identify the 

need for contingency funding; therefore, the $153,939 requested for contingency funding was not 

properly presented to BP.

BP responded to DOI by letter on March 31, 20148, stating that “BP declines to provide DOI 

advanced funding for the proposed activities.” 

On April 3, 2014, DOI presented this claim to implement its 2014 Sea Turtle Nesting Plan, to the 

NPFC9. The NPFC notified BP on April 18, 2014 that this claim was received10. 

Based on the above facts, the NPFC finds that DOI’s claim to the NPFC for costs to implement 

the 2014 Sea Turtle Nesting Plan minus the contingency funding was presented to the RP in 

accordance with OPA.

Claimant's Burden of Proof and Adherence to NRDA Regulations

Under OPA, the claimant (in this case DOI) bears the burden of providing all evidence, 

information, and documentation deemed necessary to support the claim. 33 C.F.R. §136.105. 

After reviewing the claim and supporting documents, the NPFC finds that DOI is following 15 

C.F.R. §990 et seq., the NOAA Natural Resource Damage Assessments regulations, in carrying 

out the work subject to this claim. Specifically, they indicate that they are coordinating actions 

with other trustees to ensure no double recovery of damages11, issued a notice of intent to 

5

 April 3, 2014, letter from DOI to NPFC 6

 April 3, 2014, letter from DOI to NPFC 7

 April 3, 2014, letter from DOI to NPFC 8

 March 31, 2014, letter from BP to DOI declining to fund the claim 9

 April 3, 2014, email from DOI to NPFC 10 April 18, 2014 RP notification letter from NPFC to BP 11 April 3, 2014 letter from DOI to the NPFC

Page 3 of 7

 
conduct restoration planning12, invited BP to participate in the NRDA13, prepared a plan that the 

public was given an opportunity to review14, and are maintaining an administrative record that is 

available for public review15.

NPFC Review of Claim Activities and Associated Costs

Starting in 2010, DOI implemented several plans (funded by both BP and NPFC) to collect 

satellite telemetry data on Kemp’s ridley and loggerhead sea turtles. Under the 2014 Sea Turtle 

Nesting Plan, DOI will continue to collect satellite telemetry data on the location of sea turtles 

with previously affixed satellite transmitters in the northern Gulf of Mexico; analyze data 

collected from 2010-201316; and preserve data and samples collected in previous years. 

DOI states that sea turtles are known to “demonstrate high foraging area and home range site 

fidelity17”; therefore, continuing to track them and analyze movements in relation to known areas 

of oiling will help DOI determine potential exposure of sea turtles to Deepwater Horizon oil. 

Satellite data collected from these tracking studies will then be used with data on geographic 

extent and severity of oiling and oil toxicity to determine sea turtle injury to Deepwater Horizon

oil.

DOI claims $1,180,200 ($1,026,261 to implement the Plan and $153,939 for contingency) to 

collect telemetry data from satellite tags transmitting data affixed on sea turtles ($88,800),

analyze previously collected data ($590,832), and preserve and manage collected data 

($346,629). The majority of the costs are for DOI to analyze previously collected data18 and to 

continue to manage and preserve that data. 

The NPFC reviewed the claim record and requested that DOI provide (1) the rationale for 

conducting a fifth year of data collection and (2) a summary accounting of all funds previously 

provided by both BP and the NPFC. DOI responded (1) by stating that “if we have telemetry 

data from 2014 that shows a sea turtle inhabiting an area in the ocean that we know was exposed 

to oil in 2010 . . . we can accurately defend our position that there is an extremely high 

probability that that same turtle was in the same location in 2010 when the oil was present” and 

(2) providing a summary account of funds and an explanation of how and when DOI plans to 

obligate and/ or spend unobligated funds. 

Over the past four years, DOI has implemented many assessment activities to assess potential 

injuries to nesting sea turtles and nests, some of which are still ongoing. These assessment 

activities have revealed that there has been a reduction in the quantity of nests found on beaches 

since 2010 and furthermore, identified spatial and temporal overlaps between the 2010 

12 “Notice of Intent to Conduct Restoration Planning” Gulf Spill Restoration Publications. National Oceanic 

Atmospheric Administration. 13 “Invitation to Participate in Natural Resource Damage Assessment” Deepwater Horizon Administrative Record. 

Department of the Interior, September 27, 2012. 14 April 3, 2014, claim letter from DOI to NPFC 15 April 3, 2014, claim letter from DOI to NPFC 16 DOI’s satellite telemetry data and NOAA’s over flight data 17 October 1, 2014, email from DOI to NPFC 18 Data collection was funded by both BP and the NPFC

Page 4 of 7

 
Panhandle loggerhead nesting and both shoreline oiling and response activities; these overlaps 

are generally consistent with a potential for reduced loggerhead nesting in the Gulf of Mexico

region19. Analysis and finalization of data and documenting the results are among the tasks 

remaining in and claimed for as part of this claim.

After reviewing DOI’s 2014 Sea Turtle Nesting Plan, the NPFC finds that the (1) activity 

described above are appropriate procedures under 15 C.F.R. 990.27(b)(iii) capable of providing 

valid and reliable information to quantify injury, and (2) claimed costs are reasonable for the 

proposed level of effort given the complexity of the incident relating the nature and extent of 

oiling, geographic extent of exposure of natural resources to oil and study area, and magnitude of 

potential injury.

Therefore, claimed assessment costs of $1,026,261 are compensable from the Fund. 33 U.S.C. 

§2706 (d)(1)(C), 33 C.F.R. §136.211. As noted above, the requested $153,939 in contingency 

funding is denied because it was not properly presented to the responsible party prior to 

submitting the claim to the Fund.

Summary

The NPFC has reviewed the claim submitted by DOI for costs to implement its 2014 Sea Turtle 

Nesting Plan for the Deepwater Horizon incident in accordance with OPA (33 U.S.C. §2701 et 

seq.), its implementing regulations (33 C.F.R. Part 136) and the Natural Resource Damage 

Assessments regulations (15 C.F.R. Part 990). Through this determination, the NPFC offers 

$1,026,261 to implement the 2014 Sea Turtle Nesting Plan. This offer constitutes full and final 

payment.

Request for Reconsideration

Under OPA, you may seek reconsideration of this determination. The request must be in writing and 

received by the NPFC in writing within 60 days of the date of this letter. It must include the factual and 

legal grounds for the relief requested, providing any additional support for the claim. 33 C.F.R. 

§136.115(d).

A claim may be reconsidered only once, and written disposition of a reconsideration request constitutes 

final agency action. If the NPFC fails to issue a written decision within 90 days after receipt of a request 

for reconsideration, this determination, at the option of the claimant, shall be deemed final agency action.

Should you choose to request NPFC reconsideration of this determination, please mail the request and 

additional claim information with the appropriate claim number (N10036-OI21) to:

Chief (Cn)

National Pollution Funds Center

U.S. Coast Guard, Stop 7100

4200 Wilson Boulevard, Suite 1000

Arlington, VA 20598-7100

19 DOI’s 2014 assessment plan, pg. 13

Page 5 of 7

 
Revolving Trust Fund and Return of Unused Funds to the OSLTF 

As established by OPA (33 U.S.C. §2706(f)) and the NRDA regulations (15 C.F.R. §990.65), 

sums recovered by trustees for natural resource damages must be retained in a non-appropriated 

revolving trust account for use only to implement the 2014 Sea Turtle Nesting Plan addressed in 

this determination. For this claim, the NPFC will deposit $1,026,261 into DOI’s Natural 

Resource Damage Assessment and Restoration Fund (NRDAR Fund). DOI has demonstrated 

that the NRDAR Fund is a non-appropriated account that meets these requirements20. Any 

amounts in excess of those required for these reimbursements and costs shall be deposited in the 

Fund. 33 U.S.C. §2706(f) and 33 C.F.R. §136.211 (b).

Cost Documentation. Progress Reporting, and Final Report

As the claimant, DOI shall ensure that all expenditures of OSLTF funds are documented 

appropriately and spent according to the 2014 Sea Turtle Nesting Plan as approved in this 

determination. Any funds not spent or appropriately documented shall be returned to the Fund. 

One year from the date of this determination, and annually thereafter, DOI shall provide the 

NPFC with a report on the status of implementation and expenditures. These annual progress 

reports should include:

1. Certification by DOI that all assessment activities have been conducted in accordance with 

the 2014 Sea Turtle Nesting Plan, as approved in this determination;

2. A progress report that includes a description of work accomplished, timeline for future 

activities, and any unexpected problems incurred during implementation; 

3. A summary of expenditures by category (i.e., labor, consultant/contractors, and travel); and

4. A narrative description of the work accomplished by each individual and how that work fits 

into the overall progress for the year. Enough detail should be included to determine 

reasonableness of costs for each employee when cost documentation is received with the 

final report.

DOI shall provide the NPFC with a final report 120 days after completion of these activities. 

The report should include:

1. Certification by DOI that all expenditures of OSLTF funds were in accordance with the plan 

as approved by the NPFC; 

2. A summary of findings;

3. Copies of final reports;

20 The Department of the Interior and Related Agencies Appropriation Act, 1992 (H.R. 2686/P.L. 102-154) 

permanently authorized receipts for damage assessment and restoration activities to be available without further 

appropriation until expended. The Dire Emergency Supplemental Appropriations for Fiscal Year 1992 

<http://www.doi.gov/restoration/hjres157.cfm> (H.J.RES. 157/P.L. 102-229) provides that the fund's receipts 

are authorized to be invested and available until expended. Additionally, the Department of the Interior and 

Related Agencies Appropriation Act, 1996 <http://www.doi.gov/restoration/upload/pl104-134.pdf> (P.L. 104-

134) provides authority to make transfers of settlement funds to other Federal trustees and payments to nonFederal trustees.

Page 6 of 7

 
4. Documentation of OSLTF funds remaining in the Revolving Trust Fund for this claim 

including account balance; and

5. Documentation of all expenditures as follows:

a. Labor: For each employee –

i. A narrative description of the work accomplished by each individual and how that 

work fit into the plan. Enough detail should be included to determine reasonableness 

of costs; and

ii. The number of hours worked, labor rate, and indirect rate. An explanation of indirect 

rate expenditures, if any, will be necessary; 

b. Travel: Paid travel reimbursement vouchers and receipts;

c. Contract: Activities undertaken, lists of deliverables, and contract invoices and receipts

or other proof of payment;

d. Purchases/Expendables: Invoices and receipts, along with an explanation of costs or 

justifications for high-value purchases; and 

e. Government Equipment: Documentation of costs, including the rate (i.e., hourly, 

weekly) and time for all equipment used for which costs were incurred. 

With the final report(s), the NPFC will reconcile costs and all remaining funds and/or 

inadequately documented costs will be returned to the OSLTF. 

The NPFC has prepared a standardized template with detailed instructions to facilitate annual 

progress and final cost reporting. It is highly recommended to use this template or a similar 

format with the elements found in the template and that all supporting documentation is 

organized for expeditious processing

If you have any questions or would like to discuss this determination, please contact me by 

phone (703-872-6054) or email at Fredy.e.hernandez@uscg.mil.

Page 7 of 7
U.S. Department of 

Homeland Security

United States

Coast Guard

Director

National Pollution Funds Center

US COAST GUARD MS 7100

4200 Wilson Blvd. Suite 1000

Arlington, VA 20598-7100

Staff Symbol: (CN)

Phone: 

E-mail: @uscg.mil

16480 

Claim Number: N10036-OI21 Claimant Name: The U.S. Department of the Interior

 

On April 3, 2014, the U.S. Department of the Interior (DOI) presented a claim to the Oil Spill 

Liability Trust Fund (OSLTF or the Fund) in the total amount of $1,180,200 for upfront costs to 

assess bird injuries resulting from the discharge of oil on or about April 20, 2010, from a facility 

located on an area of land leased by BP (the Deepwater Horizon incident). 

The Department of the Interior accepts the settlement offer of $1,026,261 as full compensation 

for the 2014 Sea Turtle Nesting Plan as described in the October 17, 2014, determination 

(N10036-OI21). The settlement does not include any additional funding for contingency. 

This settlement represents full and final release and satisfaction of all damage assessment costs 

described in the October 17, 2014, determination, Claim Number N10036-OI21. 

DOI agrees to provide annual and final reports to the NPFC as directed in the determination. 

DOI agrees to comply with 33 U.S.C. §2706(f) and 33 C.F.R. §136.211 by depositing into a 

revolving trust account the amounts awarded in the October 17, 2014, determination and any 

amounts in excess of those required for these reimbursements to accomplish the assessment 

studies approved in the determination shall be deposited to the OSLTF. 

DOI hereby assigns, transfers, and subrogates to the United States all rights, claims, interest and 

rights of action under any other law, that it may have against any party, person, firm or 

corporation for compensation paid from the Fund for this claim. DOI authorizes the United 

States to sue, compromise or settle in the name of DOI and that the NPFC be fully substituted for 

DOI and subrogated to all DOI rights arising from the October 17, 2014, determination. 

DOI acknowledges that the United States has pending legal actions associated with the 

Deepwater Horizon incident in federal district court but warrants that no settlement will be made 

by any person on behalf of the DOI with any other party for costs that are the subject of the claim 

against the OSLTF without consultation with the NPFC. DOI will cooperate fully with the 

NPFC in any claim and/or action by the United States against any person or party to recover the 

compensation paid by the OSLTF. The cooperation shall include but not be limited to, 

immediately reimbursing the OSLTF any compensation received from any other source for the 

same claim, and providing any documentation, evidence, testimony, and other support, as may be 

necessary for the NPFC to recover from any other party or person. 
DOI certifies that to the best of its knowledge and belief the information contained in this claim 

represents all material facts and is true, and understands that misrepresentation of facts is subject 

to prosecution under federal law, including but not limited to 18 U.S.C. §§287 and 1001. 

Title of Person Signing Date of Signature

Typed or Printed Name of Claimant or Name of Signature

Authorized Representative

Title of Witness Date of Signature

Typed or Printed Name of Witness Signature

ALC Required for Payment Bank Routing Number Bank Account Number