CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1439

Claimant Randy J. Hall

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $33,000.00

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 claims 

for certain individual and business claims on behalf of BP.

CLAIM AND CLAIMANT

On 23 September 2011, Randy J. Hall (the Claimant) presented a claim to the Oil Spill Liability 

Trust Fund (OSLTF) for $33,000.00 for loss of profits and impairment of earnings capacity 

resulting from the Deepwater Horizon oil spill. 

The Claimant works for Frank’s Casing Crew & Rental Tools, Inc, in Lafayette, Louisiana, that

works on shelf and deepwater projects in the Gulf.1

 The Claimant stated that the oil spill resulted 

in a shut down on all deepwater drilling which was the primary source of his work and income.

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APPLICABLE LAW 

Under the Oil Pollution Act of 1990 (OPA), at 33 U.S.C. § 2702(a), responsible parties are liable 

for removal costs and damages resulting from the discharge of oil into or upon the navigable 

waters or adjoining shorelines or the exclusive economic zone, as described in Section 2702(b) of 

OPA. 

The OSLTF which is administered by the NPFC, is available, pursuant to 33 U.S.C. § 2712(a)(4) 

and § 2713 and the OSLTF claims adjudication regulations at 33 C.F.R. Part 136, to pay claims 

for uncompensated damages. One type of damages available pursuant to 33 C.F.R. § 136.231 is a 

claim for loss of profits or impairment of earning capacity due to injury to or destruction of 

natural resources.

Under 33 C.F.R. § 136.233 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 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 

1 Letter from Frank’s Casing Crew & Rental Tools, Inc. explaining the claim dated 29 March 2011 2 OSLTF Claim Form signed by the Claimant

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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 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 undertake, 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 

Claimant’s Submission to the OSLTF

To support this claim, Claimant submitted the following documentation:

• OSLTF Claim Form signed by the Claimant

• Letter from Frank’s Casing Crew & Rental Tools, Inc. explaining the claim dated 29 

March 2011

• GCCF Denial Letter on Interim Payment/Final Payment Claim dated 27 August 2011

• W-2s Wage and Tax Statement from Frank’s Casing Crew & Rental Tools, Inc. for 2007, 

2008, 2009 and 2010

• Pay stubs for Claimant for Pay Periods 24 August 2011 and 06 October 2010

Before presenting the claim to the NPFC, the Claimant filed an Interim Payment Claims with the 

GCCF. The claims were assigned Claimant ID #3509414 and claim #9338615 (Q1 2011) and 

claim #9441566 (Q3 2011). The Interim Payment Claims were denied on 06 May 2011 and 27 

August 2011.

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

GCCF claims is the same as the subject matter of the claim before the NPFC, i.e., Claimant lost 

earnings as a result of the Deepwater Horizon oil spill. The NPFC has not been able to confirm 

the amount of either the Interim Claims as of the date of this determination. The NPFC deems the 

GCCF claims to be properly presented to the Responsible Party and to the extent the amount of 

the claims presented to the RP are equal to or greater than the amount currently presented to the 

3 GCCF Denial Letters dated 06 May 2011 and 27 August 2011

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NPFC, the subject claim is properly presented to the NPFC. Accordingly, this Claim Summary 

Determination for NPFC Claim N10036-1439 considers and addresses the loss of earnings up to 

the amount of $33,000.00 for all claims presented to the Responsible Party, specifically: Interim 

Claims #9338615 (Q1 2011) and claim #9441566 (Q3 2011).

NPFC Determination

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 or destruction or loss of real or personal property or 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. 

After the NPFC performed a review of the information provided, the Claimant’s financials

showed an increase in earnings from 2009 ($109,586.10) to 2010 ($116,054.21) based on his W2s.

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 The Claimant’s employer, Frank’s Casing Crew & Rental Tools, Inc., stated in a letter that 

the company and its employees were affected by the oil spill.5

 The Claimant indicated that the 

negligence associated with the Deepwater Horizon oil spill resulted in the shutdown of his 

potential work sites and therefore he suffered a loss.6 The Claimant did not provide evidence that 

supports the claimed loss or how the perceived loss may have been calculated. 

This claim is denied because the Claimant failed to meet the burden to demonstrate (1) that there 

was an alleged loss in the amount claimed, and (2) 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: Claims Adjudication Division

Date of Supervisor’s Review: 29 September 2011

Supervisor’s Action: Denial approved

Supervisor’s Comments: 

4 W2 Wage and Tax Statements for 2009 shows wages of $116,856.46 and for 2010 wages of $123,807.11

5 Letter from Frank’s Casing Crew & Rental Tools, Inc. explaining the claim dated 29 March 2011 6 OSLTF Claim Form, received 23 September 2011

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