CERTIFIED MAIL – RETURN RECEIPT REQUESTED 5890/DWHZ 

Number: 7011 1570 0001 4802 9150 8 March 2012 

 

Cobb Masonry 

31 Washington Ave. 

Eatonville, FL 32810 

Re: Claim Number: N10036-1616 

Dear : 

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 the 

claim number N10036-1616 involving the Deepwater Horizon oil spill. Please see the attached 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. However, if 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 N10036-1616. 

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 

Enclosure: Claim Summary/Determination Form 

U.S. Department of 

Homeland Security

United States

Coast Guard

Director

National Pollution Funds Center

United States Coast Guard

NPFC CA MS 7100

US COAST GUARD

4200 Wilson Blvd. Suite 1000

Arlington, VA 20598-7100

Staff Symbol: (CA)

Phone: 800-280-7118

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

Fax: 202-493-6937
CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1616

Claimant Cobb Masonry

Type of Claimant Corporate (US)

Type of Claim Loss of Profits and Impairment of Earning Capacity

Amount Requested $100,000.00

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 

certain individual and business claims on behalf of BP.

CLAIM AND CLAIMANT

On 16 November 2011, Mr. Lee Cobb, on behalf of Cobb Masonry (collectively, the Claimant) 

presented a claim to the Oil Spill Liability Trust Fund (OSLTF) seeking $100,000.00 in loss of 

profits and impairment of earning capacity damages allegedly resulting from the Deepwater 

Horizon oil spill. 1

Prior to the oil spill, the Claimant was working as a subcontractor for various construction 

companies in Mobile, Alabama.2

 The Claimant alleged that the oil spill resulted in a reduction in 

the availability of construction work, causing the Claimant to sustain losses of approximately 

$10,000.00 per week.3 The Claimant also specifically alleged to have sustained a financial loss 

due to the cancellation of a construction contract which would have required the Claimant to lay 

bricks for a home to be built in Gulf Shores, Alabama.4 The Claimant alleged that the contract 

was cancelled due to the effects of the Deepwater Horizon oil spill, and states that he would have 

earned revenue of $17,500.00 had the contract been completed.5 

In total, the Claimant alleged to have sustained total losses of $100,000.00 as a result of the 

Deepwater Horizon oil spill.

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 § 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 

1 Optional OSLTF Claim Form, signed on 19 July 2011.

2 Letter from the Claimant, describing losses, undated. The Claimant stated that he was working for “benchmark 

Homes, Mitchell Homes, Infinity Homes and Privage Home Builders.”

3 Optional OLSTF Claim Form, signed on 19 July 2011.

4 PHONECON: NPFC Staff and Hayes Remodeling representative, 4 January 2012.

5 Contract signed by Lee Cobb and Tim Hayes, 30 April 2011.

 
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 

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, the Claimant submitted the following documentation:

• Optional OSLTF Claim Form, signed on 19 July 2011;

• Letter from the Claimant, describing losses, undated;

• Letter from the Claimant, describing losses, undated;

• Letter from the Claimant to the GCCF, 3 January 2010;

• Contract, signed by Tim Hayes and Lee Cobb, 30 April 2010;

• Form 1099-MISC, showing payment from BES Construction to the Claimant;

• 2009 Form W-2 Wage and Tax Statement;

• Copy of the Claimant’s social security card;

• 2005 Alabama Form 40;

• 2005 Alabama Form 8453;

• 2005 Alabama Form 40V;
• 2005 Form 8879;

• 2005 US Form 1040 Main Information Sheet;

• 2005 Form 1040;

• 2005 Schedule EIC (Form 1040A or 1040);

• 2006 Form 1040-ES;

• 2006 Alabama Form 40ES;

• 2006 US Form 1040ES, Estimated Tax Worksheet and Vouchers;

• Cover Sheet, 2006 TTNS;

• 2006 Form 8879;

• 2006 US Form 1040 Main Information Sheet;

• 2006 Form 1040;

• 2006 Schedule C (Form 1040) showing net profit of $9,512.00;

• 2006 Schedule EIC (Form 1040A or 1040);

• 2006 Form 8913;

• 2006 Alabama Form 40;

Prior to presentment of this claim to the NPFC, the Claimant presented a First Quarter Interim 

Payment Claim (ICQ12011) to the RP/GCCF seeking loss of profits and wages damages in the 

amount of $17,500.00.6 The Claimant was assigned Claimant ID 3480180 and the ICQ12011 

was assigned claim # 9127068. This claim was denied by the RP/GCCF on 22 April 2011.7

On 16 November 2011, the Claimant submitted this claim to the NPFC, seeking $100,000.00 in 

loss of profits damages.8

 OPA requires that all claims submitted to the NPFC be first presented 

to the RP/GCCF.9

 Any damage amount presented now to the NPFC, which was not first 

presented to the RP/GCCF, is denied for improper presentment. The NPFC therefore initially 

denies this claim in the amount of $82,500.00, as this amount was not first presented to the 

RP/GCCF. The remainder of this determination shall consider this claim for loss of profits 

damages in the amount of $17,500.00 as properly first presented to the RP/GCCF.

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, 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 this claim.

In order to prove a claim for loss of profits and impairment of earning capacity damages, a 

claimant must prove (1) that the claimant sustained a financial loss, and (2) that the loss was 

caused by the discharge of oil resulting from the Deepwater Horizon oil spill.

In his original submission to the NPFC, the Claimant alleged that a contract for which he would 

have earned revenue of $17,500.00, was cancelled as a result of the Deepwater Horizon oil 

spill.10 He further alleged that the oil spill caused general harm to the construction industry in 

Mobile, Alabama, preventing him from finding other work.11 According to the Claimant, the 

6 GCCF United States Coast Guard Report, 23 January 2012.

7 GCCF Denial Letter on Interim Payment/Final Payment Claim, 22 April 2011.

8 Optional OSLTF Claim Form, signed on 19 July 2011.

9 33 C.F.R. § 136.103(a).

10 Contract signed by Lee Cobb and Tim Hayes, 30 April 2010. 11 Letter from the Claimant to the NPFC describing losses, undated.

 
lack of available work caused his business to sustain losses of $10,000.00 per week for an 

unspecified period.12 However, the Claimant failed to provide financial documentation to 

substantiate his claimed loss amount. He also failed to provide evidence to prove that a 

construction contract was cancelled as a result of the Deepwater Horizon oil spill.

The NPFC sent the Claimant a letter dated 4 January 2012, via certified mail, requesting certain 

additional documentation necessary to evaluate this claim.13 Among other items, the NPFC 

requested that the Claimant provide copies of 2008, 2009 and 2010 Federal income tax returns in 

order to document the Claimant’s prior earnings, and to substantiate the claimed loss amount.14

The NPFC also requested that the Claimant provide information to support his allegation that a 

certain construction contract was cancelled, and that the cancellation was a result of the oil 

spill.15 As of the date of this determination, the Claimant has failed to respond. 

This claim is therefore denied because the Claimant failed to meet his burden to demonstrate (1) 

that he sustained financial loss in the amount of $100,000.00, 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: NPFC Claims Adjudication Division

Date of Supervisor’s Review: 3/8/12

Supervisor’s Action: Denial approved

Supervisor’s Comments:

12 Letter from the Claimant to the NPFC describing losses, undated. 13 NPFC Request for additional information, 4 January 2012. 14 Optional OLSTF Claim Form, signed on 19 July 2011. 15 NPFC Request for additional information, 4 January 2012.