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CLAIM SUMMARY / DETERMINATION FORM

Claim Number : E15437-0001 

Claimant : United States Environmental Services, LLC 

Type of Claimant : Corporate 

Type of Claim : Removal Costs

Claim Manager : 

Amount Requested : $121,824.18 

FACTS: 

A. Oil Spill Incident: The US Environmental Protection Agency (USEPA) Region VI 

reports1

 that on June 4, 2015, an anonymous report to the National Response Center 

(NRC) indicated approximately 20 barrels of crude oil had entered into Tar Creek from a 

production well facility. There is an intermittent creek that is immediately adjacent to the 

production well facility that flows into Tar Creek, then into Foster Creek, then to the 

Homochitto River, and ultimately into the Mississippi River, a navigable waterway of 

the US. The distance to the Mississippi River is approximately 50 miles.2 This incident 

was reported to the NRC via Report # 1118635.3 

The United States Environmental Protection Agency (USEPA) Federal On Scene 

Coordinator (FOSC) reported that early and yet to be substantiated information received 

on-site indicate that the spill occurred in mid May 2015 and may have been as large as 

200 barrels of crude oil lost from the facility and about 100 barrels of crude oil lost to 

waters of the US.4

 The USEPA FOSC issued a joint Notice of Federal Interest in an Oil 

Pollution Discharge to Mr. of Array Corporation and to Mr. on 

behalf of Pipeline Oil and Gas Company as the Responsible Parties (RPs). The State 

agency, Mississippi Department of Environmental Quality (MDEQ), worked jointly 

with the EPA FOSC and provided oversight of the daily cleanup activities.67

B. Description of removal actions performed: The Claimant, USES, arrived on-scene and, 

over the course of the cleanup, deployed hard and soft boom, absorbent snare and 

absorbent material to reduce oil from spreading outside the impacted location. USES 

personnel also cleared the impacted soil and vegetation from the spill site, and disposed 

of the oily waste and soil. Other work performed includes staffing and equipping cleanup operations, as well as managing the operations and maintenance phase. The FOSC 

 

1 See POLREPS 1-2 for this incident, dated 6/4/2015 and 6/7/2015, respectively.

2

See POLREP 1, dated 6/4/2015, Section 1.1.3.

3 See NRC Report # 1118635, opened 6/04/2015.

4 See POLREP 1, dated 6/4/2015, Section 1.1.3.

5 See USEPA Region 4 Notice of Federal Interest in an Oil Pollution Discharge dated June 6, 2015.

6 See POLREPS 1-2 for this incident, dated 6/4/2015 and 6/7/2015, respectively.

7 See Operations & Maintenance Plan for Tar Creek Oil Spill dated 6/8/2015.
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POLREP 1 & 2 specifically state that the hand recovery methods are to be used for 

booming, herding, and debris removal of recoverable oil as well as accessible 

downstream containment. 

C. Presentment to the Responsible Party: Pipeline Oil and Gas Company has been 

identified as a Responsible Party (RP) under OPA, as has Array Operations in its 

capacity as the operator of the site.8 USES made presentment of the costs associated with 

this claim directly to Pipeline Oil & Gas Company on June 30, 2015 by way of USES 

Invoice # 176078 in the amount of $86,250.35, July 31, 2015 by way of USES Invoice # 

179000 in the amount of $28,998.80, and November 30, 2015 by way of USES Invoice # 

188643 in the amount of $6,574.93.9 On August 3 and 25, 2016, Pipeline Oil & Gas 

Company was issued an RP notification letter by the NPFC notifying them of the 

pending claim from USES in the total requested amount of $121,824.18.10 

The first RP Notification letter was sent to Pipeline Oil & Gas c/o Mr. and 

upon receipt of the mail, Pipeline Oil & Gas forwarded the mail directly to Mr. 

. On or about August 25, 2016, Ms. spoke with Mr. who 

informed her that the mail was forwarded to him and he wanted to let the NPFC know 

that he is no longer affiliated with Pipeline Oil & Gas. In the same telephone 

conversation, Mr. advised the NPFC that the new point of contact for Pipeline 

Oil & Gas is Mr. , CEO. Based on the new information, the NPFC reissued the RP Notification letter on August 25, 2016 addressing the notification to 

Pipeline Oil & Gas c/o Mr. . The NPFC received a certified mail card 

showing Ms. signed for the RP Notification letter to Mr. 

on or about September 7, 2016. To date, no response has been received by the NPFC 

regarding the notification made. 

On Friday, December 2, 2016, the NPFC called Pipeline Oil & Gas at 602-620-8272 and 

left a message for Mr. to return the call regarding ownership and 

liability associated with the oil spill at the McCurley well site near Crosby, MS. The 

NPFC left both a cell number and a work number and to date, no response has been 

received. In summary, the NPFC has relied upon certain evidence in determining and 

confirming proper presentment of this claim to the OPA Responsible Party (RP). The 

NPFC has considered the following documentation as it pertains to RP identification:

1. Notice of Federal Interest (NOFI) issued by the USEPA Federal On Scene 

Coordinator (FOSC) identifying Pipeline Oil & Gas as the owner of the facility 

and Array Operations as the Operator of the facility;

2. Incident Action Plans (IAPs) generated in the Unified Command during the 

response that are signed by a representative of each entity acknowledging their 

involvement during the spill response, which was being managed by the USEPA 

FOSC, Mr. ;

 

8 See EPA POLREP 2 dated 6/7/2015 under Section 2.1.2.

9 See USES invoices submitted in this claim package.

10 See RP Notifications letters by NPFC dated 8/3/16 and 8/25/16, respectively.
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3. Notice of Violation (NOV) issued by Mississippi Department of Environmental 

Quality (MDEQ) on August 21, 2015 identifying both Pipeline Oil & gas as the 

owner and Array Operations as the Operator of the facility; and

4. Letter from Pipeline Oil & Gas, LLC dated October 1, 2015 in response to 

Mississippi DEQ’s Notice of Violation letter dated August 21, 2015 whereby 

Pipeline Oil & Gas, LLC confirms it is the owner of the facility with 100% 

working interest upon receipt of an Assignment from Array Operations giving up 

its ownership interest in the property.

Based on the foregoing, the NPFC has determined that the preponderance of the evidence 

demonstrates that proper presentment has been made by the Claimant to Pipeline Oil & 

Gas, LLC, in accordance with 33 CFR §136.103(c)(2). 

D. The Claim: On August 2, 2016, USES presented a removal cost claim to the National 

Pollution Funds Center (NPFC), for reimbursement of its uncompensated removal costs 

in the total amount of $121,824.18 for the services provided from June 5 through August

31, 2015. As evidence for its claim, USES submitted the three invoices referenced 

above, an OSLTF claim form, USEPA Notice of Federal Interest issued to both potential 

Responsible Parties (RPs), NRC Report # 1118635, Mississippi Oil and Gas Board 

Report dated June 7, 2015 and an Incident Action Plan (IAP) dated June 6, 2015. 

Subsequent to reviewing these documents, the NPFC submitted several requests for 

additional information, requesting documentation that demonstrates proof of payment by 

USES to all subcontractors, evidence of coordination of actions undertaken by USES and 

its subcontractors during the Operation & Maintenance Phase of this incident, 

subcontractor rate schedules, dailies and invoices that made up a portion of the costs 

invoiced by USES in its three invoices and explanations for clarification on duties 

performed.11

Mr. subsequently responded to each and every request for additional 

information providing all of the requested information incrementally. 

APPLICABLE LAW: 

Under the Oil Pollution Act of 1990 (OPA 90), at 33 USC § 2702(a), each responsible 

party for a vessel or facility from which oil is discharged, or that poses the substantial 

threat of a discharge of oil, into or upon the navigable waters or adjoining shorelines or 

the exclusive economic zone is liable for removal costs and damages resulting from the 

incident, as described in Section 2702(b) of OPA 90. A responsible party’s liability will 

include “removal costs incurred by any person for acts taken by the person that are 

consistent with the National Contingency Plan”. 33 USC § 2702(b)(1)(B). 

"Oil" is defined in relevant part, at 33 USC § 2701(23), to mean “oil of any kind or in any 

form, including petroleum, fuel oil, sludge, oil refuse, and oil mixed with wastes other 

than dredged spoil”. 

The Oil Spill Liability Trust Fund (OSLTF), which is administered by the NPFC, is 

available, pursuant to 33 USC §§ 2712(a)(4) and 2713 and the OSLTF claims 

 

11 See NPFC official requests for additional information dated 8/3/16, 8/11/16, 8/26/16, 9/15/16, 10/18/16, 10/26/16, 

and 11/4/16, respectively.
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adjudication regulations at 33 CFR Part 136, to pay claims for uncompensated removal 

costs that are determined to be consistent with the National Contingency Plan and 

uncompensated damages. Removal costs are defined at 33 USC § 2701(31) as “the costs 

of removal that are incurred after a discharge of oil has occurred or, in any case in which 

there is a substantial threat of a discharge of oil, the costs to prevent, minimize, or 

mitigate oil pollution from an incident”.

Removal costs are defined as “the costs of removal that are incurred after a discharge of 

oil has occurred or, in any case in which there is a substantial threat of a discharge of oil, 

the costs to prevent, minimize, or mitigate oil pollution from an incident”. 33 USC § 

2701(31). 

Removal costs include any removal costs incurred by any person for acts taken by the 

person that are consistent with the National Contingency Plan. 33 USC § 2702(b)(1)(B).

Under 33 USC §2713(b)(2) and 33 CFR 136.103(d) no claim against the OSLTF may be 

approved or certified for payment during the pendency of an action by the claimant in 

court to recover the same costs that are the subject of the claim. See also, 33 USC 

§2713(c) and 33 CFR 136.103(c)(2) [claimant election]. 

Under 33 USC §2713(a), all claims for removal costs or damages must (with certain 

exceptions not applicable here) be presented first to the responsible party or guarantor of 

the designated source of the incident. Then 33 U.S.C. §2713(d) provides that “If a claim 

is presented in accordance with this section, including a claim for interim, short-term 

damages representing less than the full amount of damages to which the claimant 

ultimately may be entitled, and full and adequate compensation is unavailable, a claim for 

the uncompensated damages and removal costs may be presented to the Fund.” 

Under 33 CFR 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 CFR 136.105(b) each claim must be in writing, for a sum certain for each 

category of uncompensated damages or removal costs resulting from an incident. In 

addition, under 33 CFR 136, the claimant bears the burden to prove the removal actions 

were reasonable in response to the scope of the oil spill incident, and the NPFC has the 

authority and responsibility to perform a reasonableness determination. Specifically, 

under 33 CFR 136.203, 

“a claimant must establish -

(a) That the actions taken were necessary to prevent, minimize, or mitigate the 

effects of the incident;

(b) That the removal costs were incurred as a result of these actions;

(c) That the actions taken were determined by the FOSC to be consistent with the 

National Contingency Plan or were directed by the FOSC.”

Under 33 CFR 136.205 “the amount of compensation allowable is the total of 

uncompensated reasonable removal costs of actions taken that were determined by the 

FOSC to be consistent with the National Contingency Plan or were directed by the 
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FOSC. Except in exceptional circumstances, removal activities for which costs are being 

claimed must have been coordinated with the FOSC.” [Emphasis added]. 

DETERMINATION OF LOSS: 

A. Overview:

1. Mr. , as the USEPA Region IV Federal On-Scene Coordinator (FOSC) 

for this incident, determined that the actions undertaken by USES and its subcontractors 

were consistent with the NCP. 33 U.S.C. §§ 2702(b)(1)(B) and 2712(a)(4).1213

2. The incident involved a discharge of “oil” as defined in OPA 90, 33 U.S.C. § 2701(23), 

to navigable waters.

3. The claim was submitted to NPFC within the six year statute of limitations. 33 U.S.C. § 

2712(h)(1). 

4. A Responsible Party has not been identified. 33 U.S.C. § 2701(32).

5. The claimant presented the claimed removal costs to the RP prior to submitting the claim 

to NPFC. 

6. In accordance with 33 CFR § 136.105(e)(12), the Claimant has certified that no suit has 

been filed by or on behalf of the Claimant in court for the claimed uncompensated 

removal costs.

The NPFC Claims Manager has thoroughly reviewed all documentation submitted by the 

Claimant with the claim, and has determined what, of the removal costs presented, were 

incurred for removal actions taken by the Claimant in accordance with the National 

Contingency Plan (NCP), and whether the costs for these actions were reasonable and 

allowable under OPA 90 and 33 CFR § 136.205. 

B. Analysis:

NPFC CA reviewed the actual cost invoices and dailies to confirm that the claimant had 

incurred all costs claimed. The review focused on: (1) whether the actions taken were 

compensable “removal actions” under OPA and the claims regulations at 33 CFR 136 (e.g., 

actions to prevent, minimize, mitigate the effects of the incident); (2) whether the costs were 

incurred as a result of these actions; (3) whether the actions taken were determined by the 

FOSC, to be consistent with the NCP or directed by the FOSC, and (4) whether the costs 

were adequately documented and reasonable. 

The NPFC has determined that the majority of the costs incurred by the Claimant in this 

claim submission were reasonable and necessary to mitigate the effects of the incident. Upon 

review of the information provided by the Claimant, the NPFC has determined that the 

payable costs were billed in accordance with the rate schedule in place at the time services 

were rendered and were determined by the EPA FOSC to be consistent with the National 

Contingency Plan (NCP). All actions undertaken were overseen by either the State On Scene 

Coordinator, Mississippi Department of Environmental Quality (MSDEQ) or the Coast 

 

12 See USEPA Polreps 1 & 2.

13 See Operations & Maintenance Plan dated 6/8/15 signed by FOSC, SOSC, and RP Rep.
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Guard’s Gulf Strike Team (GST). All incident action plans and Operation & Maintenance 

Plans were signed by the EPA FOSC, the SOSC, and an RP representative.1415

Costs denied by the NPFC include: $1,150.00 in charges for stress relief as identified in the 

USES rate schedule under USES invoice # 176078. The amounts charged per day per man 

are not in accordance with the provisions of the USES rate schedule terms and conditions and 

as such, all amounts not in accordance are denied. See the NPFC Summary of Costs 

spreadsheet for an itemization of the costs denied. The NPFC also denied $1,153.27 in third 

party charges by USES subcontractor Code 3 on June 9, 2015. The amounts denied are not 

supported by third party receipts and there is no justification provided on the replacement of 

125 feet of boom. 16 Should the Claimant decide to request reconsideration of any denied 

costs, all justifications, explanations and documentary evidence must be provided. 

C. Determined Amount: 

The NPFC hereby determines that the OSLTF will pay $119,520.92 as full compensation for 

the claimed removal costs incurred by the Claimant and submitted to the NPFC under claim 

E15437-0001; $2,303.27 in claimed costs are denied. 

AMOUNT: $119,520.92

 

Claim Supervisor: 

Date of Supervisor’s review: 12/15/2016

Supervisor Action: Approved 

Supervisor’s Comments: 

 

14 See USEPA Polreps 1 & 2.

15 See Operations & Maintenance Plan dated 6/8/15 signed by FOSC, SOSC, and RP Rep.

16 See NPFC Summary of Costs spreadsheet.