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: 

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

Fax: 202-493-6937

5890 

 29 December 2011

CERTIFIED MAIL – RETURN RECEIPT REQUESTED 

Number: 7011 1570 0001 4802 5893 

Encompass Insurance 

ATTN: – Your Claim #Z8103759 B2 

3800 Electric Road, Suite 401 

Roanoke, VA 24018 

RE: Claim Number: N10036-1600 

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 N10036-1600 involving Deepwater Horizon. 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 N10036-1600. 

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

 
CLAIM SUMMARY / DETERMINATION FORM

Claim Number : N10036-1600

Claimant : Encompass Insurance

Type of Claimant : Private (US)

Type of Claim : Real or Personal Property

Amount Requested : $2,600.00

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 8 December 2010, Gayle Fagg, representing Encompass Insurance, (jointly referred to as 

“Claimant”) presented a claim to the Oil Spill Liability Trust Fund (OSLTF) for $2,600.00 in 

loss of real or personal property damage resulting from the Deepwater Horizon oil spill.1 The 

Claimant is an indemnity company that insured Curt Kuchta for certain tangible personal 

property, including a Brietling ‘Avenger’ watch.2

 The Claimant asserts that, by virtue of having 

paid Curt Kuchta for the full insured value of the watch, it holds subrogated rights to the loss, 

reported as occurring on 20 April 2010 in the fire and explosion of the Deepwater Horizon.

3

The Claimant also asserts having presented a claim for this loss to the GCCF on 28 September 

2010.4 The Claimant indicates that the GCCF assigned Claimant ID Number 1038503 and that 

the claim has been denied.

5

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. § 136.213 is 

a claim for injury to or economic losses resulting from destruction of real or personal property.

Under 33 C.F.R. § 136.215(a) a claimant must establish—

1

 Optional OSLTF Claim Form signed 29 November 2011 and received 8 December 2011. 2

 Encompass Insurance Optional Coverage: Scheduled Tangible Personal Property Endorsement to [Mr. Kuchta’s] 

insurance policy for 5354 Walkerwood Court, Manchester, MD, effective 20 May 2009, including the following 

jewelry: (1) Diamond Ring, (1) Mens Titanium Breitling “Avenger” Watch E13360, and (1) LDS 14 KT W/G 

Diamond Earrings w/Friction Post.

3

 Encompass Insurance bank draft for $2,600.00 dated 10 May 2010. 4

 Optional OSLTF Claim Form signed 29 November 2011 and received 8 December 2011. 5

 GCCF Denial Letter on Interim Payment/Final Payment Claim dated 29 April 2011.

 
(1) An ownership or leasehold interest in the property;

(2) That the property was injured or destroyed;

(3) The cost of repair or replacement; and

(4) The value of the property both before and after injury occurred.

Under 33 C.F.R. § 136.217(a), the amount of compensation for damaged property is the lesser 

of—

(1) Actual or estimated net cost of repairs necessary to restore the property to 

substantially the same condition which existed immediately before the damage;

(2) The difference between value of the property before and after the damage; or

(3) The replacement value.

Under 33 C.F.R. § 136.107 on subrogated claims:

(a) The claims of subrogor (e.g. insured) and subrogee (e.g. insurer) for removal costs and 

damages arising out of the same incident should be presented together and must be signed 

by all claimants.

(b) A fully subrgated claim is payable only to the subrogee.

(c) A subrogee must support a claim in the same manner as any other claimant.

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. 

DETERMINATION OF LOSS 

Claimant’s Submission to the OSLTF

The Claimant asserts having presented a claim for this loss to the GCCF on 28 September 2010.6

The Claimant indicates that the GCCF assigned Claimant ID Number 1038503 and that the claim 

has been denied.

7

 The NPFC independently verified that submission and the GCCF’s denial.

8

The Claimant presented this claim to the Oil Spill Liability Trust Fund (OSLTF) on 8 December

2011 in the amount of $2,600.00.9

To support this claim the Claimant presented the following documentation:

• Optional OSLTF Claim Form signed 29 November 2011 and received 8 December 2011.

• Encompass Insurance letter to the NPFC dated 29 November 2011.

• GCCF Denial Letter on Interim Payment/Final Payment Claim dated 29 April 2011. 

(page 1 only)

• Encompass Insurance bank draft dated 10 May 2010 in the amount of $2,600.00, with 

signature on obverse.

6

 Optional OSLTF Claim Form signed 29 November 2011 and received 8 December 2011. 7

 GCCF Denial Letter on Interim Payment/Final Payment Claim dated 29 April 2011. 8

 GCCF – U.S. Coast Guard advice dated 14 December 2011. 9 Optional OSLTF Claim Form signed 29 November 2011 and received 8 December 2011.

 
• Radcliffe Jewelers, Towson, MD, appraisal dated 14 July 2010 of One Gents Breitling 

automatic chronograph wristwatch, ‘Avenger Skyland’, number A1338012/C732.

• Encompass Insurance Optional Coverage: Scheduled Tangible Personal Property 

Endorsement to [Mr. Kuchta’s] insurance policy for 5354 Walkerwood Court, 

Manchester, MD, effective 20 May 2009.

• Kirby Ins. Agency/Westminster, MD, Memo dated 7/21/2010, regarding Men’s Titanium 

Breitling Avenger Watch, Serial #E1336009 being scheduled on [Curt Robert Kuchta’s] 

insurance policy.

The Claimant indicated, “[t]he vessel caught fire & blew up and Mr. Kuchta could not gather his 

personal effects[,] including this watch that was on policy.” 10 The Claimant provided evidence 

of an insurance policy schedule, listing Mr. Kuchta’s watch, among other things, as tangible 

personal property, effective 20 May 2009.11 

The Claimant stated, “[After t]he vessel caught fire and blew up Mr. Kuchta could not gather his 

personal effects, including the watch that was on [his] policy”.

12 Further, the Claimant provided 

evidence of having paid the full insured value of the watch and having subrogated rights for the 

loss.13 

NPFC Determination

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. Pursuant to 33 U.S.C. § 2712(a)(4) and § 2713 and the OSLTF claims adjudication 

regulations at 33 C.F.R. Part 136, the OSLTF, which is administered by the NPFC, is available to 

pay claims for uncompensated damages.

The NPFC has considered all documentation presented by the Claimant. 

The NPFC independently confirmed that the insured, Mr. Kuchta, had been on the Deepwater 

Horizon at the time of its explosion and fire.14 

The Claimant asserts that Mr. Kuchta’s property was lost, “[After t]he vessel caught fire and 

blew up Mr. Kuchta could not gather his personal effects, including the watch that was on [his] 

policy”. The Claimant paid Mr. Kuchta for the loss under the terms of a homeowner’s insurance 

policy, but did not provide a complete copy of that policy to the NPFC. The schedule of tangible 

personal property15 and a copy of the bank draft payment 16 were provided. The Claimant 

provided no information on the cost of replacement.17

10 Optional OSLTF Claim Form signed 29 November 2011 and received 8 December 2011. 11 Encompass Insurance Optional Coverage: Scheduled Tangible Personal Property Endorsement to [Mr. Kuchta’s] 

insurance policy for 5354 Walkerwood Court, Manchester, MD, effective 20 May 2009 and Kirby Ins. 

Agency/Westminster, MD, Memo dated 7/21/2010, regarding Men’s Titanium Breitling Avenger Watch, Serial 

#E1336009 being scheduled on [Curt Robert Kuchta’s] insurance policy.

12 Optional OSLTF Claim Form signed 29 November 2011 and received 8 December 2011. 13 Encompass Insurance bank draft dated 10 May 2010 in the amount of $2,600.00, with signature on obverse. 14 “Hearings: Rig master recounts explosion and abandoning ship”, NOLA.com, 27 May 2010, accessed 28 

December 2011. 15 Encompass Insurance Optional Coverage: Scheduled Tangible Personal Property Endorsement to [Mr. Kuchta’s] 

insurance policy for 5354 Walkerwood Court, Manchester, MD, effective 20 May 2009 and Kirby Ins. 

Agency/Westminster, MD, Memo dated 7/21/2010, regarding Men’s Titanium Breitling Avenger Watch, Serial 

#E1336009 being scheduled on [Curt Robert Kuchta’s] insurance policy.

 
The Claimant asserted but has not provided evidence to the NPFC that the watch had been on the 

Deepwater Horizon at the time of the incident, that the cause of the loss was due to the oil spill 

(not other causes or factors) or evidence of the replacement cost of the property. 

Therefore, this claim is denied because (1) the Claimant has failed to demonstrate that the watch 

was damaged 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, and (2) the Claimant failed to demonstrate 

what the cost of replacement was.

Claim Supervisor: NPFC Claims Adjudication Division

Date of Supervisor’s Review: 12/29/11

Supervisor’s Action: Denial approved

Supervisor’s Comments:

16 Encompass Insurance bank draft dated 10 May 2010 in the amount of $2,600.00, with signature on obverse. 17 33 C.F.R. 33 C.F.R. § 136.217(a)(3).