CLAIM SUMMARY / DETERMINATION FORM 

Date : 3/5/2009 

Claim Number : P07005-001

Claimant : State of New Jersey 

Type of Claimant : State 

Type of Claim : Removal Costs 

Claim Manager : 

Amount Requested : $14,379.23

FACTS: 

1. Oil Spill Incident: On July 31, 2007, the vessel Rough Seas was traveling south from 

Ney York to Cape May when it ran aground on the shoals off Beach Haven/Little Egg 

Inlet, a navigable waterway of the US. Initial response by Sea Tow to remove the vessel 

was unsuccessful. The USCG and NJ Marine Police became involved after the 

owner/operator became hospitalized during the attempt to remove the vessel. The owner 

stated to USCG personnel that he had no money or insurance and refused to enter into an 

agreement with Sea Tow. The status at the time the claimant, New Jersey Department of 

Environmental Protection (NJ DEP) was requested by the NJ Marine Police at 

approximately 1644 hours was that the vessel was hard aground; listing 30o to Port was 

full of water and discharging a sheen. The vessel was reported to have 1500 gallons of 

fuel in the tanks below and drums on deck. 

NJDEP communicated with USCG Philadelphia and at approximately 1950 hours the 

incident was federalized and someone from the Sector was enroute to the scene. USCG 

Senior Chief Converse arrived on scene at approximately 2300 hours. The situation was 

discussed between 

 2. The Claim: On 14 January 2009, the State of New Jersey submitted a removal cost 

claim to the National Pollution Funds Center (NPFC), for reimbursement of their 

uncompensated removal costs in the amount of $14,379.23 for the services they provided 

from 31 July 2007 through 31 August 2007. This claim is for NJ DEP personnel costs 

associated with the joint response and oversight performed in conjunction with the 

USCG. 

This claim consists of copies of the invoicing and associated dailies, disposal manifests, 

and USCG Case Report, USCG FOSC coordination statement dated 10 December 2008, 

NRC Report and claimant field log/report. The review of the actual cost invoicing and 

dailies 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 consistent with the NCP or directed by 

the FOSC, and (4) whether the costs were adequately documented. 

APPLICABLE LAW: 

Under OPA 90, at 33 USC § 2702(a), responsible parties are liable for removal costs and 

damages resulting from the discharge of oil into navigable waters and adjoining 
shorelines, 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 which 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 

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 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”.

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]. 

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 

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. FOSC coordination was provided by Sector Delaware Bay via a written statement dated 

10 December 2008 and signed by , ENS USCG. 

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

to navigable waters. 

3. In accordance with 33 CFR § 136.105(e)(12), the claimant has certified no suit has been 

filed in court for the claimed uncompensated removal costs. 

4. The claim was submitted on time. 

5. The NPFC Claims Manager has thoroughly reviewed all documentation submitted with 

the claim and determined that the majority of the removal costs presented were for 

actions in accordance with the NCP and that costs for these actions were indeed 

reasonable and allowable under OPA and 33 CFR § 136.205 with the exception of the 

following: the State of New Jersey charges an administrative fee, which is actually their 

OMB A-87 agreed rate. Although we are allowing the 23% derived figure for the state’s 

labor category, we cannot approve unsubstantiated indirect cost per line item as charged 

in this claim, as this is considered an improper use of the OSLTF. See 33 CFR 

§136.105(e)(6) and we have also denied all personnel costs billed on 17 August 2007 as 

that time is attributed to discussion on the salvage of this vessel which the oil removal 

action had already been completed therefore these discussions are not directly related to 

oil removal. The actual response ended on 4 August 2008. 

B. Determined Amount: 

The NPFC determines that the OSLTF will pay $7,540.75 as full compensation for the 

reimbursable removal costs incurred by the Claimant and submitted to the NPFC under 

claim# P07005-001.

AMOUNT: $7,540.75

Claim Supervisor: 

Date of Supervisor’s review: 

Supervisor Action: 

Supervisor’s Comments: