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CLAIM SUMMARY / DETERMINATION 

Claim Number: S18010-0007

Claimant: AFNI C/O American Family Mutual Insurance Company S.I.

Type of Claimant: Corporation 

Type of Claim: Property Damage

Claim Manager: 

Amount Requested: $4,559.70 

FACTS: 

Oil Spill Incident:

On January 18, 2018, an oil discharge was discovered in the vicinity of a pier west of the 

Cannery Pier Hotel and Spa at 10 Basin Street in Astoria, Oregon. The discharge emanated from 

a 16' X 6' oil tank beneath the hotel' s pier on the Columbia River, a navigable water of the U.S. 

Total capacity of the tank was 3,381 gallons. The source was recovered via contracted crane 

barge. Approximately 2,239 gallons of bunker oil remained inside. 

The oil spill was reported to the United States Coast Guard and Sector Columbia River personnel 

responded. The oil escaped the tank and migrated west toward the West End Mooring Basin 

marina, and eastward along the shoreline. 

The Cannery Pier Hotel assumed initial responsibility as a "responsible party" for the spill.

Description of Removal Activities for this Incident:

Containment booms were placed to prevent migration of the oil, but the oil affected vessels and 

shorelines in the vicinity of the Cannery Pier Hotel. Product recovered for disposal was 160 

cubic yards of oiled debris and sorbent material; 3400' of contaminated hard boom; 2,239 gallons 

of bunker oil from tank; and 6,150 gallons of oily water collected with skimmer and vacuum 

truck. Cleanup operations concluded on March 7, 2018. 

Claim:

A sailboat owner/the insured party incurred damages to a 1979 White Islander Freeport 36 SL 

and filed a claim with his insurance company (American Family Mutual Insurance Company 

S.I.). AFNI is the subrogated insurer of the sailboat. 

On October 22, 2018, the NPFC received a property damage claim from AFNI, hereinafter 

known as the Claimant, seeking compensation for cleaning and replacement costs paid to the 

insured, in the total amount of $4,559.70. 
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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 ai·e cons iste nt with the 

National Contingency Plan". 33 USC§ 2702(b)l()(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 –
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(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]. 

Damage claims must be presented within 3 years after the date on which the injury and its 

connection with the discharge in question were reasonably discoverable with the exercise of 

due care. 33 U.S.C. §2712(h)(2).

The pertinent provisions of the regulations specifically relating to property damage 

claims follow:

33 CFR §136.213 Authorized claimants.

(a) A claim for injury to, or economic losses resulting from the destruction of, real or 

personal property may be presented only by a claimant either owning or leasing the

property.

(b) Any claim for loss of profits or impairment of earning capacity due to injury to, 

destruction of, or loss of real or personal property must be included as subpart of the claim

under this section and must include the proof required under §136.233.

33 CFR §136.215 Proof.

(a) In addition to the requirements of subparts A and B of this part, a claimant must establish—

(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.

33 CFR §136.217 Compensation allowable.

(a) The amount of compensation allowable 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.