U.S. Department 

of Homeland 

Security

United States 

 Coast Guard

Director 

United States Coast Guard 

National Pollution Funds Center 

U.S. Coast Guard Stop 7100 

National Pollution Funds Center 

4200 Wilson Boulevard, Suite 1000 

Arlington, VA 20598-7100 

Phone: 

E-mail: @uscg.mil 

 

16480 

July 20, 2012 

Cindy Dohner 

Regional Director, USFWS Southeast Region 

1875 Century Blvd., Suite 400 

Atlanta, GA 30345 

RE: Claim Number: N10036-OI11 – Deepwater Horizon Oil Spill Assessment, Loggerhead 

nesting plan 

Dear Ms. Dohner: 

The National Pollution Funds Center (NPFC) has completed its review of the claim presented to 

the Oil Spill Liability Trust Fund (the Fund or the OSLTF) by the U.S. Department of the 

Interior (DOI) for upfront costs to assess natural resource injuries resulting from the Deepwater 

Horizon oil spill. The claim totals $204,804, representing $178,090 to implement the loggerhead 

nesting plan and $26,714 for contingency. We have determined that $178,090 of claimed costs 

is compensable and approve $26,714 in contingency funding1

. This determination was made in 

accordance with the Oil Pollution Act (OPA) and the OPA claims regulations. 33 U.S.C. §2701 

et seq.; 33 C.F.R. Part 136. The basis of our determination follows. 

Summary of the Incident and Claim 

On April 20, 2010, the Deepwater Horizon mobile offshore drilling unit exploded and sank, 

discharging an estimated 210 million gallons of oil into the Gulf of Mexico over a period of 

approximately three months2

. In addition, approximately 771,000 gallons of dispersants were 

applied to the waters of the spill area to minimize impacts from the oil3. The U.S. Coast Guard 

designated the source of the spill as an offshore facility located on an area leased by BP 

Exploration & Production, Inc. (BP). BP accepted the designation and advertised its OPA claims 

process. 

 

Following the spill, DOI, along with NOAA and Gulf Coast states4, acting as natural resource 

trustees designated under OPA and appropriate state laws, initiated an assessment of natural 

resource damages resulting from the discharges and response to discharges of oil. By the 

August-September 2010 period, the trustees observed over 950 miles of oiled shoreline habitat, 

 

1

 Payment of approved contingency is subject to the NPFC’s contingency policy (enclosed) 

2

 http://www.gpo.gov/fdsys/pkg/FR-2012-04-20/pdf/2012-9581.pdf 3

 http://www.gpo.gov/fdsys/pkg/FR-2012-04-20/pdf/2012-9581.pdf 4

 Louisiana, Mississippi, Alabama, Florida, and Texas 
 

 

400 oiled sea turtles, and over 1,500 oiled birds5. Based on initial assessment findings, DOI 

developed a comprehensive plan that identifies 25 separate studies designed to assess the nature 

and extent of potential injuries to birds, endangered and threatened fish and mammals, and sea 

turtles resulting from the spill. 

On May 30, 2012, the NPFC received a claim from DOI for costs to implement the loggerhead 

nesting plan, one of the 25 studies included in the comprehensive assessment plan. The claim 

totaled $204,804, representing $178,090 for contract costs to implement the nesting plan and 

$26,714 for contingency. 

The NPFC approved claims previously submitted by DOI for studies indentified in the 

comprehensive assessment plan on September 21, 2011, December 5, 2011, March 13, 2012, 

May 29, 2012, and May 31, 2012. The NPFC’s determinations for these claims made the 

following findings related to the incident and DOI claimant: 

1. The Deepwater Horizon oil spill occurred after OPA’s date of enactment (August 18, 

1990) and is an OPA incident for which natural resource damages may be claimed. 33 

U.S.C. §§2702(b)(2)(A) and 2712(a)(4); 

2. DOI is a designated natural resource trustee eligible to present a claim for natural 

resource damages. 33 U.S.C. §2706(b)(2) and 33 C.F.R. §136.207; 

3. DOI determined that there is jurisdiction to pursue restoration for this incident under 

OPA. 15 C.F.R. §990.41; 

4. DOI is conducting an injury assessment pursuant to 15 C.F.R. §990.51; and 

5. DOI bears the burden of proving its entitlement to the amount claimed for compensation 

of natural resource damages. 33 C.F.R. §136.105. 

 

This determination adopts these findings, and provides the following additional findings specific 

to the claim DOI submitted to the NPFC on May 30, 2012 for $204,804 to implement the 

loggerhead nesting plan. 

Claim Presentation 

Claims to the NPFC must be presented in writing to the Director, NPFC, within three years after 

the date on which the injury and its connection with the incident in question were reasonably 

discoverable with the exercise of due care, or within three years from the date of completion of 

the natural resource damage assessment under section 1006(e) of OPA (33 U.S.C. §2706(e)), 

whichever is later. 33 C.F.R. §136.101(a)(1)(ii). The assessment was not complete when the 

claim was received on May 30, 2012. Therefore, the claim was received within the statute of 

limitation period. 

Natural resource damage claims presented to the NPFC must be based on a plan that the public 

has had an opportunity to review. 33 U.S.C. §2706(c)(5). On July 18, 2011, DOI adopted and 

posted its comprehensive assessment plan on its website6

. The comprehensive plan included the 

5

 Federal Register, Vol. 75, No. 190, Pgs. 60800-60802, October 1, 2012: 

http://edocket.access.gpo.gov/2010/pdf/2010-24706.pdf 6

 Comprehensive assessment plan entitled: Interim, Partial Claim for Assessment Costs for the 20 April 2010 

Deepwater Horizon (MC252) Spill, posted at: http://www.doi.gov/deepwaterhorizon/adminrecord/index.cfm 

2 
 

 

loggerhead nesting plan7 subject to this claim. Thus, this claim to the NPFC for funds to 

implement the loggerhead nesting plan meets this requirement. 

With certain exceptions, claims to the NPFC for damages must be presented first to the 

responsible party. 33 U.S.C. §2713(a). If a claim is presented in accordance with §2713(a) and 

the claim is not settled by payment within 90 days after the date upon which the claim was 

presented, the claimant may elect to commence an action in court or present the claim to the 

OSLTF. 33 U.S.C. §2713(c)(2). 

The administrative record for this claim indicates that DOI presented BP with their 

comprehensive assessment plan and claim for implementation costs on July 5, 20118. This plan 

included 2011 and 2012 activities to assess potential exposure and injury to loggerhead nesting 

adults, hatchlings, and eggs from Deepwater Horizon oil and dispersants (i.e., the loggerhead 

nesting plan), with a implementation cost of $248,090, and contingency cost of $26,714. BP 

responded to DOI in a letter dated July 28, 2011, agreeing to fund the 2011 loggerhead activities 

for $70,000 and revisit funding of the 2012 activities in the first quarter of 20129

. On April 18, 

2012 and May 4, 2012, DOI again requested funding for the 2012 loggerhead nesting plan 

activities and provided additional information about proposed work10. The record does not 

indicate that BP responded. Thus, this claim for $204,804, representing $178,09011 for 2012 

activities and $26,71412 in contingency, was not settled within 90 days, allowing presentment to 

the Fund as uncompensated damages. 

NPFC Review of Claim and Associated Costs 

During 2010 and 2011, the trustees conducted field investigations to assess the potential impacts 

of Deepwater Horizon oil on loggerhead sea turtles, a species listed under the Endangered 

Species Act13, recovering visibly oiled loggerhead sea turtles14. Exposure to crude oil is known 

to impact egg production, and cause embryo mortality and hatchling deformities. Turtle eggs are 

also susceptible to physical and chemical effects of oil from oil-contaminated sand through 

exchange of water and gases with the external environment15. 

This claim seeks funds to implement the loggerhead nesting plan, the objectives of which are to: 

(1) assess physical condition and track movements of nesting females, and (2) collect and 

analyze tissue biopsies and other samples from nesting females, eggs, and hatchlings. 

7

 Section 4.2 of the Interim, Partial Claim for Assessment Costs, 20 April 2010, Deepwater Horizon (MC252) 

Spill, dated July 1, 2011 8

 Letter from DOI to BP transmitting Interim, Partial Claim for Assessment Costs, 20 April 2010, Deepwater 

Horizon (MC252) Spill, dated July 1, 2011. The loggerhead nesting plan is included in this Plan as Activity 4.2 9

 Letter from BP to DOI dated July 28, 2011 

10 Letter from DOI to NPFC dated May 30, 2012 

11 Total claimed amount to implement the loggerhead nesting plan ($248,090) minus partial payment from BP 

($70,000) = uncompensated damages ($178,090) 12 $26,714 is 15 percent of implementation costs ($178,090), as presented in the July 5, 2010 comprehensive 

assessment plan 13 http://www.nmfs.noaa.gov/pr/pdfs/fr/fr76-58868.pdf 14 http://www.nmfs.noaa.gov/pr/health/oilspill/turtles.htm 15 Injury pathway described in more detail in the 2012 trustee plan titled “Assessment Plan to Determine Potential 

Exposure and Injuries of Nesting and Hatchling Loggerhead Sea Turtles and Loggerhead Sea Turtle Nests – 

2012 Field Season”

3 
 

DOI claims $178,090 for this activity. Costs include contractor staff time, supplies for biopsies, 

sample collection, satellite tracking, associated travel, UTV rentals and fuel, and indirect costs. 

Following initial review of the claim, the NPFC requested additional information about the 

claimed costs for the loggerhead nesting plan. Specifically, the NPFC asked DOI to further 

explain: (1) the appropriateness of including $3,000 to cover text messaging costs on cell phones 

and (2) to identify the contractor performing the work described in the plan. 

DOI responded that: (1) the use of cell phones for field teams is necessary because standard 

hand-held marine radios do not function adequately across long distances (~20 miles) and (2) 

DOI’s contractors are Jacobs Technology and Cherokee Nation. 

After reviewing the claimed study and associated costs the NPFC finds that; (1) DOI’s 

assessment approach to determine injuries to loggerhead sea turtles meets the standards for 

assessment procedures under 15 C.F.R. §990.27, and (2) claimed study and costs of $178,090 are 

reasonable and appropriate, given the scale and complexity of the incident and need for 

assessment. 33 U.S.C. §2706 (d)(1)(C), 33 C.F.R. §136.211. 

Contingency

DOI claims $26,714, or 15 percent of total claimed amount ($178,090), for contingency costs 

associated with implementation of the loggerhead nesting plan. The NPFC recognizes the 

uncertainties inherent in the cost estimates of the approved assessment activities and that costs 

may unexpectedly increase, and/or that new and unforeseeable costs may surface in the future. 

Accordingly, the NPFC has determined that the OSLTF will remain available for contingency 

costs not to exceed $26,714. 

Contingency funding will be made available in accordance with the NPFC Contingency Policy 

(enclosed) when, and if, needed, and when supported by appropriate justification and 

documentation of costs incurred to date. If the need for contingency funds arises, DOI should 

make a formal request to the NPFC. Such a request can be made through the annual cost and 

progress reporting described below, and must include a justification for the additional funds and 

documentation of past expenditures. In a rare case additional contingency may be granted if 

adequate documentation and rationale are provided. 

Revolving Trust Fund and Return of Unused Funds to the OSLTF 

As established by OPA and NRDA regulations, sums recovered for natural resource damages 

must be retained by DOI in a revolving trust account without further appropriation for use only 

to reimburse or pay costs incurred by DOI under subsection (c) of 33 U.S.C. §2706 with respect 

to the damaged natural resources. Any amounts in excess of those required for these 

reimbursements and costs shall be deposited in the OSLTF. 33 U.S.C. §2706(f); 15 C.F.R. 

§990.65. For this claim, the NPFC will deposit $178,090 into the DOI managed Natural 

Resource Damage Assessment and Restoration (NRDAR) Fund codified at 43 U.S.C. §1474(b), 

which DOI has demonstrated to be a non-appropriated, revolving trust fund. 

4 
 

Sums provided under this determination may only be used to implement the studies approved in 

this determination. All unused funds, including interest earned, shall be returned to the OSLTF 

on a timely basis and no later than six months from the completion of the study as described in 

this determination. 

Cost Documentation, Progress Reporting, and Final Report

As the claimant, DOI shall ensure that all expenditures of OSLTF funds are documented 

appropriately and spent according to the loggerhead nesting plan approved by this determination. 

DOI shall provide the NPFC with a final report no later than 120 days from the completion of the 

study that includes the following: 

1. Certification by DOI that all expenditures of OSLTF funds were in accordance with the 

loggerhead nesting plan as approved by the NPFC; 

2. A narrative description of the work accomplished by each individual and how that work 

fits into the overall progress of the study for the year. Enough detail should be included 

to determine reasonableness of costs for each employee when cost documentation is 

received with the final report; 

3. An accounting, including the source and value, of any additional compensation received 

for the study approved in this determination; 

4. A summary of assessment study findings; 

5. Copies of final reports and/or studies; 

6. Documentation of OSLTF funds remaining, including account balance and interest 

earned; 

7. Documentation of all expenditures as follows: 

a. Labor: For each employee – 

i. A narrative description of the work accomplished by each individual and how 

that work fit into the approved study. Enough detail should be included to 

determine reasonableness of costs; and 

ii. The number of hours worked, labor rate, and indirect rate. An explanation of 

indirect rate expenditures, if any, will be necessary; 

b. Travel: Paid travel reimbursement vouchers and receipts; 

c. Contract: Activities undertaken, lists of deliverables, and contract invoices, work 

plans, and receipts; 

d. Purchases/Expendables: Invoices and receipts, along with an explanation of costs; 

and 

e. Government Equipment: Documentation of costs, including the rate (i.e., hourly, 

weekly) and time for all equipment used for which costs were incurred. 

8. An accounting, including the source and value, of any additional compensation received 

for the studies approved in this determination. 

With the final report(s), the NPFC will reconcile costs. All unused funds, including interest 

earned, shall be returned to the OSLTF on a timely basis and no later than six months from the 

completion of each individual assessment study as described in this determination in accordance 

with 15 C.F.R. §990.65(f). 

5 
 

The NPFC has prepared standardized templates with detailed instructions to facilitate annual 

progress and final cost reporting. These templates are provided as an attachment to the email 

that accompanies this determination. 

Summary 

The NPFC has reviewed the claim submitted by DOI for the costs to implement the loggerhead 

nesting plan in accordance with OPA and its implementing regulations. 33 U.S.C. §2701 et seq. 

and 33 C.F.R. Part 136. We have determined that the proposed plan and associated costs are 

reasonable and appropriate for the incident and $178,090 is compensable. 

This offer constitutes full and final payment of DOI assessment costs for the loggerhead nesting 

plan associated with the Deepwater Horizon incident. If you accept this offer, please sign the 

enclosed Acceptance/Release Form and return to: 

 

Director (Cn) 

 U.S. Coast Guard, Stop 7100 

 National Pollution Funds Center 

 4200 Wilson Boulevard, Suite 1000 

 Arlington, VA 20598-7100 

If we do not receive the signed original Acceptance/Release Form within 60 days of the date of 

this letter, the offer is void. If the settlement is accepted, your payment will be issued within 30 

days of receipt of the form. Please provide account information including Agency Locator 

Codes (ALC) with address for the NRDAR fund, Treasury Accounting Symbol (TAS) number, 

and instruction for the transfer of funds to the NRDAR account when you submit the Release 

Form. 

If you have any questions about this determination, you may write me at the above address or 

contact me by phone at 703-872-6054. 

 

Sincerely, 

 

 Fredy Hernandez 

 Natural Resource Damages 

 Claims Manager 

Enclosures: Acceptance/ Release Form 

 NPFC Contingency Policy 

 

6 
 

U.S. Department of 

Homeland Security 

United States 

Coast Guard 

Director 

National Pollution Funds Center 

US COAST GUARD MS 7100 

4200 Wilson Blvd. Suite 1000 

Arlington, VA 20598-7100 

Staff Symbol: (CN) 

Phone: 

E-mail: @uscg.mil

16480 

Claim Number: N10036-OI11 Claimant Name: The U.S. Department of the Interior 

 

 

 

On May 30, 2012, the U.S. Department of the Interior (DOI) presented a claim to the Oil Spill 

Liability Trust Fund (OSLTF or the Fund) in the total amount of $204,804 for upfront costs to 

assess natural resource injuries resulting from the discharge of oil on or about April 20, 2010, 

from an area of land leased by BP (the Deepwater Horizon incident). 

The Department of the Interior accepts the settlement offer of $178,090 as full compensation for 

the loggerhead nesting plan as described in the July 20, 2012 determination (N10036-OI11). The 

settlement does not include any additional funding for contingency. 

This settlement represents full and final release and satisfaction of all damage assessment costs 

described in the July 20, 2012 determination. 

This release includes any right DOI may have to dispute the contingency awards in the July 20, 

2012 determination. Although this settlement and release does not pay the contingency payments 

detailed in this determination, DOI acknowledges that any future contingency payments will be 

limited to the amounts awarded and the NPFC will only authorize actual payments of the award 

from the OSLTF if and when a permissible contingency occurs and the request is fully 

documented and complies with the NPFC policy for Natural Resource Damage Contingency 

Payments. 

DOI agrees to provide annual and final reports to the NPFC as directed in the determination. 

DOI agrees to comply with 33 U.S.C. §2706(f) and 33 C.F.R. §136.211 by depositing into a 

revolving trust account the amounts awarded in the July 20, 2012 determination and any amounts 

in excess of those required for these reimbursements to accomplish the assessment studies 

approved in the determination shall be deposited to the OSLTF. 

DOI hereby assigns, transfers, and subrogates to the United States all rights, claims, interest and 

rights of action, that it may have against any party, person, firm or corporation that may be liable 

for the loss. DOI authorizes the United States to sue, compromise or settle in the name of DOI 

and that the NPFC be fully substituted for DOI and subrogated to all DOI rights arising from the 

July 20, 2012 determination. 

DOI acknowledges that the United States has pending legal actions associated with the 

Deepwater Horizon incident in federal district court but warrants that no settlement will be made 

by any person on behalf of the DOI with any other party for costs that are the subject of the claim 

7 
 

8 

against the OSLTF without consultation with the NPFC. DOI will cooperate fully with the 

NPFC in any claim and/or action by the United States against any person or party to recover the 

compensation paid by the OSLTF. The cooperation shall include but not be limited to, 

immediately reimbursing the OSLTF any compensation received from any other source for the 

same claim, and providing any documentation, evidence, testimony, and other support, as may be 

necessary for the NPFC to recover from any other party or person. 

DOI certifies that to the best of its knowledge and belief the information contained in this claim 

represents all material facts and is true, and understands that misrepresentation of facts is subject 

to prosecution under federal law, including but not limited to 18 U.S.C. §§287 and 1001. 

Title of Person Signing Date of Signature 

Typed or Printed Name of Claimant or Name of Signature 

Authorized Representative 

Title of Witness Date of Signature 

Typed or Printed Name of Witness Signature 

ALC Required for Payment Bank Routing Number Bank Account Number