CERTIFIED MAIL – RETURN RECEIPT REQUESTED 5890/DWHZ 

Number: 7011 1150 0000 4636 4926 11 October 2011 

 

Celebration Church Assembly of God, Inc. 

ATTN: 

117 Jonquil Avenue 

Fort Walton Beach, Florida, 32548

Re: Claim Number: N10036-1470 

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 N10036-1470 involving the Deepwater Horizon oil spill. 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 N10036-1470. 

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 

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: 800-280-7118

E-mail: 

arl-pf-npfcclaimsinfo@uscg.mil

Fax: 202-493-6937
CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1470

Claimant Celebration Church, Assembly of God, Inc.

Type of Claimant Corporate (US)

Type of Claim Loss of Profits and Impairment of Earning Capacity

Amount Requested $51,623.00

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 5 October 2011, Ms. Cheryl Dalen, on behalf of Celebration Church, Assembly of God, Inc., 

(collectively, the Claimant) presented a claim to the Oil Spill Liability Trust Fund (OSLTF) 

seeking $51,623.00 in loss of profits and impairment of earnings capacity allegedly resulting 

from the Deepwater Horizon oil spill.1

The Claimant is a church in Fort Walton Beach, Florida, in a region that the Claimant assereds is

“primarily supported by the tourism industry.” 2

 The Claimant explained that the oil spill caused 

its losses, and specifically stated that,

[a]s a direct result of the bad publicity that occurred after the oil spill, and the 

extraordinary decrease of tourists to our area, many individuals and businesses 

suffered losses in 2010 . . . our church ministry is solely dependent on the 

financial giving of these individual and area businesses. Due to the massive 

losses incurred by them, contributions to our ministry have decreased 

dramatically. 3

The Claimant alleged that decreases in “tithes and offerings” resulted in losses of $26,408 in the 

4th quarter of 2010, and losses of $25,215.00 in the 1st quarter of 2011, totaling losses of 

$51,623.00. 4

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 

1 Optional OSLTF Claim Form, dated 5 October 2011. 

2 Letter from the Claimant to the GCCF, dated 25 August 2011.

3 Letter from the Claimant to the GCCF, dated 25 August 2011.

4 GCCF Interim Payment Claim Forms, provided by the Claimant.

 
for uncompensated damages. One type of damages available pursuant to 33 C.F.R. § 136.231 is 

a claim for loss of profits or impairment of earning capacity due to injury to or destruction of 

natural resources.

Under 33 C.F.R. § 136.233 a claimant must establish the following:

(a) That real or personal property or natural resources have been injured, destroyed, or lost.

(b) That the claimant’s income was reduced as a consequence of injury to, destruction of, or 

loss of property or natural resources, and the amount of that reduction.

(c) The amount of the claimant’s profits or earnings in comparable periods and during the 

period when the claimed loss or impairment was suffered, as established by income tax 

returns, financial statements, and similar documents. In addition, comparative figures for 

profits or earnings for the same or similar activities outside of the area affected by the 

incident also must be established.

(d) Whether alternative employment or business was available and undertaken and, if so, the 

amount of income received. All income that a claimant received as a result of the 

incident must be clearly indicated and any saved overhead and other normal expenses not 

incurred as a result of the incident must be established. 

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. 

Under 33 C.F.R. § 136.235, the amount of compensation allowable for a claim involving loss of 

profits or impairment of earning capacity is limited to the actual net reduction or loss of earnings 

or profits suffered. Calculations for net reductions or losses must clearly reflect adjustments

for—

(a) All income resulting from the incident;

(b) All income from alternative employment or business undertaken;

(c) Potential income from alternative employment or business not undertake, but reasonably 

available;

(d) Any saved overhead or normal expenses not incurred as a result of the incident; and

(e) State, local, and Federal taxes.

DETERMINATION OF LOSS 

Claimant’s Submission to the OSLTF

To support this claim, the Claimant submitted the following documentation:

• Optional OSLTF Claim Form, dated 5 October 2011;

• Fax Cover Sheet, dated 5 October 2011;

• Letter from the Claimant to the NPFC, 25 September 2011;

• GCCF Denial Letter on Interim Payment/Final Payment Claim, 31 August 2011;

• Letter from the Claimant to the GCCF, 25 August 2011;

• GCCF Denial Letter on Interim Payment/Final Payment Claim, 20 July 2011;

• Letter from the Claimant to the GCCF, 19 April 2011;

• GCCF Interim Payment Claim Form, seeking $25,215.00 in loss of profits wages, 19 

April 2011;

• 2010 Monthly Profit and Loss Statement;

• 2011 Monthly Profit and Loss Statement, 2011;
• Letter from the Claimant to the GCCF, 25 April 2011;

• GCCF Denial Letter on Interim Payment/Final Payment Claim, 22 April 2011;

• GCCF Letter Re: Receipt of Interim Payment Claim Form, 26 January 2011;

• GCCF Interim Payment Claim Form, undated;

• Letter From the Claimant, undated;

• Profit and Loss Statement, 2009, 2010;

• 2010 Monthly Profit and Loss Statement;

• Document acknowledging 501(c)(3) status, 13 January 2000;

• Florida Department of State, acknowledgement re: Articles of Incorporation;

• State of Florida, corporate certification;

• Consumer’s Certificate of Exchange;

• Florida Department of State, Annual Report Online Filing

Prior to presentment to the NPFC, the Claimant submitted a First Quarter Interim Payment Claim 

(ICQ12011) and a Second Quarter Interim Payment Claim (ICQ22011) to the RP/GCCF. The 

Claimant was assigned Claimant ID 1188390, ICQ12011 was assigned Claim # 9244101 and 

ICQ22011 was assigned Claim # 9369031. The Claimant submitted both interim claims to the 

RP/GCCF, seeking loss of profits and wages damages in the amounts of $26,408.15 for 

ICQ12011, and $25,215.00 for ICQ22011.

5

Both claims were denied by the RP/GCCF. On 5 October 2011, the Claimant presented this 

claim to the NPFC, seeking loss of profits and earnings capacity damages in the amount of 

$51,623.00.6 This is the total amount presented by the Claimant in ICQ12011 and ICQ22011, 

both of which were denied by the RP/GCCF. Therefore, the NPFC may properly adjudicate the 

entirety of this claim, in the amount of $51,623.00.

NPFC Determination

Under 33 U.S.C. § 2702(b)(2)(E) and 33 C.F.R. Part 136, a claimant must prove that any loss of 

income was due to injury, destruction or loss of real or personal property or of a natural resource 

as a result of a discharge or substantial threat of a discharge of oil. 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 this claim.

In order to prove a claim for loss of profits and impairment of earnings capacity, a claimant must 

demonstrate (1) that she sustained an actual loss or reduction income, and (2) that the loss or 

reduction in income was caused by the discharge or substantial threat of discharge of oil, caused 

the Deepwater Horizon oil spill.

The Claimant has not demonstrated that the reduction in charitable giving to the Church was 

actually caused by the Deepwater Horizon oil spill. The Claimant has indicated that the 

Celebration Church relies on donations from a regularly attending congregation, rather than from 

donations by tourists in certain peak seasons.7

 The Claimant asserted that the community in 

which the Church is located is heavily reliant on the tourism industry; therefore any event that 

would have an effect on tourism is likely to affect charitable giving to the Church, due to 

economic hardships incurred by the Church’s congregants. 8

 However, the Claimant has not 

5 GCCF Interim Payment Claim Forms, provided by the Claimant.

6 Optional OSLTF Claim Form, dated 5 October 2011.

7 PHONECON: NPFC Staff and the Claimant, 6 Oct. 2011; See also, letter from the Claimant to the GCCF, dated 25 

August 2011.

8 Letter from the Claimant to the GCCF, dated 25 August 2011.

 
provided documentation to demonstrate that regular donors were actually unable to continue to 

donate because of effects of the Deepwater Horizon oil spill. 

This claim is denied because the Claimant has not met her burden to demonstrate (1) that she 

sustained a loss in the amount of $51,623.00, and (2) that the alleged loss is 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.

Claim Supervisor: NPFC Claims Adjudication Division

Date of Supervisor’s Review: 10/11/11

Supervisor’s Action: Denial approved

Supervisor’s Comments: