CLAIM SUMMARY/DETERMINATION FORM

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 09 November 2011, Teresa Reidl, (the Claimant), presented an Optional Oil Spill Liability Trust 

Fund (OSLTF) Claim Form to the National Pollution Funds Center (NPFC) seeking $9,000.00 in loss 

of profits and impairment of earnings capacity that allegedly resulted from the Deepwater Horizon 

oil spill.

The Claimant cleans private homes and condos on the beach in Pensacola, Florida.1

 The Claimant 

asserted that she lost many of her cleaning sites due to the Deepwater Horizon oil spill.2

 The 

Claimant explained that her customers lost their jobs on the beach due to the oil spill; thus, they were 

no longer able to hire her to clean their properties. 3

 

APPLICABLE LAW

The Oil Pollution Act of 1990 (OPA) provides that each responsible party for a vessel or facility 

from which oil is discharged into or upon the navigable waters or adjoining shorelines or exclusive 

economic zone is liable for removal costs and damages. 33 U.S.C. § 2702(a). Damages include the 

loss of profits or impairment of earning capacity due to the injury, destruction or loss of real 

property, personal property, or natural resources, which shall be recoverable by any claimant. 33 

U.S.C. § 2702(b)(2)(E).

The OSLTF, which is administered by the NPFC, is available to pay claims for uncompensated 

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

regulations at 33 C.F.R. Part 136. With certain exceptions a claim must first be presented to the 

responsible party. 33 U.S.C. § 2713(a). If the claim is either denied or not settled by any person by 

payment within 90 days after the date on which it 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).

1 Optional OSLTF Claim Form, dated 26 September 2011; Letter of claim explanation from the Claimant, dated 16 

October 2011. 

2 Optional OSLTF Claim Form, dated 26 September 2011.

3 Optional OSLTF Claim Form, dated 26 September 2011.

Claim Number N10036-1556

Claimant Teresa Reidl

Type of Claimant Private (US) 

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $9,000.00

 
Pursuant to the claims regulations, 33 C.F.R. § 136.233, a claimant must establish the following to 

prove loss of profits or impairment of earning capacity:

(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 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 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 undertaken, 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

The Claimant’s Submission to the OSLTF

In support of her claim, the Claimant presented the following documentation to the NPFC:

- Optional OSLTF Claim Form, dated 26 September 2011, received by the NPFC on 09 

November 2011;

- Letter of claim explanation from the Claimant, dated 16 October 2011;

- 2008 Monthly Profit Statement; 

- 2009 Monthly Profit Statement; 

- 2010 Monthly Profit Statement; 

- 2008 Form 1040 U.S. Individual Income Tax Return; 

- 2009 Form 1040X Amended U.S. Individual Income Tax Return; 

- 2009 Form 1040 U.S. Individual Income Tax Return; 

- 2010 U.S. Form 1040 Individual Income Tax Return; and
- Letter from the GCCF, Re: Follow-Up to Previous Denial Letter, dated 12 October 2011. 

Prior to presenting this Claim to the NPFC, the Claimant filed a Full Review Final (FRF) claim with 

the GCCF for loss of earnings in the amount of $9,000.00.4

 The Claimant was assigned Claimant ID 

# 3389106 and Claim # 9256456. The FRF claim was denied by the GCCF on 26 August 2011.5

Based upon the evidence provided by the Claimant, it appears that the subject matter for the 

Claimant’s GCCF claim is the same as the subject matter of her claim before the NPFC, i.e., that the 

Claimant lost customers of her cleaning service due to the Deepwater Horizon oil spill. The NPFC 

deems that the Claimant’s GCCF claim was properly presented to the RP and properly presented to 

the NPFC. Accordingly, this Claim Summary Determination for NPFC claim N10036-1556 

considers and addresses the earnings claimed in the claim presented to the responsible party, 

specifically; GCCF Claim # 9256456 (FRF). 

NPFC Determination

The claim is denied. 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. The NPFC considered all documentation presented by the 

Claimant.

This claim is denied because the Claimant failed to prove she suffered a financial loss due to the 

Deepwater Horizon oil spill. The Claimant asserted that she had earnings of $15,000.00 the year 

before the oil spill, but earned under $10,000.00 in 2010.6

 However, the Claimant’s financial records 

indicate that the Claimant had net profits of $15,698.00 in 2008, not 2009. 7 In 2009, the Claimant’s 

net profits dropped significantly to $5,951.00.8

 During 2010, the Claimant’s net profits actually 

increased to $8,557.00.

9

 

In the months after the Deepwater Horizon oil spill in 2010 (May-December), the Claimant’s gross 

earnings were more than double those for the corresponding time period in 2009. The Claimant’s 

average monthly earnings for May-December 2010 were $845.6310, compared to an average of 

$412.5011 in 2009 for the same period. Further, this monthly average ($845.63) was an increase from 

the Claimant’s monthly average of $807.5012 for the months in 2010 prior to the Deepwater Horizon 

(January-April). Consequently, the Claimant failed to prove that the Deepwater Horizon oil spill had 

any negative impact on her earnings considering that she earned more after the Deepwater Horizon 

oil than before it occurred. 

Additionally, the Claimant failed to provide documentation evidencing a reduction of customers due 

to the Deepwater Horizon oil spill. Even though the Claimant asserted that she lost many customers 

due to the Deepwater Horizon oil spill, the Claimant did not provide the NPFC with any customer 

lists or cleaning contracts that were cancelled due to the Deepwater Horizon oil spill. Consequently, 

4 Report from the GCCF, dated 05 December 2011. 

5 Denial Letter on Interim Payment/Final Payment Claim, dated 26 August 2011. 6 Letter of claim explanation from the Claimant, dated 16 October 2011. 

7 2008 Form 1040 U.S. Individual Income Tax Return. 

8 2009 Form 1040 U.S. Individual Income Tax Return.

9 2010 Form 1040 U.S. Individual Income Tax Return. 10 2010 Monthly Profit Statement. 11 2009 Monthly Profit Statement. 12 2010 Monthly Profit Statement.

 
the Claimant failed to prove that the Deepwater Horizon oil spill was the cause of any specific loss 

allegedly incurred by the Claimant 

This claim is denied because the Claimant failed to meet her burden to demonstrate (1) that there was 

an alleged loss in the amount claimed, 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: 12/8/11

Supervisor’s Actions: Denial approved

Supervisor’s Comments: