CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1534

Claimant Michael G. Rios, Jr.

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $4,000.00

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 claims for certain individual and business 

claims on behalf of BP.

CLAIM AND CLAIMANT

On 31 October 2011, Michael G. Rios, Jr. (the Claimant) presented a claim to the Oil 

Spill Liability Trust Fund (OSLTF) for $4,000.00 for loss of profits and impairment of 

earnings capacity resulting from the Deepwater Horizon oil spill. 

The Claimant works for US Environmental Services, Inc. in Raceland, Louisiana.1 US 

Environmental Services cleans the boats that carry supplies to oil rigs in the Gulf.2

 The 

supplies include the “liquid mud” that is used in oil well drills. The rigs include on-shore 

and off-shore, shallow-water and deep-water rigs.3 The Claimant stated that work on the 

boats declined after the oil spill and he lost earnings. 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 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.

1 US Environmental Services pay stubs dated 20 August and 07 October 2011

2 Telephone conversation between the Claimant and the NPFC Claims Adjuster 14 November 2011 3 Telephone conversation between the Claimant’s supervisor, Randy Dardar, and the NPFC Claims 

Adjuster 14 November 2011

4 OSLTF Claims Form

2

 
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, Claimant submitted the following documentation:

• OSLTF Claims Form

• US Environmental Services pay stubs dated 20 August and 07 October 2011

• IRS Income Tax Return Transcript for 2010

• Claimant’s letter dated 26 October 2011 explaining his claim

• Claimant’s letter dated 08 November 2011 in response to NPFC AI Letter dated 

02 November 2011

3
On 02 November 2011, the NPFC sent the Claimant a letter requesting additional 

information in order to further evaluate the claim. On 09 November 2011, the Claimant 

responded to the request.

Before presenting the claim to the NPFC, the Claimant filed an Interim Claim 

(ICQ12011) with the GCCF. The claim was assigned Claimant ID #3494319 and claim 

#9263486.

5 The EAP claim was denied on 06 May 2011.6

 

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

the GCCF claims is the same as the subject matter of the claim before the NPFC, i.e., 

Claimant lost earnings as a result of the Deepwater Horizon oil spill. The NPFC has not 

been able to confirm the amount of either the EAP or ICQ12011 claims as of the date of 

this determination. The NPFC deems the GCCF claims to be properly presented to the 

Responsible Party. To the extent the amount of the claims presented to the Responsible 

Party are equal to or greater than the amount currently presented to the NPFC, the subject 

claim is properly presented to the NPFC. Accordingly, this Claim Summary 

Determination for NPFC Claim N10036-1534 considers and addresses the loss of 

earnings up to the amount of $4,000.00 for all claims presented to the Responsible Party, 

specifically: GCCF Claim #3494319 ICQ12011.

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 or destruction or loss of real or personal property or 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. 

The Claimant’s loss of earnings is a result of an intervening cause due to the federal oil 

drilling moratorium after the oil spill and the higher oil drilling standards in force after 

the moratorium and not the discharge or threat of discharge of oil. Both the Claimant and 

the Claimant’s employer, US Environmental Services, stated that after the drilling 

moratorium, fewer boats were needed to supply the oil rigs in the Gulf and US 

Environmental had fewer boats to clean.7

This claim is denied because the Claimant failed to meet the 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.

5 GCCF On-Line Claim Status 6 GCCF Denial Letter 06 May 2011

7 Telephone conversation between the Claimant and Claimant’s supervisor, Randy Dardar, and the NPFC 

Claims Adjuster 14 November 2011

4

 
Claim Supervisor: Claims Adjudication Division

Date of Supervisor’s Review: 15 November 2011

Supervisor’s Action: Denial approved

Supervisor’s Comments:

5