U.S. Department of 

Homeland Security 

Director

National Pollution Funds Center

US COAST GUARD MS 7100 

4200 Wilson Blvd. Suite 1000 

United States 

Coast Guard 

Arlington, VA 20598-7100 

Staff Symbol: (CN) 

Phone: 

@uscg.mil 

 16480 

May 31, 2012 

Cindy Dohner 

Regional Director, USFWS Southeast Region 

1875 Century Blvd., Suite 400 

Atlanta, GA 30345 

RE: Claim Number: N10036-OI09 – Deepwater Horizon Oil Spill Assessment, Kemp’s 

ridley 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 $396,434, representing 

$344,725 to implement the Kemp’s ridley nesting plan and $51,709 for contingency. We 

have determined that $344,725 of claimed costs is compensable and approve $51,709 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. 

Incident and Background 

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 

 

1

 Subject to the NPFC’s contingency policy 

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 
miles of oiled shoreline habitat, 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 April 30, 2012, the NPFC received a claim from DOI for costs to implement the 

Kemp’s ridley nesting plan, one of the 25 studies included in the comprehensive 

assessment plan. The claim totaled $396,434, representing $344,725 for labor and 

contract costs to implement the nesting plan and $51,709 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, and May 29, 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 April 30, 2012 for $396,434 to 

implement the Kemp’s ridley 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 April 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 

 

5

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

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

2 
adopted and posted its comprehensive assessment plan on its website6

. The 

comprehensive plan included the Kemp’s ridley nesting plan subject to this claim. Thus, 

this claim to the NPFC for funds to implement the Kemp’s ridley 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). 

DOI’s administrative record for this claim indicates that they presented BP with their 

comprehensive assessment plan and claim for implementation costs on July 5, 20117

. 

This plan included 2011 and 2012 activities to assess potential exposure and injury to 

Kemp’s ridley nesting adults, hatchlings, and eggs from Deepwater Horizon oil and 

dispersants ( i.e., the Kemp’s ridley nesting plan), with a total cost of $386,704. BP 

responded to DOI in a letter dated July 28, 2011, agreeing to fund the 2011 Kemp’s 

activities for $41,979 and revisit funding of the 2012 activities in the first quarter of 

20128. On March 16, 2012, DOI again requested funding for the 2012 Kemp’s ridley 

nesting plan activities and provided additional information about proposed work9. The 

record does not indicate that BP responded. Thus, the claim for $344,72510 was not 

settled within 90 days, allowing presentment to the Fund as uncompensated damages. 

After review of the claim, the NPFC finds that DOI has met the presentment 

requirements under OPA and the claims regulations. 

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 Kemp’s ridley sea turtles, a species listed under the 

Endangered Species Act. The trustees recovered Kemp’s ridley sea turtles, many of 

which were visibly oiled. 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 environment11. 

 

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 7

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

(MC252) Spill, dated July 1, 2011. The Kemp’s ridley nesting plan is included in this Plan as Activity 4.1. 8

 Letter from BP to DOI dated July 28, 2011 

9

 Email from DOI to BP dated March 16, 2012 10 Total claimed amount to implement the Kemp’s ridley nesting plan ($386,704) minus partial payment from BP 

($41,979) = uncompensated damages ($344,725) 11 2010 adopted trustee plan titled “Preassessment Plan to Determine Potential Exposure and Injuries of Nesting and 

Hatchling Kemp’s ridley Turtles” (see: http://www.doi.gov/deepwaterhorizon/adminrecord/upload/PreassessmentPlan-to-Determine-Potential-Exposure-and-Injuries-of-Nesting-and-Hatchling-Kemps-Ridley-Sea-Turtles9_7_10.pdf) 

3 
This claim seeks funds to implement the Kemp’s ridley nesting plan. The objectives of 

this activity 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. The results will be compared with similar data collected prior to the spill 

to determine potential injury to Kemp’s ridley sea turtles resulting from the incident. 

DOI claims $344,725 for this activity. Costs are for contracts with Texas A&M and 

USGS Columbia Environmental Research Center, which include staff time, supplies for 

biopsies, sample collection, satellite tracking, shipping of samples, associated travel, and 

indirect costs for both Texas A&M and USGS Columbia Environmental Research Center. 

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

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

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

$344,725 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 $51,709, or 15 percent of total claimed amount ($344,725), for contingency 

costs associated with implementation of the Kemp’s ridley 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 $51,709. 

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 the trustees in a revolving trust account without further 

appropriation for use only to reimburse or pay costs incurred by the trustee 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 $344,725 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 Kemp’s ridley nesting plan approved by this 

determination. One year from the date of this determination, and annually thereafter, 

DOI shall provide the NPFC with a report on the status of study implementation and 

expenditures. These annual progress reports should include the following: 

1. Certification by DOI that the Kemp’s ridley nesting plan has been implemented as 

approved in this determination; 

2. A description of work accomplished, a timeline for future work, and any 

unexpected problems incurred during implementation; 

3. A summary of expenditures by category (i.e., labor, contracts, 

purchases/expendables, travel, and government equipment); 

4. 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; and 

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

received for the study approved in this determination. 

In addition to the annual reporting requirements, DOI shall submit a final progress report 

for the approved study within 120 days of the date the funded assessment study is 

completed. This report should include the following: 

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

with the Kemp’s ridley nesting plan as approved by the NPFC; 

2. A summary of assessment study findings; 

3. Copies of final reports and/or studies; 

4. Documentation of OSLTF funds remaining, including account balance and 

interest earned; 

5. 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; 

5 
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. 

6. 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). 

The NPFC has prepared standardized templates with detailed instructions to facilitate 

annual progress and final cost reporting. These templates are provided on the compact 

disc (CD) included with this determination. 

Summary 

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

Kemp’s ridley 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 $344,725 is 

compensable. 

This offer constitutes full and final payment of DOI assessment costs for the Kemp’s 

ridley 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 

 

6 
Sincerely, 

 

 Fredy Hernandez 

 Claims Manager 

 Natural Resource Damages 

Enclosures: Acceptance/ Release Form 

 CD with Annual and Final Reporting Forms and Instructions 

 NPFC Contingency Policy 

 

 

7 
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-OI09 Claimant Name: The U.S. Department of the Interior 

 

 

 

On April 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 $396,434 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 $344,725 as full 

compensation for the Kemp’s ridley nesting plan as described in the May 31, 2012 

determination (N10036-OI09). 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 May 31, 2012 determination. 

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

May 31, 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 May 31, 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 May 31, 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 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