CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1415

Claimant Mr. Patrick Jefferson

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earning Capacity

Amount Requested $25,000.00

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 14 September 2011, Mr. Patrick Jefferson (the Claimant) presented a claim to the Oil Spill 

Liability Trust Fund (OSLTF) for $25,000.00 in natural resource damages resulting from the 

Deepwater Horizon oil spill.1

The Claimant alleged that he is a “local fisherman who sells fish. But due to the oil spill, [the 

Claimant] lost a lot of money.” 2

Claims for natural resource damages may only be brought by an “appropriate natural resources 

trustee” and not by a private individual claimant.3

 Therefore, the Claimant is not authorized to 

present a natural resources claim to the NPFC. The Claimant has alleged that due to the oil spill, 

he was no longer able to catch and sell fish for a profit. Therefore, this claim is based on an 

alleged reduced income as a consequence of injury to or destruction of natural resources, and 

falls within the OPA’s loss of profits damage category.4 Accordingly, the NPFC has reclassified 

this claim as a claim for loss of profits and impairment of earnings capacity in the amount of 

$25,000.00. 

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.

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

1 Optional OSLTF Claim Form, received on 14 September 2011.

2 Optional OSLTF Claim Form, received on 14 September 2011.

3 33 C.F.R. § 136.207(a).

4 33 C.F.R. § 136.233(b).

 
(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, received 14 September 2011;

• Copy of NPFC Claimant’s Guide;

• Spreadsheet entitled, “Loss of Wages;”

• Letter from the Claimant to GCCF, undated;

• Copy of fish receipts, signed by the Claimant.

Prior to presentment to the NPFC, the Claimant presented two Emergency Advance Payment 

claims (EAP1 and EAP2) to the RP/GCCF. EAP1 claimed lost profits or earnings and was 

assigned Claim # 186855. EAP2 claimed loss of subsistence use, and was assigned Claim # 

3025381. The Claimant was assigned ID 3132000. EAP1 and EAP2 were denied on 24 

November 2010 and 4 December 2010, respectively.

The Claimant then presented a First Quarter Interim Claim (ICQ12011) to the RP/GCCF. 

ICQ12011 was assigned Claim # 9319493. The Claimant received a determination letter on this 

claim, offering payment of $2,868.96 as an interim payment, as well as $5,000.00 as full and 

final payment, in a letter dated 8 June 2011. The Claimant accepted the offer on 24 June 2011 
and the GCCF subsequently issued payment upon receiving the Claimant’s signed Release and 

Covenant Not to Sue.5

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. 

This claim is denied because (1) the Claimant has signed a Release and Covenant Not to Sue in 

return for final payment from the RP/GCCF, and (2) the Claimant has failed to demonstrate that 

he has sustained a financial loss.

1. The Claimant has released rights regarding this injury to the RP/GCCF.

Based on the information available to the NPFC, the Claimant has accepted a Final payment 

from the RP/GCCF in the amount of $5,000.00, and been compensated a total of $7,868.96.6

 

The Claimant has executed a Release and Covenant Not to Sue in return for final payment.7

 By 

signing this document, the Claimant has released to the RP/GCCF, any rights to additional 

recovery regarding this injury.8 The Release executed by the Claimant specifically states, 

By signing this document, you are forever waiving and releasing all claims that 

you may have against BP or any other party . . . in connection with the 

[Deepwater Horizon oil spill].9

The Claimant has therefore waived rights to further recovery regarding the losses presented to 

the NPFC. Any payment from the Oil Spill Liability Trust Fund (the Fund) requires the 

acquisition of rights from the RP/GCCF. Because these rights have been released by the 

Claimant to the RP/GCCF, the Claimant cannot also recover from the Fund.

If the Claimant believes that payments received from the RP/GCCF are for damages other than 

those that are the subject of this claim, the Claimant must explain this in his request for 

reconsideration. The Claimant must also include copies of any and all waivers and covenants 

signed by the Claimant regarding injuries related to the Deepwater Horizon oil spill.

2. The Claimant has not provided documentation to demonstrate that he has sustained a loss 

of income as a result of the Deepwater Horizon oil spill.

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

demonstrate (1) that he sustained a loss or reduction in profits or earnings capacity, and (2) that 

loss or reduction was due to the discharge or substantial threat of discharge of oil caused by the 

Deepwater Horizon oil spill.

The Claimant has failed to demonstrate that he has sustained an actual financial loss. The 

Claimant indicated to the NPFC that he has not paid taxes on his earnings as a fisherman in the 

5 GCCF Claimant Status, accessed on 19 September 2011. 6 GCCF Claimant Status, accessed on 19 September 2011.

7 GCCF Claimant Status, accessed on 19 September 2011.

8 GCCF Release and Covenant Not to Sue.

9 GCCF Release and Covenant Not to Sue.

 
prior years because commercial fishing is something he does “on the side.”10 Furthermore, 

receipts for sales of fish, included in the Claimant’s submission, are signed only by the Claimant 

and not by the purchaser. Therefore, the receipts are not proof that the amounts on the receipts 

were actually paid by purchasers to the Claimant. 

Should the Claimant pursue this claim on reconsideration, the Claimant should present valid 

copies of trip tickets to substantiate the receipts submitted in the Claimant’s file, a copy of a 

valid commercial fishing license, and tax returns to substantiate his claimed $25,000.00 in 

damages.

This claim is denied because the Claimant (1) has released his rights for any further recovery 

regarding this alleged injury, to the RP/GCCF, (2) failed to meet his burden to demonstrate (a) 

that he sustained a loss in the amount of $25,000.00 and (b) failed to demonstrate that he any loss 

he may have sustained was due to 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: 9/21/11

Supervisor’s Action: Denial approved

Supervisor’s Comments:

10 PHONECON: NPFC Staff and the Claimant, 19 September 11, EM