CERTIFIED MAIL – RETURN RECEIPT REQUESTED 5890/DWHZ 

Number: 7012 2210 0001 7215 0155 2 May 2013 

 

James Case Oil, Inc.

Re: Claim Number: N10036-1916 

Dear Mr. White, 

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 N10036-1916 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 N10036-1916. 

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

cc: James Case Oil, Inc. By Certified Mail: 

 No. 7012 2210 0001 7215 0162 

 

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: 703-872-6113
CLAIM SUMMARY/DETERMINATION FORM

Claim Number N10036-1916

Claimant James Case Oil, Inc.

Type of Claimant Private (US)

Type of Claim Loss of Profits or Impairment of Earning Capacity

Amount Requested $387,875.00

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 

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.

On 08 March 2012, the United States District Court, Eastern District of Louisiana issued a 

"Transition Order" (TO) limiting the GCCF's ability to accept, process, or pay claims except as 

provided in that order. The TO created a Transition Process (TP) to facilitate the transition of the 

claims process from the GCCF to a proposed Court Supervised Settlement Program (CSSP). The 

Court granted Preliminary Approval of the proposed settlement agreement on 02 May 2012, and 

the CSSP began processing claims on 04 June 2012.

CLAIM AND CLAIMANT

On 23 April 2013, Mr. John White, on behalf of James Case Oil, Inc, (collectively, “the 

Claimant”) submitted a claim to the Oil Spill Liability Trust Fund (OSLTF) seeking $387,875.00

in loss of profits or impairment of earning capacity damages allegedly resulting from the 

Deepwater Horizon oil spill.

1

 

The Claimant is located in Brookhaven, MS and describes itself as a “family owned and operated 

fuel distributor to stations for resale, trucking companies, oilfield businesses, local country 

stores, loggers and farmers.”2 The Claimant does not specifically state how the oil spill affected 

their business in particular, but states generally that the oil spill

caused an immediate negative impact to both businesses and individuals in the 

Gulf Coast region. Tourism and income generated by tourism in the Gulf Coast 

region came to a halt. The Claimant’s business is among those who lost business 

because of the Deepwater Horizon oil spill.3

The Claimant uses prior year earnings in determining that they sustained a loss of $387,875.00 as 

a result of the Deepwater Horizon oil spill.4

1 Optional OSLTF Claim Form, signed on 18 April 2013. 2 Faust & Associates, Description of Client.

3 Optional OSLTF Claim Forma, signed on 18 April 2013.

4 Faust & Associates Report, pg. 13.

 
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 

water, adjoining shorelines, or the exclusive economic zone of the United States, as described in 

§ 2702(b) of OPA. 

The OSLTF 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. 

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; and

(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 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.

Under 33 U.S.C. § 2712(f), payment of any claim or obligation by the Fund under OPA shall be 

subject to the United States Government acquiring, by subrogation, all rights of the claimant or 

State to recover from the responsible party.

DETERMINATION OF LOSS 

Claimant’s Submission to the NPFC

The Claimant submitted the following documentation in support of this claim:
− Claim cover letter, 18 April 2013;

− Optional OSLTF Claim Form, signed on 18 April 2013;

− Faust & Associates, Full Review Final Payment, Claimant Specific Data;

− Mississippi, 2007 Corporate Annual Reports, 2007, 2008, 2009, 2010, 2011;

− Federal and State Tax Returns, 2007 – 2011;

− Profit and Loss Statements, 2007 – 2011;

− Business Permit, James Case Oil, Inc.;

− Resolution authorizing corporate agent, Janice C. Britt.

The Claimant alleged that this claim was presented to the responsible party on 18 January 2013, 

where the Claimant was assigned ID # 1015243-01.

5

 According to the Claimant, the responsible 

party has not yet issued a determination on this claim.

On 23 April, the Claimant submitted this claim to the NPFC seeking $387,875.00 in loss of 

profits or impairment of earning capacity damages. Because it appears as though the Claimant 

previously submitted the same claim to the responsible party, and because the claim has not been 

settled by payment within ninety days of presentment, OPA presentment requirements have been 

satisfied.6

Furthermore, evidence in this claim submission indicates that the geographic location of the 

Claimant’s business likely excludes them from the Deepwater Horizon oil spill economic and 

property damages class action settlement (the E&PD Settlement).7

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 all evidence, information, and 

documentation deemed necessary by the Director, NPFC, to support the claim.

In order to prove a claim for loss of profits damages, a claimant must provide evidence sufficient 

to prove (1) that the Claimant sustained a loss or reduction in income, and (2) that the financial 

loss was caused by the discharge of oil resulting from the Deepwater Horizon oil spill.

This claim is denied because the claimant has not demonstrated that they sustained a financial 

loss as a result of the Deepwater Horizon oil spill. In support of their claim, the Claimant 

provided profit and loss statements, federal income tax returns and a report concluding that the 

Claimant sustained $387,875.00 in losses in 2010. However, proffered financial data fails to

indicate that the business sustained an economic loss, and the Claimant has failed to provide any 

evidence to indicate how the oil spill may have caused the alleged losses.

5 Optional OSLTF Claim Form, signed on 18 April 2013. 6 33 C.F.R. § 136.103(c)(2).

7 The Claimant is located in Brookhaven, MS, which appears to be outside of the Economic Loss Zone. See, e.g., 

http://www.deepwaterhorizonsettlements.com/Documents/Economic%20SA/Ex1A_Map_of_Economic_Loss_Zone

s.pdf, accessed on 1 May 2013.

 
1. Failure to prove a financial loss.

Tax returns submitted in support of this claim indicate that the Claimant recorded higher total 

income in 2010 than in any year from 2007 through 2011. The Claimant reported total income in 

2008, 2009, 2010 and 2011 of $502,918.00, $552,801.00, $744,075.00 and $698,718.00 

respectively.8 Furthermore, profit and loss statements indicate that the Claimant’s sales revenue 

fails to indicate that the Claimant’s sales decreased at any time from May through December of 

2010. Rather, 2010 sales revenue was and was significantly increased throughout the year as 

compared to 2009.

2. Failure to prove oil spill causation.

In order to prove a claim for loss of profits damages, a claimant must provide evidence to prove 

that their alleged loss was caused by the discharge of oil resulting from a particular oil spill. In 

this instance, the Claimant has not provided any proof to indicate that the business was somehow 

affected by the Deepwater Horizon oil spill, only citing a general economic impact of the oil spill 

“in the Gulf Coast region” as the basis for the alleged loss.9 However, the location of the 

business alone does not serve as proof that the Claimant was affected by the oil spill..

Based on the foregoing, this claim is denied because the Claimant has failed to provide evidence 

sufficient to prove (1) that they sustained a financial loss in the amount $387,875.00, or (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 discharge of oil. 

Claim Supervisor: NPFC Claims Adjudication Division

Date of Supervisor’s Review: 5/3/12

Supervisor’s Action: Denial approved

Supervisor’s Comments: 

8 Federal Tax Returns, Forms 1120s.

9 Optional OSLTF Claim Form, signed on 18 April 2013.