The review of the actual cost invoicing and dailies focused on: (1) whether the actions 

taken were compensable “removal actions” under OPA and the claims regulations at 33 

CFR 136 (e.g., actions to prevent, minimize, mitigate the effects of the incident); (2) 

whether the costs were incurred as a result of these actions; (3) whether the actions taken 

were consistent with the NCP or directed by the FOSC, and (4) whether the costs were 

adequately documented. 

APPLICABLE LAW: 

Under OPA 90, at 33 USC § 2702(a), responsible parties are liable for removal costs and 

damages resulting from the discharge of oil into navigable waters and adjoining 

shorelines, as described in Section 2702(b) of OPA 90. A responsible party’s liability 

will include “removal costs incurred by any person for acts taken by the person which are 

consistent with the National Contingency Plan”. 33 USC § 2702(b)(1)(B).

"Oil" is defined in relevant part, at 33 USC § 2701(23), to mean “oil of any kind or in any 

form, including petroleum, fuel oil, sludge, oil refuse, and oil mixed with wastes other 

than dredged spoil”.

The Oil Spill Liability Trust Fund (OSLTF), which is administered by the NPFC, is 

available, pursuant to 33 USC §§ 2712(a)(4) and 2713 and the OSLTF claims 

adjudication regulations at 33 CFR Part 136, to pay claims for uncompensated removal 

costs that are determined to be consistent with the National Contingency Plan and 

uncompensated damages. Removal costs are defined as “the costs of removal that are 

incurred after a discharge of oil has occurred or, in any case in which there is a 

substantial threat of a discharge of oil, the costs to prevent, minimize, or mitigate oil 

pollution from an incident”.

Under 33 CFR 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 CFR 136.105(b) each claim must be in writing, for a sum certain for each 

category of uncompensated damages or removal costs resulting from an incident. In 

addition, under 33 CFR 136, the claimant bears the burden to prove the removal actions 

were reasonable in response to the scope of the oil spill incident, and the NPFC has the 

authority and responsibility to perform a reasonableness determination. Specifically, 

under 33 CFR 136.203, “a claimant must establish -

(a) That the actions taken were necessary to prevent, minimize, or mitigate the effects of 

the incident;

(b) That the removal costs were incurred as a result of these actions;

(c) That the actions taken were determined by the FOSC to be consistent with the 

National Contingency Plan or were directed by the FOSC.”

Under 33 CFR 136.205 “the amount of compensation allowable is the total of 

uncompensated reasonable removal costs of actions taken that were determined by the 

FOSC to be consistent with the National Contingency Plan or were directed by the 
FOSC. Except in exceptional circumstances, removal activities for which costs are being 

claimed must have been coordinated with the FOSC.” [Emphasis added]. 

Under 33 CFR 136.105(e)(8), the claim must include the reasonable costs incurred by the 

claimant in assessing the damages claimed. This includes the reasonable costs of 

estimating the damages claimed, but not attorney's fees or other administrative costs 

associated with preparation of the claim.

DETERMINATION OF LOSS: 

A. Overview:

1. The initial FOSC coordination has been established via USCG Sector Puget Sound Case 

Report # 527512.5

2. The incident involved the report of a discharge of “oil” as defined in OPA 90, 33 U.S.C. 

§ 2701(23), to navigable waters.

3. In accordance with 33 CFR § 136.105(e)(12), the claimant has certified no suit has been 

filed in court for the claimed uncompensated removal costs.

4. The claim was submitted within the six year statute of limitations.

5. A Responsible Party could not be determined.

6. The NPFC Claims Manager has thoroughly reviewed all documentation submitted with 

the claim and determined what removal costs presented were for actions in accordance 

with the NCP, and if the costs for these actions were indeed reasonable and allowable 

under OPA and 33 CFR § 136.205.

B. Analysis:

NPFC CA reviewed the actual cost invoices and dailies to confirm that the claimant had 

incurred all costs claimed. The review focused on: (1) whether the actions taken were 

compensable “removal actions” under OPA and the claims regulations at 33 CFR 136 (e.g., 

actions to prevent, minimize, mitigate the effects of the incident); (2) whether the costs were 

incurred as a result of these actions; (3) whether the actions taken were determined by the 

FOSC, to be consistent with the NCP or directed by the FOSC, and (4) whether the costs 

were adequately documented and reasonable. 

The Claims Manager validated the costs incurred and determined whether or not they were 

reasonable, necessary and performed in accordance with the National Contingency Plan 

(NCP).

Based on the documentation provided by Golden Shamrock, it appears that the legal fees

claimed are not related to the removal of oil; rather, they are costs incurred due to the 

research and overturning of the Administrative Order, the research of OPA law and the 

review of the claimant’s insurance policy. Therefore, the legal fees totaling $3,902.50 are 

not removal costs and are therefore denied.

On that basis, the Claims Manager hereby determines that the claimant did in fact incur 

$8,051.36 of uncompensated removal costs and that that amount is payable by the OSLTF as 

full compensation for the reimbursable removal costs incurred by the claimant and submitted 

to the NPFC under claim #911016-0001. The claimant states that all costs claimed are for 

5 See USCG Sector Puget Sound Case Report # 527512, dated 10/27/2010

 
uncompensated removal costs incurred by the claimant for this incident from October 27 

through October 28, 2010. 

C. Determined Amount: 

The NPFC hereby determines that the OSLTF will pay $8,051.36 as full compensation for 

the reimbursable removal costs incurred by the Claimant and submitted to the NPFC under 

claim #911016-0001. These costs are for charges paid for by the Claimant for removal 

actions as that term is defined in OPA and, are compensable removal costs, payable by the 

OSLTF as presented by the Claimant. 

AMOUNT: $8,051.36

Claim Supervisor:

Date of Supervisor’s review: 1/5/11 

Supervisor Action: Approved 

Supervisor’s Comments: