U.S. Department 

of Homeland Security

United States 

 Coast Guard

Director 

United States Coast Guard 

National Pollution Funds Center 

U.S. Coast Guard Stop 7100 

National Pollution Funds Center 

4200 Wilson Boulevard, Suite 1000 

Arlington, VA 20598-7100 

Phone: 

E-mail: @uscg.mil 

 16480 

December 18, 2012 

David G. Westerholm 

1315 East-West Highway 

Silver Spring, MD 20910 

RE: Claim Number: M12037-OC02 – M/V Jireh Oil Spill, Emergency Restoration 

Dear Mr. Westerholm: 

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 National Oceanic Atmospheric 

Administration (NOAA) on behalf of itself and the Puerto Rico Department of Natural and 

Environmental Resources (PRDNER). The claim totals $201,587.50 for upfront costs to 

implement emergency actions to restore natural resource injuries resulting from the M/V Jireh 

incident. We have determined that $201,587.50 of claimed costs is compensable 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. 

Summary of the Incident and Claim 

On June 21, 2012, the coastal freighter M/V Jireh ran aground on the south shore of Mona Island, located 

40 miles west of the main island of Puerto Rico. The vessel grounded on a rocky shoreline within a 

designated natural reserve with known coral reef habitat. The United States Coast Guard (USCG) 

determined that the vessel presented a substantial threat of oil discharge and initiated response actions to 

remove the threat by dismantling and disposing of the vessel1

. During these response efforts, the USCG 

used anchors and tow lines to stabilize the M/V Jireh and secure platforms for the salvage operation. 

These cables and anchors dislodged, damaged, and broke an estimated 950 corals, including 12 colonies 

of Elkhorn coral (a federally threatened species). The trustees temporarily righted and stabilized these 

corals during the response activities to destroy the vessel.2

 The response action was completed on 

October 5, 2012. No responsible party has been identified for the incident. 

On November 16, 2012, the NPFC received a claim from NOAA for costs to implement emergency 

restoration actions to to permanently reattach the dislodged, damaged and broken corals injured by the 

 

1

 Memo from CAPT M.D. Stegman dated July 5, 2012 

Claim Number: M12037-OC02 

1 of 8 

2

 Funding for the temporary stabilization of the corals was provided under the Interagency Grant (IAG) and is not 

part of this claim. 
response actions. NOAA’s claim, as initially presented, totaled $170,025.50, for costs to reattach 

dislodged, damaged and broken corals. On December 10, 2012, NOAA revised their sum certain to 

$201,587.50, reflecting an error in their original claim submission. 

 

Jurisdictional Information 

The NPFC first considered whether the claimed damages arose from an incident as defined under 

OPA (33 U.S.C. 2701 et seq.). To be covered, the incident must involve a discharge of oil or a 

substantial threat of discharge of oil from a vessel or facility into navigable waters of the United 

States after August 18, 1990. Based on the information in the claim record, the NPFC finds that 

this claim is for natural resource damages resulting from an OPA incident. 

Claimant Eligibility 

Federal natural resource trustees are designated by the President pursuant to OPA. 33 U.S.C. 

§2706 (b)(2). Federal trustees designated under this section assess natural resource damages for 

natural resources under their trusteeship (33 U.S.C. §2706(c)(1)(A)) and may present claims to 

the Oil Spill Liability Trust Fund (OSLTF or the Fund) for uncompensated natural resource 

damages. 

This claim for emergency restoration costs was submitted by NOAA on behalf of itself and 

PRDNER. NOAA, under the authority of the Secretary of Commerce is a designated federal 

natural resource trustees pursuant to the President’s designation of federal trustees under OPA, 

Executive Order 12777 (56 Fed. Reg. 54757, October 22, 1991), and Subpart G of the National 

Oil and Hazardous Substances Pollution Contingency Plan (40 C.F.R. §300.600). PRDNER is a 

designated natural resource trustee for Puerto Rico based on a delegation letter from the 

Governor of Puerto Rico on file with the NPFC3

. 

Claim Presentment to the Responsible Party 

No responsible party (RP) has been identified for this incident; therefore, there is no RP 

presentment requirement. 

Claimant's Burden of Proof and Adherence to NRDA Regulations

Under OPA, trustees bear the burden of proving their entitlement to the amount claimed for 

compensation of natural resource damages. 33 C.F.R. §136.105. Any determination or 

assessment of damages to natural resources for the purposes of OPA by a trustee in accordance 

with the NOAA regulations at 15 C.F.R. Part 990 shall have the force and effect of a rebuttable 

 

Claim Number: M12037-OC02 

2 of 8 

3

 Letter from Anibal Acevedo Vila (Governor of Puerto Rico) to Christopher Abrams (NPFC) dated February 1, 

2006 
presumption on behalf of the trustee in any administrative or judicial proceeding under this Act. 

33 U.S.C. § 2706(e)(2). 

Determination to Conduct Emergency Restoration 

The NOAA regulations provide that trustees may take emergency restoration before completing 

the process under this part, provided that: (1) The action is needed to avoid irreversible loss of 

natural resources, or to prevent or reduce any continuing danger to natural resources or similar 

need for emergency action; (2) The action is feasible and likely to succeed; (4) Delay of the 

action to complete the restoration planning process established in this part likely would result in 

increased natural resource damages; and (4) The costs of the action are not unreasonable. 15 

C.F.R §990.26 (a)(1)-(5).4

 

The trustees determined that the proposed emergency actions to permanently reattach corals 

broken and or dislodged by response action is needed to avoid the irreversible loss of the corals 

because it will prevent ongoing harm to the established corals reefs. If broken corals are 

reattached in a timely fashion their chance of survival is good. Also, stabilization and 

reattachment of corals and loose rubble is critical to prevent or reduce further injury because 

loose coral has the potential to move with wave action and injure the loose coral that may have 

survived and any nearby coral that it may strike. The proposed methods of reattachment have 

been used successfully for this type of restoration effort and proposed costs are not unreasonable 

for the proposed effort. Accordingly, the NPFC finds that the trustees met the requirements for 

proceeding with emergency restoration actions. 15 C.F.R.§990.26. 

15 C.F.R. 990.26(d) provides that the Trustees must provide notice to the public, to the extent 

practicable, of the planned emergency restoration actions and must provide public notice of the 

justification for, nature and extent of, and results of emergency restoration within a reasonable 

time frame after completion of such actions. The Trustees prepared a bilingual “Notice of 

Emergency Restoration Actions for the M/V/ Jireh Grounding Incident” and posted it on the 

Puerto Rico Department of Natural and Environmental Resources website. 

NPFC Review of Claim and Associated Costs 

The trustees claim a total of $201,587.50 for efforts to permanently reattach the +/-950 corals to 

ensure further injuries do not occur and to monitor the survival of the corals. Costs include 

vessel charters, contract personnel, trustee agency labor, supplies and equipment, and travel5

. 

The majority of costs are for agency6 and contract7 labor ($95,070) to reattach and monitor the 

coral and vessel charters ($38,800) for a total of 20 days. 

 

4

 15 CFR 990.26 also provides that the emergency action will not be undertaken by the lead agency and if the 

response actions are not complete trustees must coordinate with the onscene coordinator. In this claim the 

response action is complete and no onscene coordination is required. 5

 $96,215.50 to tag and reattach coral, $31,562 to monitor attached coral (45 days), $40,410 for December 2013 

monitoring, and $33,400 for trustee administrative costs 6

 NOAA Restoration Field Manager, NOAA Coral Restoration Coordinator, and PRDNER Biologist 

Claim Number: M12037-OC02 

3 of 8 

7

 Project Mgr / Dive Master, Scientific Diver(2), Support/Safety Diver, M/V Coral Queen II Captain, and M/V 

Coral Queen II Deck Hand(2) 
The trustees emergency restoration plan describes the methods for coral reattachment, which 

have been used successfully in similar coral restoration efforts. The plan also details the 

proposed effort to tag 10 percent of reattached coral for monitoring, scheduled to occur 45 days 

after reattachment with final monitoring after one year. 

After careful review of the claim and supporting documents, the NPFC finds that the trustees 

followed 15 C.F.R. Part 990 et seq. NOAA certifies that the elements of the claim were 

developed in cooperation with other trustees to ensure no double recovery of damages; the 

trustees, prepared a emergency restoration plan that was reviewed by the public, and they are 

maintaining an administrative record. 

The NPFC finds that the trustees have meet the requirements for an emergency restoration claim 

under OPA and that claimed costs are reasonable and appropriate given the facts of the incident. 

The NPFC has, therefore, determined that claimed amount of $201,587.50 is compensable from 

the Fund. 33 C.F.R. §136.211. 33 C.F.R. §136.105. 

Revolving Trust Fund and Return of Unused Funds to the OSLTF 

As established by OPA (33 U.S.C. §2706(f)) and NRDA regulations (15 C.F.R. §990.65), sums 

recovered by trustees for natural resource damages must be retained by the trustees in a 

revolving trust account. All sums must be used to implement the trustees’ emergency restoration 

plan, as approved by this determination. All unused funds shall be returned to the OSLTF in a 

timely basis and no later than six months from the completion of the work as described in this 

determination in accordance with 15 C.F.R. §990.65. 

Cost Documentation, Progress Reporting, and Final Report

As the Lead Administrative Trustee, NOAA shall ensure that all expenditures of OSLTF funds 

are documented appropriately and spent according to the Plan approved by this determination. 

NOAA shall provide the NPFC with a final report no later than 120 days from the completion of 

the work that includes the following: 

1. Certification by NOAA that all expenditures of OSLTF funds were in accordance with the 

plan as approved by the NPFC; 

2. A narrative description of the work accomplished by each individual and how that work fits 

into the overall progress of the work 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; 

3. An accounting, including the source and value, of any additional compensation received for 

the work approved in this determination; 

4. A summary of completed work; 

5. Copies of final reports; 

6. Documentation of OSLTF funds remaining, including account balance and interest earned; 

7. Documentation of all expenditures as follows: 

a. Labor: For each employee – 

Claim Number: M12037-OC02 

4 of 8 
i. A narrative description of the work accomplished by each individual and how that 

work fits into the approved plan. 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; 

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. 

With the final report(s), the NPFC will reconcile costs. All unused funds shall be returned to the 

OSLTF on a timely basis and no later than six months from the completion of the work 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 as an attachment that 

accompanies this determination. 

Summary 

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

emergency restoration 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 $201,587.50 is compensable. 

This offer constitutes full and final payment to NOAA for costs to implement the emergency 

restoration plan associated with the M/V Jireh 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), Treasury Accounting Symbol (TAS) number, and instruction for the transfer of 

funds 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 . 

 

Claim Number: M12037-OC02 

5 of 8 
 Sincerely 

 

 

 Fredy Hernandez 

 Natural Resource Damages 

 Claims Manager 

Enclosures: Acceptance/ Release Form 

 

 

Claim Number: M12037-OC02 

6 of 8 

Title of Witness Date of Signature 

Typed or Printed Name of Witness Signature 

ALC Required for Payment Bank Routing Number Bank Account Number 

Claim Number: M12037-OC02 

8 of 8