CLAIM SUMMARY / DETERMINATION FORM

Claim Number N10036-1682

Claimant Michael J McRae

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $102,600.00

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 

certain individual and business claims on behalf of BP. 

CLAIM AND CLAIMANT

On 13 February 2012, Michael J McRae (Claimant) presented an optional Oil Spill Liability 

Trust Fund (OSLTF) claim form seeking $102,600.00 for loss of profits and impairment of 

earnings capacity to the National Pollution Funds Center (NPFC) alleging damages resulting 

from the Deepwater Horizon oil spill. 

The Claimant worked for Dominion Entertainment (Boat Trader) in Norfolk VA as a recreation 

vehicles salesman from 2006 through 2008.1 In March 2010, the Claimant went to work for 

Sunrise Marine in Mary Esther Florida.2 The Claimant alleges he earned significantly more with 

Dominion Entertainment than Sunrise Marine due to the Deepwater Horizon Oil Spill.3

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 § 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:

(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.

1 2006 through 2008 W-2s from Dominion Entertainment. 2 Claimant letter dated 28 October 2011 addressed to BP claims. 

3 Claimant letter dated 28 October 2011 addressed to BP claims.

 
(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 his claim, the Claimant submitted the following documentation: 

− Optional OSLTF claim form dated 02 February 2012, received 13 February 2012

− Employer letter from Sunrise Marine dated 23 June 2011

− Claimant letter explaining claim - undated

− Claimant letter explaining claim dated 28 October 2011

− Affidavit from Claimant stating intentions to purchase a home in Pensacola FL but for the 

oil spill dated 05 August 2011

− GCCF determination letter on Interim Payment/Final Payment claim dated 13 January 

2012

− 2006 W-2 from Dominion Enterprises for $72,589.03

− 2007 W-2 from Dominion Enterprises for $74,407.44

− 2008 W-2 from Dominion Enterprises for $75,817.51

− 2010 W-2 from Destin Sunrise Marine Inc. for $33,931.31

− 2011 W-2 from Destin Sunrise Marine Inc. for $30,043.89

− News Article from The Triton titled “Oil can damage yacht systems; insurers may not 

cover” dated 06 July 2010

Prior to presenting his claim to the NPFC, the Claimant filed an Emergency Advance Payment 

(EAP) with the GCCF; he was assigned GCCF Claimant ID #1151504 and GCCF claim 
#12879.4 This claim was paid $30,000.00 on 07 October 2010.5 Additionally, the Claimant filed 

two Interim claims with the GCCF, ICQ22011 with GCCF #9406493 and ICQ42011 with Claim 

#9529594.6 These claims were offered a final payment offer of $5,000.00 on 01 July 2011.7

Based upon the evidence provided by the Claimant, it appears that the subject matter for each of 

his GCCF claims is the same as the subject matter of his claim before the NPFC, i.e., that he had 

impairment of earnings capacity as a result of the Deepwater Horizon oil spill. The NPFC deems 

each of Claimant’s three GCCF claims to be properly presented to the responsible party and 

properly presented to the NPFC. Accordingly, this Claim Summary determination for NPFC 

Claim N10036-1682 considers and addresses the earnings claimed in all of the three claims 

presented to the responsible party, specifically; GCCF Claim #’s 12879 (EAP), 9406493 

(ICQ22011), and 9529594(ICQ42011).

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 the injury or destruction or loss of real or personal property or 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 

the claim. The NPFC considered all the documentation submitted by the Claimant. 

The Claimant started working for Destin Sunrise Marine the first week of March 2010.8 The 

Claimant asserted his damages were evidenced by comparing his earning from 2006 through 

2008 at a different company in Norfolk Virginia to his 2010 and 2011 earnings for Sunrise 

Marine in Mary Esther, Florida.9 To support his claim, the Claimant provided a letter from 

Sunrise Marine’s management that asserts his lost earnings and a decline in sales were due to the 

Deepwater Horizon oil spill.10 However, while the Claimant’s employer appears to agree with 

the Claimant’s contention that the oil spill caused a reduction to the Claimant’s income, Sunrise 

Marine has not provided any specific information which would support either the Claimant’s or 

the employer’s assertions.

On 28 February 2012, the NPFC sent a letter to the Claimant requesting additional information in 

order to further evaluate the claim. The letter was sent Certified Mail Return Receipt Requested. 

The USPS Tracking site showed the letter was delivered 06 March 2012.11 Among other items,

the Claimant was asked to provide the NPFC with relevant earnings of lateral employees at 

Sunrise Marine. This information was requested since the evidence presented by the Claimant 

lacked historical earnings and financial documentation from his employer to indicate what effect

the Deepwater Horizon oil spill had on company sales. To date, the Claimant has not provided 

any of the additional information requested by the NPFC. 

Accordingly, this claim is denied because the Claimant has failed to meet his burden to 

demonstrate (1) that he has suffered an alleged loss of $102,600.00, and (2) that his alleged loss 

4 GCCF claim status page. 

5 GCCF notice of determination emergency advance payment form dated 07 October 2010. 

6 GCCF claim status page. 

7 GCCF determination letter on Interim Payment/Final Payment claim dated 01 July 2011. 

8 Claimant letter dated 28 October 2011 addressed to BP claims. 9 Claimant letter dated 28 October 2011 addressed to BP claims.

10 Employer letter from Sunrise Marine dated 23 June 2011. 11 USPS tracking 7011 1570 0001 2446 2933.

 
is due to the injury, 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: 4/6/12

Supervisor’s Actions: Denial approved

Supervisor’s Comments: