CLAIM SUMMARY / DETERMINATION FORM

Claim Number: N10036-1685

Claimant: Regina Wilson

Type of Claimant: Individual (US)

Type of Claim: Loss of Profits and Earning Capacity

Amount Requested: $29,510.00

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 17 February 2012, Regina Wilson, (referred to as “the Claimant”) presented a claim to the 

Oil Spill Liability Trust Fund (OSLTF) for $29,510.00 in loss of profits and impairment of 

earnings capacity resulting from the Deepwater Horizon oil spill.1 The Claimant owns a beauty 

salon that opened in 2010 and claims that, after starting well, business dropped off tremendously 

because of the oil spill.

2

The Claimant indicates having presented a claim to the GCCF and provided her Claimant ID 

Number (3363601). The Claimant also indicates that her claim has been denied.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 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:

(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

 Optional OSLTF Claim Form signed on 9 February 2012/received on 17 February 2012. 2

 Optional OSLTF Claim Form signed on 9 February 2012/received on 17 February 2012 and Claimant’s phone 

conversation with NPFC Staff on 23 March 2012.

3

 Optional OSLTF Claim Form signed on 9 February 2012/received on 17 February 2012.

 
(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 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.

DETERMINATION OF LOSS 

Claimant’s Submission to the OSLTF

To support this claim, the Claimant submitted the following documentation:

• Optional OSLTF Claim Form signed on 9 February 2012/received on 17 February 2012.

• 2007 IRS Tax Account Transcript for Form 1050EZ, with payroll summary from 

Softscript, Inc.

• 2008 IRS Tax Account Transcript for Form 1050EZ 2009 with payroll summary from 

Softscript, Inc.

• 2009 Form 1040EZ, unsigned, with Form W-2 from Softscript, Inc.

• 2010 Form 1040, unsigned, with Schedules C-EZ, M & SE, and Form W-2 from 

Softscript, Inc.

• Azelea City Credit Union, Member Account History for dates 1 February 2010 through 

31 December 2010.

• Four undated photographs identified as pictures of the Claimant’s salon.

• City of Mobile Business License for 2010: Issued 2-4-2010, Expires 12-31-2010.

• City of Mobile Business License for 2011: Issued 2-3-2011, Expires 12-31-2011.

• Claimant’s explanation of banking statement, plans for expansion of business and 

calculation of loss amounts.

• Summary of 2010 bank deposits from February through December 2010.

• Undated and unsigned letter from Lisa Woods.

• Avalon Salon Deals, November 1 - December 31, 2011. (One brochure and two sheets).

• Order for radio advertisement, dated 24 January 2011.
• http://www.lawyersandsettlements.com/blog/bp-oil-spill-fallout-whos-affected03578.html, accessed 6 February 2012.

• http://blog.al.com/live/2012/01/south_mobile_students_still_su.html, accessed 6 

February 2012.

• “Our View: The impact of the Deepwater Horizon oil spill, one of the nation’s worst 

environmental disasters, isn’t fully understood , but will be felt for years to come”, 

http://blog.al.com/birmingham-newscommentary/2011/04/our_view_the_impact_of_the_de..., accessed 6 February 2012.

• “Deepwater Horizon oil spill”, from Wikipedia, 

http://en.wikipedia.org/wiki/Deepwater_Horizon_oil_spill, accessed 6 February 2012.

• “Perception becomes reality”, http://blog.al.com/birmingham-newscommentary/2011/04/our_view_the-impact-of_the_de..., accessed 6 February 2012.

Prior to presentment of this claim to the NPFC, the Claimant presented five lost wages/earnings 

claims to the GCCF, all under Claimant ID # 3363601. The NPFC conducted independent 

investigation of claim presentations and payments. The table below shows relevant information 

on those claims:4

Date

Presented Claim No. Claim Type Amount GCCF

to GCCF Claimed Status

11-14-2010 9048924 Final $72,000.00 Withdrawn

12-23-2010 9246713 Full Review/Final $60,000.00 Denied

1-20-2011 9230276 Full Review/Final $60,000.00 Denied

4-5-2011 9245711 Quick Pay - - - Denied

3-27-2012 9583519 Full Review/Final $58,000.00 Denied

On 17 February 2012, the Claimant presented a claim to the Oil Spill Liability Trust Fund 

(OSLTF) for $29,510.00 in loss of profits and impairment of earnings capacity resulting from the 

Deepwater Horizon oil spill.5

 The NPFC may adjudicate this claim to the extent that these 

damages have first been presented to and either denied by, or unsatisfactorily determined by the 

RP/GCCF.

Based upon the information provided and independent verification by the NPFC, this claim can 

be adjudicated in the full amount of damages presented to the NPFC, $29,510.00. Further, 

because the subject matter of the Claimant’s claims before the GCCF and this claim appear to be 

based upon the same subject matter, i.e. that the Claimant lost income as a result of the 

Deepwater Horizon oil spill, the NPFC deems this Claim Summary Determination as being 

outcome determinative for the Claimant’s 2010 business losses.

NPFC Determination

The claim is denied. 

This loss is associated with the Claimant’s alleged loss of profits from her home-based hair salon 

business in Mobile, Alabama. The Claimant indicated having presented a claim to the GCCF 

and provided her Claimant ID Number (336360). The Claimant also indicates that her claim has 

been denied by the RP/GCCF.6

4

 Optional OSLTF Claim Form signed on 9 February 2012/received on 17 February 2012 and GCCF–U.S. Coast 

Guard Report as of 14 April 2012.

5

 Optional OSLTF Claim Form signed on 9 February 2012/received on 17 February 2012. 6

 Optional OSLTF Claim Form signed on 9 February 2012/received on 17 February 2012.

 
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 documentation presented by the 

Claimant.

In support of this claim, the Claimant included IRS tax transcripts for 2007 and 2008 Federal 

taxes (Forms 1040EX), handwritten and unsigned copies of 2009 (Form 1040EX) and 2010 

(Form 1040) Federal taxes, checking account history for 2010, an explanation of how the 

Claimant calculated her losses, and a number of internet articles discussing the spill and its 

impacts. 

In the course of reviewing this claim, the NPFC contacted the Claimant to discuss her claim. 

The NPFC found that the Claimant had not signed and turned in her 2009, 2010 and 2011 

Federal or state tax returns. She indicated that she did not have the money to pay them. The 

NPFC asked where her salon is located and where she got the furnishings. The Claimant 

responded that an addition had been made behind her house for the shop in 2009 and that she had 

bought the furnishings at a used furniture store; however, she had no records of the addition or of 

the furniture purchases. Additionally, the Claimant co-mingled her business records with her 

personal checking. She did not keep a record of expenses or the cost of goods sold/used in the 

business. She could not calculate a net loss in profit, only the difference between what she 

expected to earn as income and what she deposited as cash into her checking account. She 

expected to make three times what she had made in February 2010 and hoped to add a 

manicurist. The Claimant also asserted that she lost business because people lost their jobs due 

to the oil spill. The NPFC asked what clients had lost their jobs and the Claimant replied that she 

had not ever asked anyone about that.7

The Claimant failed to prove her losses with financial records. Further, the Claimant has failed 

to provide witnesses or documentation of impacts her business that would show the Deepwater 

Horizon oil spill was the cause of her alleged losses.

(1) Failure to Prove Loss of Income

To show a loss of income, the Claimant calculated lost profits by multiplying actual income for 

February 2010, as totaled in her checking account, by a factor of three and extending that to the 

end of 2010.8

 The Claimant also added a loss of revenue for a manicurist who was never hired.9 

From this calculated amount, the Claimant subtracted her actual 2010 income. These 

calculations are speculative amounts, not proven incomes, and do not account for any 

adjustments due to business expenses or the cost of goods sold/used in the business or further 

adjustments for saved expenses. Additionally, the basis for the Claimant’s revenue, expenses 

and costs of goods sold are 2010 tax returns that have not been filed.10 

The Claimant has failed to prove a verifiable loss of profits in 2010.

7

 Claimant’s phone conversation with NPFC Staff on 23 March 2012. 8

 Claimant’s explanation of banking statement, plans for expansion of business and calculation of loss amounts. 9

 Claimant’s explanation of banking statement, plans for expansion of business and calculation of loss amounts. 10 2010 Form 1040, unsigned, with Schedules C-EZ, M & SE, and Form W-2 from Softscript, Inc and Claimant’s 

phone conversation with NPFC Staff on 23 March 2012.

 
(2) Failure to Prove Causation

The Claimant had a startup business, yet asserted that her alleged loss in income was due to a 

reduction in clients who lost their jobs due to the Deepwater Horizon oil spill.11 The Claimant 

has not provided documentation or client contacts who could verify that assertion.

Based on the above, the Claimant has failed to prove that any of her alleged losses were due to 

the Deepwater Horizon oil spill.

This claim is denied for the following reasons: (1) Claimant has failed to demonstrate the alleged 

loss through financial documentation and (2) Claimant has failed to demonstrate that the alleged 

loss is due to injury or destruction or loss of real or personal property or a natural resource as a 

result of a discharge or a substantial threat of a discharge of oil.

Claim Supervisor: NPFC Claims Adjudication Division

Date of Supervisor’s Review: 4/23/12

Supervisor’s Action: Denial approved

Supervisor’s Comments:

11 Optional OSLTF Claim Form signed on 9 February 2012/received on 17 February 2012 and Claimant’s phone 

conversation with NPFC Staff on 23 March 2012.