U.S. Department of 

Homeland Security

United States

Coast Guard

Director

United States Coast Guard

National Pollution Funds Center

NPFC CA MS 7100

US COAST GUARD

4200 Wilson Blvd., Suite 1000

Arlington, VA 20598-7100

Staff Symbol: (CA)

Phone: 1-800-280-7118

E-mail: arl-pf-npfcclaimsinfo@uscg.mil

 Fax: 202-493-6937

CERTIFIED MAIL - RETURN RECEIPT REQUESTED 5890/DWHZ 

Number: 7011 1570 0001 2446 3213 23 April 2012 

4624 Comp Island Rd. Suite 100 

Smyrna, Georgia 30082 

RE: Claim Number: N10036-1561 

Dear 

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 

claim number N10036-1561 involving the Deepwater Horizon oil spill. Please see the enclosed 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 N10036-1561. 

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 Form 
CLAIM SUMMARY / DETERMINATION FORM

Claim Number N10036-1561

Claimant Orange Beach Bicycles 

Type of Claimant Private (US)

Type of Claim Loss of Profits and Impairment of Earnings Capacity

Amount Requested $300,000.00

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 15 November 2011, Orange Beach Bicycles (Claimant) presented an optional Oil Spill 

Liability Trust Fund (OSLTF) claim form seeking $300,000.00 in loss of profits and impairment 

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

resulting from the Deepwater Horizon oil spill. 

The Claimant opened a bicycle rental business located in Orange Beach Alabama from 

November 2009 through August 2010.1 The Claimant shut down the business to mitigate their 

losses in August 2010, alleging the Deepwater Horizon oil spill and accompanying cleanup 

efforts and stated reduced tourism was the cause of decreased sales.2

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 Letter of explanation to the NPFC from Claimant dated 13 February 2012. 

2 Letter of explanation to the NPFC from Claimant dated 13 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 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 

1) Optional OSLTF claim form dated 10 November 2011

2) State of Alabama incorporation certificate for Orange beach Bicycles dated 08 September 

2009 signed by the Secretary of State

3) Letter from National Sales Manager of Advanced Sports, Inc. on behalf of the Claimant 

dated 07 July 2010

4) Letter from Director of Sales for Electra Bicycle Company on behalf of the Claimant 

5) Excel spreadsheet from Claimant (projected numbers)

6) Smyrna’s monthly Profit and Loss statements from September 2007 through October 

2011

7) Letter of explanation to NPFC dated 13 February 2012

8) Island Clipper coupon/advertisement for Orange Beach Bicycles

9) Lease termination memorandum to The Pilcher Agency

10) Payment history for storage for inventory from Orange Beach Bicycles from 31 August 

2010 through 01 February 2012

11) Orange Beach Bicycles Summary of sales by department for 01 November 2009 through 

30 August 2010

12) Invoice from Giant dated 27 April 2010

13) Invoice from Electra Bicycle Company dated 04 January 2010

14) Invoice from The Hawley Company dated 26 October 2009
15) Invoice from Bell Sports Inc. dated June 2010

16) Invoice from Advanced Sports Inc. dated 08 December 2009

17) Invoice from Northwave dated 07 October 2009

18) Gross sales by month and classes from 2008 through 2010 for Big Daddy’s Bike Shop

19) Response to NPFC’s request for additional information dated 29 November 2011

20) Lease agreement for Orange Beach Bicycles entered into 01 August 2009

21) Alabama Department of Revenue for the months of November 2009 through July 2010

22) 2009 Form 1065 US Return of Partnership Income 

23) 2010 Form 1065 US Return of Partnership Income

24) Orange Beach Bicycles profit and loss statements from November 2009 through August 

2010. 

Claimant seeks lost profits and impairment of earnings capacity in the amount of $300,000.00.

Prior to presenting his claim to the NPFC, the Claimant filed with BP on 24 May 2010 and was 

paid $11,846.00.3 Additionally, the Claimant filed a Final claim (FC1) with the GCCF on 06 

October 2010 for $300,000.00; he was assigned GCCF Claimant ID #1090124 and Claim 

#9025974.4 The GCCF offered a final payment offer of $25,000.00 to the Claimant which was 

not accepted. The Claimant further filed an Interim claim (ICQ042011) with Claim #9532547 for 

$300,000.00.5 The Claimant further filed a Full Review Final claim (FRF1) with Claim 

#9532877 in the amount of $300,000.00.6 The GCCF issued a transition final payment in the 

amount of $19,162.49.7 Based upon the evidence provided by the Claimant, it appears that the 

subject matter for each of the GCCF claims is the same as the subject matter of his claim before 

the NPFC, i.e., that the company lost sales and was forced to shut down 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 N10036-1561 considers and addresses the 

earnings claimed in all of the thee claims presented to the responsible party, specifically; GCCF 

Claim #’s 9025974 (FC1), 9532547 (ICQ42011), and 9532877 (FRF1).

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 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 opened his business in November 2009 in Orange Beach Alabama.8 The Claimant 

grew the startup business, reaching pre-spill revenues in April 2010 of $7,171.00.9 The Claimant 

provided historical data of a comparable business in Santa Rosa Beach, Florida named Big 

Daddy’s Bike Shop for 2009 to represent the revenue trends through the tourist season of Orange 

Beach Alabama.10 The NPFC applied the trending from the comparable Big Daddy’s Bike Shop 

3 Report from the GCCF dated 17 April 2012. 4 Report from the GCCF dated 17 April 2012.

5 Report from the GCCF dated 17 April 2012.

6 Report from the GCCF dated 17 April 2012.

7 Report from the GCCF dated 17 April 2012.

8 Orange Beach Bicycle’s monthly profit and loss statements. 9 Orange Beach Bicycle’s monthly profit and loss statements and State of Alabama sales tax data. 

10 Big Daddy’s Bike Shop revenue for the months of April through December for 2008 through 2010.

 
to the baseline of Orange Beach’s unaffected April 2010 sales of $7,171.00 through August 

when the business shut down.11 The cost of goods sold percentage of 55% was taken from the 

Claimant’s 2009 tax returns and was applied to the revenue calculation.12

The Claimant has been compensated by BP in the amount of $11,846.00 and the GCCF in the 

amount of $19,162.49 totaling $31,008.49. Based on the submissions of the Claimant’s tax 

returns, Alabama sales tax, profit and loss statements, and comparable submission of Big 

Daddy’s Bike Shop, the NPFC finds that the Claimant has not established his sum certain as 

presented to the NPFC by a preponderance of the evidence. Additionally the NPFC finds that 

the Claimant has been fully compensated by the Responsible Party for the alleged damages 

submitted. 

This claim is denied because the Claimant failed to meet his burden to demonstrate (1) that he 

has an alleged loss in the amount claimed, and (2) that the alleged loss was not fully 

compensated by the Responsible Party. 

Claim Supervisor: NPFC Claims Adjudication Division

Date of Supervisor’s Review: 4/23/12

Supervisor’s Actions: Denial approved

Supervisor’s Comments:

11 Profit and loss statements and OSLTF claim form dated 10 November 2011. 12 Form 1065 US Return of Partnership Income for 2009 at line 2.