CLAIM SUMMARY I DETERMINATION 

Claim Number: 916037-0001 

Claimant: Louisiana Department of Natural Resources 

Type of Claimant: State 

Type of Claim: Removal Costs 

$20,075.13 

Claim Manager: 

Amount Requested: 

FACTS: 

I. Oil Spil/ /11cide11t & Descriptio11 of actio11s a11d tlireat as reported by tile Federal 011 Sce11e 

Coordia11tor (FOSC): 

On February 3, 2015, Louisiana Department of Natural Resources (LA DNR) inspected the GW MPT 

SU; YOUNGBLOOD Well 84 # 001, SN 212387 and discovered the wellhead was leaking oil at a rate of 

approximately 1 barrel per day. Oil was standing around the well head and beginning to run down 

gradient toward Cross Bayou, a navigable waterway of the US. 

On February 4, 2015, LA DNR notified the United States Environmental Protection Agency (USEPA) 

Region 6 of the oil spill release. During follow-up conversations with LA DNR, USEPA in its capacity 

as the Federal On Scene Coordinator (FOSC) was notified that a local operator attempted to put a 

temporary plug in the tubing. That action slowed down the leak but the leak continued and the USEPA 

stated that a best estimate of discharge following the temporary plugging was about 11. bbl/day. 

On February 6, 2015, LA DNR informed USEPA they were advertising an Orphan Well plugging 

package for bid and could include the subject well in the package. Since the costs of the well plugging 

for the individual well would be significantly less, as part of a package, USEPA discussed issuing LA 

DNR a Pollution Removal Funding Authorization (PRF A) for LA DNR to plug the well although no 

PRF A was ever issued by the FOSC to the Claimant nor is there a no known Federal Project Number 

(FPN) or National Response Center (NRC) notification made. 1 2 

In summary, the FOSC provided the following information: the well was unsecured and leaking oil; 

drainage from the facility expected to travel North and Northwest across surface drainage, approximately 

250 yards to Cross Bayou and then to Cross Bayou approximately 6 miles to Cross Lake. Cross Lake 

discharges into the Red River3, a navigable waterway of the US. 

a. Incident Location: Greenwood-Waskom Field, Caddo Parish (Latitude 32° 27' 16.4" 

Longitude 94° O' 43.4"); 

b. Navigable Body of Water Impacted (or potentially impacted): -1400' from State Line 

Lake; 

c. Amount of oil spilled: A contractor cleaned up about 1 barrel of oil.; 

1 See. Email from EPA OSC o dated 4/11 /16 stating no FPN and no NRC 

notification. 

2 See, Email from EPA OSC to dated 3/31116. 

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See. Email from EPA OSC to dated 3/31116. 

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d. Potential Responsible Party: Bowie Operating Company, LLC. 4 

No Federal Project Number (FPN) was opened to pay for the response. The LDNR did hire 

Womack and Sons Contracting Company, a contractor to plug the well and address the 

environmental issues present at the time potentially affecting State Line Lake and other tributaries 

of the US. GW MPT SU; YOUNGBLOOD Well 84 # 001, SN 212387 was one of many wells 

within a group contract to be plugged by this contractor. Payment to Womack and Sons 

Contracting Company was verified by Ms. LDNR Point of contact. 

2. Tlte Claim: 

February 22, 2016, The State of Louisiana Department of Natural Resources (LDNR) submitted a 

removal cost claim to the NPFC, asserting that the well was abandoned back in 2011 and seeks to 

pursue the uncompensated removal costs the Claimant incurred responding to the incident from 

February 2, 2015 when they were first notified through July 30, 2015 when the final plugging of 

the well was completed by the contractor. On that basis, the Claimant seeks uncompensated 

removal costs in the total amount of $20,075. I 3, for the services they provided from February 2, 

2015 throughjuly 30, 2015. The Claimant provided a copy of the Statement of work performed 

for the plugging of the subject well site, an Orphan Oilfield Site Inspection report, an itemized 

breakdown of costs for this response, a copy of the plug and abandonment procedures, state 

personnel time and vehicle logs, photos, vendor invoicing, proof of payment, daily description of 

actions perfonned, itemized receipts, and OSL TF Claim Form. 5 6 

APPLICABLE LAW: 

Under the Oil Pollution Act of I 990 (OPA 90), 33 USC § 2702(a), each responsible party for a 

vessel or facility from which oil is discharged, or which poses the substantial threat of a discharge 

of oil, into or upon the navigable waters or adjoining shorelines is liable for the removal costs and 

damages described in 33 USC§ 2702(b) that result from the incident. The responsible party's 

liability includes the "removal costs incurred by any person for acts taken by the person which are 

consistent with the National Contingency Plan". 33 USC§ 2702(b)(l)(B). 

"Oil" is defined in relevant part, at 33 USC § 270 I (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 (OSL TF), which is administered by the NPFC, is available, 

pursuant to 33 USC§§ 2712(a)( 4) and 2713 and the OSL TF claims adjudication regulations at 33 

CFR Part 136, to pay claims for uncompensated removal costs that are detennined to be 

consistent with the National Contingency Plan and uncompensated damages. Removal costs are 

defined at 33 USC § 270 I (31) as "the costs of removal that are incurred after a discharge of oi I 

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". 

~See, April 13, 2016 NPFC RP Notification Letter. 

s See, Claimant submission. 

6 See, OSLTF Claim Form, page I of2, item #2 dated Feb. 2, 2015. 

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Under 33 USC §2713(b)(2) and 33 CFR 136.103(d) no claim against the OSLTF may be 

approved or certified for payment during the pendency of an action by the claimant in court to 

recover the same costs that are the subject of the claim. See also, 33 USC §2713( c) and 33 CFR 

136.103(c)(2) [claimant election]. 

Under 33 USC §2713(a), all claims for removal costs or damages must (with certain exceptions 

not applicable here) be presented first to the responsible party or guarantor of the designated 

source of the incident. Then, as provided in 33 U.S.C. §2713( d), "If a claim is presented in 

accordance with this section, including a claim for interim, short-term damages representing less 

than the full amount of damages to which the claimant ultimately may be entitled, and full and 

adequate compensation is unavailable, a claim for the uncompensated damages and removal costs 

may be presented to the Fund." 

Under 33 CFR 136. lOS(a) and 136. IOS(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. l OS(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 Director, 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." 

In addition, 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]. 

DETERMINATION OF LOSS: 

A. Overview: 

I. The Claimant's removal actions were coordinated with the FOSC via US EPA Region Vl.7 33 

U.S.C. §§ 2702(b)(l)(B) and 2712(a)(4). 

2. The incident involved a discharge of"oil" as defined in OPA 90, 33 U.S.C. § 2701(23), to 

navigable waters. 

1 See, US EPA Region VI emnil to NPFC dated 3/31/16. 

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3. In accordance with 33 CFR § l36.IOS(e)(l2), the claimant certified that no suit has been filed in 

court for the claimed uncompensated removal costs. (See, NPFC Claim Form, page one, and 

question 7, as provided by the claimant). 

4. A Responsible Party was not identified by the FOSC. 33 U.S.C. § 2701(32). 

5. In accordance with 33 CFR § t36.10S(e)(12), the Claimant has certified that no suit has been 

filed by or on behalf of the Claimant in court for the claimed uncompensated removal costs. 

6. The claim was submitted to NPFC within the six year statute of limitations. 33 U.S.C. § 

2712(h)(1). 

7. The NPFC Claims Manager has thoroughly reviewed all documentation submitted by the 

Claimant with the claim, and further documentation provided by US EPA Region VI, and has 

determined which of the removal costs presented were incurred for removal actions taken by the 

Claimant in accordance with the National Contingency Plan (NCP}, and whether the costs for 

these actions were reasonable and allowable under OPA 90 and 33 CFR § 136.205. 

B. Analysis: 

The NPFC Claims Division (CA) reviewed the cost invoices and dailies submitted by the 

Claimant to determine whether the Claimant had incurred all costs claimed. The review 

focused on: (1) whether the actions taken were compensable "removal actions" under OPA 

90 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 were 

reasonable and necessary. 

The Claimant, LADNR, submitted a well-documented claim to demonstrate that the actions 

performed were OPA 90 removal actions, and that the work performed mitigated the effects 

of the oil spill that was released into Cross Bayou and Cross Lake, and thus potentially to the 

Red River. Additionally, the US EPA Region VI FOSC confirmed the actions claimed were 

performed by the Claimant and its contractors in response to this incident and determined that 

all of the Claimant's response actions were consistent with the National Contingency Plan. 

Upon adjudication of the claim, the NPFC verified that the rates charged were billed in 

accordance with the published rates for the Claimant's contractor. As such, the NPFC has 

determined that the amounts invoiced and paid, were reasonable. 

Based on a review of all the supporting documentation and incident information, the Claims 

Manager determined that the Claimant did in fact incur $20,075.13 in uncompensated 

removal costs that were reasonable and necessary, and that amount is payable by the OSL TF 

as full compensation for the reimbursable removal costs incurred by the Claimant and 

submitted to the NPFC under claim #916037-000 I. Those costs claimed are for 

uncompensated removal costs incurred by the Claimant for this incident for removal actions 

by the Claimant from February 2, 2015 through July 30, 2015 that are consistent with the 

NCP. 

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

$20,075.13 of uncompensated removal costs and that that amount is payable by the OSL TF 

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as full compensation for the reimbursable removal costs incurred by the Claimant and 

presented to the NPFC under claim #916037.0001. The Claimant represents that all costs 

paid by the Claimant are compensable removal costs, payable by the OSL TF as presented by 

the Claimant. 

C. Determi11ed Amount: 

The NPFC hereby determines that the OSLTF will pay $20,075.13 as full compensation for 

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

under claim 91603 72-000 I. All such costs were incurred by the Claimant for removal actions 

as that term is defined in OPA 90 and, are compensable removal costs, payable by the 

OSL TF as presented by the Claimant. 

A!dOUNT: $2~07~13 

Claim Supervisor: 

Date of Supervisor's review: April 25, 2016 

Supervisor Action: Approved 

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