Compensation Framework for Vessel P

Compensation Framework for Vessel Physical Damage Claims
1. Eligibility Requirements
A. Eligible Claimants shall be comprised of claimants who do not fall within the
exclusions to the Economic Loss and Property Class Definition and who were
owners of an Eligible Vessel(s) during the time period April 20, 2010 to December
31, 2011, except for the following:
i. Claimants who are owners of an Eligible Vessel(s) that have signed a
Receipt and Release Letter Agreement in connection with the BP program
to reimburse costs from damage to vessels involved in the Vessels of
Opportunity program.
ii. Claimants who sustained Physical Damage to an Eligible Vessel while
working for an Oil Spill Response Organization or an Oil Spill Removal
Organization (OSRO) in the DWH Spill response. However this
exclusion shall not apply to claimants who were participating in the
Vessels of Opportunity Program.
B. An Eligible Vessel shall be defined as a vessel, and/or vessel appurtenances, that
sustained Physical Damage.
C. Physical Damage shall be defined as physical damage that was sustained by an
Eligible Claimant’s Eligible Vessel due to or resulting from the DWH Spill or the
DWH Spill response cleanup operations, including the Vessels of Opportunity
Program, that were consistent with the National Contingency Plan or specifically
ordered by the Federal On-Scene Coordinator or delegates thereof. Physical Damage
shall also include the need for removal of equipment or rigging that was added to an
Eligible Claimant’s Eligible Vessel to conduct DWH Spill response cleanup
operations.
i. Some examples of Physical Damage include a bent propeller, dents or
scratches to a vessel’s hull, damage to a vessel’s engine from the intake of
MC252 oil, scratching or staining of a vessel’s paint or gelcoat from
coming into contact with MC252 oil and/or dispersants, damage to nets,
rakes, traps or other gear used in the harvesting of seafood, or the need for
decontamination of MC252 oil from a vessel.
D. Notwithstanding the above, Physical Damage shall not include the following types of
damage: i) damage caused by the negligence of an Eligible Claimant or an Eligible
Vessel’s captain or crew, ii) damage caused by an employee or agent of an OSRO;
iii) damage caused by an act of God, iv) damage caused by normal wear and tear, or
v) damage to a trailer or anything else used to transport an Eligible Vessel.
027893
Case 2:10-md-02179-CJB-SS Document 6430-32 Filed 05/03/12 Page 2 of 14
i. Some examples of damage not included in the definition of Physical Damage
include, but are not limited to, the following: damage from running aground,
damage from contaminated fuel, damage from allision with a fixed object,
damage sustained while vessel operator was inebriated, damage caused by
violation of the United States Coast Guard’s Navigation Rules, damage from
lightning strikes, or damage caused by the unseaworthiness of the vessel.
E. Administrator’s Database: The Claims Administrator shall maintain a database
(“Administrator’s Database”) containing information on Eligible Claimants that
have signed a Receipt and Release Letter Agreement in connection with the BP
program to reimburse costs from damage to vessels involved in the Vessels of
Opportunity program. The Claims Administrator shall check the Administrator’s
Database to determine whether an Eligible Claimant has signed a Receipt and
Release Letter Agreement in connection with the BP program to reimburse costs
from damage to vessels involved in the Vessels of Opportunity program. The
Administrator’s Database is presumed to be satisfactory evidence of such a
release.
2. Compensation
A. An Eligible Claimant must provide the Claims Administrator with satisfactory proof
of all of the following items below in order to qualify to receive compensation for
Physical Damage.
i. The claimant is an Eligible Claimant.
ii. The claimed Physical Damage was sustained by an Eligible Claimant’s Eligible
Vessel.
iii. The Physical Damage occurred between April 20, 2010 and December 31, 2011.
iv. The Physical Damage was sustained due to or resulting from the DWH Spill or
the DWH Spill response cleanup operations, including the Vessels of Opportunity
Program, that were consistent with the National Contingency Plan or specifically
ordered by the Federal On-Scene Coordinator or delegates thereof. Satisfactory
proof shall include operations of the Vessels of Opportunity program or other
operations approved by BP or the Unified Command.
v. The condition of the Eligible Vessel prior to the claimed Physical Damage.
a) As part of the Vessels of Opportunity program, the condition of certain
vessels was inspected prior to beginning an operational mission. These
027894
Case 2:10-md-02179-CJB-SS Document 6430-32 Filed 05/03/12 Page 3 of 14
inspections are reflected in documents referred to as the Jackson OnHire
Surveys. The Claims Administrator shall be provided with
Jackson On-Hire Surveys for vessels involved in the Vessels of
Opportunity program.
vi. The Eligible Claimant owned the Eligible Vessel for which Physical Damaged
is claimed at the time the damage occurred.
vii. For an Eligible Claimant claiming to have incurred costs to repair or replace the
Eligible Vessel, evidence to establish that the costs were incurred by the Eligible
Claimant and that they were reasonable and necessary.
viii. For an Eligible Claimant seeking compensation for costs not yet incurred to
repair or replace the Eligible Vessel, a cost estimate and proof the costs are
reasonable and necessary.
B. An Eligible Claimant must comply with the Claim Form, Document
Requirements and Verification Statement listed in Appendices A, B and C in order
to qualify to receive Vessel Damage Compensation.
C. An Eligible Claimant who claims Physical Damage and satisfies Section 2. A, and
2. B above shall receive Vessel Damage Compensation. Vessel Damage
Compensation shall be the lesser of the reasonable and necessary costs to repair or
replace an Eligible Vessel. Vessel Damage Compensation shall only include the
cost to replace an Eligible Vessel if the Claims Administrator determines that the cost
to replace an Eligible Vessel is less than the cost to repair an Eligible Vessel.
i. The Claims Administrator shall have the authority to verify any of the criteria
contained in the Compensation Framework for Vessel Physical Damage Claim
including, the Eligible Claimant’s claimed repair and/or replacement costs, and
to undertake an investigation to determine the reasonableness of the costs to repair
and/or replace the Eligible Vessel, including obtaining an independent estimate.
D. In no case shall an RTP be applied to Vessel Damage Compensation.