ishermen's
Contingency Fund
Overview
The Fishermen’s Contingency Fund (FCF), established under the OCS Lands Act
of 1978, Title IV, Section 402 (43 U.S.C. 1841-1846) and published in the
Federal Register on January 24, 1980 (30
CFR 296), compensates United States commercial fishermen and other eligible
citizens and entities for property and economic loss caused by obstructions
related to oil and gas development activities on the OCS. The
law requires that all persons known to have engaged in activities associated
with OCS energy development in the vicinity of the claimed damage or loss be
notified of the claim.
The National Marine Fisheries Service (NMFS) administers and processes FCF
claims and the Minerals Management Service (MMS) coordinates communications with
OCS lease holders and maintains the database for reported obstructions.
The Minerals Revenue Management of MMS oversees
FCF fund assessment and replenishment.
Filing Claims
The FCF requires U.S. commercial fishermen to file a report to the NMFS
within 15 days after the date on which the vessel first returns to port after
discovering the damage or loss in order to gain presumption of causation. After this initial report is filed, a claim must
be submitted within 90 days of the date the loss or damage was discovered.
Claims should include specific vessel and crew
information, a full statement of the circumstances concerning the damage or
loss, the amount claimed for property damage or loss, a full statement of the
type and extent of damage, and the amount claimed, with supporting
documentation, for any economic loss.
Claims and related questions are to be directed to the
NMFS’s FCF
Program contact:
Claretta Jackson
FCF Program
Financial Services Division (F/MB5)
National Marine Fisheries Service
1315 East West Highway
Silver Spring, MD 20910
(301) 713-2396
(301) 713-1306 (fax)
Claims eligible for compensation are generally contingent upon the following: (1) damages or losses must be suffered by U.S.
commercial fishermen; and (2) any actual or consequential damages, including
loss of profit, must be due to damages or losses of fishing gear by items or
obstructions related to OCS oil and gas activities. Damages
or losses that occur in non-OCS waters may be eligible for compensation if the
item(s) causing damages or losses are associated with OCS oil and gas
activities.
Ineligible claims for compensation are generally (1) damages or losses caused
by items that are attributable to a financially responsible party; (2) damages
or losses caused by negligence or fault of the commercial fishermen; (3)
occurrences before September 18, 1978; (4) claims of damages to, or losses of,
fishing gear exceeding the replacement value of the fishing gear; (5) claims for
loss of profits in excess of 6 months, unless supported by records of the
claimant's profits during the previous 12 months; (6) claims or any portions of
damages or losses claimed that will be compensated by insurance; (7) claims not
filed within 90 days of the event of the damages or losses; and (8) damages or
losses caused by natural obstructions or obstructions unrelated to OCS oil and
gas activities.
The claimant has the burden of establishing all the facts demonstrating
eligibility for compensation, including the identity or nature of the item that
caused the damages or losses and its association with OCS oil and gas activity.
Damages or losses are presumed to be caused by
items associated with OCS oil and gas activities provided the claimant
establishes that (1) the commercial fishing vessel was being used for commercial
fishing and was located in an area affected by OCS oil and gas activities; (2)
the 15-day report was filed; (3) there is no record in the most recent NOAA/NOS
nautical charts or weekly USCG Notice to Mariners of an obstruction in the
immediate vicinity; and (4) no proper surface marker or lighted buoy marked the
obstruction. Damages or losses occurring within
a one-quarter-mile radius of obstructions recorded on charts, listed in the
Notice to Mariners, or properly marked are presumed to involve the recorded
obstruction.
Declaration of Liability
After a claim is received by the NMFS, a copy is forwarded to the MMS, which
in turn notifies all pipeline and lease owner/operators in the vicinity and maps
and maintains a reported obstruction database. The
MMS mails a declaration of liability form and a claim site map to all
potentially responsible parties, who have the legal requirement to accept or
deny responsibility for the claimed damages. Non-respondents
are presumed to deny responsibility for the damages claimed.
The damages described on the enclosure may be only a portion of the final
award, which may include actual damages, consequential damages, resulting
economic loss, and fees paid to a third party for assistance in filing the
claim. If no notified party accepts
responsibility for the damages, claims are paid from the fund.
Direct questions related to a claim site map to the MMS address below since
this unit actually maps the coordinate location provided by the claimant to the
NMFS.
Minerals Management Service
Gulf of Mexico OCS Region
Supervisor, Mapping & Automation Unit (MS 5413)
1201 Elmwood Park Boulevard
New Orleans , LA 70123
(504) 736-2774
Fisherman's Contingency Fund Assessment &
Replenishment
Payments into the FCF are made through periodic assessments against all
holders of an exploration permit, lease, easement, or pipeline right-of-way,
issued or maintained under the OCS Lands Act. Each
authorization is assessed a fee to replenish the Fishermen’s Contingency Fund
whenever that fund falls below a designated amount. The
assessed fee is based on the number of items and the percentage of ownership
interest in each item a company has on file, divided into the amount to be
replenished. In any calendar year, no holder of
a lease, permit, easement, or right-of-way shall be required to pay an amount in
excess of $5,000 per lease, permit, easement, or right-of-way.
30 CFR 218.152 authorizes the MMS to administer the FCF fund assessment and
replenishment. The FCF assessment is issued by
and payment is submitted to the Minerals
Revenue Management, a branch of MMS, at the following address:
Minerals Management Service
Minerals Revenue Management
Financial Management
Manager, Financial Services - Mail Stop 355B1
Building 85, Denver Federal Center
Denver , CO 80225
Phone: 303-231-3382
Fax: 303-231-3372
eMail: Hans.Meingast@mms.gov
Reference Links
30 CFR 296 — Fishermen's Contingency Fund
Section Contents
§ 296.1 Purpose
§ 296.2 Definitions
§ 296.3 Fishermen's contingency fund
§ 296.4 Claims eligible for compensation
§ 296.5 Instructions for filing claims
§ 296.6 NMFS processing of claims
§ 296.7 Burden of proof and presumption of causation
§ 296.8 Amount of award
§ 296.9 Initial determination
§ 296.10 Agency review
§ 296.11 Final determination
§ 296.12 Payment of costs
§ 296.13 Payment of award for claim
§ 296.14 Subrogation
§ 296.15 Judicial review
Federal Register Notice [48 FR 35639, August 8, 1983]: Redesignation and
Reorganization of Regulations