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Fishermen'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 Bureau of Ocean Energy Management, Regulation and Enforcement (BOEMRE) coordinates communications with OCS lease holders and maintains the database for reported obstructions.  The Minerals Revenue Management of BOEMRE 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 BOEMRE, which in turn notifies all pipeline and lease owner/operators in the vicinity and maps and maintains a reported obstruction database.  The BOEMRE 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 BOEMRE address below since this unit actually maps the coordinate location provided by the claimant to the NMFS.

Bureau of Ocean Energy Management, Regulation and Enforcement
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 BOEMRE 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 BOEMRE, at the following address:

Bureau of Ocean Energy Management, Regulation and Enforcement
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@boemre.gov  

Reference Links

50 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