(a) Where a claim for damages involves a known discharger or alleged discharger, the rules on notice to the person alleged to have caused the discharge are as follows:

1. (1) Upon receipt of a claim, the administrator shall notify the person alleged by the claimant to have caused the discharge, by mailing a notice of claim, a copy of the claim and, where appropriate, a copy of any supporting documents or materials, by registered or certified mail, return receipt requested.
2. (2) If the administrator has reason to believe that someone other than the person alleged by the claimant caused the discharge, the administrator shall mail a notice of claim, a copy of the claim and, where appropriate, a copy of any supporting documents or materials, by registered or certified mail, return receipt requested, to such person.
3. (3) Notice pursuant to this section shall be in such form as the administrator may prescribe from time to time, and shall inform the person alleged to have caused the discharge that he may, within 15 business days of having received notice of the claim, file an answer, including supporting documents if any, with the administrator: admitting the discharge, denying the discharge or taking no position with respect to the cause of the discharge and agreeing with the amount of the claim, disagreeing with the amount of the claim or taking no position regarding the amount of the claim.
4. (4) Not less than seven days after the receipt of an answer or, if no answer is filed, not less than seven days after the expiration of the time for answering, the administrator shall make a determination, if possible, based upon the information set forth in the claim, the answer and other information which may be submitted to the administrator, of the identity of the person who discharged the petroleum. The administrator shall immediately notify the claimant, the alleged discharger and any other affected parties of his determination.

(b) Where a claimant has not set forth the name of a person alleged to have caused the discharge and the administrator cannot determine the source of the discharge, the administrator shall attempt to arrange a settlement of the claim against the fund. The administrator may enter into a settlement with the claimant in accordance with the applicable provisions of section 402.6 of this Part concerning the settlement of claims before the fund.

1. (1) If the administrator arranges a settlement of the claim, the administrator shall certify the amount of the claim and the name of the claimant to the State Comptroller, and the State Comptroller shall pay the same from the fund.
2. (2) If the administrator does not arrange a settlement of the claim, the administrator shall convene a board of arbitration pursuant to section 185 of the Navigation Law.