Kulluk Lessons Learned SMIT SALVAGE. Douglas Martin President and General Manager- Houston NAMEPA ANCHORAGE - August 13, 2014

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1 Kulluk Lessons Learned SMIT SALVAGE Douglas Martin President and General Manager- Houston NAMEPA ANCHORAGE - August 13, 2014

2 PLEASE SWITCH OFF YOUR MOBILE PHONE

3 Kulluk, departing Alaska Singapore Bound

4 KULLUK LESSONS LEARNED High Profile Marine Towing Casualty not an O&G incident Response plan was activated. Response Plans were activated in a reasonably timely manner no contracting delays. Prompt emergency response was achieved minimizing damages Precautionary measures were taken and Wreck Removal avoided Close cooperation between Responsible Parties and Salvors was contributory. Incident Command System Training within Smit has been accelerated. Smit personnel have attended Shell ICS training courses in London and Houston. Smit have participated cooperatively in drills with Shell actively next in Spain Sept Parties familiar with one another are key factors to a successful response.

5

6 Boskalis Offshore DOCKWISE SMIT SALVAGE Joining of Diverse Capabilities for the Marine and Offshore Market

7 OUR WORLD OPA 90 SALAGE AND OPA 90 MARINE SALVAGE FIRE AND FIGHTING MARINE FIREFIGHTING

8 Boskalis overview

9 INTEGRATED SOLUTION

10 USS GUARDIAN

11 OPA-90 WHERE IT ALL BEGAN Salvage and Marine Firefighting Regs OPA 90 SALVAGE OPA 90 AND MAINE SALVAGE FIRE AND FIGHTING MARINE FIRE FIGHTING

12 SALVAGE MARINE FIRE FIGHTING - UPDATE The ultimate goal of the SMFF regulations is improved and effective emergency response planning. The SMFF Regulations have been in development since 1991 Tank Vessels - SMFF Regulations effective since February 22, Non Tank Vessels November 8, All self propelled vessels greater than 400 GRT require SMFF agreements Funding Agreements are required for all vessels carrying greater than 2500bbls oil including fuel OPA 90 SALVAGE OPA 90 AND MARINE SALVAGE FIRE AND FGHTING MARINE FIRE FIGHTING

13 How the Regulations Work USCG Marine Casualty VRP s USCG or Master to notify Qualified Individual Qualified Individual to activate Plan Sounds Easy, but - Who decides degree of seriousness? Recommendation Activate the Plan as intended.

14 CONFLICTS AND/ OR CONFUSION? Why would plans not be initiated? Why would a COTP take the risk of evaluation of a marine casualty? Competitive QI Business as bad as Salvors, Is this an obstacle to serving the intent of USA OPA90 Law to protect the USA from marine pollution? Strict enforcement from regulators helps everyone. Example: California (Alaska?)

15 March 2013 FM: Wash DC Commandant USCG TO: All USCG COTP s 1. Purpose: To remind Captains of the Ports (COTP) and Federal On-Scene Coordinators (FOSC) to ensure that Vessel Response Plans (VRPs) are activated for all applicable commercial tank vessel casualties that result in a discharge of oil or present a substantial threat of such a discharge. Commercial vessels that carry oil in bulk as cargo are required to have an approved VRP on board ready for use in such circumstances. This message discusses VRP activation, mobilization of commercial resources, and actions the COTP/FOSC should take during oversight of an incident involving tank vessels regulated under references (a) and (b). It should be noted that nontank vessels should also activate their plans when faced with similar circumstances and should be encouraged to do so, but VRPs for nontank vessels will be more limited in scope as they are not required to list salvage and marine firefighting providers under contract until the regulations are implemented.

16 March 2013 FM: Wash DC Commandant USCG -Continued 2. Background: References (a) and (b) require VRPs for tank vessels to list a specific Qualified Individual (QI), oil spill response organization, spill management team, salvor, firefighter and lighterer available under contract. The listing of these pre-contracted service providers ensures the necessary response resources are available within specific timeframes and that response activities will not be delayed due to contract negotiations. Examination of previous incidents has indicated that tank vessel masters sometimes do not activate their VRPs or that the vessel master or QI does not rely on the contracted resources identified in the plan. Failure to activate a plan quickly or failure to use pre-contracted resources can result in delayed response and exacerbate potential environmental damages.

17 Marine Casualties Donjon Smit No Activations 11/10/2011 Esteem Splendor Tanker Grounding Baton Rouge 12/29/2011 MT Sea Music Tanker Grounding Galveston 5/3/2012 Thome EXL-1 Tanker Collision Corpus Christi 5/30/2012 JBU Forth LPG Loss of Lake Charles 2/2/2013 Chem Sea Tanker Collision Galveston 5/17/2013 ATB Galveston Tug and Barge Grounding Savanah Petro Producer (Caustic Soda) 5/25/2013 Vane Bro 59 Barge Grounding New Haven CT 5/30/2013 Profit Tanker Collision Galveston 12/28/2013 Orsula Bulker Grounding Cape Vincent NY 1/19/2014 Leda Trader Container Vessel Fire Miami

18 Discussion Activation of VRP We can only assume the main reasons SMFF providers were not activated is that the incident was considered "minor" by all parties including the USCG or the owner did not want to activate a salvor thinking that money could be saved by hiring third party craft and resources usually through the ship's agent.

19 Shameless Promotion Activate VRP s at the time of a marine casualty let the SMFF professional salvors assess risks and respond as intended. OPA 90 SALVAGE OPA 90 AND MARINE SALVAGE FIRE AND FIGHTING MARINE FIRE FIGHTING

20 Example of Vessels not included: Non SMFF Regulated Emergency Response KULLUK ALASKA

21 Kulluk loaded on HL Vessel

22 Questions? NINA

23 For Further information contact: Douglas Martin President and General Manager SMIT SALVAGE AMERICAS

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