Environmental Issues Associated with Response Activities March 20, 2014

1. Environmental Issues Associated with Response Activities March 20, 2014

2. Panel Lawrence D. Malizzi, P.G Matrix New World Engineering, Inc., Wilmington, DE Commander Ed Bock United States Coast Guard, Washington, DC Harry Diamond Water Quality Insurance Syndicate, New York, NY William Hazel Marine Pollution Control, Detroit, MI Rhonda Murgatroyd Wildlife Response Services, LLC, Seabrook, TX Robert Simmons, PE Environmental Science Services, Inc., Denham Springs, LA Oil Spill - Two Distinct & Parallel Activities

3. The “E” Word!

6. The Two Most Frightening Words on a Spill Response:

8. Office of Marine Environmental Response Policy Spill control association of America annual meeting march 20 & 21, 2014

9. Environmental Consultation Requirements • Endangered Species Act (ESA) Section 7 • Essential Fish Habitat (EFH) • National Historic Preservations Act (NHPA) • Tribal – Executive Order 13175 Office of Marine Environmental Response Policy

10. ESA Section 7 Policy – Current State • The 2001 Interagency MOA provides guidance for ESA consultations. • MOA is used to identify & incorporate plans & procedures to protect listed species & designated habitat during spill planning & response activities • Signatories include USCG, EPA, DOI, Fish & Wildlife Service, NOAA’s NMFS & National Ocean Service (NOS) • Contains Purpose, Definitions, Procedures, & Planning Templates Office of Marine Environmental Response Policy

11. ESA Section 7 Policy – Current State • The MOA states that the consultation process should be initiated and managed at the Area Committee level (i.e. where the action is planned). • Due to recent litigation the need for consultations during RRT & Area Committee planning is being reemphasized. Office of Marine Environmental Response Policy

12. Regional Status • AK Region: Regional biological assessment (BA) update complete, awaiting concurrence • Region IX: California Dispersant Plan BA complete, awaiting concurrence • Region VI: Awaiting Deepwater Horizon BA • Region IV: ESA &EFH dispersant pre-authorization consultation out of date & needs EFH information • Region III: Significant ACP updates with informal consultation, awaiting concurrence Office of Marine Environmental Response Policy

13. ESA Section 7 Policy – Future State • CGHQ released a policy letter in October to explain Section 7 & EFH consultation responsibilities • CG roles & responsibilities: • Co-Chair: Assembles experts to assist OSC • RRT Coordinator: Manages work & keeps group informed • DRAT: Advises on response strategies • FOSC: Coordinates local planning & response • SSC: Provides scientific advice on response strategies, oil fate and affect on endangered species Office of Marine Environmental Response Policy

14. ESA Section 7 Policy – Future State • Cooperation & coordination between the FOSCs & Services is key • RRTs & Area Committees may consider using ERA Workshops to develop appropriate response strategies as part of the ESA consultation process • ESA Section 7 Toolkit include: • Located on the MER Portal • MOA • Area Contingency Plan Job Aid • Best Management Practices Database Office of Marine Environmental Response Policy

15. Way Forward • National Strategy • Cooperation & collaboration among agencies & services • High-visibility plans are a top priority • Follow MOA & Policy • All ESA Consultations Current by 2018 • Continue to Clarify Guidance • Provide Technical & Legal Assistance • Training Opportunities at CGHQ & USF&W • Consider Updating the MOA in the Out Years Office of Marine Environmental Response Policy

16. Training Resources • U.S. Fish & Wildlife Service • National Conservation Training Center • Interagency Consultation for Endangered Species • 4-day course, offered every few months • http://training.fws.gov/nctcweb/catalog/CourseDetail.aspx?CourseCodeLong=FWS-CSP3116 Office of Marine Environmental Response Policy

17. Questions Thank-you for your time Stewards of the Environment and Public Trust Office of Marine Environmental Response Policy

18. HARRY DIAMONDVice President, Claims

19. An Insurance Company View of Environmental Response Impacts

20. The Insurance Company Interest is Largely Financial However: • We are not out to make every response as inexpensive as possible • We make long term profits by paying fair and reasonable claims • We don’t skimp on environmental responsibility

21. Who Pays for Raising This Vessel?

22. Claims by the Numbers • We handle about 100 to 150 claims per year. • We have about $4 M to $6 M in claims per year. • Claims that exceed our coverage limit are rare, about one every 2 – 3 years on average • The average claim costs about $50,000 • Claims can generally be closed in one year or less • WQIS claims that go into litigation are rare

23. Claims Involving Natural Resource Damage • For us these are rare. • Usually happen in the larger claims • These claims are not just pollution claims so often other underwriters are involved. • Most WQIS spills are minor in nature, do not involve hazardous products and do not involve a Natural Resource Damage Assessment

24. EVERY RESPONSE HAS THE POTENTIAL TO CAUSE ENVIRONMENTAL DAMAGE • Decisions made in the initial response to a spill or threat of a spill can have significant impact later on in the event • It is critical to bring the right team to the spill to prevent causing environmental damage in the response. • This is why WQIS sends a Spill Response Manager to every spill no matter how small.

25. Biggest Problems Occur When Underwriters Have Divergent Interests.

26. Takeaway • The key point is that the Insurance stake holder should be involved early in the decision making process at the command center. • Should be kept in mind that the insurance stakeholder is usually not just one party.

27. Environmental Considerations During Oil Spill Response Operations: An OSRO’s Perspective Presented: Spill Control Association of America (SCAA) Annual Meeting Bill Hazel – Director of Marine Services Marine Pollution Control Detroit, Michigan USA March 20, 2014

28. Response Tactics Spill Event Best Response Environmental Impacts

29. Principles, mechanisms and systematic processes used to evaluate and guide the environmental aspects of spill response operations: Best Response Principles (ICS-based) Sensitivity Indexes (ESIs) and Geographic Response Plans (GRPs) Net Environmental Benefit Analysis (NEBA) Shoreline Cleanup Assessment Technique (SCAT) Natural Resources Damage Assessments (NRDA)

30. Principles of Best Response (from SE Michigan Area Contingency Plan) Generalized protection priorities: Priority 1 – Protection of public health & safety Priority 2 – Ecological Priority 3 – Cultural Priority 4 – Economic Priority 5 – Social Priority classes: A = Highest Priority B = Protect after A C = Protect after B

31. CASE STUDY: Tug Boat Seneca – Deer Park, MI – December 2006

36. Seneca Operations/Ecological Considerations: Begin from expectation that the response activities will cause ecological damage Specialist biologist contracted to develop an access plan and 4-stage site restoration plan: • Rebuilding of primary dune and level beachfront • Evaluation of area following winter months • Replanting native vegetation after winter months • Evaluation following the next growing season

37. Seneca Operations/Ecological Tactics: Limit damage by restricting travel to specific routes Utilize “light-footprint” logistic assets Perform as many actions as possible on water Communicate access/restoration plan to responders

38. Recommendations: NEBA and Best Response concepts should be conveyed to field response personnel through periodic training initiatives and through daily communications processes during incidents Drills and exercises should incorporate injects that test NEBA and Best Response concepts NEBA and Best Response concepts should be applied to GRP processes based on lessons derived from drills and exercises

39. WILDLIFE RESPONSE WITH A FOCUS ON NRDA DOCUMENTATION Spill Control Association of America 20 March 2014 Presented by: Rhonda Murgatroyd Wildlife Response Services, LLC

40. Wildlife Response“Back In The Day” • Mobilize Where – I Need A Place to Set Up Wildlife Center • Are Response Trailers On The Way? • Which Responders Are Mobilizing (Even this has changed with more response activity away from coast). • Who Am I Working For (RP) • What Is The Trajectory? This Will Give Me A Good Idea of Wildlife Concentrations.

41. Wildlife Response“Back In The Day” cont. • Have Oiled Animals Already been sited? • Are Wildlife Trustees Already Engaged? Contacts? • Resources Available (Wildlife Supplies, Boats, Vans, Lodging) • WRS Documentation, Surveys, Capture, Rehabilitation, Carcass Collection, Hazing, Relocation and Pre-Emptive Capture

42. Wildlife Response“The Here And Now” • All WRS Documentation Merging With . . . . • Wildlife Trustee Specific Forms [e.g., Evidence Storage Log, Oiled Bird Intake Form, Wildlife Branch Daily Asset Report, Live Oiled Animal Data Log, Wildlife Branch Daily Report Form (to populate 209), Carcass Collection Documents, Field Survey Log (photos, GPS coordinates and tracks)]. • Wildlife Rehabilitation Personnel Are Writing More Plans (field mobilization, communications, hazing, hacking, release, severe weather, trapping, relocation), the list goes on – we don’t just “do it” any longer.

43. Wildlife Response“The Here And Now” cont. • Photo Documentation Becoming More Labor Intensive (being looked at closer). • All Data To Be Entered Into Excel Spreadsheets For Future Use. • Wildlife Responders Becoming More Engaged In Overall Incident. • This Is A Positive Move For Both Trustees And RP’s; Just More Labor Intensive For Us, Requiring Additional Personnel.

44. Wildlife Capture

45. Spacious Wildlife Facility

46. Rehabilitation Center

47. Bath Time

48. Husbandry/Medical Care

49. Outside Flight Pen

50. Wild Again