ANNUAL REPORT 2016 - The Network€¦ · Alaska’s Automatic Identification System (AIS) and its vessel monitoring system, which collects input from both satellite and terrestrial

ANNUAL REPORT 2016

PONANT – Photo Credit Nicolas Dubreuil

Letter from President/CEO 3Safety & Confidence at the Helm 5Non-Profit Leadership 8Safer Cleaner Seas Award 9Risk Reduction Measures 10Response Capabilities 11Alaska Chadux Corporation 13Response Training & Exercises 15Advancing Knowledge 17Regulatory Affairs 18Finance 19Board of Directors & Officers 21

TABLE OF CONTENTS

Boundary indicates the Network's coverage area.

Dear Valued Participants and Stakeholders,

We at the Alaska Maritime Prevention & Response Network recognize that 2016 was a demanding year for the maritime shipping

industry, with economic turmoil and many challenges that continue into 2017. Despite this, the Network remained positioned to ensure our participants receive the best value and capabilities to meet U.S. Federal oil spill prevention and response regulations when in Alaskan waters. Our Board of maritime executives understands the cost challenges faced by vessel owners and operators, as several of them represent shipping companies. They are committed to balancing the cost of an oil spill readiness program with the value the Network delivers to ensure you not only meet compliance with U.S. Federal regulations, but that you have the best protection and response capabilities available, should they be needed.

The need for enhanced oil spill response readiness in Western Alaska is growing, as expressed by federal and state officials and other interest groups. While U.S. policy-makers review and overhaul the Alternative Planning Criteria (APC) for Western Alaska in 2017, the Network continues to be your voice and advocate to find the right balance between environmental preservation and commerce during the drafting of the new

policy. As a non-profit, the Network provides your company the peace of mind that you meet the expectations of the U.S. government in continuing to build response capabilities in Western Alaska and can meet (and exceed) any new policy enacted by the U.S. Coast Guard.

The Network is a leader in the APC industry, ensuring we complement your company's vessel safety management, environmental protection, and regulatory compliance programs. We place the utmost importance on your reputation and compliance needs. As you read our annual report, you will see the Network celebrated significant achievements in 2016, enhancing your oil spill preparedness and response capabilities in Western Alaska. We are thankful that you have entrusted the Network to be your APC service provider. We will continue to demonstrate our strong commitment to you in 2017.

Warm regards,

Buddy CustardPresident & CEOAlaska Maritime Prevention & Response Network

LETTER FROM THE PRESIDENTPROTECTING CREWS, CARGO AND ALASKA’S COASTLINE

Alaska Maritime

Yukon Delta

Selawik

Arctic

Izembek

Togiak

Alaska Peninsula

Kodiak

BecharofKenai

Ten National Wildlife Refuges along the marine environment in Western Alaska

Respect • Integrity • Stewardship • Excellence

3 ALASKA MARITIME PREVENTION & RESPONSE NETWORK | Annual Report 2016 4ALASKA MARITIME PREVENTION & RESPONSE NETWORK | Annual Report 2016

Western Alaska Captain of the Port Zone

Prince William SoundCaptain of the Port Zone

Areas to Be Avoided

Authorized Passes

Response Hubs

R E S P E C T . I NT

EG

RIT

Y. S

TEWARDSHIP. E

XC

EL

LE

NC

E .

GUARANTEED COMPLIANCE

Buldir Pass

Amchitka Pass Amukta PassUnimak Pass

BERING SEA

BEAUFORT SEACHUKCHI SEA

BRISTOL BAY

GULF OF ALASKA

PACIFIC OCEAN

The Network values the safe passage of the crews and cargo of all vessels that pass through Alaska’s waters while meeting environmental regulatory compliance requirements. The leadership of the Network has led to the most responsive, most capable, most compliant OPA90 program for vessels that travel throughout Alaska’s harsh environment. Helping to prevent an incident from occurring is our priority, using our program risk mitigations strategies. In the event an incident should occur, shipping companies can be assured that the Network’s team of partners are ready to respond. Our dedication to maintaining safer and cleaner seas leads us to monitor safe routing measures, conduct tabletop exercises, and advocate for the maritime industry at the highest levels.

Being the most capable APC program with the largest coverage area gives companies confidence they are in compliance with all U.S. Federal vessel response plan regulations and have the resources needed to respond to an incident. Vessel owners and operators can rely on the Network to guide them through the necessary steps for complete compliance as they pass through all of Western Alaska.

SAFETY & CONFIDENCE AT THE HELM

PREVENTION FOCUSEDRESPONSE READY

LEADING COMPLIANCE STANDARDS

Partnering with Alaska Chadux Corporation and the Marine Exchange of Alaska, the Network has assembled a team of experts dedicated to implementing risk reduction measures and in the case of an incident, ready to respond 24/7.

• 18 Response Hubs

• Largest Inventory of Spill Resources in Western Alaska

• Only Purpose Built Oil Spill Response Vessel in Alaska: Sea Strike (146’)

• Largest Vessel of Opportunity Program in Western Alaska

• Largest vessel monitoring and management system in the world

• Safe routing measures in alignment with the IMO Approved Aleutian Archipelago Areas to Be Avoided (ATBA) that went into effect January 1, 2016

• Early detection notifications of potential incidents

• Comprehensive, dedicated 24/7 manned watch

THE NETWORK COVERAGE AREA


The Marine Exchange of Alaska's 24/7 Monitoring Center

Somebody once said "Failing to prepare is, generally speaking, preparing very well to do the wrong thing.” Signing up with The Network is a huge step forward for being prepared and actually a no brainer. Visiting your facilities and meeting your people convinced me we found the right partner. For both – compliance and emergency preparedness.

– Michael Schmidt, CPO Containerschiffreederei (GmbH & Co.)

“

NON-PROFIT LEADERSHIP EQUALS SAFER SEASThe Network is a nonprofit; our goal is to ensure your vessels can safely transit through Western Alaska by giving your company the largest coverage area, the most response capabilities, the best value, and the peace of mind of knowing you are in full compliance with U.S. federal regulations.

Any residual revenues are invested back into improving our program, fully serving industry needs, and building comprehensive response capabilities for all owners and operators of vessels that operate in the difficult Alaskan waters; not to make a profit for someone else.

Trusted From Around The WorldThe Network represents over 445 companies operating more than 3,000 vessels.

8ALASKA MARITIME PREVENTION & RESPONSE NETWORK | Annual Report 2016

Duncan Smith receives the award on behalf of the Network from Carleen Lyden-Kluss, Executive Director of the North American Marine Environment Protection Association

SAFER, CLEANER SEASAWARD WINNER

RISK REDUCTION MEASURES

In 2016, the Network received the prestigious Safer, Cleaner Seas Award from Lloyd's List North America Awards. The award recognized the Network as a socially and environmentally responsible organization for its work with the Alternative Planning Criteria program. This work included vessel monitoring and providing enhanced oil spill response capabilities for seagoing vessels in Western Alaska.

• The Network continued use of the Marine Exchange of Alaska to operate a 24-hour live monitoring center to provide timely and accurate information on participating vessels’ location and operating status. This active monitoring center aids in vessel compliance, promoting good standards of care in safe routing measures, processing deviation requests for crew and vessel safety, and in relaying information to the U.S. Coast Guard and other responders in the event of an emergency.

• The Network funded expansion of the Marine Exchange of Alaska’s Automatic Identification System (AIS) and its vessel monitoring system, which collects input from both satellite and terrestrial receivers, for the most expansive and reliable coverage in Western Alaska and the U.S. Arctic regions.

• In 2016, the monitoring center tracked over 8,680 vessel transits in the Network coverage area.

LEADERSHIP RECOGNIZED

I really appreciate what the Network is doing. Their intention is good and they've gone about it the right way. They've actually invested money in getting resources and setting up the contracts and greasing the skids to make stuff happen. – Greg Labeau,

Qualified Individual, Witt O'Brien's

“

2016 NETWORK PARTICIPANTS BY VESSEL TYPEBULK CARGO 48%

VEHICLE CARRIER/RO-RO 7%

OIL/CHEMICAL 7%

BREAK BULK/CONTAINER 6%

FISHING 4%

REFRIGERATED CARGO 2%

LNG/LPG <1%

MISC/OTHER <1%

TUG/OSV 2%

PLEASURE/YACHT <1%

PASSENGER/YACHT <1%

CONTAINER 22%


The Network has continued to invest in the Sea Arrestor & Emergency Vessel Attachment Towing System (EVATS) project. A provisional patent for the EVATS was submitted to the U.S. Patent and Trademark Office, and continued upgrades are being designed to the EVATS, with the intent to conduct further engineering testing in 2017.

EVATS developed to be delivered by an aircraft or responding vessel.

ADVANCING RESPONSE CAPABILITIES

To review the exercise see the video at www.ak-mprn.org/response-capabilities/vessels

The Network was able to advance an unprecedented improvement to oil spill response by securing the OSRV Sea Strike as the only fully-dedicated oil spill response vessel in Western Alaska. The Sea Strike is a 146-foot purpose-built oil spill response vessel, equipped with significant response equipment. Additionally, the Network attained the oil spill response barge Kittiwake, capable of storing 23,000 barrels of recovered spilled oil. Both assets are located in Kodiak, Alaska to support a response to Network participants from the Gulf of Alaska to the Aleutian Islands.

OSRV SEA STRIKE & OSRB KITTIWAKEThrough the coordination with the Network, Alaska Chadux Corporation and Paradigm Marine we were able to safely and successfully deploy and retrieve the equipment off the Sea Strike at the end of the day.– Chris Ellis,

Response Technician, Chadux

“

SEA ARRESTOR & EMERGENCY VESSEL ATTACHMENT TOWING SYSTEM PROJECT

The Network's OSRO developed unique response capabilities over the years for responding to an oil spill incident particular to the harsh, remote environment in Western Alaska. The Large Vessel Booming Package is specifically intended to support the containment booming of a large non-tank vessel in conjunction with the Western Alaska Rapid Response Packages.

RAPID RESPONSE EXPERTS

Helicopter delivers the EVATS to foredeck of disabled ship.Unpack the EVATS from the cargo net, and proceed to STAGE B.

The responding vessel delivers the EVATS to the disabled ship via line gun and messenger line.For responding vessel deployment procedure, begin at STAGE A.

EVATS MOBILIZATION VIA HELICOPTER EVATS MOBILIZATION VIA SHIP


Chadux crewmember loading equipment to one of their response boats.

Response equipment deployment ready at Alaska Chadux Corporation's Anchorage Warehouse

ALASKA CHADUX CORPORATION Leads OSRO Capabilities

• Established three new response hubs in Western Alaska for a total of 17

• Conducted 18 exercises per the National Preparedness For Response Exercise Program (NPREP)

• Responded to six oil spill incidents in Western Alaska

• Alaska Chadux Corporation (est. 1993) has responded to over 125 pollution incidents throughout Western Alaska, including many of the largest spills: M/V Kuroshima grounding, M/V Selendang Ayu grounding, M/V Cougar Ace casualty, Tug Polar Wind grounding, and the MODU Kulluk grounding.

• Has over 30 vessels of opportunity in their program and 16 dedicated response vessels.

• Only Oil Spill Removal Organization (OSRO) in Western Alaska that is also certified by the State of Alaska as a Primary Response Action Contractor and Non-tank Vessel Cleanup Contractor.

• Only OSRO that has a U.S. Coast Guard classification throughout all of the Western Alaska Captain of the Port zone.

• Possesses the largest inventory of response equipment in Western Alaska and the largest amount of temporary storage for emergency lightering or spilled oil reception.

2016 HIGHLIGHTS

UNRIVALED EXPERIENCE

• Sponsored oil spill response trainings for regulators and industry – Incident Command System courses, Hazardous Waste Operations and Emergency Response Standard (HAZWOPER) training, and Shoreline Cleanup and Assessment Techniques (SCAT) training.

UNMATCHED EQUIPMENT

90%of wild salmon harvested in U.S. is from Alaska

The Network is a valuable member of Chadux and its enrolled vessels enjoy access to our comprehensive response resource capabilities across the Western Alaska Captain of the Port Zone. The Network's dedicated investment in response resources over the past 2 years has resulted in a substantial expansion of response resources for shippers operating throughout Western Alaska waters, providing assurance of being response ready should the need arise.– Jeff Savage,

General Manager, Offshore Systems Inc. President of the Chadux Board of Directors

“


Crew deploying ocean boom from the OSRV Sea Strike

EFFICIENCYENVIRONMENTAL PROTECTION

SAFETY

INFORMATION

CAPABILITIESNotice of incident, Location of vessels in

distress, Location of assist vessels, Early

notification to key responders.

Distance offshore provides time for assist vessels or tools to arrive, Early detection and immediate location of assist resources buys more time

Monitoring locations of Assist Vessels, Vessels of Opportunity, Enhanced Response Resources, New Technologies, Emergency Towing Systems.

TIME

On September 13 & 14, 2016, Alaska Chadux Corporation (the Network's oil spill removal organization – OSRO) and Paradigm Marine (operator of both the OSRV Sea Strike and OSRB Kittiwake) conducted a deployment exercise to test their response capabilities in Port Bailey, near Kodiak, Alaska. Deployment included launching and recovering the ocean buster oil spill recovery system with three vessels of opportunity in Chadux's program supporting the OSRV Sea Strike. The vessels also deployed ocean boom and positioned it around a large barge simulating a casualty.

A critical part of the Network APC program is to ensure timely notification and mobilization of response resources for Network participants. This process was exercised on May 18, 2016 at Alaska Chadux Corporation’s Anchorage response center. Participants included the U.S. Coast Guard, the Alaska Department of Environmental Conservation, Witt O'Brien's, T&T Salvage, Seaspan Ship Management, Global Diving & Salvage, Pearson Consulting, Alaska Chadux Corporation, and the Network. The exercise

AGENCY / RESPONDER TABLE TOP EXERCISE

LEADING RESPONSE TRAINING & EXERCISES

The difference of the Network is capacity. They're on call 24 hours a day. They are linked in with all the responders: Coast Guard and the OSRO community, the QIs, that would respond and also the salvage fire fighting community… I feel comfortable working with The Network. They can bring to bear the Coast Guard, the State and all the right people to solve the problem. - Jim Elliott, CEO,

T&T Salvage

“ KODIAK DEPLOYMENT DRILL

The drill was a success and resulted in many lessons that will enhance the readiness and capability of these important response resources. Please visit the Network's website to view a short video of this exercise.

demonstrated that the Network’s non-tank vessel APC program can deliver response resources in a prompt and efficient manner.

90%of the world’s seabirds breed in Alaska


photo credit Foss Maritime Company

ADVANCING KNOWLEDGE

REGULATORY AFFAIRS

The Network is exploring a partnership with the Aleutian and Bering Sea Islands Landscape Conservation Cooperative (more at: absiLCC.org) to explore risks to vessels that may lose power in the Aleutian Islands. We’re excited about this collaboration with an entity providing applied scientific information to agencies, communities and industry in the Aleutians and Bering Sea.

• The Network continued to liaison with the International Group of P&I clubs to ensure our tank and non-tank vessels’ APC programs conform to their guidelines.

• In 2016, several staff members participated in professional maritime conferences and gave presentations, such as at the Spill Control Association of America on "Emerging Marine Response Technology & Issues;" at the Clean Pacific conference on "Maneuvering within the Complexities of Alternative Planning Criteria when Operating in Alaska;” and at the Aleutian Life Forum conference on "Aleutian Islands APC Program." We also attended the Alaska Oil

On May 27, 2016, the U.S. Coast Guard published a “Notice of Availability; Request for Comments” soliciting public comment on the draft “Update to Alternative Planning Criteria (APC) National Guidelines.” The Network worked with a variety of stakeholders from the maritime industry, the International Group of P&I Clubs, environmental organizations, response contractors and others to generate comments on behalf of broad spectrum of Network participants. These comments were submitted to the federal register docket 2016. For more information on the comments by the Network and others, please visit the Network's website.

APC NATIONAL GUIDANCE

UNDERSTANDING RISKS IN THE ALEUTIANS

INDUSTRY ENGAGEMENTS

Spill Technology Symposium and the Connecticut Maritime Association Conference, as well as several Alaska Regional Response Team meetings. By attending these events, the Network was able to speak with vessel owners, operators and key stakeholders to remain abreast of the latest issues regarding vessel response plans to meet compliance and response readiness requirements.

• A partnership was established with the Ukpeagvik Iñupiat Corporation – Arctic Response Services (UIC-ARS), an Alaskan Native-owned corporation. UIC-ARS gives the Network participants access to over $25 million worth of response equipment, providing the most comprehensive and best-equipped APC in Western Alaska.

photo credit M/V PARSIFAL, Wallenius Marine AB

ABSI is able to develop a comprehensive risk evaluation surface that would highlight risks using contour zones like those show in this concept map and drift models in incorporating data from the National Oceanic and Atmospheric Association (NOAA)

60%of U.S. seafood is from Alaska


As a nonprofit, the Network conducted an Independent Accountant's Review of its financial management system. The review found that the Network was in accordance with good accounting principles accepted in the U.S.

The Network’s expenses are expected to be 8 percent lower in 2017 as compared to 2016 expenses.

FINANCES

Response Capability

Risk Reduction Research &

Development Wages & Benefits Management

39%

24%

6%

11%

20%

2017 Expected Expenses

2016 Expenses

45%

19%

8%

9%

19%

19 ALASKA MARITIME PREVENTION & RESPONSE NETWORK | Annual Report 2016

BOARD OF DIRECTORS NETWORK OFFICERS CONTACT USAnchorage Office 1400 W. Benson Blvd. Suite 220, Anchorage, AK 99503(907) 754-9700 [email protected]

Juneau OfficeOne Sealaska Plaza, Suite 304 Juneau, AK 99801

To enroll visit ak-mprn.org

Mike MooreVice PresidentPacific Merchant Shipping Association

Mark SmithChief Executive OfficerVitus Energy

Frank VargasDirector, Fleet Compliance and RegulatoryAmerican Seafoods Company

John CroninVessel Manager, Matson NavigationMatson, Inc.

David DeVilbissVice PresidentMarine Casualty and Emergency ResponseGlobal Diving & Salvage, Inc.

Max FurerManager, Operations Pacific NorthwestHapag-Lloyd (America), LLC

Buddy CustardPresident & Chief Executive Officer

Jessica WrightVice President & Business Manager

Jim ButlerDirector, Government & External Affairs

Mike InmanConsultant, Maritime Safety and Compliance

Mark RemijanDirector, US Flag Fleet Operations / CSOAPL Maritime, Ltd.

Grant StewartVice President, Marine Operations & Vessel SafetyWestwood Shipping Lines, Inc.

21 ALASKA MARITIME PREVENTION & RESPONSE NETWORK | Annual Report 2016

ak-mprn.org

Documents

ANNUAL REPORT 2016 - The Network€¦ · Alaska’s Automatic Identification System (AIS) and its vessel monitoring system, which collects input from both satellite and terrestrial