1. Costs and Impacts from Leaking Wrecks: Response Costs and Removal Costs Dagmar Schmidt Etkin, PhD Environmental Research Consulting Wrecks of the World (WOW) II: Evaluating and Addressing Potential Underwater Threats Maritime Institute of Technology and Graduate Studies (MITAGS) Linthicum, Maryland 6 – 7 June 2011

2. Response Costs Assuming wreck is leaking or likely to leak… Spill cleanup response/monitoring operations (and environmental/socioeconomic damages) OR Oil removal operations

3. Example: SS Jacob Luckenbach Freighter sank 14 July 1953 after collision with another vessel off California coast. Wreck contained 1,360 tonnes of heavy fuel oil. Wreck leaked oil periodically, primarily during large winter storms when currents rocked vessel.

4. Damages from SS Jacob Luckenbach Dozens of spills over 10 years with millions of dollars in cleanup costs 51,000 birds, sea otters oiled (> 50 species) >10,000 sq km ocean impacted US$2 million/year on wildlife rehabilitation US$20 million for wreck oil removal operations to prevent further oiling damage

5. Components of Averted Response Costs and Damages Monitoring of leaking or potentially leaking wreck Response and cleanup costs for leakage events – Shoreline cleanup – Oversight – Disposal Response and cleanup for potential large releases – On-water response (mechanical, dispersant) – Oversight – Shoreline cleanup – Disposal

6. Factors Affecting Potential Response Costs Location – Physical geography (shoreline type, water depth, sea state) – Political regime (response regulations – funding, dispersant policy ) – Cultural/social regime (public involvement, “how clean is clean”, labor costs) – Proximity and nature of sensitive resources (habitats, shorelines) to protect – Proximity and type of response resources available Response type – Response strategy employed + timing (equipment, personnel requirements) – Effectiveness of on-water response (mechanical, dispersant) – Endpoints in shoreline cleanup (“how clean is clean”) Oil- and hazmat (HNS)-type – Persistence – Toxicity – Human health impacts, chemical reactions/releases Volume and nature of release – Smaller volumes more expensive on per-unit basis unless very small – Continuous vs. sudden, massive release – Oil spread, degree of shoreline impact

7. State-of-the-Art Cost Analyses Trajectory, fate, effects modeling of hypothetical scenarios Data for simulating behavior of oil Data for estimating costs/impacts Planning for spill response contingencies and preparedness Cost models based on algorithms from data on previous spills Adapted to specific scenarios Local information

10. Environmental and Socioeconomic Resources at Risk

11. Calculating Benefit of Wreck Oil Removal Determine hypothetical spill/release scenario(s) – Nature of event(s) Continuous chronic or episodic releases Large release – Oil/hazardous material type(s) and amount(s) Model trajectory, fate, and effects of release scenarios Estimate impacts and costs of release scenarios – Response and cleanup costs – Environmental damages – Socioeconomic damages (e.g., fisheries, tourism)

12. Costs of Wreck Oil Removal Operations Spill response preparedness Spill response, if needed (prepared, timely, on site) Salvage equipment and personnel Monitoring equipment and personnel Logistical support

13. Factors Affecting Wreck Oil Removal Costs Location – Water depth – Currents and sea state – Weather – Logistical support Vessel characteristics – Oil- and hazmat (HNS)-type and content (munitions, human remains) – Vessel type and construction/configuration – Degree of corrosion – Vessel orientation (upright, on side) – Vessel condition (broken, split, intact) – Other factors (presence of munitions, human remains, cultural artifacts) Equipment required and availability Monitoring and oversight logistics required and availability

14. Costs of Wreck Oil Removal Operation Complexity Cost Factors Cost Range Depth (meters) Oil Viscosity WatersMobilization Wreck Condition Simple<20LowProtectedLocalGood<$1 – 5M Moderate20 – 50Medium Weather and sea restricted RegionalModerate$2 – 7M Complex50 – 250HighOpenDistantPoor$5 – 20+M Highly Complex >250HighOpenDistantPoor$20 – 100+M

15. Basic Cost-Benefit Analysis Value of averted costs and damages Benefit = Benefit of oil removal If benefit > cost of oil removal operation, Then, oil removal operation has a NET BENEFIT to environment and to society