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

2. Oil Spill - Two Distinct & Parallel Activities 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

3. The “E” Word!

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

8. SPILL CONTROL ASSOCIATION OF AMERICA ANNUAL MEETING MARCH 20 & 21, 2014 Office of Marine Environmental Response Policy

9. Environmental Consultation Requirements Endangered Species Act (ESA) Section 7 Essential Fish Habitat (EFH) National Historic Preservations Act (NHPA) Tribal – Executive Order 13175 9 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 10 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. 11 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concurrence Region VI: Awaiting Deepwater Horizon BA Region IV: ESA &EFH dispersant pre-authorization consultation out of date & needs EFH information Region III: Significant ACP updates with informal consultation, awaiting concurrence 12 Office of Marine Environmental Response Policy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 13 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 14 Office of Marine Environmental Response Policy

15. ESA Section 7 Policy – Future State Key Points:  Coast Guard is re-energizing the process  Consultations may be out of date & require updating, but remain valid  Area Committees & Regional Teams own the process  Interagency cooperation & commitment is key  Have ESA consultations complete by 2018 15 Office of Marine Environmental Response Policy

16. 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 16 Office of Marine Environmental Response Policy

17. 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?Co urseCodeLong=FWS-CSP3116 17 Office of Marine Environmental Response Policy

18. Key Documents Memorandum of Agreement between:  DOI  NMFS  NOS  USCG  EPA 18 Office of Marine Environmental Response Policy

19. Key Documents CG Policy Letter 19 Office of Marine Environmental Response Policy

20. Thank-you for your time Stewards of the Environment and Public Trust Questions Office of Marine Environmental Response Policy 20

21. HARRY DIAMOND Vice President, Claims

22. An Insurance Company View of Environmental Response Impacts

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

24. Who Pays for Raising This Vessel?

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

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

27. 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 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. 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. This is why WQIS sends a Spill Response Manager to every spill no matter how small.

28. Biggest Problems Occur When Underwriters Have Divergent Interests. Biggest Problems Occur When Underwriters Have Divergent Interests.

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

30. 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

32. 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)

33. 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

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

39. 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: 1.Rebuilding of primary dune and level beachfront 2.Evaluation of area following winter months 3.Replanting native vegetation after winter months 4.Evaluation following the next growing season

40. 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

41. 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

42. Spill Control Association of America 20 March 2014 Presented by: Rhonda Murgatroyd Wildlife Response Services, LLC

43. 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.

44. 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

45. 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.

46. 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.

47. Wildlife Capture

48. Spacious Wildlife Facility

49. Rehabilitation Center

50. Bath Time

51. Husbandry/Medical Care

52. Outside Flight Pen

53. Wild Again

54. Questions?

55. Spill Control Association of America 2014 Annual Meeting Panel Session: Environmental Issues Associated with Spill Response Topic: Role of the Environmental Unit (EU) and Interaction with Operations Robert A. Simmons, P.E. President, Environmental Science Services, Inc.

56. Overview Importance of EU Interaction with Ops Minimizing collateral damage and additional cost and liability for the RP As a Practical Matter - How this interaction works in the ICS Experience factor of EU personnel

57. Minimizing collateral damage and additional cost / liability for RP Appropriate Cleanup techniques –When this is obvious or intuitive –When this is not obvious or intuitive –Determining and assessing cleanup methodology and endpoints Identification and coordination with Ops relative to sensitive resources (RAR)

58. Minimizing collateral damage and additional cost / liability for RP Continued Implementation and monitoring of results of ESA section 7 consultation When Necessary (Federal Requirement) –BMPs –Buffer zones –Modification of cleanup methodology –Formality or informality depending on circumstance of spill and response

59. Implementation and monitoring of NHPA section 106 consultation When Necessary (Federal Requirement) –Archaeologists or cultural resources experts, SHPO, DOI –Secretive nature of some cultural resource issues –Formality or informality depending on circumstance of spill and response Minimizing collateral damage and additional cost / liability for RP Continued

60. Endpoints, “How Clean is Clean” Net Environmental Benefit Assessment (NEBA) –Informal approach –Formal approach NRDA Considerations

61. As a Practical Matter - How this interaction works in the ICS Starting Point might be ICS 232 – Resources at Risk Planning Section specific EU links with Ops –Wildlife –Dispersants –Insitu Burning –Other Agency Coordination and Documentation

62. As a Practical Matter - How this interaction works in the ICS - CONTINUED SCAT Relationship between Planning and Operations Section –More than just thru the IAP –Establishing awareness –Navigating thru the “Us and Them” Mentality Other EU presence in the field

63. As a Practical Matter - How this interaction works in the ICS - CONTINUED Experience factor of EU personnel and Operational Familiarity Reactive approach Proactive approach

64. End of Presentation Robert A. Simmons Environmental Science Services, Inc. (Es²) Cell: (985) 290-1030 rsimmons@es2-inc.com

65. Thank You Questions