©2010 Global Diving & Salvage, Inc. S/S Princess Kathleen Fuel Removal Project February 12 to June 4, 2010 Point Lena Juneau, Alaska

©2010 Global Diving & Salvage, Inc.

US Coast Guard Involvement The USCG, under the Oil Pollution Act of 1990, “has the primary responsibility for response and mitigation of pollution threats in the marine environment, including making the determination of substantial threat ” Global Diving and Salvage, Inc. is a preapproved response contractor, and has a negotiated Basic Ordering Agreement, which allows the USCG to access Global’s response services without delay under a pre-existing labor and equipment rate structure ©2010 Global Diving & Salvage, Inc.

PHASE 1: Initial ROV Survey of the Vessel February 17-19, 2010 ©2010 Global Diving & Salvage, Inc.

PHASE 2: Assessment of the Vessel March 5-April 20, 2010 Evaluate condition of hull plating, location and quantity of oil, collect data for modeling and survey area for obstacles. ©2010 Global Diving & Salvage, Inc.

PHASE 2: Assessment of the Vessel Use of dimensional modeling ©2010 Global Diving & Salvage, Inc.

PHASE 2: Assessment of the Vessel Non destructive testing of hull for plating strength ©2010 Global Diving & Salvage, Inc.

PHASE 2: Assessment of the Vessel Sampling tanks and hull for confirmation of oil ©2010 Global Diving & Salvage, Inc.

PHASE 2: Assessment of the Vessel Sampling tanks and hull for confirmation of oil ©2010 Global Diving & Salvage, Inc.

PHASE 3: Fuel Removal Operations April 20 to June 4, 2010 ©2010 Global Diving & Salvage, Inc. L/C GLACIER – Dive vessel RED CEDAR – Pumping Barge FOSS 248-P2 Oil Barge HALLE FOSS - Tug

PHASE 3: Fuel Removal Operations April 20 to June 4, 2010 ©2010 Global Diving & Salvage, Inc.

PHASE 3: Fuel Removal Operations Removal methodologies Vacuuming - Advantages: captures hard to reach oil, loose oil (such as in overheads or on the sea floor) - Limitations: slower rate of removal for larger quantities, generates large amounts of oily water (non selective) Hot Tap & Pumping - Advantages: easy to remove large quantities of contained fuel - Limitations: accessibility, structure stability, viscous oils must be heated ©2010 Global Diving & Salvage, Inc.

PHASE 3: Fuel Removal Operations Determination of landing plates and pump locations Typically, valves are placed at the highest and lowest spot in a particular tank location, as well as at the suspected oil/water interface within the tank (after separation)

PHASE 3: Fuel Removal Operations Access points for landing plates ©2010 Global Diving & Salvage, Inc.

PHASE 3: Fuel Removal Operations Securement of pumping equipment ©2010 Global Diving & Salvage, Inc. The two valves in this location are to receive the pumping unit and a heat exchanger

PHASE 3: Fuel Removal Operations Topside pumping regime ©2010 Global Diving & Salvage, Inc. Oil is pumped from a vessel’s tank (along with seawater) into a heated portable storage tank onboard a barge. The oil is than skimmed from the top of the tank and pumped into the barge; the remaining heated seawater is pumped back down into the vessel’s tank and used to assist with continuous heating of the oil within the tank.

PHASE 3: Fuel Removal Operations Challenges ©2010 Global Diving & Salvage, Inc. Hydrogen Sulfide (H2S) - Anaerobic decay aided by bacteria produces H2S, a potentially deadly gas, which may be present in fuel tanks due to microbial interaction with the hydrocarbons - At least one of Princess Kathleen’s fuel tanks contained significant H2S which was detected by alert crewmen and air monitoring equipment on deck - Air monitoring must be continuous during pumping operations. Personnel must be trained, equipped and prepared to react to the onset of a release of H2S during pumping operations Hull Pressurization - While the steel hull of the vessel was in reasonably good condition the rivets were failing - Pressurization of the internal spaces in the tank being pumped could cause oil to be pressed around the rivets and through the hull. Excessive pressure could lead to rivet failure and a breach of the tank - Specialized pressure monitoring systems were developed to allow constant monitoring of the internal pressure and vacuum of the tank being pumped

©2010 Global Diving & Salvage, Inc. PHASE 3: Fuel Removal Operations Recovery Totals Heavy Fuel Oil Heavy Fuel Oil– 130,000 gal Oily Water Oily Water – 220,000 gal Solids Solids– 120 gal

Partners in the Response ©2010 Global Diving & Salvage, Inc. United States Coast Guard Alaska Department of Environmental Conservation Foss Maritime Southeast Alaska Lightering The Glosten Associates Resolve Marine SEAPRO

How Unique is the Project? The concept for “wreck oil removal” was generated through knowledge that extensive vessel casualties throughout the domestic United States and abroad still contain vast quantities of fuel and oil trapped onboard The S/S Jacob Luckenbach was the first significant test of the USCG’s funding capacity along with development of cost effective and efficient methods for removal of the pollutants in-situ. ©2010 Global Diving & Salvage, Inc.

S/S Luckenbach Gulf of the Farallones, CA ©2010 Global Diving & Salvage, Inc. Client: US Coast Guard Performance Period: May 2002 – October 2002 Project Description: In 1953 a 468’ steam ship carrying crude oil sank in 175 FSW within the Gulf of Farallones National Marine Sanctuary Surface supplied and saturation diving utilized Surface supplied and saturation diving utilized Divers recovered approximately 30,000 gallons of emulsified oil from depressions in sea floor using handheld suction hoses Divers recovered approximately 30,000 gallons of emulsified oil from depressions in sea floor using handheld suction hoses

S/S Catala Ocean Shores, WA Client: Washington State Department of Ecology / US Coast Guard Performance Period: February 2006 –August 2007 Project Description: 214’ derelict vessel buried in an ecologically sensitive Washington State Park since 1965 Successfully removed: 35,000 gal heavy fuel oil 35,000 gal heavy fuel oil 2700 yds 3 contaminated soil 2700 yds 3 contaminated soil 33 yds 3 asbestos material 33 yds 3 asbestos material 350 tons steel recycled 350 tons steel recycled ©2010 Global Diving & Salvage, Inc.

M/V Sea Witch Baltimore, MD Client: United States Coast Guard Performance Period: August 2008 – May 2009 Project Description: 700’ container ship that was used as a sludge oil receptacle during scrapping operations in the 1980s Successfully removed: 120,000 gallons of oil 120,000 gallons of oil 75 tons of oily sludge 75 tons of oily sludge ©2010 Global Diving & Salvage, Inc.

NOAA’s Wreck Oil Removal Program (WORP) ©2010 Global Diving & Salvage, Inc. The risk of oil and other hazardous materials seeping out of sunken shipwrecks in US coastal waters is growing yearly. As wrecks age, the likelihood of leakage or even a massive spill occurring increases, as do the potential costs. Taking a proactive rather than a reactive approach to mitigating this risk will save not only dollars in response costs, but also reduce the threat of environmental and socioeconomic damages. The Wreck Oil Removal Program (WORP) is designed to minimize the risk and costs of pollution from sunken commercial vessels, while demonstrating a commitment to protecting the marine environment, using a scientifically-based, controlled approach to oil removal. Additional benefits to this program include technology demonstration, training opportunities, and global leadership in environmental protection.

Other Potential Projects The S.S. Montebello is an oil tanker that was sunk off the coast of California on Dec. 23, 1941 by a Japanese submarine during World War II. The vessel is now in federal waters, approximately seven miles off the coast of Moonstone Beach near Cambria, CA, 900 feet below the water’s surface. Prior to its sinking, the Montebello loaded 73,571 barrels (3,089,982 gallons) of Santa Maria crude oil and 2,477 barrels (104,034 gallons) of bunker fuel at Port San Luis, California. On January 15, 1942 the S.S. Coimbra was sunk by the U-123 with a torpedo hit amidships. Her cargo, barrels of fuel oil, burst into flames and then exploded. Another series of explosions broke the Coimbra into three sections before she sunk. The Coimbra was the second ship sunk by U-boat on the eastern seaboard near Shinnecock Inlet, Long Island, NY. Today she lies in three pieces with some oil still leaking from her. ©2010 Global Diving & Salvage, Inc.

Global Diving & Salvage, Inc. ©2010 Global Diving & Salvage, Inc. Company Overview - Incorporated in 1979, privately held - Regional Offices in Alaska, California, Washington - Approximately 60 FTE Office Staff, 250 FTE Operational Employees Mission Statement: honesty ”Our core values are honesty in dealing with clients, vendors, and each other; safety safety in the workplace through competency, management, and corporate culture; hard work and hard work as a representation of our respect for the client and as a product of our personal discipline and commitment to professionalism at all times.” Services Provided - Commercial Diving - Marine Construction - Casualty Response - Offshore Support - ROV Operations - Marine Environmental - Upland Environmental - Environmental Product Sales & Training

©2010 Global Diving & Salvage, Inc. S/S Princess Kathleen Fuel Removal Project February 12 to June 4, 2010 Point Lena Juneau, Alaska