**DAMAGE ASSESSMENT STUDY PLAN: PRYOR OIL WELL FIRE AND SPILL,**

**OBED WILD AND SCENIC RIVER**

Submitted to:

National Pollution Fund Center

Arlington, VA

Submitted by:

Department of the Interior

Lead Administrative Trustee on behalf of:

State of Tennessee

National Park Service

U.S. Fish and Wildlife Service

21 December 2004

**TABLE OF CONTENTS**

INTRODUCTION 1

POTENTIALLY AFFECTED RESOURCES 1

> Air Quality 2
>
> Benthic Algae 2
>
> Benthic Invertebrates 2
>
> Fish 5
>
> Forest Vegetation and Soils 5
>
> Ground Water/Geologic Sources 6
>
> Riparian Wetlands and Habitat 6
>
> Sediment Quality 6
>
> Surface Water Quality 7
>
> Vertebrates (Terrestrial and Aquatic) 7
>
> Visitor Use 7

# OTHER INJURY QUANTIFICATION AND RESTORATION PLANNING COSTS

Trustee Council Activities 7

Technical Support to the Trustee Council 7

SUMMARY OF COSTS FOR INJURY QUANTIFICATION AND RESTORATION PLANNING 8

REFERENCES CITED 9

APPENDICES

A AUGUST 2004 CLEAR CREEK SITE SURVEY

B QUANTIFICATION OF INJURY TO STREAM SERVICES

C INJURY SCALING OF IMPACTS TO FISHERY RESOURCES

D INJURY SCALING OF IMPACTS TO FORESTRY RESOURCES

E ASSESSMENT OF IMPACTS TO GROUNDWATER RESOURCES

F QUANTIFICATION OF LOST AND DIMINISHED VISITOR USE

G TRUSTEE COUNCIL ACTIVITIES

H TECHNICAL SUPPORT TO THE TRUSTEE COUNCIL

###  I DATA MANAGEMENT SUPPORT TO THE TRUSTEE COUNCIL

**LIST OF ACRONYMS**

ANOVA Analysis of Variance

BTEX benzene, toluene, ethylbenzene, and xylene

EPT Ephemeroptera, Plecoptera, and Trichoptera

DARP Damage Assessment and Restoration Plan

EROD 7-Ethoxyresorufin-O-deethylase

FAC Federal Administrative Charge

GIS Geographical Information Systems

GSI gonadal somatic index

HEA Habitat Equivalency Analysis

IBI Index of Biotic Integrity

ug/L micrograms per liter

NCBI North Carolina Biotic Index

NPS National Park Service

NRDA Natural Resources Damage Assessment

OBRI Obed Wild and Scenic River

ORNL Oak Ridge National Laboratory

PAH polynulcear aromatic hydrocarbons

RPI Research Planning, Inc.

TDEC Tennessee Department of Environment and Conservation

TPH total petroleum hydrocarbon

TWRA Tennessee Wildlife Resources Agency

USEPA U.S. Environmental Protection Agency

USFWS U.S. Fish and Wildlife Service

USGS U.S. Geological Survey

**DAMAGE ASSESSMENT STUDY PLAN: PRYOR OIL WELL FIRE AND SPILL,**

**OBED WILD AND SCENIC RIVER**

# INTRODUCTION

On 19 July 2002, the Howard/White Unit No. 1 oil well was being drilled
to test for commercial oil production from the geologic formation called
the Nashville Group in northeastern Tennessee. The oil well is located
in Morgan County on High Point Road, accessible via State Road 62. After
drilling to a certain depth, oil flow occurred. The pressure of the flow
increased and began to spill oil around the well and outside of the
containment area at an estimated 200-500 barrels per hour. At
approximately 2400 hours, the oil well caught fire. The spilled oil had
flowed downhill from the wellhead into White Creek, at approximately
0.21 mi above its confluence with Clear Creek, and into Clear Creek, at
approximately 0.37 mi above Barnett Bridge. The fire followed both oiled
paths, burning the vegetation and the oil-soaked soils. Some of the
large boulders on the slope fractured from the heat of the fire. The oil
adjacent to the banks in both creeks caught fire as well. After the
initial spill, oil continued to seep from the creek bank into Clear
Creek, with sheens continuing to be released as late as August 2003.

The Department of Interior and the State of Tennessee are co-Trustees
for the damage assessment of this river system. The agencies assisting
the Trustees include the National Park Service (NPS), U.S. Fish and
Wildlife Service (USFWS), the Tennessee Wildlife Resources Agency (TWRA)
and the Tennessee Department of Environment and Conservation (TDEC). The
Trustees have completed the Preassessment Phase, collecting ephemeral
data that were necessary for determining the fate and effects of the
spilled oil, reviewing the results and analyzing the data, compiling the
Administrative Record, and making a determination that there is injury
or potential injury to Trust resources or services potentially affected.
They have prepared a Preassessment Phase report dated April 2003
(Research Planning, Inc., 2003) and issued the Notice of Intent to
Conduct Restoration Planning, pursuant to 15 C.F.R.§ 990.44 (61 Fed.
Reg. 440, January 5, 1996). For the reasons discussed in these two
documents, the Trustees have made the determination required by 15
C.F.R. § 990.42 (a) and are proceeding with injury quantification and
restoration planning to develop alternatives that will restore, replace,
or acquire the equivalent of natural resources injured and/or natural
resources (including natural resource services) lost as a result of this
incident. This document outlines the Damage Assessment Study Plan to
collect the data necessary to conduct an injury assessment in accordance
with the Oil Pollution Act (33 U.S.C. 2701, *et seq.*) and guidance
provided at 15 CFR Part 990 and to determine appropriate restoration
measures.

Restoration actions under OPA are termed primary or compensatory.
Primary restoration is any action taken to accelerate the return of
injured natural resources and services to their baseline condition.
Trustees may elect to rely on natural recovery rather than primary
restoration actions where feasible or cost-effective primary restoration
actions are not available, or where the injured resources would recover
relatively quickly without human intervention.

Compensatory restoration is any action taken to compensate for interim
losses of natural resources and services pending recovery. The scale of
the required compensatory restoration depends on the extent and severity
of the initial resource injury and how quickly each resource and
associated service returns to baseline. Primary restoration actions that
speed resource recovery will reduce the requirement for compensatory
restoration.

Following the Restoration Planning Guidance Document (NOAA, 1996), the
Trustees will identify and evaluate potential restoration options using
the following criteria:

> 1\. Cost to carry out the alternative
>
> 2, Extent to which each alternative is expected to meet the trustee\'s
> goals and objectives in returning the injured resources and services
> to baseline and compensating for interim losses
>
> 3\. Likelihood of success of each alternative
>
> 4\. Extent to which each alternative will prevent future injury as a
> result of the incident, and avoid collateral injury as a result of
> implementing the alternative
>
> 5\. Extent to which each alternative benefits more than one natural
> resource or service
>
> 6\. Effect of each alternative on public health and safety.

# POTENTIALLY AFFECTED RESOURCES

Based on the Preassessment Phase report, the potentially injured
resources include:

-   Air quality

-   Benthic algae

-   Benthic invertebrates

-   Fish

-   Forest vegetation and soils

-   Ground water/geologic sources

-   Riparian wetlands and habitat

-   Sediment quality

-   Surface water quality

-   Vertebrates (Terrestrial and aquatic)

-   Visitor use

It is important to note that there have been continuing releases of oil
from seeps into Clear Creek at the base of the burned slope. Personnel
with the TDEC reported that sheens were observed during the
macroinvertebrate sampling activities on 10 October 2003. Personnel from
the U.S. Environmental Protection Agency (USEPA) reported and
photographed sheens during visits to the spill site on 16 July 2004.
Because of the continued oil releases from the bank at the spill site,
USEPA determined that it was necessary to maintain the boom at the spill
site in Clear Creek. On 17 August 2004, staff from NPS and TDEC surveyed
the impact area from Barnett Bridge to the spill site on both Clear
Creek and White Creek. They reported sheens extending to just above
Barnett Bridge and active oil releases from the base of the slope at the
spill site. The boom was filled with liquid oil and paraffin. Refer to
the Site Visit Report in Appendix A.

The Trustees have reviewed all available data and identified the
following additional studies that are needed to quantify injury to
affected resources and to determine appropriate restoration options to
restore injured resources. The proposed studies are outlined below.

# Air Quality

The oil spill and fire resulted in the release of volatile organic
compounds, combustion gases, and particulates. The USEPA monitored air
quality at the site, primarily to determine whether there were potential
impacts to human health and safety. Although the Trustees acknowledge
that the spill and fire had short-term impacts to air quality, no
further studies are proposed for injury quantification or restoration
planning.

# Benthic Algae

Impacts to benthic algae were assessed during the Preassessment Phase
through the sampling of natural substrates and short-term deployment of
artificial tiles at control and impacted locations in Clear Creek. The
results indicated that the natural substrate sampled in October 2002
appeared to be similar among all three stations sampled. The December
2002 samples analyzed from the artificial substrates indicated a change
in the number of species between locations, with the highest number of
species found at the upstream location in Clear Creek. These data
suggest a change in the algal community as a possible response to the
water quality impacts in Clear Creek after the oil spill. Therefore, the
Trustees propose to use these data to quantify the injury to benthic
algae in terms of changes in primary production, which is the lowest
trophic level in the stream ecosystem. The proposed study will consider
the spatial extent and temporal duration of the impacts to generate a
measure of lost primary production as one component of the injury to
benthic and aquatic resources that will be quantified using an overall
stream Habitat Equivalency Analysis (HEA) model. These losses in primary
production will be considered in the scaling of restoration options
using HEA. Costs for these injury quantification efforts are part of the
stream HEA study included in Appendix B.

# Benthic Macroinvertebrates

Impacts to benthic macroinvertebrates were assessed during the
Preassessment Phase by three types of studies: 1) mussels sampling in
August and October 2002 for chemical analysis of tissues to measure the
bioavailability of the oil; 2) benthic monitoring conducted to compare
benthic species abundance and diversity between oiled and unoiled areas
of Clear Creek; and 3) collection of crayfish samples in May 2003 that
were not analyzed; they have been properly preserved and maintained
under chain of custody.

All mussel tissues collected and analyzed in 2002 showed low or no
detectable polynulcear aromatic hydrocarbons (PAH). Because of the
continued oil releases to Clear Creek, the Trustees have determined that
it is appropriate to analyze the crayfish collected in May 2003 and
water samples collected in August 2004, and to collect additional mussel
samples at two upstream and two downstream sites in November 2004. These
samples are needed to determine whether the continued oil releases are
bioavailable and a continuing source of injury to aquatic resources in
Clear Creek.

The benthic macroinvertebrate community data collected in October 2002
showed impacts to the benthic macroinvertebrate communities in Clear
Creek for the area above Barnett Bridge but not as far downstream as
Jett Access. The Trustees determined that additional studies were needed
to determine the spatial extent and duration of these impacts.

Benthic macroinvertebrate sampling was conducted at four sites on 10
October 2003. Samples were collected in accordance with TDEC's accepted
protocols for Semi-Quantitative Riffle Kicks (Arnwine, 2002). The
samples were sent to the Tennessee Department of Health Aquatic Biology
Section for processing, benthic identification, and scoring. The results
of the 2003 sampling indicated that the benthic community in the area
above Barnett Bridge had returned to pre-spill levels. A new site 0.4
miles downstream of Barnett Bridge was sampled in October 2003 to
determine the downstream extent of impact, and this site was also normal
in terms of its benthic community. Sheens were released from both sites
above and below Barnett Bridge during the October 2003 sampling efforts.

Because releases of oil from the spill site have continued through 2004,
the Trustees decided to continue the sampling of benthic
macroinvertebrates in early 2005. An additional sampling location
between Barnett Bridge and the release site will be sampled, to provide
more spatial resolution of the extent and degree of impact. The
assessment of the continuing oil seepage will be key to determining the
duration of injury and the recovery period. In 2004, Clear Creek,
including the section of creek affected by the oil spill, was designated
as critical habitat for five listed mussel species. Critical habitat
identifies specific areas that are essential to the conservation of a
listed species, and that may require special management considerations
or protection. Therefore, two new supporting studies will also be
conducted in 2005: 1) A quantitative evaluation of freshwater mussels in
Clear Creek; and 2) Histopathological analysis of tissues to assess
sublethal impacts to freshwater mussels in Clear Creek. The results of
these two studies (described in detail in Appendix B) will be essential
inputs to the stream HEA.

Once all of the benthic community data are collected and analyzed, the
results will be used to quantify injury to benthic aquatic resources.
Injury will be measured as the degree and duration of reductions in
benthic community health and services as indicated by a benthic index
score which is based on taxa richness, percent Ephemeroptera,
Plecoptera, and Trichoptera (EPT), EPT richness, North Carolina Biotic
Index (NCBI), percent Oligochaetes and Chironomids (OC), percent of
dominant taxa, and percent of clinger taxa. Scores are recorded based on
values developed for each category (i.e., taxa richness, EPT richness)
under Bioregion 68a, where Clear Creek is located (Arnwine, 2002). These
impacts to benthic community services will be one component of the
inputs to the stream HEA model. The Trustees will take particular care
to avoid double counting of injuries to fish during the development of
the stream HEA. Restoration planning will evaluate potential restoration
measures that will improve water and habitat quality to restore the
benthic macroinvertebrate community and its associated services. Costs
for the injury assessment quantification efforts are part of the stream
HEA study included in Appendix B.

# Fish Community Health

Fish were collected, counted, and observed for anomalies in 2002, 2003,
and 2004 to determine the Index of Biotic Integrity (IBI) metric for
Clear Creek, for comparison with data from 1996 and 1998, allowing
time-series comparison of before and after the spill event. The IBI is a
fish community assessment where species are assigned to trophic guilds
and anomalies are noted in order to obtain a score based on values
assigned to the Cumberland Plateau Ecoregion.

Fish samples were collected by fisheries toxicologists from the Oak
Ridge National Laboratory (ORNL) at two reference sites and two oiled
sites (Barnett and Jett Bridges) in 2002. For a portion of the 2002
samples, some preliminary analysis were conducted which indicated injury
at various levels of biological organization to the health of both rock
bass and redbreast sunfish (sentinel indicator species) collected from
the oil spill site. Samples collected in 2002, 2003, and 2004 are being
held in storage at ORNL until funding is available for analysis.

Because of the on-going seepage of oil into Clear Creek, the Trustees
have determined that analysis of fish collected at the two reference and
two oiled sites in 2002, 2003, and 2004 are needed to quantify the
degree and duration of impacts to the health of fish populations as a
result of the spill and continuing releases. These data will be used to
quantify impacts to the fish population in Clear Creek in terms of
reduced ability to survive, grow, or reproduce. The injury will be
quantified as reduced fish biomass. This injury component is completely
independent of the injury to the stream resources in that the injury
will be related to fish injury resulting primarily from oil exposure
rather than secondary production. Restoration options will be identified
and scaled based on the assessment of the lost fish biomass. Costs for
fish injury quantification are included in Appendix C.

# Forest Vegetation And Soils

The Trustees conducted an initial study to document impacts to the
forest structure by sampling vegetation within the burned site and a
nearby reference site in January and February 2003. The study results
showed high mortality of the vegetation in the footprint of the two
slope areas (on both Clear Creek and White Creek) affected by the oil
spill and fire. The soil was severely impacted by the oil spill and
fire. The oil saturation and fire caused the loss of the fine roots, the
seed bank, and the sources of vegetative reproduction, which will slow
recovery of the burned area.

To further quantify the injury to forest vegetation and soils, the
Trustees repeated the field data collection in September 2004. Within
the study plot sampled at the burn area, all overstory trees and 74% of
understory *Kalmia latifolia* shrubs were dead in 2004. Limited
sprouting of top-killed individuals was observed. These data will be
used to quantify the reduction in forest services. A model that
describes woody biomass accumulation will be used to estimate the time
required for woody biomass in the oiled/burned area to recover to the
conditions at the reference area. HEA will be used to scale both the
injury and restoration options. Costs for vegetation injury
quantification are included in Appendix D.

# Ground Water/Geologic Resources

There have been no studies of the extent and duration of groundwater
contamination as a result of the oil spill, but the continued release of
oil at the base of the slope indicates that there are potentially large
amounts of oil in the subsurface. The Trustees believe that the quantity
of this residual oil is substantial enough, it is sufficiently mobile,
and it contains high enough concentrations of contaminants that it poses
a significant risk of on-going exposure to aquatic resources in the form
of continuous or episodic release of seeps at the creek edge. Staff from
the U.S. Geological Survey (USGS) measured elevated levels of volatile
organics (benzene, toluene, ethylbenzene, and xylene, or BTEX) in
samples of water seeping from springs below the well site on 30 October
2003. In water samples collected at the edge of the bank below the spill
site, benzene was 870 micrograms per liter (ug/L), toluene was 210 ug/L,
and o-xylene was 400 ug/L. They also collected samples on 17 August
2004, but the holding time for BTEX analysis was exceeded because of
instrument failure. Analytical results and photographs from these two
site visits are available at: <http://tn.water.usgs.gov/Clear_Creek/>

The Trustees have requested an assessment of the extent and degree of
oil contamination of the shallow subsurface at the spill site to the
Federal On-Scene Coordinator from USEPA. The assessment request is
included in Appendix E.

# Riparian Wetlands And Habitat

During the Preassessment Phase, a botanist from the Division of Natural
Heritage conducted surveys of the riparian habitat adjacent to and in
Clear Creek, from the spill site to Barnett Bridge. Dead and stressed
vegetation, consisting primarily of American water willow, *Justicia
americana,* was observed along Clear Creek. Many occurrences of the
royal fern, *Osmunda regalis*, which also occurs along the banks of
Clear Creek, were observed to be damaged and dead. The botanist observed
a coating of oil on the leaves on some surviving individual plants.
Woody plants observed at the water's edge did not appear to be affected
except for some browning of the leaves where the plant came in contact
with oily water.

The Trustees do not propose to collect additional field data for injury
determination of riparian wetlands and habitats. However, they do
propose to assess the impacts to these habitats as a component of the
aquatic HEA model and develop appropriate restoration options as part of
their overall restoration planning effort. Costs for these efforts are
part of the stream HEA study included in Appendix B.

# Sediment Quality

Based on sediment sampling conducted in 2002, sediments in Clear Creek
showed evidence of contamination from the oil spill, with elevated total
petroleum hydrocarbon (TPH) concentrations in sediments from the point
of entry site to Barnett Bridge. One sediment sample collected in August
2004 from Clear Creek just above the Barnett Bridge contained 1.2 ppm
BTEX. Although there is potential for continued sediment contamination
from continued oil releases, the Trustees propose to assess sediment
injury in terms of impacts to the benthic community, as reflected in
contamination of mussels and crayfish and the health of the benthic
macroinvertebrate community. Therefore, no additional injury assessment
studies are proposed that directly measure contaminant levels in
sediments.

# Surface Water Quality

Water samples collected in July, August, and October 2002 showed
evidence of contamination by oil that was fingerprinted as matching the
source oil from the oil well. Additional water samples collected on 1-2
October 2003 also showed contamination with PAHs that were a match with
the source oil. Analysis of water samples will provide evidence of
on-going exposure of aquatic resources to the oil releases. Costs for
water sample analyses and for injury quantification and restoration
scaling of impacts to water quality are part of the stream HEA study
included in Appendix B.

**Vertebrates (Terrestrial And Aquatic)**

One dead oiled duck was recovered from the spill site. No other oiled
wildlife were reported. No further studies are proposed.

# Visitor Use

Clear Creek was closed from Double Drop Falls to Jett Bridge for the
period 23 July 2002 to 6 February 2003, when the stream between Barnett
Bridge and Jett Bridge was reopened. Clear Creek from Double Drop Falls
to Barnett Bridge remained closed until 25 May 2004. During the
Preassessment Phase, ephemeral data on the potential impacts of the
spill event on park visitors and baseline visitation levels of the
affected areas were documented. These data will be used to quantify the
economic losses using the benefits transfer methodology to value this
lost and diminished visitor use and to scale the associated compensatory
restoration. Costs for visitor use impact quantification are included in
Appendix F.

# OTHER INJURY QUANTIFICATION AND RESTORATION PLANNING COSTS

# Trustee Council Activities

Since the completion of the Preassessment Phase in December 2003 and the
submittal of this new plan in December 2004, the Trustees have met to
plan injury assessment activities. They will continue to meet regularly
and as needed through the end of 2005 to review damage assessment study
plans and reports, conduct restoration planning, prepare the draft
Damage Assessment and Restoration Plan, respond to public comments on
the Plan, and prepare the final Damage Assessment and Restoration Plan.
Agency costs for Trustee Council activities are included in Appendix G.

# Technical Support to the Trustee Council

The Trustees hired a contractor (Research Planning, Inc.) in August 2004
to assist them in preparing the Damage Assessment Study Plan. They will
also hire a contractor to assist in restoration scaling for each injured
resource, preparation of the draft Damage Assessment and Restoration
Plan, compilation of public comments, and preparation of the final
Damage Assessment and Restoration Plan. Costs for contractor services
are included in Appendix H.

**Data Management Support to the Trustee Council**

The USFWS has provided and will continue to provide data management
support to the Trustee Council by creating a spatial database of all the
sampling locations linked to attribute data on the sample results. The
data will be managed in a Geographical Information System (GIS) that was
initiated during the Preassessment Phase (though no costs were recovered
for the initial database development). This database will facilitate the
use of data among injury assessment studies. Costs for the GIS data
management system (past and future) are included in Appendix I.

SUMMARY OF COSTS FOR INJURY QUANTIFICATION AND RESTORATION PLANNING

The Trustees have determined that the following studies are required for
injury quantification and restoration planning of the natural resource
injuries resulting from the Pryor Oil Spill and Fire. A contingency of
15 % of the total estimated costs is requested to account for
unanticipated costs, unforeseen or changed conditions, or unavoidable
delays. The first five studies listed below will be implemented through
a cooperative agreement with educational institutions (CESU); CESU fees
are estimated to be 17.5% of project costs.

Quantification of Injury to Stream Services \$ 13,059.25

Quantitative Evaluation of Freshwater Mussels 2,385.00

Mussel Histopathology Study 6,497.50

Injury Scaling of Impacts to Fishery Resources 146,407.00

Injury Scaling of Impacts to Forestry Resources 12,879.20

CESU Fees (17.5% of project costs) 31,714.89

Quantification of Lost and Diminished Visitor Use 4,396.80

Trustee Council Activities

Tennessee Department of Environment and Conservation 19,856.63

National Park Service 98,793.12

U.S. Fish and Wildlife Service 6,684.57

Department of Interior Solicitor's Office 7,122.15

U.S. Geological Survey 17,135.61

DOI Overhead on DOI Salaries 20,791.94

Technical Support to the Trustee Council

Phase I 25,999.64

Phase II 171,475.12

Data Management Support to The Trustee Council [10,021.42]{.underline}

Subtotal \$ 595,219.84

Contingency (15% of total estimated costs) 89,282.29

**TOTAL COSTS \$ 684,502.82**

**REFERENCES CITED**

Arnwine, D., 2002. Quality System Standard Operating Procedure for
Macroinvertebrate Stream Surveys. Division of Water Pollution Control,
Department of Environment and Conservation, State of Tennessee.

NOAA, 1996. Restoration Phase Guidance Document for Natural Resource
Damage Assessment Under the Oil Pollution Act of 1990. Damage Assessment
and Restoration Program, NOAA, Silver Spring, Maryland.

Research Planning, Inc., 2003. Preassessment Phase Report. Submitted to
the National Park Service, Atlanta, Georgia.

APPENDIX A

AUGUST 2004 CLEAR CREEK SITE SURVEY

**HOWARD/WHITE UNIT NO. 1** **OIL SPILL**

**APPENDIX A**

AUGUST 2004 CLEAR CREEK SITE SURVEY

**HOWARD/WHITE UNIT NO. 1** **OIL SPILL**

###### INTRODUCTION

Part of the Research Planning Inc. (RPI) Statement of Work included
conducting a site visit to the location of the oil spill. The site visit
was conducted on 17 August 2004 by Nancy Keohane (NPS), Jonathon Burr
(TDEC-WPC), Mike Bradley (USGS), and Jacqui Michel and Heidi Hinkeldey
(RPI). This site survey was essential in determining the studies that
are necessary to quantify the injury to the aquatic and terrestrial
resources.

The specific objectives of the site visit was to:

1.  Make visual observations on the condition (residual oil, physical
    disturbance, general condition of plants) of the impacted area;

2.  Observe the extent of the oil by disturbing the bottom sediments in
    Clear Creek, downstream of the spill;

3.  Observe whether oil was still seeping from the rocky slope;

4.  Collect water samples along Clear Creek between Barnett Bridge and
    the location of the spill for temporal comparison with samples
    collected in 2002 and 2003.

5.  Collect sediment samples downstream of the oil spill.

###### METHODOLOGY

The survey extended from Clear Creek at Barnett Bridge upstream to the
location of the oil spill. While traveling upstream, sediments in the
water and soil along the banks were disturbed, and sheen on the water
surface was noted to determine the fate and extent of the oil. Sediment
and surface water samples were taken at certain sites along Clear Creek
and the Trustees recorded data on their observations of the impacted
area.

###### RESULTS

Small amounts of sheen were observed at Barnett Bridge, downstream of
the spill, when sediments were disturbed in Clear Creek. It was noted
that the sheens that surfaced were not biogenic, as determined by trying
to "break up" the oil with a stick or finger. The oil instead remained
together making ribbon-like spirals on the surface of the water. Many
fish (darters, minnows, etc.) were seen at this location along the
creek. A sediment sample was taken downstream of the island at the
confluence of Clear and White Creek, and a surface water sample was
taken under Barnett Bridge.

There was an accumulation of oil at the first riffle that was
encountered upstream of Barnett Bridge (Fig. 1). From this point on, the
sheen on the surface of the water became more visible and widespread
closer to the site of the spill (Fig. 2). An oil odor was also detected.
Two more surface water samples were taken between Barnett Bridge and the
spill site.

![](media/image1.jpeg){width="5.483333333333333in" height="4.1125in"}

**Figure 1.** Oil (hazy blue-green color) accumulating at the first
riffle upstream of Barnett Bridge in Clear Creek on 17 August 2004.

![](media/image2.jpeg){width="5.483333333333333in" height="4.1125in"}

**Figure 2**. Sheen on the surface of the water in close proximity to
the spill site, outside of the booms on Clear Creek, on 17 August 2004.

Thick oil and paraffin accumulations were seen inside the boom at the
spill site, seeping out of the rocky slope (Figs. 3 and 4). The orange-
and yellow-colored material is the coagulated paraffin, whereas the hazy
bluish liquid is the fresh oil. There were noticeably less fish in this
portion of the creek. A sample was taken of the bluish, liquid oil at
the edge of the bank, for fingerprinting and weathering analysis.

There were oil stains on the rocks above the water line near the spill
site. Surface water samples were taken approximately 30 ft upstream of
the spill site. Sheens were visible approximately 30 feet upstream of
the spill site. Beyond this point (further upstream of the spill site),
no more sheening was evident.

The burned slope was inspected to observe the recovery of the vegetation
that had been oiled and burned during the spill event. After two years,
there has been little recovery of the vegetation in the area. Much of
the area was bare with no vegetation (Figs. 5 and 6). There were some
areas with blackened, hard crusts on the surface. It appeared that the
soils were still unable to support any vegetation.

**SUMMARY**

The Trustees observed that, two years after the spill event, oil is
still seeping from the rocky slope at the spill site into Clear Creek.
The flow in Clear Creek was about 22 cubic feet per second, which is
significantly lower than times of other site visits in 2004. During high
water levels, the water levels were above the seeps, making it difficult
to observe them.

Oil was found in sediments as far downstream as Barnett Bridge. One
sediment sample was taken at Barnett Bridge and five surface water
samples were taken between Barnett Bridge and the spill site. Selected
samples will be sent to Louisiana State University for PAH analysis. The
USGS will measure BTEX in the water and sediment samples. Additional
studies are needed to determine the amount of oil remaining as a source
of seepage into the river.

The vegetation on the burned slope has not recovered in much of the
area. Additional studies will be necessary to determine how long it will
take for the soils and vegetation to recover.

![](media/image3.jpeg){width="5.466666666666667in" height="4.1in"}

**Figure 3.** Oil accumulated within the boom at the spill site in Clear
Creek. Photograph taken 17 August 2004.

![](media/image4.jpeg){width="5.466666666666667in" height="4.1in"}

**Figure 4.** Oil accumulated within the boom at the spill site in Clear
Creek. Photograph taken 17 August 2004.

![](media/image5.jpeg){width="5.466666666666667in" height="4.1in"}

**Figure 5.** Areas on the burned slope that have had little or no
re-growth since the spill event two years ago. Photograph taken 17
August 2004.

![](media/image6.jpeg){width="5.466666666666667in" height="4.1in"}

**Figure 6.** View looking down the slope towards Clear Creek.
Vegetation in much of the burned zone has not recovered. Photograph
taken 17 August 2004

**APPENDIX B**

# QUANTIFICATION OF INJURY TO STREAM SERVICES

# Study Description

Injury to the habitats and associated ecological services of Clear and
White Creeks will be quantified using the Habitat Equivalency Analysis
(HEA) approach, a well documented and widely accepted methodology for
injury determinations and measurement. The injury assessment will
evaluate impacts to benthic algae, benthic macroinvertebrates, mussels,
riparian habitat, and water and sediment quality. The field data will be
analyzed to develop both the temporal and spatial extent of the impacts
to these resources resulting from the spill and fire. The Trustees will
be careful to avoid double-counting.

Injury will be measured, in part, as the degree and duration of
reductions in benthic community health and services as indicated in part
by a benthic index score which is based on total taxa richness, percent
Ephemeroptera, Plecoptera, and Trichoptera (EPT), EPT richness, North
Carolina Biotic Index (NCBI), percent Oligochaetes and Chironomids (OC),
percent of dominant taxa, and percent of clinger taxa. Scores are
recorded based on values developed for each category (i.e., taxa
richness, EPT richness) under Bioregion 68a, where Clear Creek is
located (Arnwine, 2002). The benthic macroinvertebrate field data will
also be analyzed to determine whether there were any significant changes
in species composition and relative abundance, looking in particular at
the more pollution-sensitive species. The degree and duration of oil
exposure will be indicated by chemical analysis of water, sediment, and
biota samples and field observations on the duration and extent of
sheening. The life histories of the different species of benthic
communities (e.g., algae, macroinvertebrates, mussels) will be
considered in estimating the time of return to baseline conditions once
oil exposure is terminated. The mussel histopathological study described
below is key to the assessment of the sublethal impacts and the duration
of the impacts from the chronic oil releases.

There are several on-going studies funded by the USFWS to determine the
impacts of land-based disturbances in the Emory River watershed (of
which Clear and White Creeks are tributaries) on stream water-quality
and benthic and fish community health. Trustees will use these and other
data to evaluate restoration options that will improve aquatic habitat
in the affected watershed.

Inputs to the HEA model will include:

\- Areal extent of the affected habitat

-   Time path of percent lost services representing the overall
    diminishment of ecological services relative to the baseline
    conditions of the injured habitat

-   Initial percent lost services at the time of the incident

-   Time periods of each phase of recovery to baseline given the
    selected primary restoration measures

-   Time path of percent replacement services to be provided by
    compensatory restoration relative to the baseline conditions of the
    injured habitat

-   Time periods of each phase of maturation (or full functioning) of
    selected compensatory restoration measures

-   Percent replacement services provided at project maturity, and
    whether that level would continue into perpetuity

The injury assessment to stream services and quantification studies will
be conducted by Dr. Brad Cook of Tennessee Tech University. Dr. Cook is
currently conducting studies of fish and benthic communities in the
Emory River Watershed as part of a study entitled *A Comparative Study
of the Historical and Present Ecological State of the Emory River
Watershed*, for the USFWS.

**Study Costs**

##### Salaries

Fisheries Biologist - 15 days x 7.5 hrs/day x \$37.80/hr \$ 4252.50

Graduate Technician - 30 days x 7.5 hrs/day x \$10.00/hr 2250.00

Benefits - 17.65% of \$4252.50 750.57

Indirect Costs - 47.00% of \$6502.50 (Total Salaries) 3056.18

**Total Costs for TTU**   **\$10,309.25**

##### Other Direct Costs

Analysis of crayfish collected in May 2003 -- 3 @ \$750 each \$2250.00

Analysis of seep oil collected August 2004 -- 1 @ \$500/each 500.00

**TOTAL COSTS \$ 13,059.25**

# Supporting Study 1: Quantitative Evaluation of Freshwater Mussels in Clear Creek (Obed River System), Tennessee in Response to Oil Contamination

# Study Objectives

The objectives of this study are to determine if there are any effects
(presence of dead mussels in substrate, lack of juvenile recruitment) on
freshwater mussels from ongoing exposure to oil seepage from the spill
site in 2005. We will be able to determine this by quantitative mussel
sampling in Clear Creek.

# Materials and Methods

Freshwater mussels will be sampled by snorkeling at a minimum of 4 sites
during optimum low-flow conditions. Quantitative sampling will consist
of placing a metal-framed 0.25m^2^ quadrat sampler on top of the
substrate and excavating the substrate to a dept of 4-6 inches. A
minimum of 10 quadrat samples will be collected at each site. All live
mussels found within the confines of the sampler will be identified to
species, enumerated, and shell lengths measured in millimeters using a
dial caliper. This information will provide mussel population density
estimates and shell measurement data will determine whether recruitment
to the fauna has occurred based on the size-classes of individuals.
Semi-quantitative sampling based on total sampling time will give Catch
Per Unit of Effort (CPUE). This technique allows for spatial coverage
for species that may be outside the sampling confines of quadrat
sampling and works well in habitats that have abundant mussel
populations or scarce mussel populations. All information, both
quantitative and semi-quantitative will be recorded on field data
sheets.

**Budget for Supporting Study 1**

6 person-days \$1680

Travel and per diem (4 days) 400

Mileage (\$.45/mile) 400 miles 180

Equipment and Supplies 125

\-\-\-\-\-\--

Total \$2385

**Supporting Study 2: Tissue Evaluations for Determination of Sublethal
Effects of Oil Contamination in Freshwater Mussels from Clear Creek,
Tennessee**

Assessments of histologically prepared bivalve tissues have provided
valuable data for determinations of sub-lethal impacts due to oil
products in aquatic environments. Widdows *et al*. (1987) and Moore *et
al*. (1989) showed marked effects of hydrocarbon exposure to marine
bivalves, such as impaired reproduction, reduced recruitment, population
decline, and mortality, at polyaromatic hydrocarbons (PAH)
concentrations as low as 10 µg /g of wet-weight tissue. Exposure to
crude oil is associated with decreased feeding rates, and increased
oxygen consumption and ammonia excretion rates (Axiak and George, 1987;
Widdows *et al*., 1995). A decrease in energy intake, coupled with an
increase in the energetic cost of metabolism, reduces energy available
for vital body functions, such as cell repair, immunological defense,
growth, and gametogenesis. Reduced fecundity and oocyte atresia have
been linked to hydrocarbon exposure in bivalves (Lowe and Pipe, 1985).

Alterations in cell structures and physiological functions of internal
organs and hemolymph (blood) due to contaminant exposures have been
observed in bivalves (Seiler and Morse, 1988; Giamberini and Pihan, 1996
and 1997). Hemocytes are important in sequestering absorbed pollutants,
particularly by acid phosphatase activity in lysosomes, and delivering
them to filtration organs for body elimination (Seiler and Morse, 1988;
Giamberini and Pihan, 1996 and 1997). Since pericardial glands and
kidneys are important filtration and excretory organs in bivalves,
contaminant accumulations in these organs can cause significant
alterations in cellular anatomy that can be observed by electron and
light microscopy (Seiler and Morse, 1988; Giamberini and Pihan, 1996).
In addition, changes in water quality may cause cellular disruption and
lesions in the integument (skin) of freshwater mussels (B. Henley,
unpublished data).

The objective of this study is to determine the effects of crude oil
exposure on the microanatomy of vital organs of female wavyrayed
lampmussels (*Lampsilis fasciola*) and rainbow mussels (*Villosa iris*)
from Clear Creek, Tennessee. Histologically prepared tissues of exposed
mussels will be compared to those of specimens from an upstream control
site using electron and light microscopy. Organ tissues that will be
examined include gonad, pericardial gland, kidney, and integument.
Tissues from gonads will be examined to determine alterations in
gametogenesis in exposed mussels. Also, lysosomal activity will be
compared in organ tissues and hemocytes.

Five female *L. fasciola* and *V. iris* will be collected from a
downstream exposure site and upstream control site on Clear Creek,
Tennessee. The 20 specimens will be sacrificed for collection of gonads,
pericardial glands, kidneys, integument, and hemocytes. Tissues will be
fixed in 10% formalin, paraffin embedded, and stained with hemotoxylin
and eosin (H and E) for light microscopy. Small samples of each tissue
type will be preserved with 2.5% glutaraldehyde in Sorenson's buffer for
examination using transmission electron microscopy (TEM). Lysosomal
activity will be examined using light microscopy and TEM by
demonstration of acid phosphatases by the azo-dye coupling method
(Giamberini and Pihan, 1997).

Tissues from exposure and control mussels will be qualitatively compared
for alterations in cell structure and function. Lysosomal activity in
tissues and hemocytes from specimens will be evaluated for percentages
of cell cytoplasm filled with positively stained acid phosphatase
granules using the method of Giamberini and Pihan (1997). Data from acid
phosphatase evaluations will be appropriately transformed and
statistically analyzed for differences among species and river
collection sites with analysis of variance (ANOVA).

This research will examine the health and physiological condition of
freshwater mussels exposed to crude oil seepage in Clear Creek,
Tennessee. Histological evaluations of tissues will reveal sublethal
effects not otherwise observable. A detailed report to the U. S. Fish
and Wildlife Service, Cookville, Tennessee will document whether
alterations in cell structure and function of vital organs is linked to
oil exposure. Assessment of gametogenesis and organ tissues will help to
determine whether lingering effects of contamination still influence
physiological condition of mussels downstream of the spill site.

**Literature Cited**

Giamberini, L. and J. C. Pihan. 1996. The pericardial glands of the
zebra mussel: ultrastructure and implication in lead detoxification
process. *Biology of the Cell* 86:59-65.

Giamberini, L. and J. C. Pihan. 1997. Lysosomal changes in the hemocytes
of the freshwater mussel *Dreissena polymorpha* experimentally exposed
to lead and zinc. *Diseases of Aquatic Organisms* 28:221-227.

Lowe, D. M. and Pipe, R. K. 1985. Cellular responses in the mussel
*Mytilus edulis* following exposure to diesel oil emulsions:
reproductive and nutrient storage cells. *Marine Environmental Research*
17(2-4):234-237.

Moore, M. N., D. R. Livingstone, and J. Widdows. 1989. Hydrocarbons in
marine mollusks: biological effects and ecological consequences. Pages
291-328 *in* U. Varanasi, ed. *Metabolism of Polycyclic Aromatic
Hydrocarbons in the Marine Environment*. CRC Press Inc., Boca Raton,
Florida.

Seiler, G. R. and M. P. Morse. 1988. Kidney and hemocytes of *Mya
arenaria* (Bivalvia): normal and pollution-related ultrastructural
morphologies. *Journal of Invertebrate Pathology* 52:201-214.

Widdows, J., P. Donkin, and S. V. Evans. 1987. Physiological responses
of *Mytilus edulis* during chronic oil exposure and recovery. *Marine
Environmental Research* 23:15-32.

Widdows, J., P. Donkin, S. V. Evans, D. S. Page, and P. N. Salkeld.
1995. Sublethal biological effects and chemical contaminant monitoring
of Sullom Voe (Shetland) using mussels (*Mytilus edulis*). *Proceedings
of the Royal Society of Edinburgh* 103B:99-112.

**Budget for Mussel Histopathological Study**

  --------------------------------------------- -------------------------
  **Costs**                                     **Totals**

  **Direct Costs**                              

  Operating Expenses                            

  Histological Services                         1400.00

  Supplies/Equipment                            

  Histological Supplies                         220.00

  Salaries                                      

  Research Associate (1 mo)                     3,100.00

  Benefits (30%)                                930.00

  **Subtotal**                                  5650.00

  University Overhead (15%)                     847.50

  **Project Total**                             **6,497.50**
  --------------------------------------------- -------------------------

#  

**APPENDIX C**

# INJURY AND RESTORATION SCALING OF IMPACTS TO FISHERY RESOURCES

# Study Description

Injury and restoration scaling of impacts to fish from the Pryor Oil
spill and fire will be assessed through two related studies:

1.  Assessment of the Short- and Long-term Damages to Fishery Resources
    Using Bioindicator and Reproductive Analyses -- to be conducted by
    researchers at the Environmental Sciences Division of Oak Ridge
    National Laboratory

2.  Quantification of Population-Level Impacts to Fishery Resources --
    to be conducted by researchers at Tennessee Tech University

*Study 1 - Assessment of the Short- and Long-term Damages to Fishery
Resources Using Bioindicator and Reproductive Analyses*

The main purpose of this study is to assess the short- and long-term
damages to fishery resources due to oil releases into Clear Creek
through the following specific activities:

\- Determine if there are causal relationships between oil exposure and
measured biological effects.

> \- Determine the spatial (downstream) extent of fish injuries in Clear
> Creek.
>
> \- Determine if there are long-term reproductive and population-level
> impairments in fish.

Even though no acute toxicity or observable mortalities of aquatic
organisms were immediately apparent, sublethal or latent effects could
be manifested in the future as injury to individuals, populations, and
communities. However, measuring such injury can be difficult using
conventional biological monitoring approaches. The bioindicator
approach, which involves measuring a suite of organism responses over
several different levels of biological organization, can be used to
establish causal relationships between the specific stressor agent
(e.g., polynuclear aromatic hydrocarbon \[PAH\] compounds) and injury or
damage to biological resources.

Reproduction is widely considered to be the most critical life function
affected by contaminants. Furthermore, certain reproductive processes,
including egg production and embryonic development, are among the most
sensitive life stages to environmental toxicants. Reproduction
(propagation) of aquatic life is a classified use of Clear Creek as
determined by the State of Tennessee. The ability to successfully
reproduce is essential for the establishment and continued maintenance
of viable fish populations in Clear Creek.

Preliminary results of an investigation into fish reproductive health
conducted three weeks after the oil spill suggest that fish reproductive
tissues may have been adversely affected in the aftermath of the spill.
The objective of the reproductive studies is the characterization of the
reproductive condition of fish populations in Clear Creek downstream of
the spill site in 2003, the first complete breeding season after the
spill. Fish from the impacted site will be compared with fish from an
unimpacted upstream reference site on Clear Creek (and/or White Creek).
For each site, the reproductive condition of adult fish collected just
prior to the onset of their spring/summer breeding seasons will be
examined.

The analyses listed below will be conducted for approximately 160 fish
(redbreast sunfish, rock bass, hogsuckers) previously collected in 2002,
2003, and 2004 from Clear Creek upstream (Hwy 127 reference site) and
downstream (Barnett Bridge) of the oil spill site. The 2004 samples have
been included because of the on-going releases of oil from the site, as
observed in the August 2004 site visit (Appendix 1).

1\. Bioindicator analyses.

> \- Health Assessment Index
>
> \- Age and growth determinations
>
> \- 7-Ethoxyresorufin-O-deethylase (EROD) activity in liver tissue as a
> measure of cytochrome P4501A induction
>
> \- Somatic indices (visceral, liver, spleen)
>
> \- Body condition (condition factor, gross lesions and parasites, fat
> levels)
>
> \- Hematology (hematocrit, leukocrit)
>
> \- Blood chemistry (cholesterol, triglycerides, creatinine, blood urea
> nitrogen, total protein, albumin, aspartate aminotransferase)
>
> \- Histopathology (liver and gill tissue)
>
> \- Data analysis, interpretation, and reporting

2\. Reproductive analyses

> \- Reproductive steroids in fish plasma (estradiol and testosterone in
> females, testosterone and 11-ketotestoserone in males; depends on
> sufficient plasma remaining after blood chemistry)
>
> \- Female fish reproductive status (gonadal somatic index (GSI) batch
> fecundity, abundance of vitellogenic oocytes, incidences of oocyte
> atresia and ovarian parasites)
>
> \- Male reproductive condition (GSI, histological condition of testes)
>
> \- Data analysis, interpretation, and reporting

3.  Population analysis

-   Age and growth

-   Size-frequency distribution of redbreast sunfish & rock bass
    populations

-   Sex ratio analysis

Quantitative and statistical analysis of the data will primarily involve
the comparison of the various measured parameters between oil-impacted
and reference sites using a variety of statistical and graphical
procedures including Analysis of Variance (ANOVA) and canonical
discriminant analysis. The multivariate discriminant analysis procedure
considers all the individual biomarker responses together in one
integrated analysis and provides a multi-dimensional color illustration
of the overall health or injury status of each species at a particular
site.

A written report will be provided to the Trustee Council consisting of
an integrative analysis of fish health and reproductive condition at the
two study sites over the two years within the context of regional
conditions. After receipt of comments, a final report will be submitted.
The study will be contracted to the Environmental Sciences Division, Oak
Ridge National Laboratory, under the direction of Dr. Marshall Adams. He
has over 25 years experience related to assessing the effects of various
environmental stressors on the health of fish populations and
communities. A significant percentage of his publication record of 90
scientific articles (scientific journals and book chapters) and three
books reflects studies conducted on a variety of freshwater and marine
systems that have investigated the effects of different types of
environmental stressors on the health of various fish species.

## Study 2 - Quantification of Population-Level Impacts to Fishery Resources

The results of Study 1 will be used, in combination with field data on
numbers of fish and length-weight (by species) from pre- and post-spill
surveys and life-history data on affected species, to calculate the
extent and duration of any reproduction or population-level impacts to
fisheries resources in the affected reaches of Clear and White Creeks,
compared to reference sites. The normal survival rates per year and
length-weight by age relationships will be used to construct a life
table of numbers and kilograms for each annual age class, by species
group. The results from Study 1 will be used to estimate reductions in
survival and reproduction as a result of the oil spill. Injuries to fish
with reduced survival will be quantified as the net growth normally
expected if they would have survived, summed over their normal life span
(termed lifetime production). Reproductive injuries to fish will be
quantified as lost future reproduction, which would otherwise recruit to
the next generation. The services provided by the injured fish will be
measured in terms of production (i.e., biomass in kilograms wet weight)
not produced each year, discounted at 3 percent annually.

The quantification of fish injury will be conducted by Dr. Larry Wilson
of University of Tennessee-Knoxville. He has three projects underway
within the region which deal with fisheries assessment:

1\. Pigeon River Restoration Project - This project deals with the
re-introduction of riverine species (fish, mussels, snails) into the
Pigeon River in TN and NC. The work was begun in 2001: to date, twelve
fish species totaling 8,145 individuals have been re-introduced
including 6 genera of snails and 8 genera of mussels.

2\. NPS Fish Inventory: Inventories of the fish fauna of streams/springs
on four National Park Service properties in TN (Chickamauga/Chattanooga
National Battlefields), AL (Russel Cave), and KY (Abe Lincoln National
Birthplace)

3\. TWRA Sturgeon Telemetry/Habitat project: Using radio-telemetry to
monitor and track juvenile and sub-adult lake sturgeon that are being
re-introduced into the French Broad River. He is assessing dispersal as
well as the type of habitat utilized.

**Study Costs**

## Fish Study 1

Labor \$ 108,000

Materials and Supplies 8,000

Subcontracts [9,000]{.underline}

Subtotal \$ 125,000

FAC\* [3,000]{.underline}

Study 1 Total \$ 128,000

Included in the above totals are the following estimated LDRD costs:

ORNL LDRD\*\* \$2,000

\* FAC is the Federal Administrative Charge that is mandated by Section
3137 of the Strom Thurmond National Defense Authorization Act of 1999
(Public Law 105-261).

\*\* LDRD is the DOE Laboratory Directed Research and Development
charge. The LDRD is a normal component of DOE overhead charges to both
DOE programs and reimbursable work performed for other federal agencies.
It is shown above as a component of the overall subtotal charge to the
project. The FY 2002 Energy and Water Development Appropriations
Conference Report (HR 107-258) requires DOE to notify federal sponsors
that the Department charges LDRD.

## Fish Study 2

##### Salaries

Dr. Larry Wilson -- one month \$7,500

Technician -- one month 1,500

Wilson Fringe Benefits - 39% of \$7,500 2,925

Technician Fringe Benefits - 32% of \$1,500 480

##### Other Direct Costs

Statistician 1,500

Travel 200

Indirect Costs - 30.5% of \$ 14,105 4,302

Study 2 Costs \$ 18,407

# Total Costs \$ 146,407

**APPENDIX D**

# INJURY SCALING OF IMPACTS TO FORESTRY RESOURCES

# Study Description

Injury to the habitats and associated ecological services of forestry
resources impacted by the oil spill and fire path between the well and
Clear Creek will be scaled using the Habitat Equivalency Analysis (HEA)
approach. Impacts to the HEA model will be developed using the output
from another model that describes woody biomass accumulation on both the
burned site and the reference area. This biomass model will be used to
estimate the time required for woody biomass in the oiled/burned area to
recover. Additional review of scientific literature will be conducted to
estimate the "lag time" in recovery resulting from conditions that are
difficult to predict (i.e., soil formation and recovery, loss of native
seed banks, and vegetative reproduction). The biomass model will utilize
species-specific biomass equations and predict standing biomass
accumulation through time based on tree growth measured as change in
tree diameter.

During late September 2004, the oiled/burned and reference sites will be
resampled to assess overstory mortality and herbaceous species
composition. The condition of all overstory trees and the percent cover
of all identifiable herbaceous species will be determined. In addition,
understory trees and shrubs at the burned site will be resampled to
determine if woody species have reestablished since the fire. All
sampling will be done within the 10 m X 50 m permanent plots established
at both the burned and reference sites. Soil samples will be collected
at the same locations within the burned site using the same methods as
in 2003, and they will be sent to Louisiana State University (the same
laboratory that analyzed the samples collected previously) for chemical
analysis of the PAHs. The chemical results will be used to characterize
the degree of oil weathering in the soils and the potential for on-going
impacts to vegetative recovery.

# Growth data will be obtained from increment cores collected at both sites from a representative sample of trees of each species present. Ring widths will be measured to the nearest 0.01 using an electronic transducer and binocular microscope fixed over a moving stage. Prior to model development, published biomass equations for the southeastern United States will be reviewed to select those that best represent conditions at the impacted site. After initial runs, the woody biomass accumulation model will be calibrated to refine model predictions. This step will require several iterations of the model and consultation with NPS personnel. The researcher will work closely with NPS personnel on the writing of the draft and final reports to generate the inputs into the HEA model to calculate the injury. The scaling of restoration options will be conducted by the Trustees once they have compiled an initial list of restoration options.

Inputs to the HEA model will include:

\- Areal extent of the affected habitat

-   Time path of percent lost services representing the overall
    diminishment of ecological services relative to the baseline
    conditions of the injured habitat

-   Initial percent lost services at the time of the incident

-   Time periods of each phase of recovery to baseline given the
    selected primary restoration measures

-   Time path of percent replacement services to be provided by
    compensatory restoration relative to the baseline conditions of the
    injured habitat

-   Time periods of each phase of maturation (or full functioning) of
    selected compensatory restoration measures

-   Percent replacement services provided at project maturity, and
    whether that level would continue into perpetuity

The fieldwork will be conducted by Dr. Mike Jenkins, a forestry
ecologist at the Smokey Mountains National Park who conducted the
initial post-burn surveys. Dr. Christopher R. Webster, Assistant
Professor of Quantitative Ecology and Forest Management at Michigan
Technological University, will be responsible for the modeling study,
working closely with Dr. Jenkins.

**Study Costs**

##### Salaries

Dr. Mike Jenkins -- 80 hours @\$41.66hour \$ 3,332.80

Dr. Chris Webster -- 80 hours @ \$63.08/hour 5,046.40

##### Other Direct Costs

Travel for fieldwork by Jenkins 300.00

Field supplies/shipping to lab 200.00

Chemical analysis of 8 soil samples @\$500/each [4,000.00]{.underline}

**Total costs \$ 12,879.20**

**APPENDIX E**

ASSESSMENT OF THE AMOUNT AND DURATION OF OIL SEEPAGE INTO CLEAR CREEK
FROM THE PRYOR OIL SPILL AND FIRE SITE

The Federal and State Trustees for the Pryor Oil Spill and Fire case
conducted a visit to the site on 17 August 2004, during which they
observed substantial amounts of oil and oil-related by-products trapped
in booms in Clear Creek adjacent to the spill site. The continuing
release of oil into Clear Creek more than two years after the spill
poses significant risks to aquatic resources in Clear Creek. Therefore,
the Trustees request that the U.S. Environmental Protection Agency
(USEPA) Federal On-Scene Coordinator conduct an assessment to determine
the expected amount and anticipated duration of oil seepage from the
spill site into Clear Creek. The key question we want to answer from an
assessment of the site is: How long will the free oil from the site
continue to seep into Clear Creek? We understand that a full site
assessment and quantification of the amount of residual oil in the
subsurface and its potential for/rate of discharge into Clear Creek
would be very difficult and expensive, considering the complex
hydrogeology and difficult site access. However, the Trustees would like
for USEPA to develop a study approach that would provide a preliminary
assessment and measurements that could, perhaps, be repeated over time
to track changes in the amount or distribution of residual oil. The
Trustees are primarily concerned with how much free oil may be in
fractures and/or on the water table and likely to seep out as free oil
or waxy precipitates, rather than the degree of contamination of
groundwater. Free oil discharges will continue to expose aquatic
resources to impacts. A better understanding of how long the oil seeps
will continue is needed so that the Trustees can determine if additional
site remediation is needed, which is critical to not starting
restoration activities prematurely. The Trustees are interested in
working with USEPA in the evaluation and selection of appropriate
assessment methods.

The USGS has conducted site visits with the Trustees to assess the
potential impacts to groundwater resources and the duration of oil
seepage from the site. They collected water samples for BTEX analysis,
which have been used by the Trustees to document the extent of water
contamination. The USGS will continue to support the Trustees in review
of the USEPA study plan and results from the assessment of the on-going
oil releases from the site and other technical support in the assessment
of impacts to groundwater and surface water. Costs for past and future
work performed by the USGS in support of the Trustees are included in
Appendix G.

**APPENDIX F**

# QUANTIFICATION OF LOST AND DIMINISHED VISITOR USE

# Study Description

The Pryor Oil Well incident negatively affected visitor use and
enjoyment of OBRI resources (Industrial Economics, Inc., memorandum
dated 2/21/03). As a result of this incident, certain visitor trips to
OBRI were diminished in value or foregone altogether (Industrial
Economics, Inc., memorandum dated 4/17/03). The natural resource
Trustees must determine the scale of compensatory restoration that is
necessary to compensate the public for this loss. In so doing, the
Trustees determined that the "service-to-service" scaling approach (15
CFR §990.53(d)(2)) was not applicable due to the human use nature of
this lost and diminished use. Furthermore, the Trustees rejected the
"value-to-value" scaling approach (15 CFR §990.53(d)(3)(i)) since
valuation of the replacement services provided by compensatory
restoration could not be accomplished at a reasonable cost. Therefore,
the Trustees selected the "value-to-cost" scaling approach (15 CFR
§990.53(d)(3)(ii)). That scaling approach selects the scale of
compensatory restoration that has an implementation cost equivalent to
the economic value of lost and diminished use.

The Trustees will employ the benefits transfer methodology to value this
lost and diminished visitor use and to scale the associated compensatory
restoration. The benefits transfer methodology involves using economic
values that have been previously estimated and reported in existing
studies to address similar issues in other contexts. Specifically,
per-unit value estimates from existing economic studies are combined
with site-specific resource information to estimate the total economic
value of a loss.

The obvious advantage of the benefits transfer method is the avoided
cost of conducting site-specific economic studies. That cost could
easily exceed the total economic value of the loss itself in certain
situations. Moreover, site-specific economic studies take additional
time to plan and implement the required data collection and analysis
activities. The disadvantage of benefits transfer is that the scope of
existing economic studies may limit the resulting valuation. In this
regard, certain criteria should be applied to ensure that appropriate
studies are selected for benefits transfer. Such criteria have been
developed for natural resource damage assessments conducted under OPA.
Those criteria, published in volume 61, page 499 of the [Federal
Register]{.underline} (January 5, 1996), are paraphrased below.

-   Studies selected for benefits transfer must reasonably represent the
    injured resource in terms of physical characteristics, service
    flows, user characteristics, and available substitutes;

-   Studies selected for benefits transfer must reasonably represent the
    change in the quantity or quality of the injured resource; and

-   Studies selected for benefits transfer must be scientifically sound
    and use appropriate valuation methodologies.

The Trustees will use these criteria in applying the benefits transfer
methodology to this incident. Bruce Peacock, economist at the National
Park Service, will conduct the study.

In the event of a future river closure resulting from continuing
discharges of oil, the Trustees may implement a boater survey in order
to more accurately determine the value of lost boating use. A survey
instrument and plan have been developed and are ready for implementation
should that become necessary (Industrial Economics, Inc., memorandum
dated 4/1/03). The costs to implement the boater survey using the
existing survey instrument are not included in the study costs.

**Study Costs**

##### Salaries

Bruce Peacock -- 80 hours @ \$54.96/hour [\$ 4,396.80]{.underline}

**Total Cost \$ 4,396.80**

**APPENDIX G**

# TRUSTEE COUNCIL ACTIVITIES

# Description

The Trustee Council is composed of representatives from the four
agencies representing the co-Trustees, namely National Park Service
(NPS), U.S. Fish and Wildlife Service (USFWS), the Tennessee Wildlife
Resources Agency (TWRA), and the Tennessee Department of Environment and
Conservation (TDEC). The Trustee Council will meet as needed to perform
the following activities:

-   Review data collected to date

-   Approve final study plans

-   Review draft and final study reports

-   Quantify injury to impacted resources

-   Analyze restoration options

-   Review the draft Damage Assessment and Restoration Plan (DARP)

-   Approve the final draft DARP

-   Participate in the public comment process

-   Respond to public comments on the draft DARP

-   Review and approve the final DARP

-   Prepare environmental compliance documents required for Restoration
    Plan implementation

Several members of the Trustee Council are also involved in field data
collection efforts, such as the benthic macroinvertebrate sampling, fish
surveys, and water and biota sampling. The costs include their time
spent in the field.

**Trustee Costs**

# DEPARTMENT OF INTERIOR

***[National Park Service for 2004-2005]{.underline}***

***Dave Anderson***

6 meetings, 16 hours each (8 hour meeting with 4 hours travel each way)
96 hours

7 Injury reports, 3 hours each for review and comment 21 hours

Draft DARP Review and comment 10 hours

Draft EA Review and comment 2 hours

Final Draft Review and comment 5 hours

Public Comment period 10 hours

Trustee Council Misc. communications and activities (1 day/mo, 14 mo)
112 hours

Claim Presentation and coordination 24 hours

Cost Tracking reconciliation 40 hours

Total Hours 320 hours

2004 hourly rate \$50.15 (salary with benefits) Labor \$16,048

Per Trip Cost, approx \$300 ea Travel \$ 1,800

Total \$17,848

***Phil Campbell*** (Meetings, reports review, Trustee Council
Activities and cost tracking)

Estimate 8 hours of NRDA activity per two week pay period Total Hours
208

2005 hourly rate \$43.14 (salary with benefits) Labor \$ 8,973

***Nancy Keohane*** (Meetings, report review, Trustee Council
Activities, cost tracking, EA review, council communication, supervision
of NRDA future GS-9 employee, assistance with restoration activities)

Estimate 32 hours of NRDA work per pay period Total Hours 624

2005 hourly rate \$37.71 (salary with benefits) Labor \$23,531

***Steve Bakaletz*** (6 meetings \@9 hours each, 12 report review @ 60
hours, public comment @ 9 hours, 6 days field investigations \@54 hours)

Estimate 178 hours of NRDA work Total Hours 177

2005 hourly rate \$39.12 (salary with benefits) Labor \$ 6,924

***Temporary GS-9 NRDA employee*** (Meetings, report review, Trustee
Council Activities, cost tracking and coordination for federal agencies,
EA review, council communication, assistance with restoration
activities, coordination of day to day activities of NRDA, logistical
coordination of DARP researcher activities, administrative history)

Estimate 48 hours of NRDA work for pay period Total Hours 1248

2005 hourly rate \$21.59 (salary with benefits) Labor \$26,944

GSA vehicle rental for 3 months during summer season Rental \$ 1,000

***Audie Critchley and Matt Hudson Park Rangers*** (Assist in site
reviews by researchers and NRDA staff activities)

Estimate 4 hours of NRDA work per pay period Total Hours 104

2005 hourly rate \$35.77 (salary with benefits) Labor \$ 3,720

***Barbara Olmstead Obed WSR Administrative Support*** (Assist in cost
tracking, hiring GS-9 temporary employee)

Estimate two weeks of NRDA work Total Hours 80

2005 hourly rate \$26.56 (salary with benefits) Labor \$ 2,125

**Projected NPS Total Cost \$91,065.00**

***[U.S. Fish and Wildlife Service]{.underline}***

**Steven R. Alexander**

Meetings: 6 meetings \@9.0 hours = 54 hours \$2,125.44

##### Report Review: 12 reports @ 44 hours \$1,731.84

##### Public Comments/Meetings: 1 day@9 hours \$354.24

##### Field Investigations: 3 days@9 hours = 27 hours \$1,062.72

##### Sub-total hours = 134 hours @ \$39.36 hour \$5,274.24

##### Indirect Costs (22.0%) \$1,160.33

##### Other Direct Costs (Gasoline) \$250.00

##### **Total USFWS Costs** **\$6,684.57**

***[U.S. Department of the Interior, Solicitor's Office]{.underline}***

**Gerald Thornton, Attorney**

1\. Meet six times a year with Trustee Council in Wartburg, Tennessee to
advise Trustee Council = 6 meetings.

\(a\) Travel to/from Meetings in Wartburg, Tennessee:

> 40 miles from office; two hour round trip. Personal vehicle @ \$0.365
> per mile x 80 miles = \$29.20 per trip x 6 meetings = \$175.20.

\(b\) Meetings last average of three hours.

Three plus two travel hours = Five hours x 6 meetings = 30 hours.

2\. Review documents & comments; drafts documents for Trustees:

a\. Draft assessment plan: 8 hours

b\. Damage Assessment and Restoration Plan with Environmental
Assessment: 24 hours

c\. Review of Federal Register notice: 2 hours

d\. Review of response to comments on DARP/EA 8 hours

e\. Review of FONSI and Record of Decision 4 hours

f\. Notice of DARP to responsible party with demand for performance: 3
hours

g\. Correspondence with/referral to OSLTF: 8 hours

Total: 87 hours

##### Salary - Gerald Thornton: 87 hours @ \$79.85/h \$6,946.95

Other Direct Costs -- Travel 175.20

**Total DOI Solicitor's Office \$7,122.15**

## **[U.S. Geological Survey]{.underline}**

##### Federal Fiscal Year 2004 

October 2003 - DARP review and Trustee meeting -- 8 hr

November 2003 - Letter report to NPS -- 3 hr

March 2004 - Data review / evaluation -- 2 hr

August 2004 - Trustee meeting, site visit, and sample collection -- 18
hr

September 2004 - Research and proposal development -- 6 hr

FY 2004 Cost Summary

Salary and benefits - 37 hr @ \$49.45/hr \$ 1,829.65

Travel and per diem 320.34

GOV mileage 110.50

Analytical Costs [276.00]{.underline}

Subtotal -- direct costs \$ 2,536.49

Indirect costs -- 58% [\$ 1,471.16]{.underline}

Total FY 2004 Costs \$ 4,007.65

##### Federal Fiscal Year 2005

*Cost to Date (October 2004)*

October 2004 - Revise proposal/conceptual model -- 4 hr

DARP review and Trustee meeting -- 10 hr

Salary and benefits -- 14 hr @ \$49.45/hr \$ 692.30

Travel and per diem 136.50

GOV mileage [51.00]{.underline}

Subtotal -- direct costs \$ 879.80

Indirect costs -- 58% [\$ 510.28]{.underline}

Total Costs in October \$ 1,390.08

# [Projected Costs for technical support through calendar year 2005]{.underline}

Costs based on 6 Trustee meetings (10hrs/meeting plus travel), one
technical meeting with EPA(hydrologist and microbiologist 8 hours each
plus travel) and review of about 12 reports/documents (4 hrs per
document). Total estimated time is 116 hours for a senior ground-water
hydrologist and 8 hours for the microbiologist.

2005 Estimated costs for continued technical support

Salary and benefits

GW hydrologist 116 hrs at \$51.43 \$ 5,965.88

Salary and benefits

Microbiologist, 8 hours at \$47.27 378.16

Travel and per diem 728.00

GOV mileage [357.00]{.underline}

Subtotal -- direct costs \$ 7,429.04

Indirect costs [\$ 4,308.84]{.underline}

Total Costs \$ 11,737.88

# Total USGS Costs \$17,135.61

**DOI Overhead Rate on DOI Salaries (\$123,467.58 \* 16.84%) =
\$20,791.94**

## **[Tennessee Department of Environment and Conservation]{.underline}**

## **Marsha White**

#### Report review 14.0 hours

Meetings & travel time. 75.0 hours

Calls, emails, correspondence [8.0 hours]{.underline}

Subtotal 97.0 hours @ \$27.53 per hour = \$2,670.41

Travel Expense

Mileage 2070 miles @ .35 per mile= \$724.50

Lodging and Meals \$594.00 (6 nights @ 68.00/\$31.00 per day)

## **Patrick Parker**

Report review 14.0 hours

Meetings & travel time 75.0 hours

Calls, emails, correspondence [8.0 hours]{.underline}

Subtotal 97.0 hours @ \$37.60= \$3647.20

Travel Expense

Mileage 2070 miles @ .35 per mile= \$724.50

Lodging and Meals \$594.00 (6 nights @ 68.00/\$31.00 per day)

## **Ron Zurawaski**

#### Report review 14.0 hours

Meetings (by phone) [30.0 hours]{.underline}

Subtotal 44.0 hours @ \$45.38= \$1996.72

## **Jonathon Burr & staff**

#### Report review 14.0 hours

Meetings & travel time 39.0 hours

Field/technical activities [107.0 hours]{.underline}

Subtotal 160.0 hours @ \$30.26= \$4841.60

Travel Expense

Mileage 1380 miles @ .35 per mile= \$483.00

#### [Summary]{.underline}

Labor \$13,155.93

Mileage 1,932.00

Lodging and Meals 1,188.00

####  Subtotal \$16,275.93

Overhead @ 22% [2,898.66]{.underline}

**Total State of Tennessee Costs \$19,856.63**

**APPENDIX H**

# TECHNICAL SUPPORT TO THE TRUSTEE COUNCIL

# Study Description

The Trustee Council will be responsible for data analysis, review of
individual study reports, and preparation of the draft and final Damage
Assessment and Restoration Plan (DARP) relating to the Pryor oil well
fire and spill at Obed Wild and Scenic River near Wartburg, Tennessee. A
variety of studies have been identified to quantify the injury. The
Trustees will use the results of the individual studies to quantify the
injury to natural resources under the Oil Pollution Act (33 U.S.C. 2701,
*et seq.*), and to determine appropriate restoration measures. The
Trustee Council will require the services of a Contractor to coordinate
their efforts during injury assessment, evaluation and selection of
restoration options, and preparation of the draft and final DARP.
Individual tasks to be conducted include:

## Phase 1

**Task 1:** Conduct a site visit at Obed Wild and Scenic River; attend
Trustee Council Meetings, as necessary (up to 4 meetings).

**Task 2:** Review existing information relating to spill, injury, and
data (including Preassessment Phase Report); refine the categories of
potential injury identified in the Preassessment Report and Notice of
Intent, if necessary.

**Task 3:** Determine what studies are necessary to quantify injury.

**Task4:** Prepare Damage Assessment Study Plan with cost estimates and
time line.

**Task 5:** Assist the Project Manager in identifying appropriate
Principal Investigators to implement the studies.

**Task 6**: Support the Project Manager in preparing a Claim to be filed
with the NPFC.

## Phase II

**Task 7:** Review draft and final injury quantification study reports
for each impacted resource.

**Task 8:** Assist the Trustees in selection and scaling of options to
restore injured resources.

**Task 9**: Prepare a draft DARP that quantifies the categories of
injury, discusses the proposed restoration, and documents the quality
assurance and control procedures to be followed. The Trustees will
submit the draft DARP for public comment.

**Task 10:** Attend a public meeting, compile all public comments, and
coordinate response to public comments.

**Task 11:** Incorporate comments received from Trustees (including
those based on the public comments) into a final DARP.

**Task 12:** Prepare environmental compliance documents as required for
Restoration Plan implementation.

The Trustees have already contracted with Research Planning, Inc.
through a competitive bidding process using the GSA Schedule to conduct
Tasks 1-6.

# Study Costs

## Phase I

##### Salaries

Senior Scientist -- 108 hours @ \$154.09/hour \$ 16,641.72

Ecologist -- 128 hours @ \$49.44/hour 6,328.32

##### Other Direct Costs

Per diem 420.00

Hotel 756.00

Ground Transportation 840.00

Communication/Shipping 300.00

Sub-contract [713.60]{.underline}

**Total Phase I \$ 25,999.64**

## Phase II

##### Salaries

Senior Scientist -- 680 hours @ \$160.25/hour \$108,970.00

Ecologist -- 696 hours @ \$65.11/hour 45,316.56

##### Other Direct Costs

Per diem/Hotel 3080.00

Air/Ground Transportation 6,600.00

Communication/Shipping 500.00

Draft and Final Report Production (WP/Graphics) 6,508.56

Printing [500.00]{.underline}

**Total Phase II \$ 171,475.12**

**APPENDIX I**

### DATA MANAGEMENT SUPPORT TO THE TRUSTEE COUNCIL

**Study Description**

The U.S. Fish and Wildlife Service (Service) will provide Geographic
Information System (GIS) data management support to the Trustee Council
during the Injury and Restoration Assessment Phases of the Natural
Resources Damage Assessment (NRDA)project. The proposed work will
consist of gathering spatial data on all sampling and observation
stations within the Clear Creek watershed. Existing and future
analytical data will also be simultaneously entered into a relational
database (i.e., Microsoft Access). This attribute data will then be
linked with the spatial database created in ArcGis 9. All spatial data
will be projected in the Tennessee State Plane and the NAD83 datum
coordinate systems. The GIS database will be used by various researchers
who will need to access data on water and sediment quality, as well as
biological data collected within impacted and reference sites. Results
of various studies on affected resources and habitats entered into this
GIS database will be easily accessible for researchers to conduct
NRDA-related assessments. The Service previously created GIS coverages
and associated attribute data for ephemeral data collection efforts
during the actual spill event and the NRDA Preassessment Phase. This
proposed work will update previously generated data, reflect additional
data collection efforts, and manage all data over the life of the NRDA
project. All work is expected to be completed in 2005.

**Costs**

##### Salaries

GIS Technician (GS-11) - 200 hours @ \$37.16 \$ 7,432.00

Technical Review and Supervision (GS-12) - 18 hours @ \$43.46 782.28

Indirect Costs 1,807.14

[Other]{.underline} [Direct Costs]{.underline} N/A

        **Total Costs** **\$ 10,021.42**