MSRC in the New Millennium
A Case Study -- Responding to theChanging Needs of Customers
PresentedtoPetroleum Association of JapanOil Spill Symposium 2006
byDon Toenshoff, Jr.
Executive Vice President

Marine Spill Response CorporationTokyo
23 - 24 February 2006
QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

Topics:• MSRC Today: Executive Summary• Consolidation with U.S. Regional Oil Spill
Cooperatives• Enhanced Capabilities– Mechanical Equipment Recapitalization– Dispersants••••Global Response Network
Hurricane Response Operations: 2005
MSRC “Then & Now”
Summary

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

1

MSRC Today: Executive Summary• MSRC is the largest, dedicated standby
emergency response company operating in theUnited States• Operational since 1993
– Operational Area: Continental U.S., Hawaii, & U.S.
Caribbean• Core Values:– Commitment to:• Operational Excellence• Commercial Efficiency• Total Customer Satisfaction

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

MSRC Today: Executive Summary (continued)•Extensive capability to meet U.S. federal, State (California andWashington) and local oil spill response planning requirements•

Can respond to spills of all sizes•

Available 24 hours a day/365 days a year•

Local, dedicated “first-strike” units (personnel, equipment)– In event of a larger spill, additional resources are “cascaded”
to the response site, as needed or required.

•Additionally, can assist in response to other types of emergencies– Natural Disasters– Emergency tanker lightering– Telecommunications disruptions– Hazardous materials responses
QuickTime™ and aPhoto - JPEG decompressorare needed to see this picture.

2

MSRC Today: Executive Summary (continued)• High levels of owned, controlled, and dedicatedpersonnel and equipment– 84 Equipment sites nationwide• 22 Manned sites– ~400 personnel nationwide– (including dedicated navigation crews)– Extensive shallow water and open ocean recovery
capability• 68 shallow water barges• 241 skimming systems• 580,000 ft. of boom
• 47 Oil Spill Response Vessels (OSRVs)– 15 Responder Class– Self-propelled skimming vessels• 19 Ocean-going barges– Dedicated dispersant and in-situ burning resources– Extensive emergency telecommunications
QuickTime™ and aPhoto - JPEG decompressor
are needed to see this picture.

MSRC “Responder” Oil Spill ResponseVessel (OSRV)•15 - 210 foot (64m) Oil Spill Response Vessels (OSRVs)

3

MSRC Shallow Water Response Barges•

68 First Strike Shallow Water barges––Ready-transportable on trailers or in-water
Skimming, booming operations, hard-to-get-at areas

MSRC Dedicated Oil Spill Response Barges•19 large oil recovery barges

4

MSRC in 2006

Oil Spill Co-Operatives Consolidations•Most significant change was the 2004-2005 consolidations
with major oil spill co-operatives:– Clean Bay• San Francisco Bay, California area
– 1 January 2004

– Clean Coastal Waters• Los Angeles, California area
– 1 July 2004

– Clean Casco Bay• Portland, Maine area
– 1 January 2005

– Clean Sound• Seattle, Washington area
– 1 April 2005

•Consolidation Objective: Reap economies of scale &recognize operational efficiencies
QuickTime™ and aPhoto - JPEG decompressor
are needed to see this picture.

5

MSRC: Equipment Reinvestment• 3 New construction 47 foot “Fast Oil Spill
Response Vessels”• 42 Shallow Water Response Workboats• Skimmer Upgrades• Telecommunications Upgrades

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

MSRC: 47’ Fast Oil Spill Response Boat•

Objective:•

Locations (3):– Quick, Initial Response– All Delivered in 2005
• San Juan, Puerto Rico;• Tampa, Florida;• Corpus Christi, Texas•••

Speed: 26 knots
Skimmer: Lamor Brush
Temporary Storage:••

Dispersant Capable: Yes
Builder:– 50-barrels– Rozema Boatworks

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

6

MSRC: Shallow Water Response Boats••

42 New Construction,
Purpose Design Boats
Multi-Mission Objective:– Push Shallow WaterResponse Barges– Logistical Support••••

Speed: 12 knots
Location: Nationwide
Delivery: 2005-2008
Builder:– Munson Co.

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

MSRC: Skimmer Purchases & Upgrades•New Skimmer & Skimmer
Upgrades• Lamor GT-185 BrushAdapter (30)
• Queensboro Drum &Brush skimmer (38)•Objective: Maximize
limited temporary storage

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

7

MSRC: Telecommunications Upgrades
Planned Placeholder toUpgrade
Communications
Capabilities•– Satellite Connectivity• Hardware• Increased Bandwidth– Radios• Marine• Aviation– Internet Access

Program Will Be
Finalized in Spring 2006•

Interior of MSRC Mobile
Communications Suites

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

MSRC DISPERSANT PROGRAM•

Scope of Services Include:– Small Aircraft – First Strike– Large Aircraft– Maintain Dispersant Inventory– Program Management Services– Manage onsite dispersant operations during a spill– Manage dispersant stockpiles and logistics– Manage dispersant training and exercise program– Provide oil spill observation aircraft and trained spotters andobservers•Effective: Commencing 2006
QuickTime™ and aPhoto - JPEG decompressor
are needed to see this picture.

8MSRC DISPERSANT PROGRAM:
International Air Response, Inc.
•C-130A•

Home based: Coolidge, AZ•

Payload: ~3,250 gallons•Planning Assumptions:– Wheels Up within 4-hours– Can fly throughout
MSRC’s Operational Area•

Operational Date:– July 2006

QuickTime™ and aPhoto - JPEG decompressor
are needed to see this picture.

MSRC DISPERSANT PROGRAM:DYNAMIC AVIATION, INC.
•BE-90A Aircraft– Operational 1/01/06• Presently based in Los
Angeles• Relocate to Gulf of
Mexico July 2006

– Twin engine aircraft• operated with pilot andco-pilot•

Serves as spray aircraft(~425 gallons)•Serves as spotter &observer aircraft•

Planning Assumption:
Ready to take-off within
4-hours of notification
QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

9Global Response Network• What is it?
– Network of industry funded, not-for-profits, with asubstantive area/international remit– Members must be willing to share resources with nofinancial gain to the contributing party• What are our objectives– Enhanced utilization of resources– Co-ordination of response where beneficial– Sharing of best practices to promote and enhanceindustry standards

10Global Response Network:•Membership today
consists of:– Alaska Clean Seas
– AMOSC– Burrard Clean– CCA– ECRC– MSRC– OSRL/EARL•••

How does it work?
– Enhanced use of industry
resources for training,during response, exercises,
information exchanges– Sharing of “best practices”
and helping establish goodindustry standards• Safety• Personnel Training• Aviation issues

Initially developed in 2005
Still in formative stages

2005 Hurricane Season
Responses
MSRC Responses
toHurricanes “Katrina,” “Rita,” and “Wilma”

11Hurricane “Katrina”:••

Landfall: 29 August 2005
Location of Primary US Landfall:– South East of New Orleans, LA &Mississippi•

Size: Category “3” to “5”• Landfall Wind Speed: 125 MPH
Category: 3• Offshore: 175 MPH
Category: 5•

Storm Surge:•Damage:– ~34 feet (~10.4m)– 1,400 Deaths (estimated)– US$75 Billion in Damages• (estimated)– Significant impact to U.S. Oil
Industry & MSRC
QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

Hurricane “Rita”:•Landfall:– 24 September 2005
• 26-days after landfall of“Katrina”•

Location of US Landfall:•Size: Category “5”•Damage:– South Western Louisiana– Wind speed: 175 MPH– US$9 Billion in Damages• (estimated)– Significant impact to U.S. Oil
Industry– Direct impact to MSRC Lake
Charles Regional ResponseCenter

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

12Hurricane “Wilma”:•Landfall:•Location of US Landfall:•Size: Category “3”•Damage:– 24 October 2005
– South Western Florida– Wind speed: 120 MPH– Continued disruption to U.S.
Oil Industry– Direct impact to MSRC Miami
response center

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

Hurricanes “Katrina,” “Rita” & “Wilma”:
Executive Summary•Largest response effort in history of MSRC•Significant impact to local infrastructure and industry•

Significant impact to MSRC infrastructure & personnel– Many employees suffered damage to homes & property– Many had to be relieved to attend to personal issues.
• Key Issue: how do you respond to a Customer’s incident when your firsttier of responders have been directly impacted?

– Four (4) MSRC Facilities were damaged•

MSRC Response Operations:––––––Seven (7) Oil Spill Response Vessels (OSRVs) utilized
Two (2) large ocean-going barges used for recovered oil
Numerous other smaller boats, skimmers and support equipment
Substantial Telecommunications support
Approximately 180 company personnel involved.
Oversight of numerous contractors
QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

13

MSRC 2005 Hurricane Responses•

Nature of MSRC response operations:– Recovered oil from leaking tank farm
– Recovered oil from severed pipelines & Marshy areas– Recovered oil from well blow-out– OSRVs also utilized for command and control and “floatinghotels” in areas with no power or accommodations– Telecommunications– Temporary power– Management assistance to various customer Incident
Command Systems (ICS)•Operations were primarily Lower Mississippi River andoffshore Louisiana•

Safety & Health were key Management concerns.
– MSRC expended over 84,000 man-hours (and still counting)with only one (1) minor accident.
QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

Hurricane Responses• Significant Damage & Flooding

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

14Hurricane Responses• Widespread Damage

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

Hurricane Responses• Infrastructure was dislocated.

15

Industry Damage

Industry Damage• Example of anoffshore operation:– Before…..

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

16

Industry Damage• After……

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

Hurricane Responses• With lack of infrastructure, response efforts weremarine asset intensive

17Oil Recovery Operations

Oil Recovery Operations

18

Responder Safety was a Key Issue:• Displaced wildlife caused a major Responder
safety concern

Telecommunications•General Status: Telecommunications infrastructure wassignificantly damaged or destroyed•

MSRC provided an unprecedented level oftelecommunications support to our Customers– All Six MSRC owned & dedicated mobile telecommunications
suites deployed to Gulf of Mexico• all operated simultaneously via dedicated satellite bandwidth– Each of the Seven (7) Oil Spill Response Vessels (OSRVs)
provided a floating command structure with atelecommunications requirement•Through this dedicated capability, MSRC provided satellite,voice, data, internet and radio capabilities necessary fortoday’s communication requirements

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

19

Hurricane Responses: Telecomm
One of Six (6) MSRC Telecommunication Suites at work

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

Hurricane Responses: Remote Operations•Forward Communications Suite to microwave
telecommunications to offshore operations & oil production
capability

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

20

Hurricane Responses•

Logistics:– Overall, infrastructure wasseverely damaged•

Accommodations:– With no hotels available,
MSRC purchased 26
mobile trailers to support:• Effected personnel &families, and• Response Operations•

Food, Water & Fuel:– Needed to be self
sufficient

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

Preliminary Lessons Learned•

Attention to Personnel Needs:– Any Natural Disaster is a traumatic experience.
• Many in our Southern Region were personally effected by the Hurricanes &needed to attend to family obligations.
• Having adequate personnel who could relieve response operations was key.

– Fatigue: with many long days without adequate infrastructure, youmust rotate people out to ensure a safe & effective operation– Attention to safety, health and environmental issues was a key
success factor for this and every operation.

•Telecommunications capability was key success factor:– Without Communications hardware, software & personnel, you will notachieve your objective in event of major disaster•

Knowledge of Customer’s Expectation:– We know our Customer’s operations & expectations and were able towork within their organizations•Be prepared to make decisions quickly:– Numerous players are competing for limited resources– If you feel you will need something, you should contract it and ensure
its availability…. Or it may be gone when you call back for it!
QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

21

MSRC: “Then” (2000) and “Now” (2006)…

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

MSRC - Then and Now - Spill Response ResourcesIncrease
January 1, 2000

January 1, 2006

Quantity

Percentage

Quantity of inspectedvessels owned by MSRC

1626

1063%

Chartered vessels

022

Number of Fast Response
Boats033

Quantity of inspectedbarges (in barrels)

1719

212%

Storage capacity ofinspected barges (in barrels)

753,200

765,203

12,003

2%

Quantity of Boom (in feet)

325,885

579,452

253,567

78%

Quantity of Skimmers

13426513198%

Skimmer Effective Daily
Recovery Capacity(barrels/day)

859,041

1,071,411

212,370

25%

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

22MSRC - Then and Now

Number of MSRC
Personnel

Increase

January 1, 2000

January 1, 2006

Quantity

Percentage

183

283

10055%

3
Eastern

4Eastern

Southern

Southern(excludes OSRV crews)

MSRC Regions

Western

California
Pacific/NW

QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

MSRC “Then”: January 1, 2000
Regional Response Centers and Areas of Operation
Bellingham, WA
Anacortes, WA

Everett, WA

Neah Bay, WA
Port Angeles, WA
Seattle, WA
Astoria, OR
Portland, OR

Portland, ME
Boston, MA

Coos Bay, OR

Western
RegionProvidence, RIToledo, OH

Eureka, CA
Crockett, CAMartinez, CA
Sacramento, CAOakland, CAStockton, CARichmond, CA
San Francisco, CAAlameda, CA
Port Hueneme, CAEl Segundo, CACarson, CA
Terminal Island, CALong Beach, CA
San Diego, CAEdison, NJ
Chesapeake City, MD
Baltimore, MD
Herndon, VA
Virginia Beach, VA

Whiting, IN

St. Louis, MOCharleston, WV

Eastern
RegionMemphis, TNCharleston, SC
Savannah, GA
Jacksonville, FL

Pacific Ocean
Pascagoula, MS
Fort Jackson, LA
Honolulu, HIHilo, HI

Baton Rouge, LA
Houma, LA
New Iberia, LA
Lake Charles, LA
Port Arthur, TXSouthernGalveston, TX
RegionIngleside, TX

Gulf of Mexico
LegendVirginia Group/Eastern Region Response Center
Regional Response Centers
Pre-Position Sites (52)
Oil Spill Response Vessels (15)Atlantic Ocean

Tampa, FL
Miami, FL

San Juan, PR
St. Croix, USVI
Ponce, PR

23

MSRC “Now”: January 1, 2006
Regional Response Centers and Areas of Operation
Bellingham, WA

Pacific/NorthwestBlaine, WA
Anacortes, WA
RegionNeah Bay, WA
Port Angeles, WA
Seattle, WA
Astoria, OR

Everett, WA
Ferndale, WA
Pt. Wells, WA
Tacoma, WA
Portland, ME

Portland, OR

Boston, MA
Coos Bay, ORProvidence, RI
Bayonne, NJ
Perth Amboy, NJ
Edison, NJ

Toledo, OH
Eureka, Humboldt Bay, CA

California
RegionSausalito, CACordelia, CACrockett, CAMartinez, CA
Concord, CAMarin, CA
Sacramento, CA
Oakland, CA
Stockton, CA
Pittsburg, CARichmond, CA
Berkeley, CA
San Francisco, CA
Oyster Point, CA
CARedwood City, CA
Port Hueneme, CA Carson,
Anaheim Bay, CA
Redondo Beach, CA
El Segundo, CA
Terminal Island, CA
Los Angeles Harbor, CA
Platform Eva
Long Beach, CA
Platform Esther
LB Fire Boat Sta#15
Platform EmmyLB FireBoat Sta#20
Platform Elly
Alamitos Bay, CA

Chesapeake City, MD
Baltimore, MD
Herndon, VA
Yorktown, VA
Virginia Beach, VA

Whiting, IN

Roxana, IL

Eastern
RegionMemphis, TN

Savannah, GA

San Diego, CA

Atlantic Ocean

Jacksonville, FL

Pacific Ocean
Pascagoula, MS
Fort Jackson, LA
Honolulu, HI

Hilo, HI

Baton Rouge, LA
Houma, LA
New Iberia, LA
Lake Charles, LA
Port Arthur, TX
Southern
Galveston, TX
RegionIngleside, TX

Gulf of Mexico
LegendVirginia GroupRegional Response Centers
Pre-Position Sites (84)
Responder Class OSRVs (15)Other OSRVs (29)Fast Response Vessels (3)Tampa, FLMiami, FL

San Juan, PR
St. Croix, USVI
Ponce, PR

Yabacoa, PR

Summary: MSRC in the New Millennium•

Increasingly, MSRC’s Mission has evolved to encompass abroader spectrum beyond “oil spill response”to that of“emergency response”•Increasingly, MSRC has expanded into new response capabilities– Telecommunications– Aerial Dispersant– Smaller & Faster Response Vessels•

MSRC has consolidated with other U.S. Industry funded oil spill
response organizations to achieve synergies & efficiencies•MSRC is committed to continually change to meet the changing
needs of our Customers•

All of this has been accomplished in a safe, effective manner
QuickTime™ and a
Photo - JPEG decompressor
are needed to see this picture.

24