"Preparation: Paves the Path to Success”
Presentation toPetroleum Association of Japan
March 7-8, 2012
Tokyo
Don Toenshoff, Jr.
Executive Vice President

Marine Spill Response Corporation

Discussion Topics:• The Deepwater Horizon (DWH) Incident• DWH Response– MSRC Response Effort: A historic view• "Preparation: Paves the Path to Success”– The 6 “P’s”: Critical Success Factors• The Foundation:– MSRC Capability Pre-DWH• Preparation for the Next Response:– post-DWH– The MSRC “Deep Blue” Expansion Program• Closing Comments

Deepwater Horizon Incident: Background• Drilling exploratory wellin Mississippi Canyon 252(MC-252)– About 40nm (64km) offshoreLouisiana• At 21:45 hrs, 20 April
2010: Explosion and fire– 11 workers lost• BP initiates response––––Search and rescue operation
Source control
Mechanical recovery
Dispersants• aerial & sub-sea– Burning– Shoreline Protection– Plus many, many otheractivities

Source: Wikipedia

Deepwater Horizon:
April 21-22, 20104

DWH Response:
Multiple Tactics & Tools Utilized

Source: Wikipedia

Deepwater Horizon Spill: A Snapshot in Time

Deepwater Horizon Spill: May 24, 2010
6Source: NASA Terra Satellite

DWH Response: Background• Morning 22 April: Rig sinks– Water depth: ~5,000’ (~1,524m)– First report of oil sheen on water• BP ramps up unprecedentedresponse– President declares DWH a “Spill of
National Significance” (SONS)• 15 July: “capping stack” cuts off
flow of oil• 19 September: relief well kills“Macondo Well”

DWH Incident: Immediate Aftermath•

Rule Changer: The DWH
incident has and will continueto change US Energy policy forthe foreseeable future•

Moratorium was issued to halt
drilling of new wells offshore
US•

Public perception andawareness of the spill at
unprecedented level•

24/7 news, cable and social
medium (Twitter, Facebookand others) were key driversof public sentiment•

Finally, was catalyst for newoil spill response planningrequirements and Agency
oversight (and expectations)MSRC Role in DWH Response:• With any spill, it is important to recognize
the role of the participant• MSRC was the single largest oil spill
response contractor• MSRC provided services including:– Mechanical recovery– Dispersant Services– In situ burn
– Emergency Communications Services– General Contractor for hiring of subcontractors

MSRC Role in DWH Response:• As important, MSRC was not involved in:– Relief well drilling activities– Subsea Well Control Efforts– Drafting of Federal Response Plan or Spill
Management

Photo Source: Google Images

MSRC Mechanical Recovery Response:• 12 “Responder” Class Oil Spill Response
Vessels (OSRVs)• Including 2 California based OSRVs which wererouted via Panama Canal in unprecedented move

• 3 Ocean-going barges• 22 Shallow Water Barges• 6 Fast Response Vessels• 71 Marine Assets• 42 Skimmers• ~65,000 ft (~20,000m)of boom

MSRC Dispersant Services:• King Air 90 based at Stennis Airfield inMississippi was immediately activated• C-130 based in Coolidge, Arizona wasimmediately activated and relocated to Stennis
Airfield• MSRC coordinated all dispersant logistic
services for Stennis based aircraft including:– 4 C-130s– 4 U.S. Air Force C-130s assigned to work with industry– ~801,000 gallons of dispersant sprayed from Stennis
based aircraft• Dispersant Capability was developed inabsence of any Regulatory requirement– Key concept in Preparedness

MSRC In Situ Burn Support:• MSRC provided 9 in-situ burn kits
– Long lead time for manufacture make burn systems acritical inventory item to be able to utilize this tool

• MSRC provided support personnel

Emergency Communications Response:• 5 Emergency Satellite
Communications Packages• Personnel (76)
– MSRC (30)
– Specialized Contractor
Companies (46)

• Services included:– Full deployment and support– Telephone and Data Internet
support via satellite link
– Established emergency
communications until permanentsystems were in placeMSRC General Contractor Services• 52 Contractors– 7,278 contract personnel at peak ofactivities• Services included:– Shoreline Clean-up (pre and postimpact)– Boom deployment– Skimming operations– OSRV Back-deck Operations– Shallow Water Response Operations– Logistics Support– SafetyPreparing for a Spill: The 6 “P’s”• Key Success Factor:“Preparation: Paves the Path to Success”
Or, stated another way:
“Proper Planning & Preparation
Prevents Poor Performance”
Key question: How do you get there?

Preparing for the spill: The 6 “P’s”• Commitment of Customers/Members:– Capital to buy equipment– Operating Budget• Hire, retain & train personnel;– Support long-term readiness posture• This includes maintenance; Quality Assurance drills andQuality Control Inspections– New initiatives• Certified dispersant spray aircraft– Train, drill and work together BEFORE oil spills onto
the water• Then --- build off a strong base of assets

MSRC Responder Class OSRV 15 Dedicated Oil Spill

Response Vessels nationwide- Dedicated special purpose High capacity skimmingsystems- Boom-oil containment- Storage

 Floating inventory of ocean
boom for enhanced “U”skimming

 ~2,240m on Gulf of

Mexico OSRVs post DWH

 210 ft (64m) length 12 knot speed of advance 4,000 bbl (636m3) temporary storage 2 Oil water separators

 Berthing for 38
 Medical facility
 Helicopter deck Command and controlcapability

Oil Spill Response Barges (OSRBs)▪ Converted from oil

storage to skimmingbarges▪ 19 Barges Nationwide- Dedicated▪ High capacity skimmingsystems- New technology dualskimmers- Boom-oil containment- Storage▪ Floating inventory ofocean boom forenhanced “U” skimming- Approximately 2,600 ft eachpost-DWH

Protected Water Systems

 Fast Response Vessels(FRVs)- 47 ft. (14.3m) length- 26 knot- Lori Brush skimmers- 50 bbl (~8 m3) storage Shallow Water ResponseBarges (SBS)- 2 Pontoons- Self propelled or push boats- GT 185 skimmers- 400 bbls (~64 m3) of storage- Draws 3 feet (<1m)of waterProtected Water Systems

MSRC Dispersant Services
MSRC Customer’s desire for preparedness drove new program
development and multi-year funding prior to regulatory requirement

Source: MSRC

Emergency Communications Services• Emergency Communications Packages- Use in spill and non-spill emergencies- Suites provide marine and aviation radios- Dedicated satellite access- Independent telephone system (96 phone stations per suite) Use at operating facilities avoids co-mingling with operations
 Fulfills regulatory requests to move command centers to other locations with little infrastructure
support

30 Full time Communications & IT experts on staff

MSRC Services - Spill Response▪ The single core component to any successful response?

Trained & Qualified Personnel▪ Experience on over 700 spills in last 20 years▪ Extensive use of proven MSRC Health & Safety procedures, training
protocols, management systems & procedures▪ Extensive GOM experience including multiple responses during
Hurricanes Katrina/Rita (2005)- Lessons learned from Katrina were recycled back into operationsplan•

Continuous improvement.

- Extensive tactical lessons learned from DWH are being recycled
back into operations planPost-DWH Expansion: The MSRC
Deep Blue Program• With a US moratorium in place prohibiting
drilling new wells, MSRC’s funding members
challenged MSRC to quickly expand response
capability for GOM Operations• In short order, MSRC set off a worldwide
procurement of various asset types.
• This geographic expansion was termed …..

“Deep Blue”

Conversion of Platform Supply Vessels(PSVs) for dual service Oil Spill Response•

Five (5) Platform SupplyVessels (PSVs) wereconverted for dual mission––•

Outfitted with:
–––––

•

Daily mission: PSV Service to rigs
Oil Spill Response capable

Skimmer
BoomDaughter Craft
Reduced visibility capability
Tanks converted for recovered oil

MSRC Partners:––Hornbeck Offshore Services (2)Edison Chouest Offshore (3)Converted Deep Blue Dual Mission PSVs:/."MSRC Deep Blue Program: Skimmers
Procured High Capacity,
High Efficiency Skimmers:
5 PSVs, 2 “Responders” &Skimming Barges

MSRC Deep Blue Program: Ocean Boom
• Procured ~69,000’(~21,000m) Ocean
rated boom
• Special sized tocommingle withexisting MSRC
inventory– 1.70m height• Stored in Gulf ofMexico on OSRVs,
OSRBs and PSVs

MSRC Deep Blue Program: Ocean Boom on OSRVs

MSRC Deep Blue Program: LowVisibility Capability• Capability added
to Gulf area
OSRVs, OSRBs
and PSVs– Rutter X-BandOil Spill
Detection &FLIR Infra Red– Communications
on OSRBs• Expansion to 8remaining“Responder”
Class OSRVs in‘12

MSRC Deep Blue Program: Low
Visibility Capability on GoM Barges

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MSRC Deep Blue Program: Burn Kits•

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Burn systems:– MSRC Procured 20,000’(6,098m) new fireboom– Total fireboom inventory:• 22,500’ (6,860m)

MSRC Resources: Post Deep BlueExpansion▪ Largest oil spill response organization worldwide▪ 10 times the size (equipment and personnel) of other US national responseorganization▪ $500 million initial capitalization
Asset Roll-Up:▪ 453 Dedicated personnel▪ 85 Equipment sites- 36 Manned sites▪ 50 Oil Spill Response Vessels (OSRVs)- 15 x 210 ft (64m). OSRVs- 5 x Fast Response Vessels (FRVs)- 5 x PSVs (85 – 113m)▪ 19 Oil Spill Response Barges (OSRBs)- Capacity from 12,000 – 68,000 bbls
(1,907 – 10,811m3)▪ 68 Shallow Water Skimming Barges▪ 654,000 ft (~200,00m) of boom
▪ Various all sizes▪ 293 Skimming Systems• Low visibility electronics- Enhanced X-Band Radar- Infra Red Capability• Fire Boom Systems- 22,500’ (6,860m) dedicated inhouse-Access agreements

Regional Response Centers and Areas of Operation:
Post Deep Blue
Bellingham, WA

Pacific/Northwest
Blaine, WA
Anacortes,WARegion
Neah Bay, WA
Port Angeles, WA
Seattle, WA
Astoria, OR
Portland, OR

Everett, WA
Ferndale, WA
Pt. Wells, WA
Tacoma,W
A

Portland, ME
Boston, MA

Coos Bay, OR

Providence, RI
Bayonne, NJ
Edison, NJ

Toledo, OH
Eureka, CA
Crockett,Martinez,
CACA
Sacramento, CA
Stockton, CA
San RafaelCalifornia
RegionSausalito, CA
Cordelia, CAWhiting, IN

Benicia, CA

Oakland, CA
Pittsburg, CARichmond, CA
Oyster Point, CA
Concord, CA
Redwood City, CA
Port Hueneme, CAAnaheim Bay, CA
El Segundo,
Terminal
Los Angeles Harbor, CA
CA Island,Long Beach, CA
CA Platform Esther
LB
Fire Boat Sta#15
Platform Edith
Platform Eva
LB FireBoat Sta#20
Alamitos Bay, CA
Platform EmmySan Diego, CA
McCarren, NV

Roxana, IL

Memphis, TN

Savannah, GA
Jacksonville, FL

Pacific Ocean

Chandler, AZ
Mesa,AZ

Honolulu, HI

Hilo, HI

LegendVirginia GroupRegional Response Centers (3)Pre-Position Sites (85)
Responder Class OSRVs (15)OSRVs/FRVs (35)
PSVs (5)Dispersant Airplanes (6)1-20-12Chesapeake City, MD
Baltimore, MD
Salisbury, MD
Herndon, VA
Yorktown, VA
Virginia Beach, VA

Pascagoula, MS
Fort Jackson, LA
Baton Rouge, LA
Port Fourchon, LA

Tampa, FL
Miami, FL

Atlantic/GulfRegion

Houston, TXLake Charles, LA
Port Arthur, TX
Galveston, TX
Ingleside, TX
Kiln, MS

Gulf of Mexico

Atlantic Ocean

San Juan, PR
St. Croix, USVI
Ponce, PRClosing Comments:• The Deepwater Horizon response effort wasunprecedented• This said, if one were balanced in their review,it was a great success-– Operations were accomplished safely; minimal healthand safety issues– Operations were accomplished promptly– Minimal shoreline impact of oil– Strong working relationships inside responseorganization– Excellent support (financial and working) from BP– BP acted responsibly and committed beyond US
Limits of Liability

Closing Comments:
This said, there werechallenges and lessons tobe contemplated before
the next response:•How to deal with perceptionof oiled beaches and tainted
seafood, which led many toshy away from area?
–•In the internet era, how does aresponding company deal withimages such as these shown 24/7?

•

Economic impact?

Dispersants and burning weresuccessfully used.
–How to ensure that these tactics
are available for use in future
responses as a recognized “tool inyour response toolbox”?

•How does one use information,and social media/internet tochange the public perception ofthe response?

Closing Comments:•

Economic Costs:– BP is one of the largest companies in the world– Response costs are estimated in the US$billions• US$17.7 billion as of 12/31/2010 (per BP website)– Third Party Damages and Penalties could add additional
US$billions•Continuity of Response Operations:– “What if?” the spiller does NOT have the financial wherewithal tocontinue to act responsibly, as BP did?
– In US, we have the Oil Spill Liability Trust Fund (OSLTF) at
US$1Billion• Not adequate in case of a spill similar to DWH– How does a responsible responder ensure its fiscal continuity? Oilspills are terribly expensive and require significant cash flow.
What steps are to be taken? Who are to take them? And When?

Closing Comments:•Ensuring the long term commitment by plan holders -– Every day post-DWH, human nature will tend to minimize theimpact of this spill.
– How do we ensure readiness is not compromised?
– Or asked another way, how do we ensure that for the next major
spill we embrace ……

"Preparation: Paves the Path to Success”•This conference, and others like it, provide an excellent forum toensure that Lessons Learned are passed on; best practices arecaptured and Response Preparation for future spills is retained.

Closing Comments
Thank you for your attention. As thisSymposium moves forward, you should
challenge yourself to remember -----“Proper Planning & Preparation
Prevents Poor Performance”
Don Toenshoff, Jr.
Executive Vice President

Marine Spill Response Corporation
toenshoff@msrc.org

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