16th Biennial National Harbor Safety Committee Conference

Hylebos Waterway

Sunken Rock Barge

Kent Roberts Schwabe, Williamson and Wyatt Portland/Seattle/Vancouver Port of Tacoma Hylebos Waterway at Tacoma Upper End Hylebos Waterway

Schnitzer Steel Recycling Metals Export Terminal Schnitzer Steel Terminal

Buffelin Turn

Hylebos navigation channel • 200’ wide navigation channel • USACE maintained at 30’ MLLW • “38’ Channel” = Ship drafts at high tide to 35’ with 3’ under keel clearance

Channel widens to 250’ at Buffelin Turn – Walrath Dock Walrath Trucking Sound Rock Products SeaLevel Bulkhead Builders, Inc. SeaLevel Bulkhead Builders, Inc.

November 6, 2016

SLBB Rock Barge “COMPLIANT”

145 x 45 x 11 steel deck barge

Built 1966 Rock Barge Load • 235 Excavator • 2 loading ramps • 350 tons 6-man granite rock

6-man rock = 6,000 – 8,000 lbs outer dimensions 54” to 60” Value approx. $4600

Rock Barge, morning of Nov. 6 Sunken Rock Barge Salvage Plan

• Global Diving & Salvage November 11, SLBB Rock Barge Wreck Removal

• Detailed plan to refloat and remove the Rock Barge. • Detailed plan for pre-removal and post removal sediment sampling to confirm contaminated sediments not spread/exposed. Commencement Bay Superfund Site

• In 1983, EPA put Commencement Bay on its “Superfund” list as the Commencement Bay Nearshore/Tide Flats site. • Decades long clean-up effort with ongoing monitoring. • 2 of 9 sediment sites of highest concern in Hylebos Waterway. Commencement Bay Superfund Site

• 2014 EPA/USACE site assessment determined not to dredge Buffelin Turn upslope due to natural, clean sediment capping of subsurface contaminated sediments.

Barge Removal Salvage Plan

• “The 6-man rock cargo from the submerged barge was located offshore and embedded into the mud with less than 3.5 extending above the mud ( 25 feet below MLLW). In most cases, the rock extends only 1 foot above the mud line.”

• Salvage plan is to remove Rock Barge only. Removal of rock cargo not addressed. Salvage plan - rock debris field Puget Sound HSC - 12/2/15

• USACE written report item: “Hylebos Waterway - A rock barge sank at the Walrath pier on November 6th. The barge is resting approximately 20 to 30-feet into the channel. Salvage operations are underway, but have been hampered by difficulties stringing the lifting straps under the barge.” December 2, 2015 (from Corps link) Barge removal complete Dec. 6

January 26, 2016

• Puget Sound Pilots to USCG:

• “For the reason of the barge capsizing and spilling four- man rock at the Sound Rock facility, the Hylebos waterway is compromised … no longer accessible for the historical deeper drafts transited. We have approximately 100 transits annually, each one of these transits will be impacted by a lesser draft of ±2.5 feet. • …. a negative impact on loaded outbound ships. Puget Sound Pilots feel this area should be restored to its original depth… . Puget Sound HSC Feb. 3, 2016

USACE - “Hylebos Waterway-The rock barge that sank at the Walrath pier was refloated on 06 December and removed from the waterway.

February 22-27 - M/V TEAM HOPE

• Schnitzer Steel voyage chartered based on up to 35’ channel depth • Should have sailed at 34.4’ • Pilot draft restriction – sailed at 32.55’ • 33,856 MT – 30,932 MT = 2924 MT not shipped • $540,000 lost sale opportunity • Charter deadfreight claim Schnitzer squeels! • March 4 letter to the world re M/V Team Hope impact • Every foot of draft reduction = $275,000 lost sale opportunity • March 14 meeting USCG/USACE/Pilots • USCG declared rocks impediment to navigation 33 CFR 245.20 • USCG placed AIS racon chart marker • Schnitzer orders new high resolution survey Puget Sound HSC, April 6

• Coast Guard Sector Puget Sound Report • “a virtual aid was put in at the Hylebos where the rocks are at the bottom. [HSC member] asked if there was a plan on the Coast Guard side to do anything beyond adding the virtual aid to that area? No decision to remove the rocks has been made by the USACE or the Coast Guard but a new survey is coming out in April.

April - May

• Puget Sound Pilot increase draft restriction to 3.5’ (Max high tide ship draft = 31.5’) • Schnitzer, TPT, Port of Tacoma demands to SLBB to remove rocks • April 16 – M/V LOCH MELFORT • April 22 – M/V LAKE DANY • TPT log export ship • May 16 – M/V HOIHOW May 11 – USACE letter to SLBB • Rivers and Harbors Act, Section 10 permit required for work affecting navigable waters. • Clean Water Act, Section 404, permit required for discharge of fill material – request for voluntary action

• May 13 – Schnitzer 60-day notice of intent to sue – violation of Clean Water Act Sections 301(a) and 404 Lawsuit Filed May 6, 2016

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON AT TACOMA In the Matter of the Complaint Case No. 3:16-CV-05340- RBL of Northwest Rock Products, PETITIONERS' COMPLAINT Inc., as owner, and Sealevel FOR EXONERATION Bulkhead Builders , Inc., as FROM OR LIMITATION OF charterer, of the barge LIABILITY COMPLIANT, Official No.

505016, for Exoneration from or L Limitation of Liability,

Plaintiff.

Rock removal efforts

• USACE gives SLBB June 10 deadline to submit removal plan • June 16 USACE approves SLBB rock removal plan, must complete work w/in 30 days • Remove all rocks standing proud of background sediment level

Limitation of liability 60 day claim deadline - July 6 • In June, not clear rocks would be removed or draft restriction lifted • Claims filed based on financial losses already occurred, and future financial losses if draft restriction not removed • Clean Water Act violations, nuisance, trespass • Reduced property value - waterfront land on 31.5’ channel vs. 35’ channel Walrath Marine

• Dock owner claim for loss of use of facilities, lost sales opportunities

• $68,068 to date

United States of America

• Obstruction of navigation, Violations Of Rivers & Harbors Act and Clean Water Act

• (amount of claim not stated) TPT U.S. Limited

• Increased shipping cost/lost sales to date: $116,000 • increased future rent/penalties - Lease rate with Port based in part on meeting minimum volume throughputs for log exports.

Schnitzer Steel Industries

• Increased shipping costs, lost sales opportunities and deadfreight claims to date: $935,844 • Reduced property value for Schnitzer terminal: $1,690,000 • Clean Water Act penalties: $37,000 per day • Future shipping cost impacts: Unknown Port of Tacoma/Northwest Seaports Alliance • Loss of revenue – throughput based rent and wharfage: $1,288,653

• Diminution in property value for Port owned terminal property on Hylebos waterway: $30,196,000

Takeaways

• Communication and collaboration – HSC can lead and coordinate • Communicate and analyze “deeply” – How might SLBB’s decision to leave rocks affect all aspects of the waterway? • Beware of mission “blinders” • Encourage more industry partner involvement • Time is money

Thank you!