Memorandum of Understanding among Oil Spill Removal Organizations (OSRO) to Coordinate and Share Oil Spill Removal Resources Matt Melton General Manager Alaska Chadux Corporation ARRT January 2015 Legal The following presentation includes forward-looking understandings. These understandings relate to potential future events. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking understandings. These understandings are not guarantees of future performance and involve certain risks, uncertainties and assumptions that may prove to be incorrect and are difficult to predict, such as oil and gas prices, Alaska snowfall, flat tires, and/or lousy attitudes of personnel. We caution you not to place undue reliance on our forward-looking understandings, which are only as of the date of this presentation or as otherwise indicated, and we expressly disclaim any responsibility for updating such information or notifying any person or entity of changes in understandings. Alaska Chadux Corporation 2 MOU Definition • OSROs (“Parties”) for the purpose of sharing information regarding certain oil spill response resources owned or controlled by the parties, and to describe agreed upon procedures among the Parties in the event aid or assistance is requested by a Party.” Alaska Chadux Corporation 3 Signatories • • • • • Alaska Chadux Corporation Alaska Clean Seas (ACS) Cook Inlet Spill Prevention & Response, Inc. (CISPRI) Southeast Alaska Petroleum Response Organization (SEAPRO) Ship Escort/Response Vessel System (SERVS) Alaska Chadux Corporation 2015 4 Area of Interest 586,400 square miles 34,000 miles of shoreline 80% of all active volcanoes in US 17 of the 20 highest peaks Alaska Chadux Corporation 5 Recitals • “circumstances may arise in which Response Resources located outside a Party’s Area of Interest can be utilized as a means of bringing additional Response Resources to bear during a spill response.” • “Parties… may be in a position to provide Response Resources to another Party in the event of an oil spill.” • “Parties recognize that in limited circumstances, there may be a benefit to rendering mutual aid to one another in the event of an oil spill.” Alaska Chadux Corporation 6 Response Resource Database Coordination • Parties will use their best efforts to provide one another, upon request, with information as to the type and availability of Response Resources in their respective inventories in a timely and effective manner. • Parties will jointly implement those procedures reasonable required to facilitate prompt access to another Party’s Response Resource Database. • Each Party will decide which Response Resources to include in the Response Resource Database. Alaska Chadux Corporation 7 Response Resource Database • ACC: http://www.chadux.com/equipment • ACS: http://www.alaskacleanseas.org/wp- content/uploads/2014/11/2014-Spill-Response-Equipment-Manual-rev1Compatibility-Mode.pdf • CISPRI: http://www.cispri.org/capabilities.htm • SEAPRO: http://www.seapro.org/equipment.cf • SERVS: http://www.alyeska- pipe.com/SafetyEnvironment/PreventionAndResponse Alaska Chadux Corporation 8 Database Example (SEAPRO) Alaska Chadux Corporation 2015 9 Response Resource Activation • Upon request a Party will: • Provide a list of its potentially available Response Resources. • Provide emergency response activation protocols and contact information • Promptly provide information as to the availability of its Response Resources together with a proposed contract or agreement, including the rate. Alaska Chadux Corporation 10 Need for Response Service Agreement • “No Party is obligated under this MOU to Provide any Response Resource to any other Party in the absence of a fully executed Purchase Order or Other Suitable Document with respect to a specific activity or incident.” Alaska Chadux Corporation 11 Reality • OSROs will contract directly with the RP. • Due to Indemnification and certainty of payment. • Training & Exercises • • • • Mutual Aid Drill ACS Area Table Top Exercise SEAPRO Advanced Oil Spill Responder (OHMSETT) Advanced Oil Spill Response in Ice (CREEL) Alaska Chadux Corporation 12 Chadux’s MOU Experience • Chadux & Alaska Clean Seas • 2014: Mile Post 299 Response - Shore Seal Boom Rental ACS • Chadux & SERVS • • • • 2009: Pathfinder Response - Chadux used SERVS resources on-scene 2008: Northern Mariner - Mini Barge Rental SERVS 2007: Nordic Viking - Mini Barge Rental SERVS 2001: Windy Bay - Simultaneous Operations Under USCG Direction • 2004: Selandang Ayu • All Alaskan OSROs involved Alaska Chadux Corporation 13 QUESTIONS • • • • Bark Lloyd – ACS Andres Morales – SERVS Todd Paxton – CISPRI Dave Owings – SEAPRO Alaska Chadux Corporation 2015 14
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