OREGON BOARD OF MARITIME PILOTS MINUTES #501

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OREGON BOARD OF MARITIME PILOTS MINUTES #501 The met in regular session on May 20, 2015 at 9:00 a.m., at the new Coos History Museum & Maritime Collection in Coos Bay, Oregon. The Board representatives present included Chair Mindy Ferris, Vice Chair Kim Duncan, Tom Markgraf, Capt. Robert Johnson, Capt. Elroy Olson, Andy Papachristopoulos, Capt. George Wales, Executive Director Eric Burnette and Susan Johnson, Administrator. Kip Callahan and Dan Pippenger were unable to attend. Introductions were given by Board members, staff, and meeting attendees. Thanks were extended for use of the museum facility for the meeting. PRESENTATION: Update on Jordan Cove LNG Project Peter Shadell (sp?), heading the marine area for the project, gave an overview and update. The project plans consist of a small power plant linked to a liquefaction facility; two storage tanks; a u-shaped basin for vessels; and a 232-mile, 36-inch diameter pipeline tying into the pipeline that extends from San Diego to Canada. They anticipate about 100 ships a year berthing at the facility. The project still needs to get final permits; a contract for construction; line up buyers; and put together a team for operations. They have been working with the pilots to mitigate channel limitations that create risks for LNG vessels. The pilot organization will also need to be developed to prepare for larger ships, including training and certifying a minimum of six pilots in LNG. The pilot boarding area for LNG vessels will be five miles offshore, which will create a need for a newer, faster pilot boat. Other protocols and processes include: a VTS monitoring system; marine notice system for fishing fleets; four new 80T bollard pull tractor tugs; a tactical safe navigation plan; a possible requirement for two pilots on board; a tsunami response plan and contingency plans for a disabled vessel. PRESENTATION: Update on Channel Project David Koch, CEO for the Port of Coos Bay, noted that the current depth and width of the channel affects bringing in new operators to the bay. In 2007 they received state funding to study a channel widening/deepening project. The project anticipates depths of up to 45 feet and widths up to 450 feet. The plan will be tentatively selected in July, with a timeline of three years out until construction, before the Jordan Cove project is online. MINUTES #500: The minutes of the March 24, 2015 Board meeting were UNANIMOUSLY APPROVED. NEW BUSINESS: Transportation Oversight Committee (TOC) recommendation for annual adjust to transportationrelated expenses The TOC meets annually to review projected transportation expenses for the Columbia River Bar Pilots (CRBP) transfer system and recommend a budget to the Board.

Page 2 Mr. Markgraf provided a written summary of the committee s recommendation along with a more detailed explanation and budget. The recommendation includes a salary increase for helicopter pilots as an incentive not to get hired to other companies after being trained by the Bar Pilots; a minor bump in pay for boat operators; and capturing administrative costs to operate the transportation system. There was discussion of the cost in the tariff, which would increase about $287 average per transit, based upon last quarter s transits. However, transit numbers for the last two quarters have been down. As shipping improves it reflects in a decrease in the tariff in future quarterly adjustments. Ms. Ferris also referred to letter received from Kate Mickelson of CRSOA suggesting that the TOC processes could be improved in the rules. Both Mr. Markgraf and Gary Lewin of the Bar Pilots agreed to meet with CRSOA representatives to review the recommendation and the budget numbers. Capt. Wales made a MOTION to accept the TOC s recommendation. Capt. Johnson provided a second to the motion, which CARRIED. Bi-annual COLA Adjustment to License Fee An issue statement was provided to the Board explaining this adjustment, which is statutorily required in ORS 776.357. The adjustment is based on the CPI for the previous two years: 2.18% in 2013 and 2.57% in 2014. The fee will increase from $2,858 to $2,995 annually, for the 2015-17 biennium. It was recommended that the Board issue a notice of proposed rulemaking to amend the license fee set by OAR 856-010-0016, to go into effect July, 2015. Mr. Papachristopoulos made a MOTION to issue the notice. With a second provided by Mr. Markgraf, the motion CARRIED. INCIDENT REPORTS: M/V Miyama The bulk carrier Miyama, 738, 2 L.O.A and 38,871 gross tons, was transiting downriver the morning of March 4, 2015 from Longview, WA, when the engine failed and the vessel went aground. Capt. B.C. Warner, license #162, was piloting the vessel. Capt. Olson conducted an investigation and submitted an investigation summary which is incorporated as a part of these minutes. He noted that the incident was clearly caused by failure of the main engine and that Capt. Warner s actions likely prevented any damage. There was no damage to the vessel, property or pollution. Capt. Olson recommended that the incident be filed with a finding of no pilot error. Capt. Wales made a MOTION that the incident be filed. Mr. Markgraf provided a second to the motion, which CARRIED. M/V Turquoise Ocean On the afternoon of March 27, 2015, the bulk carrier Turquoise Ocean, 600, 4 L.O.A and 24,020 gross tons, softly grounded about one mile upstream of Stella, WA, while conducting an emergency anchoring maneuver after a main engine failure. Capt. J.J. Nielsen, license #163, was piloting the vessel. Capt. Olson conducted an investigation and submitted an investigation summary which is incorporated as a part of these minutes. The incident was clearly caused by failure of the main engine and Capt. Nielsen s actions likely prevented a major marine casualty. There was no damage to the vessel, property or pollution. Capt. Olson recommended that the incident be filed with a finding of no pilot error. Mr. Papachristopoulos made a MOTION that the incident be filed. Capt. Wales provided a second to the motion, which CARRIED. M/V Eternal Triumph The freighter Eternal Triumph, 623 L.O.A and 31,538 gross tons, was inbound for the Astoria Anchorage on April 20, 2015, when wind and current set the ship down onto Buoy #37. Capt. J.J. Brady, license #160, was piloting the vessel. Capt. Johnson conducted an investigation and submitted an investigation summary which is incorporated as a part of these minutes.

Page 3 He noted that the buoy made light contact with the ship, rolled along the ship s side and floated free with no damage to either the ship or the buoy. This is a reportable incident according to the Board s rules. Capt. Brady made a timely report to the Board and the Coast Guard. Capt. Olson made a MOTION that the incident should be filed without further action. Capt. Wales provided a second to the motion, which CARRIED. OLD BUSINESS: OBMP/USCG Memorandum of Understanding (MOU) Mr. Burnette explained that this matter had previously been before the Board and returns as a revised MOU spelling out each party s roles in an incident investigation. There was a change of command at the USCG and their legal staff revisited the MOU and cleaned up some of the language. Board counsel has reviewed the MOU for legal sufficiency and found it to be a better document. Mr. Burnette recommended the Board approve the document. Capt. Wales made a MOTION that the Board approve the revised MOU. Capt. Olson provided a second to the motion, which CARRIED. Amix Complaint Status Ms. Ferris explained that a complaint was received about a month ago about charges for pilotage in Coos Bay to U.S. flag tugs pulling Canadian barges with Canadian cargo. After consultation with counsel the charges to these vessels were found to be appropriate and they required a pilot into and out of Coos Bay. This continues to be an issue with a potential legal resolution. STAFF REPORT: The proposed rule amendment to synchronize the timing of the annual renewal with the issuance of an unlimited license was noticed in the Secretary of State s Bulletin on May 1. It will go into effect as a permanent rule by the end of May. The Board s budget bill passed the Senate on May 7, and is currently on the House side with a do pass recommendation. A second reading was scheduled for May 18 and the third reading May 19. Ms. Johnson was recruited by the city of Los Angeles to serve on a four-member panel to conduct interviews of harbor pilot applicants last month. The interview process was quite similar to the Board s, although their pilots are city employees and not regulated by the state. A quarterly tariff adjustment went into effect April 15 for the Columbia River bar tariff only. Work continues on research and revisions to the Board s medical oversight standards for pilots. Contacts were made with pilotage authorities in Alaska, Seattle, San Francisco, Houston and New York to put together a comparative matrix of medical oversight standards. The committee s next meeting is scheduled for June 9.

Page 4 There have been ongoing discussions with the WA Dept. of Ecology with respect to HB 1449 which has passed and signed by the Governor. Among other things, it mandates a vessel traffic risk assessment be performed on the Columbia River. The Board is specifically mentioned in the legislation as a party to be consulted and a key stakeholder. The discussions center on how that state to state interaction is going move forward. Board members received a financial summary for April revenue and expenses, a budget report and a recap of the Board Operations Fee through April. There being no further business, the meeting adjourned at 10:30 a.m. The next regular session Board meeting is scheduled for July 22, 2015, in Portland. License Renewals - As submitted on the agenda, the following licenses are scheduled for renewal in May & June: On the Columbia and Willamette River pilotage grounds R.D. Sigfridson #090, C.B. Satalich #127, S.L. Pritchard #095, E.E. Olson #114, R.D. Gill #142, G.B. Howe #115, J.J. Nielsen #161, and M.R. Paulson #155. On the Columbia River Bar pilotage ground M.R. Tierney #143. Respectfully submitted, Susan Johnson Susan Johnson, Administrator

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Page 10 M/V ETERNAL TRIUMPH REPORT OF May 20, 2015 SUBMITTED BY: Capt. R. W. Johnson SUBJECT: Contact with buoy #39, Astoria Anchorage PILOT: Capt. James Brady VESSEL PARTICULARS: LOA: 623 BREADTH: 106 DRAFT: FWD: 15-04 AFT: 23-00 GRT: 31,538 REGISTRATION: Singapore CLASSIFICATION: CREW: Philippine officers and crew INCIDENT DETAILS: The ETERNAL TRIUMPH was inbound for the Astoria anchorage on the afternoon of April 20, 2015 when the wind and current set the ship down onto buoy #37. The buoy made light contact with the ship at about hatch #5 on the starboard side, rolled along the ship s side and floated free with no damage to either the ship or buoy. ENVIRONMENTAL CONDITIONS: Good visibility Northwest wind 15Kts Tidal Conditions: 0935-1.2 1548-8.3 Flood Current from about 1200 until 1600 DISCUSSION: Capt. Brady was bringing the ship into Astoria on the flood tide to anchor between buoys #37 and #39. The current sets diagonally to the approach at this location. While focusing on minimizing his speed he misjudged the set and made light contact with the buoy. After safely anchoring the ship Capt. Brady checked both the ship and buoy and found there was of sign of the contact and no damage to either the buoy or ship. He notified the Coast Guard and did a drug and alcohol test after coming ashore.

Page 11 RECOMMENDATION: This is reportable by Board rules. Capt. Brady made a timely report to the Board and Coast Guard. There was no consequence to this incident and I recommend that is be filed without further action. Respectfully Submitted: Capt. Robert W. Johnson