Prince William Sound Regional Citizens Advisory Council Board Meeting Marine Services Transition Update May 4, 2017

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1 Prince William Sound Regional Citizens Advisory Council Board Meeting Marine Services Transition Update May 4,

2 SERVS Mission & Requirements Transition Status Transition Team Progress Construction Update Forecast TOPICS 2

3 SERVS MISSION: To maintain a constant state of readiness to assist tankers in the safe navigation through Prince William Sound and to provide oil spill response services to the TAPS Marine Oil Shippers, Valdez Marine Terminal and Pipeline in accordance with oil spill response agreements and plans. 3

4 SYSTEM REQUIREMENTS Tanker escorts are regulated by the USCG and ADEC Response is regulated by the Joint Pipeline Office, USCG and ADEC Must demonstrate capabilities through regular drills and exercises 300,000 barrels in 72 hours 4

5 TRANSITION GUIDING PRINCIPLES 5

6 TRANSITION SCHEDULE 6

7 TRANSITION & PARTICIPANT TEAM Alyeska Transition Team Additional resources added January 2017 Additional training resources July 2017 Full scope of transition Participant Team Monthly updates Common and consistent communication 7

8 TRANSITION PROGRESS Shipyard Assurance Team reviews Alyeska program implementation Response equipment purchase Barge Mineral Creek modifications Crucial skimming amendment to Tanker Plan approved 2/1/2017 Edison Chouest inclusion in SERVS Operations Manage SERVS performance Stakeholder Visits in May and June 8

9 NEW VESSELS 4 New General Purpose Tugs 5 New Escort Tugs ROSS CHOUEST Utility Tug 4 New Response Barges Chouest will own and operate existing response barge Chouest will operate Mineral Creek, Sawmill Creek, Allison Creek and Valdez Star 9

10 VESSEL COMPARISON Vessel class Length (feet) Beam (feet) Horsepower Hull Enhancement Drive Style Bollard Pull (pounds) Towing Winches Escort General Purpose Current general purpose/ docking tugs ,750-7,200 none Conventional 105K-150K Conventional N/A ECO general purpose tugs ,008 Forward skeg Azimuthingdrive w/kort nozzle 145K Conventional Constant Tension Current escort tug: Enhanced Tractor Tug ,192 Aft skeg Voith- Schneider cycloidal* Direct: 208K Dynamic: 420K at 12 kts N/A Conventional Escort Current escort tug: Prevention and Response Tug ,192 none Azimuthingdrive w/kort nozzles Direct: 300K Dynamic: no rating Conventional Conventional ECO escort tug ,336 Forward skeg Azimuthingdrive w/kort nozzle Direct: >300K by contract Dynamic: 434K at 8 kts Constant Tension Constant Tension Utility Current utility tug ,700 none ECO utility tug ,400 none Conventional w/kort nozzles Conventional w /kort nozzles 160k Conventional N/A K Conventional N/A

11 CONSTRUCTION LOCATIONS GulfShip North American Shipbuilding Bollinger Marine Fabricators LaShip 11

12 CONSTRUCTION UPDATE GulfShip Gulfport, Mississippi General Purpose Tug Hull 315, 316, 317,

13 General Purpose Tug Hull Unit 32-4/18/17

14 General Purpose Tug Hull 316, 317, 318 (Various dates and units) 14

15 Construction Update North American Shipbuilding Larose, Louisiana Escort Tug Hull 320, 321,

16 Escort Tug Hull 320 4/26/17 16

17 Escort Tug Hull 320-4/26/17 17

18 Escort Tug Hull 321 4/26/17 18

19 Construction Update LaShip Houma, Louisiana Escort Tug Hull 325,

20 Escort Tug Hull 325 (March 2017 and April 2017) 20

21 Escort Tug Hull 325 and 326 (April 2017) 21

22 Oil Spill Response Barges OSRB-1 approximately 35% complete OSRB-2 steel cutting began April 24 OSRB-3 steel cutting Scheduled July 5 OSRB-4 approximately 5% complete

23 Barge Hull 115 OSRB-1 4/19/17 23

24 Barge Hull 115 OSRB-1-4/19/17 24

25 TRANSITION FORECAST Transition Contingency Plan Amendments Training Matrix, Plan and Schedule Vessel Acceptance Plan and Schedule Continued Shipyard Review Stakeholder Visits Additional Training Resources Continued Stakeholder Briefings 25

26 Upcoming Milestones Timeframe May 2017 November 2017 December 2017 January 2018 January 2018 February 2018 February/March 2018 April 2018 June 2018 Milestone Contingency Plan Submittals Begin Chouest Classroom Training First General Purpose Tug Sea Trials First Escort Tug Sea Trials First Oil Spill Recovery Barge Sea Trials Barge Drydock PWS Tug and Barge Demonstrations Barge Mineral Creek Drydock incorporating Lightering and Nearshore Capabilities Incorporation of ECO Fleet into SERVS Operation 26

27 Scott The Captain Hicks Initial Vessel Simulator Orientation Galliano, Louisiana - April 27,

28 28

748 Ramirez Avenue Phone: Florida 32159

748 Ramirez Avenue Phone: Florida 32159 Terry R. Upson 748 Ramirez Avenue Phone: 352 259 7699 Lady Lake E-mail: terry_upson@yahoo.com Florida 32159 QUALIFICATIONS AND COURSES ATTENDED Unlimited British Masters license with dangerous cargo endorsement