1-01 · 5/2/2019 · Lee McKinley Alaska Dept. of Fish & Game ... Monty Morgan Polar Tankers Anil...

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PRINCE WILLIAM SOUND REGIONAL CITIZENS’ ADVISORY COUNCIL

MINUTES REGULAR MEETING OF THE BOARD OF DIRECTORS

January 24 and 25, 2019 Anchorage, Alaska

Members Present Peter Andersen Chugach Alaska Corporation Robert Archibald City of Homer Amanda Bauer City of Valdez Robert Beedle City of Cordova Mike Bender City of Whittier Wayne Donaldson City of Kodiak Patience Andersen Faulkner Cordova District Fishermen United Mako Haggerty Kenai Peninsula Borough Luke Hasenbank Alaska State Chamber of Commerce Melvin Malchoff Port Graham Corporation Thane Miller Prince William Sound Aquaculture Corporation Dorothy Moore City of Valdez Alison Rein (seated 1/24/19) City of Seldovia Bob Shavelson Oil Spill Regional Environmental Coalition Rebecca Skinner Kodiak Island Borough Orson Smith City of Seward Roy Totemoff Tatitlek Corporation & Tatitlek Village IRA Council

Members Absent Melissa Berns Kodiak Village Mayors Association Michael Vigil Chenega Corp. & Chenega IRA Council

Ex-Officio Members Present Craig Ziolkowski Alaska Dept. of Environmental Conservation CDR Mike Franklin (via teleconference) US Coast Guard MSU Valdez Lee McKinley Alaska Dept. of Fish & Game Tom Stokes Alaska Dept. of Natural Resources Kevin Kearney Bureau of Land Management

Committee Members Present Cathy Hart IE Committee Jane Eisemann IE Committee Savannah Lewis IE Committee Linda Robinson IE Committee Steve Lewis POVTS Committee Pete Heddell POVTS Committee Cliff Chambers POVTS Committee Jerry Brookman OSPR Committee Jim Herbert OSPR Committee Mikkel Foltmar TOEM Committee Tom Kuckertz TOEM Committee John Kennish SA Committee Debasmita Misra SA Committee

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Staff Members Present Donna Schantz Executive Director Walt Wrede Director of Administration Joe Lally Director of Programs Brooke Taylor Director of External Communications Gregory Dixon Financial Manager Jennifer Fleming Executive Assistant Betsi Oliver Outreach Coordinator Amanda Johnson Project Manager/Webmaster Linda Swiss Project Manager Jeremy Robida Project Manager Alan Sorum Project Manager Austin Love Project Manager Roy Robertson Project Manager Joe Banta Project Manager Nelli Vanderburg Project Manager Assistant Natalie Novik Administrative Assistant Others Present Scott Hicks Alyeska Pipeline Service Company Mike Day Alyeska Pipeline Service Company Andres Morales Alyeska Pipeline Service Company Angelina Fuschetto Crowley Alaska Tankers Paul Manzi Crowley Alaska Tankers Monty Morgan Polar Tankers Anil Mathur Alaska Tanker Company Jeffrey Adamczyk BP Shipping Capt. Andrew Wakefield Southwest Alaska Pilots Association (SWAPA) Dave Mushovic Bureau of Land Management Erika Reed Bureau of Land Management Gregory Bjorgo Bureau of Land Management Becky Spiegel Alaska Dept. of Environmental Conservation Anna Carey (via teleconference) Alaska Dept. of Environmental Conservation Graham Weeks Alaska Dept. of Environmental Conservation LTJG Carlos Quintero (via teleconference) USCG Jim Stronach Tetra Tech Jay Griffin Geo Syntec, Inc. Davin Holen Alaska SeaGrant Program Bert Adams Native Village of Eyak Vinnie Catalano Cook Inlet Regional Citizens Advisory Council Steve Russell 152 Degrees West Lisa Ragland Local citizen Rick Steiner Local citizen Tom Lakosh Local citizen Nicole Schmitt Alaska Wildlife Alliance Jonathan Pierce Safeguard Marine Jeff Pierce Safeguard Marine Alan Bailey Petroleum News Elwood Brehmer Alaska Journal of Commerce Joe Levesque Levesque Law Group, legal counsel

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Thursday, January 24, 2019 CALL TO ORDER, WELCOME AND INTRODUCTIONS A regular meeting of the Board of Directors of the Prince William Sound Regional Citizens’ Advisory Council was held January 24 and 25, 2019, at the Embassy Suites Hotel, in Anchorage, Alaska. President Amanda Bauer called the meeting to order at 8:30 a.m. on January 24, 2019. A roll call was taken. The following 15 Directors were present at the time of the roll call, representing a quorum for the conduct of business: Andersen, Archibald, Bauer, Beedle, Bender, Donaldson, Faulkner, Haggerty, Hasenbank, Malchoff, Miller, Moore, Shavelson, Skinner, and Totemoff. Orson Smith joined the meeting at 8:55 a.m. Introductions and Directors’ reports followed. 1-0 AGENDA President Bauer presented the agenda (green-colored sheet) for approval with the removal of Item 4-4 USCG Presentation on the Alaska Regional Contingency Plan (Item M on 1/24/19) because of the current government shutdown. Mako Haggerty moved to approve the agenda (green-colored sheet) with the removal of Item 4-4 USCG Presentation on the Alaska Regional Contingency Plan (Item M on 1/24/19) . Thane Miller seconded, and the agenda was approved, as amended. 1-1 MINUTES Bob Shavelson moved to approve the minutes of the Regular Meeting of the Board of Directors of September 20 and 21, 2018. Miller seconded, and the minutes were approved as presented. 4-1 DIRECTOR APPOINTMENT Thane Miller moved to confirm the appointment and seat Alison Rein as the Council representative for the City of Seldovia [replacing Alisha Chartier] with a term to expire in May 2019. Robert Beedle seconded, and the motion passed without objection. [16 directors present.]

PUBLIC COMMENTS Local citizen and environmental conservationist, Rick Steiner, and an early leader in the formation of the regional citizens’ advisory council concept, spoke of the upcoming 30th anniversary of the Exxon Valdez Oil Spill (EVOS) and stated that if PWSRCAC had existed 30 years ago, the EVOS almost certainly would not have happened. He went on to address the Council about the suspension of the tax that funds the federal Oil Spill Liability Trust Fund (OSLTF) that Congress let lapse as of December 31, 2018. He stated that the fund is presently at $6.7 billion, and the USCG and other agencies have not applied the Fund nationally for prevention measures as the country needs. He asked PWSRCAC to send a second letter (in follow-up to its previous submission to Sen. Dan Sullivan) to all of the Alaska congressional delegation requesting that there be no cap on funds taken out of the OSLTF for

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prevention nationally. He was particularly concerned about a rescue tug for the Aleutians and other areas of Alaska that currently have little prevention equipment. Dorothy Moore asked Steiner to provide bullet talking points to the Legislative Affairs Committee that they could use as reference during their upcoming legislative visits. [Orson Smith arrived at 8:55 a.m.; 17 directors present.] OPENING COMMENTS – PWSRCAC TECHNICAL COMMITTEES OIL SPILL PREVENTION & RESPONSE COMMITTEE (OSPR) Chair Jim Herbert reported on that the OSPR Committee had met twice since the last Board meeting and one of the meetings was to work on a long-range plan. He reported on other activities as follows:

• The committee had been updated on the VMT C-Plan renewal comments, which required significant staff and contractor time. The comments were submitted to ADEC on January 7, 2019, and a presentation on the VMT C-Plan renewal was on the agenda at this meeting.

• The committee was updated on the status of the adjudicatory hearing and

appeal.

• The committee was updated on area planning in Alaska, including the transition of the subarea plans to area plans and the various meetings associated with the area committees.

• Staff observed many drills and exercises, including the large-scale Shipper’s exercise that took place in October 2018, hosted by Crowley Alaska Tankers. Exercise highlights included robust sensitive area protection efforts, a mock press conference, and implementation of the Regional Stakeholders Committee.

• The committee met to discuss projects for the upcoming fiscal year and came up with several ideas that, fleshed out, could become projects for future fiscal years as well.

• Various drill reports were reviewed and accepted by the committee. SCIENTIFIC ADVISORY COMMITTEE (SAC) Chair John Kennish reported on the SAC efforts since the last Board meeting, as follows:

• Environmental Monitoring Program. The committee members met for their annual Environmental Monitoring Program workshop where they discussed goals and objectives and received updates on projects in progress.

• Project 9510: LTEMP. The committee received and accepted a draft report by

Jim Payne and Bill Driskell titled 2017 Sampling Results and Interpretations. This report was on the agenda for Board acceptance at this meeting. Kennish

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thanked staff members Alan Sorum and Austin Love for their involvement and their efforts to become sampling experts.

• Project 9520: Marine Invasive Species. The committee received and accepted a report titled Report on Plankton Collections in Port Valdez May 16-17, 2018 by Rob Campbell.

• Project 9650: Review and Update: Coping with Technological Disasters – A

User-Friendly Guidebook. The committee was updated on the progression of guidebook revisions and accepted the report. The revised guidebook would come before the Board for acceptance at this meeting.

• The committee met to discuss project ideas for the upcoming fiscal year.

• The committee hosted another successful Science Night in December with approximately 75 attendees.

PORT OPERATIONS AND VESSEL TRAFFIC SYSTEMS COMMITTEE (POVTS) Chair Steve Lewis reported for the POVTS Committee on its efforts since the last Board meeting, as follows:

• Project 6531: Weather Buoy Demonstration. The committee accepted a “lessons learned” report. Lewis noted that the fiscal note on the report did not get in the meeting materials for this Board meeting, but he hoped it would be available to distribute later.

• Project 6533: The Hinchinbrook Entrance Wind and Waves Extremes. The committee accepted the final report from Tetra Tech Canada titled Hinchinbrook Entrance Wind Wave Extremes and recommended acceptance by the Board later in the agenda. There would be a presentation on this report by Tetra Tech Canada at this meeting. Lewis pointed out that the analysis confirmed that which PWSRCAC has always known, that closure conditions at the Seal Rocks buoy is worse at Hinchinbrook Entrance where the escort range actually terminates. Vessel performance in those conditions beyond closure is something PWSRCAC has not investigated, and it is unknown whether a tug could make a save in those conditions. Lewis said this concerned him.

• Project 6534: Cape Hinchinbrook Weather Surveillance. The committee continued to explore available options to pursue this project.

• In anticipation of a future project, the committee researched the current

emergency towing packages carried by tankers that call at the Valdez Marine Terminal.

• The committee developed several potential projects and participated in the

long-range planning process. The project of highest priority to the POVTS Committee is Potential Places of Refuge (PPOR). The committee was recommending to the Board completion of Phases II and III and this would be an action item later in the agenda. Lewis went on to outline some of the other projects which POVTS ranked highly.

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Lewis commented on an oft-quoted assessment that the Prince William Sound TAPS escort system is “the best in the world.” He said he had no data to support that statement, and that in fact, there are other systems in the world that are effective and he would like to see PWSRCAC look at that. Another project the committee is looking into is Hinchinbrook Weather Surveillance – he said the committee is investigating remote sensing capability (in lieu of buoys) as that seems to be the way to go for the future.

Executive Director Donna Schantz pointed out that the PPOR project was on the consent agenda for the reason that it ranked so high in the long-range plan project priorities.

TERMINAL OPERATIONS AND ENVIRONMENTAL MONITORING COMMITTEE (TOEM) Chair Mikkel Foltmar reported that the TOEM Committee had accomplished the following since the September Board meeting:

• Cathodic Protection Systems Review Project. The committee selected National Pipelines Services as the contractor for this cathodic protection systems review. The company is based in Mt. Pleasant, MI. A draft contract had been developed, including the project’s scope of work, and the project is currently awaiting Alyeska’s review and discussion of the proposed scope of work.

• Water Quality Permit Review Project. The committee reviewed and provided feedback on PWSRCAC’s draft comments on Alyeska’s water quality permit and has contracted with Payne Environmental Consultants for technical assistance with the Council’s comments. The committee is currently waiting for ADEC to issue the draft permit for public review.

• Secondary Containment Liner Integrity Project. The committee accepted

consultant-contractor Geo Syntec’s final report on the secondary containment liner integrity and recommended its acceptance by the Board at this meeting. Jay Griffin, the project manager for Geo Syntec would present the report’s findings and recommendations to the Board at this meeting.

• New TOEM Committee member. The committee approved Pat Tomco’s

membership on the TOEM Committee, and that membership is pending approval by the Executive Committee. Pat Tomco is an assistant professor of chemistry at University of Alaska Anchorage (UAA). In addition to his chemical expertise, he brings a strong background in oil toxicology and biodegradation. Currently, he is a volunteer with the Prince William Sound Oil Spill Recovery Institute (OSRI).

INFORMATION AND EDUCATION COMMITTEE (IEC) Chair Jane Eisemann reported that the committee had met four times since the September Board Meeting. The committee had no action items for this meeting other than the Connecting with our Communities report - Strategic Outreach & Communications Plan 2018 - on the consent agenda. She went on to report on the following committee activities of interest

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• Project 3410 – Fishing Vessel Outreach. The FY2019 Fishing Vessel Program

Outreach Tour in Whittier in September was a success. There was excellent weather. Amanda Bauer captained the M/V Glacier Spirit for approximately 60 participants to observe SERVS fishing vessel on-water training and visit a nearby GRS site. On board were: the entire Whitter School; Whittier assembly members and city staff; and media and politicians from Anchorage who were invited because of their close proximity to Whittier from Anchorage, including U.S. Sen. Lisa Murkowski’s State Director Leila Kimbrell, Alaska Rep. Andy Josephson, and Alaska Rep. Harriett Drummond. Some of the comments included appreciation from the city staff, as well as parent chaperones on board, to finally understand what was going on in their community for oil spill response preparedness. The next Fishing Vessel Program Outreach Tour would likely be in the spring of 2020 in either Valdez or Kodiak.

• Project 3530 – Youth Involvement. Three FY2019 Youth Involvement projects that were awarded during the summer were on going through the school year. A new project from last summer, the Kenai Fjords National Park Floating Teacher Workshop, completed a short video which would be shown during this Board meeting. The project was funded again for the summer of 2019.

• Project 3610 – Web BAT: Staff has been working with a contractor to give the Council’s public website a facelift and technical upgrade. The rethemed website was launched over the holidays. The biggest changes are:

o A more modern-looking home page that combines recent Council news with more information about the Council;

o Improvements to mobile experience; and o Many behind-the-scenes technical upgrades to keep the site running

smoothly into the future.

• Project 3620 - Connecting With Our Communities: Helvey Communications has worked with staff to complete the final draft of the overall Strategic Outreach and Communications Plan and all deliverables, which have been extensively reviewed and discussed by IEC. The overall plan was presented during the December workshop for input and is part of the consent agenda at this Board meeting. IEC members have been pleased with the work process through Helvey Communications and the support, direction, and content of deliverables they have reviewed. The Council has signed the FY2019 contract with Helvey Communications and work has begun on those deliverables. The plan’s goal is to improve public communications in order to engage a larger audience and build support for the Council’s mission.

OPENING COMMENTS AND UPDATES -- PWSRCAC BOARD SUBCOMMITTEES LEGISLATIVE AFFAIRS COMMITTEE (LAC) Chair Dorothy Moore welcomed Rebecca Skinner to the committee and reported that the committee had met several times since the September Board meeting and planned to meet twice a month during the current legislative session.

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She announced the upcoming legislative visits to Juneau on February 25 and 26, and to Washington, DC, the week of March 25. Robert Archibald, Dorothy Moore and Rebecca Skinner will be the committee members going to Juneau. The committee was working on the first drafts of legislative priority briefing sheets. At future meetings, Moore said the committee planned to refine briefing sheets, develop shorter executive summaries, draft talking points, review the introductory flyer which explains who PWSRCAC is, its mission, and what it does, and finalize the travel agenda and meeting schedule. The legislative priorities identified to date were invasive species, funding and staffing levels at the ADEC SPAR Division, state oil spill and emergency preparedness in light of state and federal rollbacks, and monitoring Alyeska’s restructuring for any impacts to oil spill prevention and response capability.

FINANCE COMMITTEE Treasurer Wayne Donaldson reported that the Finance Committee met once since the September Board meeting, on November 6, 2018, and did the following:

• Reviewed the September 30, 2018 interim financial statements; • Received an update on the expenditures-to-date for the adjudicatory

hearing from Donna Schantz; • Received an update from Gregory Dixon including changes to financial

statements and reporting, an update on various insurance policy renewals, and options for employee health insurance;

• Reviewed the BDO auditors agreed-upon procedures report on travel, lobbying, and non-Alyeska expenses. The BDO report will be used to support the Financial Manager’s and Executive Director’s report to the Board on Alyeska contract compliance;

• Reviewed employee compensation as provided for in the compensation report from Gallagher & Associates;

• Finally, reviewed a memo from Walt Wrede regarding overhead cost in contractor proposals, and also received an update from Wrede on the Anchorage office space renewal.

The Finance Committee planned to meet again in February to review the IRS Form 990 and review second quarter FY2019 interim financial statements and other financial matters. Donaldson noted that the committee did not take any action with regard to the Gallagher & Associates compensation report. Executive Director Schantz stated that it is staff’s plan to bring the Gallagher report findings to the Finance Committee before the budget is completed.

BOARD GOVERNANCE COMMITTEE (BGC) Chair Dorothy Moore reported that the committee met once since the September Board meeting. The next meeting was scheduled for February 5. The topics on the agenda would be:

• Potential new finance policies resulting from recent changes to reporting and accounting standards. A recommendation on new policies will be submitted

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to the Board at the May meeting, after review and recommendation by the Finance Committee.

• The status of Board subcommittees to ensure that the subcommittees are

properly authorized and empowered in a consistent manner.

• Review Policy 207 and the definition and criteria for Board “approval” of contractor reports. (This was referred to the committee by the Executive Committee.)

Recess: 9:40 a.m. – 9:50 a.m. For the Good of the Order In order to accommodate the presenters’ schedules, Alaska Tanker Company and BP Shipping were invited to present their opening comments as the next item on the agenda. OPENING COMMENTS – SHIPPERS & OWNER COMPANIES ALASKA TANKER COMPANY (ATC) & BP SHIPPING BP Shipping’s Jeff Adamczyk led the comments, stating that it would be a busy year with two large drills anticipated for ATC/BP: the Prince William Sound 2019 area drill in September, and another drill in Louisiana. ATC’s Anil Mathur reported that the company had completed 17 years without an oil spill and 20 million man-hours without an injury. He reported that 2018 had been the best year for the ATC fleet operations in that the fleet was available all but nine hours for the year. He announced that the Explorer would be going to a mandatory dry dock for a couple of months in Singapore. Lewis said that the POVTS Committee would be interested in knowing what environmental parameters go into the design of a vessel in order for it to function in its intended environment, and the committee would be interested in getting with the Shippers to learn how a vessel is designed fit-for-purpose. Mathur pointed out that ATC does not design its vessels, only runs them, and that request would be better addressed to the Shippers. OPENING COMMENTS - EX OFFICIOS BUREAU OF LAND MANAGEMENT Kevin Kearney was awaiting the arrival of the Department of the Interior’s Designated Authorized Officer and Deputy who planned to outline BLM’s strategic plan and the changes that were planned within some of BLM’s sections. He reported that some changes were being made for efficiency, some were made in recognition that the regulatory environment had changed, and some were to give precedence to the agencies where that precedence has been given by Congress. [The remainder of Kearney/BLM’s comments were deferred, pending the arrival of the Authorized Officer and Deputy Authorized Officer who were to address the Council.]

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ALASKA DEPT. OF FISH AND GAME (ADF&G) Lee McKinley appreciated the opportunity to be at the meeting. ALASKA DEPT. OF NATURAL RESOURCES (ADNR) Tom Stokes, formerly with Alyeska Pipeline Service Company, introduced himself to the Board in his new role as the State Pipeline Coordinator. He looked forward to working with the Council. ALASKA DEPT. OF ENVIRONMENTAL CONSERVATION (ADEC) Craig Ziolkowski introduced himself to the Board in his new position within ADEC as the Interagency Coordination Manager. Before this position, he was with the Spill Prevention and Response Division (SPAR) in the scientific support unit. U.S. FOREST SERVICE (No report.) ALASKA DEPT. OF HOMELAND SECURITY AND EMERGENCY MANAGEMENT (ADHSEM) (No report.) U.S. ENVIRONMENTAL PROTECTION AGENCY (No report.) UNITED STATES COAST GUARD (USCG) CDR Mike Franklin apologized for not being able to attend in person, explaining that because of the current government shutdown there was no appropriation for travel to the meeting. He went on to report on the USCG and MSU Valdez activities:

• He attended the Crowley Alaska Tanker exercise in October, as did the 17th District Admiral. He reported a good turnout for the event, good learning and networking.

• Jason Smiley, the former Executive Officer, was hired as the new Port Security Specialist in November.

• There was no damage to the USCG facilities in Valdez during the November 30, 2018 earthquake, but they did relocate the Vessel Traffic System operations to their back-up facility because of the initial tsunami warning. This is standard procedure for those operations during a tsunami warning. Franklin said that because they do it so often, they were up and running quickly.

• The Prince William Sound Area Committee had its first meeting and there was good attendance. He was looking forward to getting the area committee up and running.

• He anticipated that the summer of 2019 would be a busy one with 13 scheduled port calls in Valdez from cruise ships.

• He will attend the Alaska Regional Response Team meeting.

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Jim Herbert thanked CDR Franklin and all USCG personnel for continuing to work during the government shutdown and stated that a letter had been sent to Alaska’s congressional delegation urging that the USCG receive its funding appropriation. OIL SPILL RECOVERY INSTITUTE (OSRI) (No report.) NATIONAL OCEANIC & ATMOSPHERIC ADMINISTRATION (NOAA) LT Bart Buesseler sent a report via email which was read by Executive Director Schantz:

I wanted to say a quick note to say that due to the partial government shutdown I will unfortunately be unable to join you for the PWSRCAC Board meeting this week. While I’m still working, my task changes during the shutdown and I won’t be able to return to my navigation manager role until after funding is restored. That said, please do let me know if any issues come up that need my attention and I will endeavor to address them as soon as I am able. I apologize for any inconvenience this may have caused and hope you have a productive meeting. Very Respectfully, Lt. Bart Buesseler.

Schantz went on to thank CDR Franklin for being on line and all those federal agency personnel who were working during the partial government shutdown. SOUTHWEST ALASKA PILOTS ASSOCIATION (SWAPA) Capt. Andy Wakefield, the newly appointed president of the Southwest Alaska Pilots Association (SWAPA) (replacing Capt. Peter Garay in that position), was invited to address the Council. Capt. Wakefield introduced himself to the Board and reported that there were currently 14 licensed Valdez pilots. Two of their most experienced pilots had recently retired - Tony Joslin and Mike Stone – but SWAPA had taken on two trainees, Caroline Vermet from the SeaRiver fleet, and Ian Mowery. As a note of interest, he pointed out that it takes six to seven years at a minimum to become a Valdez marine pilot. Capt. Wakefield stated that the tanker-assist operations with Edison Chouest Offshore (ECO) were going well, and the two organizations were holding open discussions, as well as working with the simulator at AVTEC on docking and undocking tankers in high winds with the actual ECO tug models. He reported that SWAPA had recently taken delivery of a new, all-weather pilot boat christened The Emerald Island. He said this new boat was made possible by assistance from the TAPS Shippers and Owner companies, and the SWAPA organization greatly appreciated that assistance. OPENING COMMENTS - BUREAU OF LAND MANAGEMENT (BLM) (Continued) Erica Reed (Authorized Officer for the TAPS Right-of-Way and Deputy Director for the Division of Lands and Cadastral Survey) and Dave Mushovic (Acting Deputy Authorized Officer for TAPS Right-of-Way and Acting Branch Chief of Lands and Realty under the Division of Lands and Cadastral Survey) addressed the Council regarding a recent BLM internal reorganization and integration of its branch of Pipeline Monitoring into the Division of Lands & Cadastral Survey. As explained by Reed and Mushovic, the purpose of the reorganization was to better utilize the expertise of specialists in the Division of Lands & Realty, such as wildlife biologists,

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hazardous materials site managers, etc., with regard to TAPS issues. This reorganization was similar to the model adopted by the State Pipeline Coordinator’s Office, where not everyone who works on TAPS or VMT oversight sits in that office on a fulltime basis; rather they are brought in on an as-needed basis for specific tasks or issues. Some of the positions that were formerly fulltime positions working within the Division of Pipeline Monitoring will now be shared with other parts of BLM and they will split their time fifty-fifty working on TAPS issues and working on other BLM issues. This will enable the division to tap into other field offices and expertise. Both Reed and Mushovic assured the Council that BLM was in no way giving up any of its overall responsibilities for oversight of the pipeline. Reed stated that, in fact, the division’s permitting capacity had increased because of the reorganization. Jim Herbert asked about whether Edison Chouest Offshore (ECO) was meeting Native hire requirements under the TAPS agreement. Mushovic responded that the right-of-way agreement sets up the standards that Alyeska has to meet overall and that Alyeska is meeting or exceeding those standards, but BLM does not monitor a specific a contractor’s performance. That is between Alyeska, as the grant-holder, and its contractor. He stated that BLM is aware that the compliance of ECO on Native hire is an issue that has been raised and his office is working with Alyeska on the concerns, but ultimately it will be up to Alyeska to bring them more into compliance because ECO is their contractor. Andres Morales explained that Alyeska reports on a company-wide basis on Native hire, not contractor-by-contractor basis, but expects contractors to meet all of their contractual obligations, noting that Alyeska sees it as a contractual obligation to the State of Alaska as well as an ethical obligation to the people of Alaska. Later, Morales added that the 20 percent Native hire requirement is merely a minimum requirement, but adoption of the philosophy of Native hire into the corporate culture of Alyeska is more important. He noted that ECO’s corporate structure is a train-from-within and promote-from-within culture, with a long-term view. He said the company has some new hires, but they are not yet working in Alaska, but rather getting in their ordinary seaman time, and that is generally how ECO hires all its employees. Going forward, ECO would like to do a lot more outreach in the communities and develop from those communities to build a base of people who are interested in the industry and have that base to pull from. Rebecca Skinner asked for the BLM to provide the Council with an organization chart showing who and what agencies are now responsible for different aspects of the TAPS oversight. Dorothy Moore echoed Skinner’s request. Steve Lewis spoke of some concerns expressed to him by PWSRCAC staff that they had lost communication capabilities with BLM personnel in Valdez. He asked the BLM representatives not to lose sight of the importance of external communications, as well as the improved internal communications capabilities they cited, as the division goes through these organizational changes. In response to a question from Project Manager Austin Love, Mr. Mushovic clarified that BLM has and will continue to have oversight responsibility and authority for the entire TAPS system, from Pump 1 to the VMT under the TAPS Right-of-Way grant, but not through regulatory authority. As situations changed over the years since the

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start of TAPS, there are now other agencies that have more regulatory authority than BLM and a lot more expertise to pull from than BLM. In response to a follow-up from Love, Mr. Mushovic stated that there will be memorandums of understanding developed with the other agencies to make sure they know what their oversight and regulatory authority is going forward. Executive Director Schantz expressed some of PWSRCAC’s concerns with the reorganization, such as reduction-in-force of fulltime regulatory employees as the shift in responsibilities is moved to other agency personnel, particularly in Valdez, and the concern that there are fewer director-level eyes overseeing operations at the VMT to make sure risk is not increased. She said PWSRCAC had only recently learned of this reorganization and it had been difficult for staff to get information. She thanked Reed and Mushovic for coming to this meeting and the information they provided. OPENING COMMENTS: SHIPPERS & OWNER COMPANIES (Continued) POLAR TANKERS/CONOCO PHILLIPS Monty Morgan gave a recap of 2018 operations and reported that Polar Tankers had transported a total of 95 loads out of Valdez, for a total of 77 million barrels of oil transported through Prince William Sound and the West Coast. One foreign-flagged export cargo ship came into Prince William Sound under Conoco Phillips, and one was transported out to Korea under Polar Tankers. Morgan reported that Polar Tankers did not anticipate a reduction in its TAPS vessel operations, maintaining five ships for 2019. Two ships will go to shipyard this year. The Enterprise will go in March and the Adventure in July. The Enterprise will undergo a CAPE system inspection. New bridge equipment is being installed on all Polar Tankers TAPS vessels. The Enterprise and Adventure will get their new bridge equipment when they go in for these scheduled drydocks which will bring them into compliance with new IMO regulations. Two other vessels have already been done. Morgan reported that Polar Tankers had held two bridge team management training sessions in 2018 at AVTEC in Seward, and he anticipated there would be two in 2019. Polar Tankers participated in simulator training with ECO and SWAPA at a workshop in November and it went well. He said the simulator training was invaluable. They achieved 16 docking evolutions in one day, which was far more than could have been achieved without the simulator. Morgan reported that Polar Tankers participated in an oil spill drill in Bellingham, WA, in 2018 that went well; another is planned for 2019 in Huntington Beach, CA. He reported on Polar Tankers ships’ emergency tow package -- “the super bit.” He stated that the package was the same on the stern and the bow on Polar Tankers’ vessels. Morgan went on to explain the emergency tow package in more detail. Morgan stated that Polar Tankers had not yet seen a lot of issues because of the government shutdown, but some issues could come up fairly quickly if the shutdown were to go on for long, such as issuance of certifications of vessels and crew qualifications, etc. He reported one issue already affected was that navigation charts were not being updated by NOAA during this shutdown.

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He noted that a Facebook page had been set up for donations to help USCG personnel during the government shutdown. In response to a question from President Bauer, Morgan explained the life expectancy of Polar Tankers vessels and issues that could arise because of the aging Polar fleet. He noted that the Polar TAPS ships were built for a 35-year lifespan. However, some refineries have 15-year vetting programs for ships they allow to come to dock. Through Polar Tanker’s maintenance program and testing, etc., Polar ships receive exceptions, but Polar may not be allowed to dock in the future at some refineries in the world because of this 15-year vetting requirement. Morgan added that Polar is aware of this and has worked through it. He said it simply increases the amount of vetting they have to go through to receive the exceptions. Andres Morales stated that Alyeska has a vetting process for a vessel new to the system coming to the VMT. Morgan added that whenever there is a foreign-flagged vessel inbound to the VMT, it has to be vetted by Alyeska.

CROWLEY ALASKA TANKERS (formerly SeaRiver Maritime) Paul Manzi and Angelina Fuschetto reviewed Crowley Alaska Tankers’ first year of operations and its role in Valdez. Manzi reported the Crowley Alaska Tankers started operations on April 11, 2018, and it had been a busy first year. They had incurred one lost-time injury in June. The crew member has since recovered and is back at work. Crowley Marine ceased its tanker-assist and tug escort operations in Prince William Sound when the last Crowley Marine ship left on June 30, 2018. Manzi stated that Crowley Alaska Tankers is now proud to continue in its oil transportation role. He reported that 40 percent of the mariners were retained by Crowley Alaska Tankers either in its ATB fleet or in its ship-assist operations in the Lower 48, and 30 percent of the administrative staff were retained and redeployed to Anchorage or the Lower 48. Manzi stated that Crowley Alaska Tankers runs its own internal, simulator-based, navigational assessment program for deck officers, and since April 2018 approximately 75 percent of the deck officers had progressed through that program, leaving 25 percent yet to complete, with very good results. Some had to do some additional training to bring them up to a higher proficiency. The company is also running an engineering assessment program which is just beginning on the tanker fleet and covers many aspects, from fire safety to basic engineering and damage control. Manzi went on to review the area-wide shippers drill that was held in October. He reported that Crowley Alaska Tankers had received a complimentary note from the State On-Scene Coordinator on Crowley’s planning and execution of the drill. ANDEAVOR (formerly Tesoro) (No report.) ALYESKA/SERVS ACTIVITY REPORTSVMT Manager Scott Hicks presented the Alyeska/SERVS activity report for 2018.

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VMT Operations:

• Operations: (As of 12/31/2018)

YTD 2018 o Tankers Loaded 247 o Tankers Escorted 255 o Barrels Loaded 178,137,687

Since start up

o Tankers Loaded 22,407 o Tankers Escorted 13,710 o Barrels Loaded 17,120,939,370

• Safety: (As of 12/31/19) • Days away from work cases 0.00 • TAPS Combined Recordable Rate % 0.27

• Environment: 217.2862 gal. (12.2862 gal.*) *Outside containment 10 Spills

Alyeska Organizational Update:

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• High-level overall functional organization chart:

• High-level overall functional org chart:

• Operations and Maintenance Division organization chart:

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• Engineering organization chart:

• Fishing Vessel Availability by Port (end of 4th quarter 2018):

Port Tier 1 Tier 2 Valdez 21 23 Cordova 32 (7 Rapid Resp.) 115 Whittier 6 23 Seward 30 Homer 55 Kodiak 39 Totals 59 285

SERVS Highlights:

• 2019 Spring Fishing Vessel Training o Kodiak: March 27 - April 2 o Homer: April 3 – April 9 o Seward: April 10 – April 14 o Cordova: April 15 – April 26 o Valdez: April 27 – May 3

• 2019 Fall Fishing Vessel Training

o Whittier: September 18 – September 24 o Cordova: September 25 – October 6

2018 Drills, Exercises, and Training

• 4Q Exercise Highlights o October 9: Alyeska IMT developed first 12 hours of documentation for

PWS Tanker Exercise. o October 10: Alyeska SERVS completed demonstration exercises in greater

than 20 knot winds (Note: this demonstration completes transition plan exercises).

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o October 10 – 11: Prince William Sound Tanker Exercise with Crowley Alaska Tankers.

o November 5 – 6: ADEC unannounced Prince William Sound Tanker Exercise.

o December 17: ADEC inspection of OSRB-2. o Total 2018 transition/assurance tug and barge deployments completed =

215.

• Upcoming 2019 Exercise Highlights: o January 9 & 16: ICS 305/307 training for resource ordering and ICS 204s. o March 4: Non-mechanical airborne dispersant delivery system (ADDS)

pack training exercise in Valdez. o March 9: Veterinary technician (Otter Rehab) training in Anchorage. o March 26: VMT IMT training exercise. o May 8: VMT IMT exercise. o Week of October 7: BP PWS tanker exercise. o Continued increased ECO assurance activities.

2019 Look Ahead

• Contingency Plan Activities o VMT coordination group quarterly meeting. o VMT contingency plan renewal application.

§ Submitted for sufficiency review on November 5, 2018. § Public review period: November 23, 2018 – January 7, 2019.

o VMT contingency plan routine amendment to address Qualified Individual (QI) changes effective January 1.

§ Routine amendment application submitted on January 2, 2019.

VMT 2018 Projects Summary:

• X218 – 2018 Tank Inspection and Maintenance Program o Completed exterior coating of Tank 94 (Ballast Water Tank). o Completed API 653 internal inspection of Tank 56 (Diesel Storage Tank).

• Z716 - Below Ground Crude Piping Internal Inspection o Completed 19 pig runs (10 runs “A” header, 9 runs “B” header); < 5

gallons wax removed. o Inspection data revealed the system is good for operation. o Dual off-take scope execution underway; commissioning in 2019.

• Z735 – Valdez Facilities Bird Deterrent

o Emergency Response Building (ERB) proof-of-concept laser was not successful; new conceptual design for ERB roof in progress for 2019 execution.

o Installation and repair of bird deterrent will continue in 2019.

• Z761 – 2018 Ballast Header Inspection and Repair

o Completed internal cleaning, inspections, testing and repair of the 42” ballast header piping for Berth 5, “A” header, and the Tank 93 branch leg (~7200 ft. of piping).

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o Some remaining “A” header work to be completed in 2019.

• Z758 – VMT IWWS Trunk Line Lifecycle Repairs o HDPE piping slip-lined in existing ductile iron pipe (~2000 ft.); 7

manholes replaced or repaired; 1 manhole eliminated. o Installed vapor sensors in MH-2-22 (westernmost manhole on PDC

road).

• Z748 – VMT Berth Crude Block Valves Replacement o Installed and commissioned four new Chromatic dual off-set full port

ball valves on Berth 5.

• Z751 – VMT Berth Fisher Control Valves Replacement o Installed and commissioned four Fisher Pressure Indicating Control

Valves (PICVs) on Berth 5. o Berth 4 valves to be installed in 2019.

• Z738 – Replace Incinerator Waste Gas Shutdown Valves

o Replaced 14 obsolete valves and actuators on the vapor recovery system.

o Achieves Safety Integrity Level (SIL) 2 system rating. • Z739 – DAF Vapor System Emergency Shutdown and Ventilation

o Stack and generator concrete pads completed in 2019. o Install and commission equipment and instrumentation in 2019.

VMT 2019 Projects Summary:

• X219 – 2019 Tank Inspection and Maintenance Program o API 653 internal inspection of Tank 8 (Crude Storage Tank). o Exterior coating of Tank 93 (Ballast Water Tank) and Tank 10 (Crude

Storage Tank.

• Z716 – Below Ground Crude Oil Piping Internal Inspection (Dual Off-takes) o Install 36-inch dual off-take piping and valves upstream of the East

Metering facility. o Requires pipeline shutdown for commissioning (June 2019).

• Z762 – 2019 Ballast Header Inspection and Repair

o Clean, inspect and repair the ballast header piping from BWT West Manifold to the “B” header termination vault.

o Shortest section of inspection program piping (~740 ft.).

• Z586 – Berths 4 and 5 EMAC (Electronic Measurement and Control) Replacement

o Replace existing Daniels Metering systems with a new site-specific Omni EMAC system for Berths 4 and 5 at the West Metering Facility.

o Requires a short shutdown for system conversion on each berth.

• Z769 – Replace VMT Pig Receiver Isolation Valves

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o Replace the 48-inch (58-MOV-001) and 36-inch (58-MOV-003) scraper trap isolation valves at the East Metering facility.

o Installation planned during the August 2019 pipeline shutdown.

• Z770 – Ship Loading Vapor Collection Life Cycle Replacement o Extend life of existing Fenwal systems on Berths 4 and 5. o Bulk purchase replacement infrared detectors, controllers and chassis.

Hicks announced that he would be retiring after this meeting and that Andres Morales would take over as Alyeska’s liaison to the Council henceforward. Donna Schantz congratulated Hicks on his upcoming retirement and presented him with a gift and a book of farewell sentiments and best wishes from the Board. Questions on Hicks’ report of Alyeska’s activities were deferred until after lunch. Lunch recess: 12:30 p.m. – 1:00 p.m. ALYESKA/SERVS ACTIVITY REPORT (Continued)Following the lunch recess, the Board returned to the Alyeska/SERVS activity report, and questions on Hicks’ presentation. Thane Miller asked Hicks if Alyeska’s corporate reorganization had addressed the root causes of the September 21, 2017, and February 3, 2018 oil spills. Hicks stated that there had been an increased focus on maintenance and an increase in the number of facility and discipline engineers, making the focus a joint effort between the maintenance and engineering teams. As to Valdez specifically, he stated that there would not be additional personnel moving there, but there would be an increase in the engineering group organization-wise. PUBLIC COMMENT Local citizen Tom Lakosh discussed the new ECO tugs that are now in the TAPS escort system and their enhancement capabilities. He requested that the Council ask Alyeska to have Edison Chouest Offshore (ECO) test tethering out to Seal Rocks to better prepare for the possibility of collisions with other vessels at Hinchinbrook Entrance. Mr. Lakosh went on to warn of the hypothetical possibility of a volatile air fuel explosion during oil spill response operations when the spill was large enough to be a Response Planning Standard (RPS) spill. CONSENT AGENDA (3-1, 3-2, 4-5) The consent agenda consisted of three items: 3-1, 3-2 and 4-5. Thane Miller pulled Item 3-1: Approval of Potential Places of Refuge Project from the consent agenda. Item 3-1 was placed on the following day’s agenda under Item K for further consideration/discussion. Miller moved to approve the Consent Agenda as amended. Robert Beedle seconded.

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The consent agenda was approved, as amended, as follows.

• 3-2 REPORT ACCEPTANCE: CWOC – STRATEGIC OUTREACH & COMMUNICATIONS PLAN Acceptance of the “Strategic Outreach & Communications Plan 2018” developed by Helvey Communications and Council staff.

• 4-5 REPORT ACCEPTANCE: 2018 LONG TERM ENVIRONMENTAL MONITORING PROGRAM Acceptance of the report titled “Long-Term Environmental Monitoring Program – Final Report: 2017 Sampling Results and Interpretations.”

4-2 REPORT ACCEPTANCE: HINCHINBROOK ENTRANCE WIND & WAVES EXTREMES Project Manager Alan Sorum with Dr. Jim Stronach of Tetra Tech briefed the Board on Tetra Tech’s findings and report on the Hinchinbrook Entrance Wind and Waves Extremes Project. The project looked at formulating a probability distribution applicable to a risk analysis of wind and wave conditions at Hinchinbrook Entrance using hindcasting or back-testing. The Board was asked to accept Tetra Tech’s final report and the supporting interim reports contained therein. A briefing sheet and the final report were included in the meeting notebook at Item 4-2. Dorothy Moore moved to accept the “Final Report: Hinchinbrook Entrance Wind and Wave Extremes” by Tetra Tech, dated November 20, 2018 (including the interim reports provided electronically). Orson Smith seconded, and the motion passed without objection. Recess: 3:00 p.m. - 3:10 p.m. For the Good of the Order For the good of the order, Item 4-3 – Report Approval: Coping with Technological Disasters Guidebook was moved up in the agenda to accommodate the presenter’s schedule. 4-3 REPORT APPROVAL: COPING WITH TECHNOLOGICAL DISASTERS GUIDEBOOK Project Manager Joe Banta introduced Davin Holen, a social scientist with the Alaska SeaGrant Program, who helped develop the third version of the Council’s publication titled Coping With Technological Disasters – A User-Friendly Guidebook – Version 3. The guidebook is a “how to” manual developed by PWSRCAC to help communities, organizations, businesses and individuals plan for and deal with the effects of an oil spill based, in large part, on many of the lessons learned from dealing with the Exxon Valdez oil spill. The Board was asked to accept the revised and updated guidebook. Dorothy Moore moved to accept the revised and updated version of the Council’s guidebook, Coping with Technological Disasters – A User-Friendly Guidebook – Version 3. Robert Archibald seconded, and the motion passed without objection.

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4-10 HINCHINBROOK ENTRANCE CLOSURE/VESSEL INCIDENTS AND PWSRCAC RECOMMENDATIONS. Director of Programs Joe Lally made a presentation of a report on severe weather events that occurred in the fall of 2018 while the Seal Rocks buoy was inoperable, and had been for seven months, and while laden tankers continued to depart through Hinchinbrook Entrance. The report contained PWSRCAC recommendations on weather reporting when the Seal Rocks Buoy is inoperable. At the Council’s September meeting the Board expressed great concern regarding the Seal Rocks buoy outage and its critical importance to Prince William Sound vessel operators and the safe transportation of oil. On November 12, 2018, a weather event resulted in the grounding of an ECO oil spill response barge and the loss of an anchor and a thruster failure on a utility tug. This incident highlighted what PWSRCAC saw as a significant gap in procedures to address all aspects of the ECO tug weather-reporting process when the Seal Rocks weather buoy is inoperable. The gap was re-emphasized during two storms that followed, on November 24-26 and December 7, 2018, when laden oil tankers departed through Hinchinbrook Entrance in severe weather that was just below established closure conditions for the Entrance, based on weather reports provided by the ECO tugs. Lally outlined the events of November 12, 2018; November 24-26, 2018; and December 7, 2018; and presented PWSRCAC’s concerns and its recommendations. The Board was asked to accept the recommendations and approve sending the draft letter (Attachment 4-10A to the briefing sheet) to the USCG and the ADEC, recommending the development and implementation of written procedures for the ECO tugs taking weather reports when the Seal Rocks weather buoy is inoperable. Dorothy Moore moved to accept the recommendations in Lally’s report and to recommend that the Coast Guard and ADEC work with Alyeska/SERVS, the Shippers and PWSRCAC to develop and implement clear, consistent, and written procedures for the ECO tug crews to use when communicating weather reports when the Seal Rocks weather buoy is inoperable. Robert Beedle seconded. Discussion followed on the timing of weather reports and the release of a tanker from the VMT. Andres Morales pointed out that there are existing standards for reporting weather observations that all licensed mariners are trained to do and are to follow. He also pointed out that weather reports come when they are available, whether from observations or from buoys in general; they are not timed or coordinated with the release of a tanker from the VMT. President Bauer asked for an amendment to the motion to include approving the letter attached to briefing sheet 4-10. Moore moved to amend the motion to approve sending the letter attached as Attachment 4-10A to the briefing sheet. Beedle, as second to the motion, accepted the amendment.

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CDR Franklin recommended that the addressees of the letter include the Shipping companies, since they edit and maintain the Vessel Emergency Response Plan (VERP). Rebecca Skinner concurred with CDR Franklin’s suggestion. Executive Director Schantz suggested that a more efficient way to address the Shippers would be to add the Response Planning Group (RPG)/Monty Morgan as an addressee, since the RPG consists of the Shippers as a whole. Rebecca Skinner moved to further amend the motion to add the Response Planning Group as an addressee. Robert Archibald seconded the amendment. There was no additional discussion, and the amendment passed without objection. President Bauer restated the main motion, as amended, as follows: To send the letter (Attachment A to Item 4-10) to the USCG (CDR Franklin), ADEC (Ron Doyel), the Response Planning Group (Chair Monty Morgan), and Alyeska-SERVS (Andres Morales) recommending that the USCG and ADEC work with Alyeska, the Shippers, and PWSRCAC to develop and implement clear and consistent written procedures for the Edison Chouest Offshore (ECO) tug crews to use when communicating weather reports when the Seal Rocks weather buoy is inoperable. There being no further discussion, the motion passed, as amended and restated. USCG PRESENTATION ON VALDEZ NARROWS NAVIGATION SAFETY DURING FISH OPENERS LCDR Aaron Riutta of USCG (via teleconference) made a presentation on USCG’s concerns about the near-misses between TAPS vessels and fishing vessels during fish openers that have occurred in Prince William Sound and outlined the steps USCG is taking to address the issue. (This was an information-only item. No action was requested of the Board.) EXECUTIVE SESSION Dorothy Moore moved to go into executive session to hear an update on the Council’s C-Plan Adjudicatory Hearing Request and to discuss the Executive Director’s Annual Evaluation. Rebecca Skinner seconded, and the motion passed without objection. The following were asked to join the Board in executive session: Legal counsel Joe Levesque, Executive Director Donna Schantz, Director of Programs Joe Lally, Financial Manager Gregory Dixon, Director of External Communications Brooke Taylor, Project Managers Linda Swiss and Alan Sorum, and committee chairs. Recess The open session of the meeting recessed for the day at 4:50 p.m. Friday, January 25, 2019 CALL BACK TO ORDER President Bauer called the meeting back to order at 9:00 a.m. on January 25, 2019. A roll call was taken. There were 16 Directors present at the time of the call back to order (Andersen, Archibald, Bauer, Beedle, Donaldson, Faulkner, Haggerty, Hasenbank, Malchoff, Miller, Moore, Rein, Shavelson, Skinner, Smith, and Totemoff). Mike Bender joined the meeting shortly after the call to order at 9:07 a.m.

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REPORT ON EXECUTIVE SESSION Thane Miller reported that the Board met in executive session after the open session recessed the previous day and heard an update on the Council’s adjudicatory hearing request and also discussed the Executive Director’s Annual Evaluation. There was no action to be taken on either item at this time. 4-6 UPDATE ON VMT C-PLAN RENEWAL AND APPROVAL OF CONTRACT INCREASE Project Manager Linda Swiss updated the Board on the status of the renewal of Alyeska’s VMT Oil Discharge Prevention and Contingency Plan (VMT C-Plan). The current five-year plan will expire in November 2019. A detailed briefing sheet was included under Item 4-6 in the meeting notebook, which outlined the highlights of the proposed changes to the c-plan, and included:

• Non-mechanical Response: Dispersants and in situ burning response options are being removed from the plan.

• 2017 Solomon Gulch Hatchery and Valdez Duck Flats Sensitive Area Protection Mobilization Decision Matrix: Changes to this matrix have been the subject of an administrative appeal. The plan erroneously incorporates the decision matrix that was approved by ADEC in October 2017. (The plan should include the 1997 matrix.)

• Documents Incorporated by Reference: The VMT C-Plan incorporates over

70 documents by reference. Information from these documents is used to satisfy state and federal requirements. Through PWSRCAC’s contract with Alyeska, PWSRCAC has requested and received copies of some of these documents, but the documents are not available to the public.

• Response Training: In 2004, ADEC issued an out-of-compliance notification

to Alyeska regarding response training. In response to this notification, Alyeska improved the information contained in its response training program. Response training information is found in a separate document that is incorporated by reference (see above). As this information is not contained in the C-Plan, Alyeska can amend its response training without regulatory approval.

• Prevention Training: The C-Plan lacks details to verify compliance with state

regulations.

• Scenario 4: Changes to Scenario 4 have been the subject of the administrative appeal. These changes are pending the outcome of that process.

• Scenario 5: Scenario 5 is the State’s Response Planning Standard (RPS) oil

spill scenario that establishes the personnel and equipment resources at the terminal. In this plan, Scenario 5 involves a spill of the largest tank at the terminal where 6.5 million gallons of oil reaches the Port of Valdez. PWSRCAC has requested information on the number of personnel with the proper training for the worst-case spill.

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• Tugs: Alyeska has proposed deleting docking tug information.

• Secondary Containment: PWSRCAC questions the integrity of the secondary

containment liners in the East Tank Farm. As part of this agenda item, the Board was asked to increase the authority for the Executive Director to enter into individual contracts with its pre-approved c-plan contractor pool, up to the amount currently approved under Project 651/C-Plan Review. At the September Board meeting, a budget modification adding $25,000 for contracts under the 651/C-Plan Review project was approved. This agenda item asked the Board to authorize contract increases to expend these funds. Executive Director Schantz commended Swiss for the great amount of work she put in over Thanksgiving and Christmas on this project. Schantz noted that the use of dispersants was removed from the VMT C-Plan (but remained in the Tanker C-Plan). Scott Hicks explained that Alyeska has concern about the use of dispersants within the confines of Port of Valdez and does not believe the use of dispersants is appropriate within the port area. Thane Miller moved to authorize the Executive Director to enter into individual contracts with Harvey Consulting, LLC; Integrity Environmental; Nuka Research & Planning Group, LLC; and Shannon & Wilson, for professional services with the aggregate total not to exceed $95,000 (the current amount approved in the FY19 Budget for contracts under Project 651/C-Plan Review). Robert Beedle seconded, and the motion passed without objection. (Mike Bender joined the meeting at 9:07 a.m. during this agenda item: 17 Directors present.) 4-7 INCIDENT REPORT UPDATE FOR 2018 Project Manager Assistant Nelli Vanderburg presented a summary of incidents reported to PWSRCAC that occurred in the year 2018. Incident reports include oil spills, fires, malfunctions causing shutdowns, navigational closures, and tanker or escort problems. The presentation included terminal and tanker statistics. Following Vanderburg’s presentation, Project Manager Austin Love gave a more detailed summary of the September 2017 spill at Berth 5 and Alyeska’s accident investigation on the incident. As a result of the investigation, Alyeska identified four contributing factors and took the following actions to address those factors:

• Installed new crude block valves on Berth 5. • Installed a local high-pressure alarm on the loading arm on Berth 5 and will

do the same on Berth 4 in 2019. • Replaced the plastic ends with aluminum caps on all the berths. • Applied heat traces to the drain lines to stop freezing of the lines.

(This was an information-only item. No action was requested of the Board.)

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PRESIDENT’S REPORT TO THE BOARD President Bauer made note of the upcoming the 30th Anniversary of the EVOS and said she hoped everyone who went through the disaster could see the improvements that have been made since that time in the transportation of TAPS oil through Prince William Sound.

2-1 EXECUTIVE DIRECTOR’S REPORT TO THE BOARD A written Executive Director’s Report was in the meeting notebook as Item 2-1. In addition to her written report, Executive Director Schantz added the following: She explained her statement earlier in the meeting that Prince William Sound has the safest system in the world, saying that she should have said “many of us believe, it’s the safest terminal in the world.” She said she believed that statement because there is more response equipment in Prince William Sound than likely any other port in the world, over 400 fishing vessels under contract and trained to respond, Alaska’s high standards for response and the requirement to demonstrate the ability to use the response equipment, weather limits, and this citizens’ oversight council, etc. She said she was trying to highlight all the improvements that have been put in place since the EVOS. Some improvements were required by law, but some industry had done either through collaborative effort or of its own volition. But despite these improvements, Schantz said she still saw serious challenges ahead -- in industry cut-backs, regulatory cutbacks, and changes in oversight by regulators. She said she was concerned about some reports she had heard only the day before of the new Dunleavy Administration’s budget proposals which proposed matching expenditures and revenues to fill a $1.6 billion gap. This could mean combining undesignated general funds with designated general fund dollars. The funds at risk and of concern to PWSRCAC would be the undesignated funds of the Oil Hazardous Substance Release Prevention & Response Fund (commonly referred to as the “470 Fund”). Merging the 470 Fund dollars could threaten the entire response structure for the State’s response division, as well as the monies available. Schantz added that if this is the Administration’s proposal, it would be of great concern to PWSRCAC. She added that the Council’s job may now be even harder: to prevent dismantling all the response improvements that have been put in place since the EVOS. She thanked all of the volunteers and staff for their work. Dorothy Moore urged all PWSRCAC volunteers to contact their senators and representatives about the State budget proposal as it could affect the SPAR Division. Mako Haggerty added that the SPAR fund is there for anywhere a spill may happen in Alaska. Robert Archibald urged everyone to stay on top of this and to inform people of why the 470 Fund needs to be maintained. He also urged everyone to contact their legislative representatives. Steve Lewis pointed out that ADEC and the SPAR Division have direct responsibility inside the producing oil fields, and any reduction would impact ADEC’s oversight in the oilfields too.

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2-2 FINANCIAL MANAGER’S REPORT TO THE BOARD Financial Manager Gregory Dixondistributed financial statements as of December 31, 2018 (which were reviewed at the Long-Range Plan workshop meeting on January 19, 2018) reported on the following current financial matters:

• The hydrocarbon toxicity project is a collaborative project with the Northwest Fisheries Science Center, which is part of NOAA, and was likely impacted by the current government shutdown. Dixon noted that PWSRCAC had to pay $80,000 to NOAA up front and that SAC would no doubt be looking into that.

• Group health insurance had been found to replace the previous one. It will

cost a little more out-of-pocket, but the coverage was nearly the same as the previous policy. Six employees were currently enrolled under the Council’s group health policy.

• There would be a meeting with Joy Merriner of BDO the week following this

Board meeting to look at the accounting changes that need to be made to the FY2019 audited financial statements.

• Director of Administration Walt Wrede was looking at renewal options for the

Anchorage Office lease. Dixon said he expected a proposal from the landlord soon.

Dixon reported that he had been busy on year-end financial tasks and reporting, and the Finance Committee was scheduled to meet in mid-February to review the 12/31/18 financial statements in more detail and will review the IRS Form 990. His upcoming work for the next few months would be working on the FY2019-2020 Budget for the budget workshop in May. He issued a caution to all who work for PWSRCAC (volunteers and staff) that despite the implementation of multiple layers of enhanced of computer and internet security, some things continue to slip through in emails. He asked everyone to look first at the email address it is coming from to confirm that it is a known sender before opening it or any attachments. At the request of Herbert, Dixon briefly reviewed the types of insurance coverages PWSRCAC has in place that cover its volunteers. (This was an information item. No action was requested of the Board.) For the Good of the Order A video on the Kenai Fjords Floating Teacher Workshop was introduced by Outreach Coordinator Betsi Oliver. The video was produced by the National Parks Service and was part of PWSRCAC youth involvement. Recess: 10:32 a.m. – 10:50 a.m. 4-8 REPORT ACCEPTANCE: VMT SECONDARY CONTAINMENT LINER INTEGRITY Project Manager Austin Love introduced a presentation on the TOEM Committee project that looked at the integrity of the secondary containment at the VMT. The Council had been concerned about the integrity of the secondary containment liner

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in the East Tank Farm for some time. The most recent visual inspection results showed that existing mechanical damage is commonly found in the asphalt liner. Some results also suggested that other damage modes, such as hydraulic stress or chemical degradation, may be affecting the integrity of the asphalt liner. This led the TOEM Committee to question the overall integrity of the asphalt liner and initiate this project to identify other potential liner testing methods. Love introduced Jay Griffin, project engineer with Geo Syntec Consultants, Inc., who presented the work he and his team performed to identify non-destructive methods that could be used at the VMT to test the integrity of the buried asphalt secondary containment liners at the East Tank Farm. One of Geo Syntec’s recommendations was to conduct a pilot study on the liners at the West Tank Farm. Alyeska was asked if it would be amenable to such a study at the West Tank Farm. Scott Hicks cautioned that such testing (and results) would be very site-specific. He said that it was more a case of practicality, given the size of the area involved. Love then reviewed in detail with the Board the draft letter to Alyeska (Attachment 4-8B) transmitting the Geo Syntec report and requesting that Alyeska consider implementing the Geo Syntec recommendations of a pilot study at the West Tank Farm. The Board was asked to accept the report by Geo Syntec Consultants, Inc., and approve the letter transmitting the report to Alyeska with the request to implement the recommended pilot study program at the West Tank Farm. Dorothy Moore moved to accept the report by Geo Syntec Consultants, Inc., titled Secondary Containment Liner Integrity Evaluation. Miller seconded. Discussion followed. Alison Rein suggested a better fix may be to replace the system. In response, Mr. Griffin stated that a replacement liner could be the same XR5 liner they are using to repair the compromised liners. Orson Smith moved to approve the draft letter to Alyeska/Andres Morales transmitting the Geo Syntec report and asking Alyeska to consider implementing the “pilot study program” of electrical leak location and tracer gas testing described and recommended by Geo Syntec Consultants in their report, titled Secondary Containment Liner Integrity Evaluation at the out-of-service West Tank Farm. The letter to be sent with a one-page cover letter [to be drafted] requesting Alyeska to consider the pilot study and requesting a response. Robert Archibald seconded. Discussion continued. Robert Archibald moved to amend the motion to have the Executive Committee approve the cover letter. Wayne Donaldson seconded the amendment. The amendment passed. There was no further discussion, and the main motion passed, as amended. Lunch recess: 12:15 p.m. – 1:00 p.m.

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(Directors Faulkner, Skinner, Beedle, and Malchoff left the meeting after the lunch recess at 1:00 p.m.; Donaldson left the meeting at 1:30 p.m. – 11 Directors present.) 4-11 PROJECT APPROVAL: VMT WEATHER BUOY Project Manager Alan Sorum and Director of Programs Joe Lally presented a request for a new 2019 project for Weather Buoy Deployment with a capital expenditure of up to $35,000 for parts, assembly, and deployment costs to refurbish an existing weather buoy or a buoy purchased from Fairweather Scientific, and to approve operating budgets. A briefing sheet and project description were included in the meeting notebook under Item 4-11. Sorum reported that shortly before this Board meeting, Fairweather Scientific (an ECO company) had offered to sell PWSRCAC one of its four buoys for $20,000. Sorum stated that the project proposal would have to be revised to identify a location for the buoy. After that they would need permits from ADNR, the US Corps of Engineers, and USCG. Alyeska is tracking and will have to issue a non-objection letter. He suggested that PWSRCAC draft a letter to the Commissioner of ADNR to emphasize that the State of Alaska and all the parties involved think this is a good idea and time is of the essence to get the permit through expeditiously. Thane Miller moved to approve a capital expenditure of up to $35,000 for parts, assembly, and deployment costs to refurbish the existing weather buoy or a buoy purchased from Fairweather Scientific; and to approve operating budgets for FY2019, FY2020, and FY2021 in the amounts of $14,000, $21,835, and $21,835, respectively, for telemetry, repair and maintenance, depreciation, and monitoring/data collection services. Mike Bender seconded, and the motion passed without further discussion or objection. For the Good of the Order Item K - Consideration of Consent Agenda Items was moved up in the agenda. CONSIDERATION OF CONSENT AGENDA ITEMS 3-1 APPROVAL OF POTENTIAL PLACES OF REFUGE PROJECT Thane Miller stated that he pulled Item 3-1 from the consent agenda because of the project’s cost, and he wanted the Board to realize the cost and discuss if necessary. Thane Miller moved to approve Project 856 - Potential Places of Refuge in the amount of $101,000 and a sole source contract with Safeguard Marine, LLC; and to approve a corresponding budget modification from the contingency fund to Project 856 in the amount of $101,000. Dorothy Moore seconded. Robert Archibald expressed his support for the project and emphasized the importance of having an identified place of refuge for a stricken tanker. Capt. Pierce of SWAPA was invited to answer questions from the Board with regard to whether this project would be valuable to SWAPA. Capt. Pierce was supportive of the project and said the project would be valuable.

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The motion passed without objection. 4-12 APPROVAL OF FY19 BUDGET MODIFICATIONS Financial Manager Dixon reviewed the FY2019 budget modifications with the Board, as outlined in Attachment 4-12 in the meeting notebook. Dorothy Moore moved to approve the FY2019 budget modifications as listed on Attachment 4-12. Mako Haggerty seconded, and the motion passed without objection. 4-9 REPORT ACCEPTANCE: PWSRCAC ANNUAL LONG-RANGE PLAN Director of Programs Joe Lally introduced the Annual Long-Range Plan (LRP) for Board approval. An LRP workshop was held on 1/23/19 at which Board members were able to discuss the projects in depth. Thane Miller moved to accept the Five-Year Strategic Plan for Fiscal Years 2020-2024, as developed and finalized for consideration by the Board at the January 23, 2019 Long-Range Plan work session. Robert Archibald seconded. Herbert brought up succession planning as another aspect of long-range planning that the Board had not yet addressed and emphasized the importance to an organization’s long-range plan. Lewis encouraged more Board members to participate in the planning process, as the non-voting committee members had outnumbered Board members during last year’s planning session. The motion passed without objection.

CLOSING COMMENTS Directors were given the opportunity to make closing comments. ADJOURNMENT There being no further business to come before the Board, the meeting was adjourned at 1:55 p.m. Secretary

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