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Costs and Impacts from Leaking Wrecks: Response Costs and Removal Costs

Costs and Impacts from Leaking Wrecks: Response Costs and Removal Costs. Dagmar Schmidt Etkin, PhD Environmental Research Consulting. Wrecks of the World (WOW) II: Evaluating and Addressing Potential Underwater Threats

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Costs and Impacts from Leaking Wrecks: Response Costs and Removal Costs

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  1. Costs and Impacts fromLeaking Wrecks:Response Costs and Removal Costs Dagmar Schmidt Etkin, PhD Environmental Research Consulting Wrecks of the World (WOW) II: Evaluating and Addressing Potential Underwater Threats Maritime Institute of Technology and Graduate Studies (MITAGS) Linthicum, Maryland 6 – 7 June 2011

  2. Response Costs Assuming wreck is leaking or likely to leak… Spill cleanup response/monitoring operations (and environmental/socioeconomic damages) OR Oil removal operations

  3. Example: SS Jacob Luckenbach Freighter sank 14 July 1953 after collision with another vessel off California coast. Wreck contained 1,360 tonnes of heavy fuel oil. Wreck leaked oil periodically, primarily during large winter storms when currents rocked vessel.

  4. Damages from SS Jacob Luckenbach • Dozens of spills over 10 years with millions of dollars in cleanup costs • 51,000 birds, sea otters oiled (> 50 species) • >10,000 sq km ocean impacted • US$2 million/year on wildlife rehabilitation • US$20 million for wreck oil removal operations to prevent further oiling damage

  5. Components of Averted Response Costsand Damages • Monitoring of leaking or potentially leaking wreck • Response and cleanup costs for leakage events • Shoreline cleanup • Oversight • Disposal • Response and cleanup for potential large releases • On-water response (mechanical, dispersant) • Oversight • Shoreline cleanup • Disposal

  6. Factors Affecting Potential Response Costs • Location • Physical geography (shoreline type, water depth, sea state) • Political regime (response regulations – funding, dispersant policy ) • Cultural/social regime (public involvement, “how clean is clean”, labor costs) • Proximity and nature of sensitive resources (habitats, shorelines) to protect • Proximity and type of response resources available • Response type • Response strategy employed + timing (equipment, personnel requirements) • Effectiveness of on-water response (mechanical, dispersant) • Endpoints in shoreline cleanup (“how clean is clean”) • Oil- and hazmat (HNS)-type • Persistence • Toxicity • Human health impacts, chemical reactions/releases • Volume and nature of release • Smaller volumes more expensive on per-unit basis unless very small • Continuous vs. sudden, massive release • Oil spread, degree of shoreline impact

  7. State-of-the-Art Cost Analyses • Trajectory, fate, effects modeling of hypothetical scenarios • Data for simulating behavior of oil • Data for estimating costs/impacts • Planning for spill response contingencies and preparedness • Cost models based on algorithms from data on previous spills • Adapted to specific scenarios • Local information

  8. Environmental and Socioeconomic Resources at Risk

  9. Calculating Benefit of Wreck Oil Removal • Determine hypothetical spill/release scenario(s) • Nature of event(s) • Continuous chronic or episodic releases • Large release • Oil/hazardous material type(s) and amount(s) • Model trajectory, fate, and effects of release scenarios • Estimate impacts and costs of release scenarios • Response and cleanup costs • Environmental damages • Socioeconomic damages (e.g., fisheries, tourism)

  10. Costs of Wreck Oil Removal Operations • Spill response preparedness • Spill response, if needed (prepared, timely, on site) • Salvage equipment and personnel • Monitoring equipment and personnel • Logistical support

  11. Factors Affecting Wreck Oil Removal Costs • Location • Water depth • Currents and sea state • Weather • Logistical support • Vessel characteristics • Oil- and hazmat (HNS)-type and content (munitions, human remains) • Vessel type and construction/configuration • Degree of corrosion • Vessel orientation (upright, on side) • Vessel condition (broken, split, intact) • Other factors (presence of munitions, human remains, cultural artifacts) • Equipment required and availability • Monitoring and oversight logistics required and availability

  12. Costs of Wreck Oil Removal

  13. Basic Cost-Benefit Analysis Value of averted costs and damages = Benefitof oil removal If benefit > cost of oil removal operation, Then, oil removal operation has a NET BENEFIT to environment and to society

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