THE U.S. Department of Justice-Aviation, Space & Admiralty Litigation Division has filed a verified complaint against the registered owners of the Grand Mariana yacht for removal costs incurred in responding to the potential threat of oil spill after Typhoon Yutu made landfall on island in October 2018.
The lawsuit seeks to recover $1,391,917.18 from the owners of the yacht for the “Grand Mariana incident and removal action” costs.
USDOJ named Pride Keen Ltd., Imperial Pacific International LLC, and IPI Holdings as defendants in the complaint. They were sued for liability under the Oil Pollution Act of 1990.
The lawsuit stated that during a port assessment in October 2018, Coast Guard Marine Safety Detachment or MSD Saipan learned that the Grand Mariana was in port and not ready to depart port in advance of Yutu.
As a result, MSD Saipan issued a Notice of Federal Interest or NOFI to Pride Keen, advising it of Grand Mariana’s substantial threat to discharge oil into the Saipan harbor and of Pride Keen’s responsibilities and financial liability in the event of an oil spill from the vessel.
Sector Guam required all vessels greater than or equal to 200 gross ton to depart port or to have obtained written authorization from the Coast Guard or Captain of the Port or COTP to remain in port under a Port Heavy Weather Condition.
Under PHWC Zulu, gale force winds (39-54 mph/34-47 knots) from a tropical or hurricane/typhoon force storm were predicted to make landfall at the port within 12 hours.
Upon setting PHWC Zulu by sector Guam, all ports and marinas would be closed and all cargo/bunkering operations within the port must stop.
The Grand Mariana failed to depart port at the direction of the COTP and failed to request a waiver to remain in port, the lawsuit stated.
As a result, Sector Guam issued an Administrative Order to Pride Keen, which required the removal of all fuel from the yacht’s fuel tanks, engines, fuel lines, and any other potential sources onboard that may have oil products in them in advance of the impending typhoon and prior to shifting to the designated mooring.
Pride Keen failed to comply with the administrative order, the lawsuit added.
On Oct. 24, 2018, the Grand Mariana had failed to go to sea and had failed to seek (or be granted) a waiver. Instead, she was moved to a mooring within Tanapag Harbor, but due to deteriorating weather, it was deemed unsafe for divers to properly moor the vessel as desired.
As a result, the vessel was anchored within the lagoon with two anchors set out to attempt to secure her position.
In the early hours of Oct. 25, 2018, Typhoon Yutu made landfall. The Grand Mariana broke loose of her moorings and ran hard aground approximately 170 meters off the beach of American Memorial National Park, and in the Tanapag Harbor “in waters constituting navigable waters of the United States.”
At the time of the grounding, the Grand Mariana contained approximately 15,500 gallons of fuel.
According to the lawsuit, specifically, and without limitation, the defendants failed to report the incident as required by law when the responsible party knows or has reason to know of the incident (33 U.S.C. § 2704[c][2][A]). The defendants, moreover, failed to timely notify the Coast Guard of the incident.
In addition, the defendants failed to provide all reasonable cooperation and assistance requested by a responsible official in connection with removal activities (33 U.S.C. § 2704[c][2][B]).
Without sufficient cause, the defendants likewise failed to comply with an order issued under subsection 4 (c) and (e) of the Clean Water Act, 33 U.S.C. § 1321 et seq.; and breached the Ports and Waterways Safety Act, then codified at 33 U.S.C. § 1221 7 et seq., and implementing regulations, including, 33 C.F.R. Part 160 et seq.
According to the lawsuit, during the course of the Grand Mariana incident and removal action, the United States expended substantial “removal costs” and sustained “damages” within the meaning of the Oil Pollution Act, 33 U.S.C. § 2702(b). 12 71.
“The United States, by and through the Field Operation Service Center, contracted with various entities, including but not necessarily limited to, Global Diving and Salvage, Inc., to respond to the Grand Mariana incident and removal action,” the lawsuit stated.
“The United States paid these entities for the removal costs incurred in responding to the substantial threat of discharge of oil and, pursuant to the Oil Pollution Act, 33 U.S.C. § 2715, became subrogated to all claims, rights, and causes of action thereto.”
On April 14, 2020, the National Pollution Funds Center sent Notice of Potential Liability Letters to Pride Keen, IPI Holdings, and IPI CNMI, advising them that the U.S. Coast Guard considered them responsible parties.
The National Pollution Funds Center demanded reimbursement for all the outstanding removal costs and damages owed by the defendants, and on May 10, 2020, the NPFC sent all defendants an invoice for $1,391,917.18.
Despite this demand, the “defendants have failed and refused to reimburse the costs and damages for which they are liable,” the lawsuit stated.
In July 2019, Variety reported that the U.S. Coast Guard had directed the owners of the Grand Mariana to salvage the yacht that had been aground near Micro Beach since Typhoon Yutu. The USCG cited the yacht for being a pollution hazard, adding that the owners would be held responsible to remove the oil spill and conduct a cleanup.
