Page 14: of Marine News Magazine (March 2015)

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INSIGHTS

On a worldwide basis, NRC is supporting oil majors and

You’ve asserted that routinely used assets and per- sonnel operating equipment are more pro? cient independents by providing Tier I and Tier II response so- when they use it frequently. Give us some examples. lutions as well as specialized support services to our world-

It may be helpful to use a college sports analogy to better wide clients. We also provide environmental and industrial explain this point. When evaluating a team, we often look services to the North Sea market.

at the number of “returning” players that have had the ex- perience of playing in real games from prior seasons. Now

Any business model solely dependent on spill reve- nue is likely to have challenges. So, what do you rely even though most teams practice a similar amount during upon for income during the times that no events are the course of a season, we often give the edge to the team occurring? with more returning players because they have been “battle

NRC is a fully diversi? ed environmental services com- tested.” We certainly still need to train and inexperienced pany. Emergency response to oil spills is just one aspect of teams can be good, but if I have a choice I am going with our business. However, all of our business lines – standby the team that has the most returning players. So translat- services (including response) and environmental and in- ing that analogy to our business means personnel that are dustrial services – are complementary businesses. Our OPA experienced in operating equipment almost daily in rou- 90 standby compliance business generates retainer revenue tine situations will operate equipment more effectively and that supports the purchase, maintenance, and preposition- safely during emergencies. Real working experience, along ing of equipment as well as the training and prepositioning with strong training and exercise and safety programs, en- personnel, even if we are never called to respond. If this courages the vitality of our operations and better manage- business were our only service, it would not be attractive ment practices. Our diverse service offerings give us greater to our investors because the potential revenue from spills control over our project work and more oversight to vet is too unpredictable. Thus, we leverage our equipment, our personnel, subcontractors, and business functions in personnel and client relationships to generate revenue and non-emergency situations. It also enhances the services pro? ts from our other day-to-day environmental and in- that we can offer to our clients. dustrial service lines.

With the new Salvage & Marine Fire? ghting rules,

Are most of your ? eet assets non-dedicated vessels have lines between salvage, response and remedia- on retainer? What if one is in the middle of a cargo tion blurred some? If so, is that a good thing? run when you need it most?

The lines are still fairly well de? ned from a compliance

First, most of our owned vessels are dedicated to spill perspective with the exception of Alaska where NRC as response. We have several owned non-dedicated vessels an OSRO and Resolve Marine Group (Resolve) as a Sal- that routinely work in local activities such as bunkering, vage & Marine Fire? ghting provider are jointly providing survey, or diving support. In these situations, the vessels OSRO compliance services via our 1Call Alaska service. I must remain in a speci? c geographic area and their char- am biased since we developed the service with Resolve, but ters allow for their immediate release so that we can meet I certainly think it is a good thing. On the OPA 90 compli- the OPA 90 time frames, if we need the vessel for a spill ance side, our 1Call Alaska service is helping to drive down response. We also identify back-up resources from our Ma- prices and improve service. On the response side, we clearly rine Resource Network if there is a chance that the owned will provide a more timely and coordinated salvage and spill resource cannot meet the time frame. This combination cleanup response than has historically been available along of dedicated and non-dedicated resources, along with the Aleutian island chain in Western Alaska. With that goal some redundancy, enables us to keep suf? cient resources in mind, partnering with Resolve was clearly the most cost in a standby readiness state leaving other assets available effective way to provide the needed and improved compli- for project work. One of our programs has been to equip ance service in Alaska. The response resources in this area work or supply vessels with some essential response equip- have, until recently, been somewhat limited. Also, new add- ment. In a spill, these work vessels will often be the ? rst on ons to OPA 90 now require shipowners to have salvage and scene and have the capacity to immediately deploy boom ? re? ghting agreements similar to our traditional OSRO or begin some skimming operations until back-up or more compliance agreements. NRC and Resolve have many fully equipped dedicated response vessels arrive on scene. shipowner clients in common and marine salvage response often goes hand-in-hand with oil spill response.

March 2015 14 MN