DEPARTMENT OF

NATURAL RESOURCES

When is this chapter applicable to department actions relating to the Derelict and Abandoned Vessel Act? This chapter applies when the owner or lien holder of an abandoned or derelict vessel files a challenge to ((the)) a decision or action of ((a state agency)) the department acting as an authorized public entity ((is filed)) with the pollution control hearings board under the Derelict and Abandoned Vessel Act as provided in RCW 79.100.120 (((2)(a))).

When must ((my)) I file my appeal ((be filed))? The owner or lien holder of an abandoned or derelict vessel may file a notice of appeal regarding ((an agency)) a decision or action of the department under chapter 79.100 RCW ((may be filed)) with the pollution control hearings board ((upon receipt of the department's notice of intent to take custody of a vessel, but the notice of appeal must be filed no later than thirty days after the date the authorized public entity took custody of the vessel, or if the vessel was redeemed before the authorized public entity took custody, no later than thirty days after the date of redemption)). A written request for a hearing related to the decision or action must be filed with the pollution control hearings board and served on the department in accordance with RCW 43.21B.230 (2) and (3) within thirty days of the date the department acquires custody of the vessel under RCW 79.100.040, or if the vessel is redeemed before the department acquires custody, no later than thirty days after the date of redemption.

Where must ((my)) I file my appeal ((be filed))? ((A)) The owner or lien holder of an abandoned or derelict vessel must file any notice of appeal concerning a decision to take temporary possession or custody of a vessel or the amount owed to ((an authorized public entity)) the department under chapter 79.100 RCW ((must be filed)) with the pollution control hearings board and ((served)) must serve a copy of the appeal on the department at the following addresses:

Pollution Control Hearings Board

Physical Address:

1111 Israel Road S.W., Suite 301

Tumwater, WA 98501

Mailing Address:

((P.O. Box)) MS 40903

Olympia, WA 98504-0903

Department of Natural Resources

Aquatic Resources Division

Derelict Vessel Removal Program

((P.O. Box 47027)) Physical Address:

Olympia, WA ((98504-7027)) 98501

When is this chapter applicable to the department's derelict vessel removal actions? As directed by RCW 79.100.150, a seller/transferor of a qualifying vessel must provide vessel inspection disclosure documentation specified in WAC 332-30-123 to the department before transferring ownership of a vessel that is:

(1) More than sixty-five feet in length and more than forty years old; and

(2) Either:

(a) Is registered or required to be registered under chapter 88.02 RCW; or

(b) Is listed or required to be registered under chapter 94.40 RCW.

After July 1, 2014, this chapter applies when the department seeks financial reimbursement from any person or entity the department determines has incurred secondary liability under RCW 79.100.150 for all reasonable and auditable costs associated with the removal and disposal of derelict or abandoned vessels. The department may pursue secondary liability if the prior owner(s) did not provide the department copies of a vessel inspection disclosure report, as specified in WAC 332-30-123, before transferring ownership of the vessel.

(1) What are the minimum criteria for a vessel inspection to determine a vessel is seaworthy? For the purpose of this rule, the term "seaworthy" means the vessel and its equipment are physically fit and in full working order; able to encounter and withstand the ordinary perils of the sea during its contemplated use; and suitable for its intended purpose. Current U.S. Coast Guard certificates of inspection are acceptable forms of vessel condition determination. Other vessel inspection disclosure reports must document the condition, valuation, and suitability of the vessel for service. The vessel inspection disclosure report may be prepared for either the owner, lien holder, buyer/transferee, vessel broker, or associated financial and insurance provider(s) for the vessel. Vessel inspections must be prepared by a professional marine surveyor who is a third party to the transaction. The vessel inspection must be completed within thirty days prior to the seller/transferor transferring ownership of the vessel. Before transferring ownership of the vessel, the seller/transferor must provide the department a hard copy of the vessel inspection disclosure report and department-issued Acknowledgement Form with original, notarized signatures of the seller/transferor and the buyer/transferee acknowledging receipt of the vessel inspection disclosure report.

(2) The vessel inspection disclosure report must include the following information, at a minimum if applicable to the vessel:

(a) Cover page describing:

(i) Report title identifying type of survey;

(ii) Date report issued;

(iii) Contact information for surveyor;

(iv) Current photograph of vessel, date and location; and

(v) Official vessel number.

(b) Vessel description:

(i) General description;

(ii) Vessel name;

(iii) Current legal owner;

(iv) Intended use of vessel;

(v) Design; and

(vi) Type of construction.

(c) Vessel particulars:

(i) Builder;

(ii) Displacement;

(iii) Length;

(iv) Breadth;

(v) Draught; and

(vi) Fuel system.

(d) Surveyor's notes and condition rating;

(e) Systems evaluation:

(i) Type of propulsion;

(ii) Auxiliary engines; and

(iii) Electrical systems.

(f) Conditions:

(i) Overall appearance; and

(ii) Hull and superstructure condition.

(g) Surveyor recommendations;

(h) Appraisal of market value;

(i) Replacement value;

(j) Physical suitability of the vessel and its equipment for its intended use; and

(k) Determine whether the cost of repairs required to return the vessel and its equipment to physical suitability for its intended use is likely to exceed the market value of the vessel.

(1) Where must I file my vessel inspection documentation? The seller/transferor must file a hard copy vessel inspection disclosure report and supporting documentation at the following address:

Department of Natural Resources

Aquatic Resources Division

Derelict Vessel Removal Program

MS 47027

Olympia, WA 98504-7027

(2) What is the department's procedure for confirming receipt of vessel inspection disclosure documentation? The department will accept hard copies of a vessel inspection disclosure report and completed Acknowledgement Form from sellers/transferors.

(a) The department will transmit a hard copy or electronic notice of receipt to the seller/transferor within ten business days of receiving the vessel inspection disclosure documentation.

(b) Such department-issued notice of receipt does not constitute concurrence that the vessel inspection disclosure documentation meets the minimum criteria for a vessel inspection disclosure report, specified in WAC 332-30-123 or that the documentation was received prior to ownership transfer of the vessel.

(c) The department will maintain records of vessel inspection disclosure documentation for future determination of potential secondary liability.

(3) What is the department's procedure for determining and asserting secondary liability?

(a) The department will notify a prior owner of a vessel, determined to be derelict or abandoned, that they have secondary liability when cost recovery is sought, if:

(i) An authorized public entity has taken, or is in the process of taking, custody of the derelict or abandoned vessel;

(ii) The current owner cannot be identified or is financially insolvent;

(iii) The department does not have vessel inspection disclosure documentation on record for the derelict or abandoned vessel; and

(iv) The vessel was transferred after July 1, 2014.

(b) The department may provide such notice of secondary liability concurrently with a vessel custody action or after an authorized public entity has obtained custody of the vessel.