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For Immediate Release

Selendang Ayu Settlement Reached

Alaska, 22 August 2007
- IMC Shipping Co Pte Ltd, General Agent of the M/V Selendang Ayu, which grounded off Unalaska Island in the Aleutians during a fierce storm in December of 2004 and the United States Department of Justice have reached a settlement of federal charges arising from the accident and its aftermath. Under the terms of the settlement, IMC pleaded guilty to three strict liability, misdemeanor charges, i.e. two for violations of the Refuse Act and one from the Migratory Bird Treaty Act, relating to the discharge of oil and soy beans from the vessel, and killing migratory birds.

IMC's spokesman, James Lawrence, commenting on the settlement of the case said, IMC has worked closely and fully cooperated with the relevant authorities including the United States National Transportation Safety Board (NTSB) during their investigations. We regret the loss of six of our crew and the damage to marine life and to the land. We would like to thank the Alaska Department of Environmental Conservation, and the US Coast Guard for their rescue operations and efforts as part of the Unified Command. We are grateful for the efforts of the responders and the hundreds of men and women, who helped in the clean-up efforts. Finally, we want to thank the people of Unalaska community, and our friends and industry colleagues the world over for their support during the accident.

Clean up of the spill area took place over two summers and was declared complete on June 23, 2006 by the Unified Command. It represented the work of numerous companies, communities and government agencies.

The Selendang Ayu was en-route from Seattle to China in December 2004, transiting the Bering Sea when a crack in the number 3 cylinder liner was discovered. The NTSB report determined that the probable cause of the grounding of the Selendang Ayu was the development of this cylinder liner crack which required the crew to shut down the engine in order to isolate the number 3 cylinder. After isolating the cylinder, the crew could not manage to get the engine restarted. Under extreme conditions of strong winds and rough seas, the stricken vessel grounded and subsequently sank on the west coast of Unalaska Island.

The NTSB report underscored the lack of adequate salvage response resources in the Bering Sea and the Aleutian Islands. Until the lack of salvage resources is addressed, this area will remain at risk to the shipping industry.

Following the accident, IMC has since put in place an Aleutian Island Shipboard Emergency Plan for its fleet; a plan it hopes will become a model for the shipping industry.

Prior to leaving Seattle on the fateful voyage, the US Coast Guard had conducted a thorough inspection of the Selendang Ayu. Its investigators found no deficiencies aboard the vessel, and in fact were complimentary of its condition and upkeep.

Vessel records and crew testimony demonstrated that the crew had conducted a detailed maintenance check and thorough inspection of the main engine pistons and cylinders and that there were no known problems with the main engine, including its cylinder liners or piston rings, when the vessel departed Seattle for China.

At the time of the accident, there was no overdue maintenance as all recommended maintenance works and inspections had been carried out according to the schedule set forth in the manufacturer's recommendations. In addition, the vessel had a full complement of spare parts when it left Seattle.

IMC and the United States Department of Justice disagree as to whether improper maintenance and operation of the vessel could have led to the development of the cylinder liner crack. However, as part of the plea agreement, the company will willingly submit to future periodic reviews of engine maintenance and performance on vessels within the IMC fleet.

Under the terms of the plea agreement with the U.S. Department of Justice, IMC will be contributing $3 million dollars of the penalty to fund a risk assessment exercise of the navigational risks along the heavily transited Great Circle Route and another $1 million dollars of the penalty for the National Fish and Wildlife Foundation for funding projects for the Alaska National Marine Wildlife Refuge system.

IMC remains committed to the Aleutian Islands initiatives. It is a complex challenge that the Alaskan population, the U.S. Coast Guard and shipping industry must have a shared stake in ensuring the sea route is safe. IMC will continue to work with its industry partners and government agencies of the world to continuously explore best practices to improve safety and environmental protection.

Contact:

MTI Network USA
Jim Lawrence
Mobile: 203 550 2621
or
Darrell Wilson
Mobile: 405 314 8536
or
Michael Hanson
Mobile: 845 629 0259

 
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