Subject: UNINSPECTED PASSENGER VESSEL (UPV) REGULATIONS

Commander Seventeenth Coast Guard District PO Box 25517 Juneau, AK 99802-5517 Staff Symbol: dpi Phone: (907)-463-2808 FAX: (907)-463-2820 16710 March 10, 2008 Subject: UNINSPECTED PASSENGER VESSEL (UPV) REGULATIONS The 2008 charter season is rapidly approaching. Are you prepared? To assist you, this letter provides information on the new TWIC requirement, clarification of established regulations, and a self examination checklist. This letter may seem long, but please take the time to read it, as the contents may save you time, money, and frustration. NEW REQUIREMENT UPDATE: Transportation Worker Identification Card (TWIC): TWIC is a high-tech biometric identification card for all mariners holding Coast Guard issued credentials or qualification documents and all personnel requiring unescorted access to secure areas of Maritime Transportation Security Act (MTSA) of 2002 regulated facilities and vessels. Under the Security and Accountability for Every Port Act of 2006, all credentialed U.S. Merchant Mariners must obtain a TWIC by 25 September 2008. Bottom line, if you hold a USCG issued merchant mariner s license, merchant mariner s document, or certificate of registry you will need a TWIC card by the deadline. We have enclosed TWIC Quick Notes for your information. More information can be found at www.tsa.gov/twic, or by calling the TWIC Program Help Desk at 1-866-347-8942. The Help Desk is available Monday through Friday from 8:00 a.m. until 12:00 a.m. EST, or email: to credentialing@dhs.gov USCG License: Please ensure your Coast Guard license has not expired or will not expire midseason. If your license is nearing its expiration date, I recommend you contact the nearest Regional Examination Center to begin the renewal process. As a reminder, much of the paperwork for licensing has been consolidated in West Virginia, so allow extra time for your renewal. There is no operational grace period. You cannot operate on an expired license. A mariner has up to a year after expiration to renew without going through the entire licensing process again. Existing Regulatory Highlights: There seems to be some confusion on a few of the existing requirements. Let s review.

Passenger Carrying Limit: UPVs under 100 gross tons are limited to 6 or less passengers for hire. UPVs 100 gross tons or greater are limited to 12 or less passengers for hire. The operator and crew are not included in these limitations. Coast Guard boarding officers will terminate your trip if you are found to be carrying more than your legal number of passengers. There are no observers or guests while operating as a UPV - there are only passengers or crewmembers. Anyone designated a crewmember must pass a preemployment drug test and be enrolled in a bona fide random drug testing program. Proof of enrollment will be required. Personal Flotation Devices (PFD): When carrying passengers for hire, there MUST be at least one Type I PFD of the appropriate size for each person on board, including crew members and the licensed operator. An approved commercial hybrid Type V PFD may be substituted for a Type I life preserver if it is used in accordance with the conditions marked on the PFD and in the owner's manual, labeled for use on commercial vessels, and worn when the vessel is underway and the intended wearer is not within an enclosed space. All PFDs must be in good serviceable condition and readily accessible. Additionally, state and federal regulations state an operator of an unispected passenger or recreational vessel may not transport a person under the age of 13 unless the youth is wearing at Type I, II or III PFD when on deck or in an open boat. Drug Testing: All operators and crew members must pass a pre-employment drug test and be enrolled in a bona fide random drug testing program. Proof of enrollment consists of either a contract or membership card with an approved drug testing consortium and a list of crewmembers enrolled in the random drug testing program. Crew members in training must also be enrolled. For post casualty drug/alcohol testing, verify that any alcohol testing kits on board your vessel have not expired and will not expire during the season. If you operate more than two hours from a testing facility you must carry these kits on board in case of a serious marine casualty. For detailed information, you are encouraged to contact Mr. Steve Murphy at 907-271-6714 or e-mail Stephen.j.murphy@uscg.mil Marine Casualty Reporting: While operating a vessel commercially and experiencing a marine accident, injury or death reportable under 46 CFR 4.05-1, you must immediately contact the Coast Guard and follow up within five days with a written report on form CG- 2692 to the nearest Coast Guard Sector. A copy of CG-2692 and instructions can be obtained at http://www.uscg.mil/forms/public_use/cg_2692.pdf Charts and Publications: The charts and publications listed below are required by 46 CFR 26.03-4. Many of the pubs are available free on line and extracts can be printed. Below is where to obtain the required information. Charts: The current or updated navigation chart for your area of operation must be on board. Currently, even if you have a type approved full designation electronic chart display and information systems (ECDIS) on board, a back-up system must be carried. The best back-up system is an updated navigation chart. Light List: http://www.navcen.uscg.gov/ Select Light Lists and Correction from the menu bar. Print those required for your area of operations. 2

Coast pilot: http://nauticalcharts.noaa.gov/nsd/cpdownload.htm Coast Pilot 8 covers the Alaska Pan Handle. Coast Pilot 9 covers rest of Alaska. The web site permits down loads and printing of the chapters needed. Tide Tables: http://tidesandcurrents.noaa.gov/ Click on Products tab along top, select Tides, High/Low Predictions, year, state, location from pull down menus. Tide Current Tables: http://tidesandcurrents.noaa.gov/ Click on Products tab along top, select Currents, Predictions, year, state, location from pull down menus. Boardings: This season there will be an increased emphasis on underway boardings by the Coast Guard. Vessels displaying a current UPV / 5 Star decal will be given a lower boarding priority. Boarding officers have been directed to terminate voyages deemed unsafe. Terminable conditions include, but are not limited to: Expired or no USCG license operator on board. Unsafe operations. Excessive passengers for hire on board. Operator under the influence. Insufficient PFDs or fire fighting appliances on board. Excessive fuel in bilges. Inoperable navigation lights in restricted visibility. UPV / 5 Star Examinations: We share the common goal of safety. To help you ensure 100% compliance with UPV requirements, the Coast Guard Auxiliary, with support from active duty and reserve Coast Guard personnel, will be conducting voluntary UPV dockside examinations. Courtesy dockside examinations do not result in penalties, and are valuable to ensure you meet all requirements. If in full compliance, you will be issued a UPV decal. If not in full compliance, you will be given a list of deficiencies that need to be corrected prior to operation as a UPV. Enclosed for your use is a copy of our UPV checklist to help you identify and meet the minimum requirements that must be met and maintained at all times when operating as a UPV. To request a courtesy dockside examination, please call your local Coast Guard Auxiliary examiner. (Contact numbers are provided as an enclosure to this letter). If there are no Auxiliary examiners in your region, please call the Coast Guard Sector or Marine Safety Detachment to request an exam. Due to budget and resource limitations, we may not be able to meet every request, especially in remote locations. But let us know your desire for an examination, and we can schedule your exam when in the area for other business, or possibly consolidate several requests and complete all examinations in one trip. We strongly encourage your participation in 17th Coast Guard District s Five Star Safety Program. The Five Star Safety Program is a voluntary program that assigns a one- to five star rating based on the level of additional safety equipment that goes beyond the minimum regulatory requirements. Enrollment in the program can be done at the same time as your UPV examination. The level of safety stars awarded will be indicated on the UPV decal. For more 3

information on the program as well as a copy of the UPV / 5 Star Examination Form, visit: http://www.mxak.org/fivestar/5star.htm. The Marine Exchange site http://www.mxak.org/ provides valuable links to regulatory sites, safety alerts, weather, port information and other maritime concerns. To access USCG specific information and copies of regulations, click the Government tab along the top of the Marine Exchange homepage and navigate from there. Please remember, it is the responsibility of the owner, master, or vessel operator to know, understand and comply with all applicable regulations pertaining to the safe operation of their vessel. Failure to comply could result in criminal and/or civil penalties, voyage terminations and Suspension & Revocation action taken against the operator s Coast Guard issued license. I think we all agree that being in compliance with requirements is the best solution for everyone. In an effort to educate consumer of the safety benefits of the UPV/5 Star program, the Coast Guard has placed advertisements in several Chamber of Commerce brochures informing potential clients of the safety value of hiring an operator displaying a current UPV decal. This letter is longer than I intended, but before I close, I want to thank you for your many safety efforts in the past. Our program goal for 2008 is an accident / injury free season. Please schedule your free UPV examination and forward this letter to any interested party. Call me at 907-463- 2808 or email with your questions to rick.n.janelle@uscg.mil. Have a great safe season! Sincerely, Rick Janelle Seventeenth U.S. Coast Guard District UPV Program Manager Enclosure (1) TWIC Quick Notes (2) UPV Examiner Contact List (3) UPV/ 5 Star Self Examination Checklist 4

Working Together to Ensure the Safety of Our Nation s Ports TWIC Quick Notes FREQUENTLY ASKED QUESTIONS What is TWIC? TWIC is a common identification credential for all personnel requiring unescorted access to secure areas of MTSA-regulated facilities and vessels, and all mariners holding Coast Guardissued credentials. TSA will issue workers a tamper-resistant Smart Card containing the worker s biometric (fingerprint template) to allow for a positive link between the card itself and the individual. Who needs a TWIC? The following individuals must obtain a TWIC: 1) All credentialed U.S. merchant mariners with active credentials. This includes all persons holding a Coast Guard-issued Merchant Mariner License, Merchant Mariner Document, or Certificate of Registry; 2) Anyone allowed unescorted access to secure areas of U.S.-flagged vessels, facilities, and Outer Continental Shelf (OCS) facilities subject to 22 CFR Parts104, 105, and 106 respectively; 3) A vessel pilot; 4) All individuals working aboard towing vessels that push, pull or haul alongside tank vessels Why should I pre-enroll? Applicants are encouraged to pre-enroll to save time at the enrollment center. The preenrollment process will allow you to submit necessary biographic information before enrolling, select the enrollment center of your choice to complete enrollment, and schedule an appointment at an enrollment center to mitigate long lines. Where do I get more information? Call 1-866-DHS-TWIC (1-866-347-8942) or visit www.tsa.gov/twic. How much will a TWIC cost? The TWIC will cost $132.50 and is payable by Credit Card, Money Order or Certified Check. MML, HME, and FAST card holders may pay a reduced fee of $105.25 What will the enrollment process entail? During enrollment, applicants will be required to visit the Enrollment Center to: -Provide biographic information -Sign a disclosure form -Provide the necessary identity verification documents -Provide a complete set of fingerprints-sit for a digital photograph -Pay the enrollment fee 1

TWIC Quick Notes FREQUENTLY ASKED QUESTIONS What documentation is required for enrollment? Applicants must provide the appropriate documents in order to verify their identity. They must provide one document from list A or two from list B: List A (Any 1 of list below) Unexpired U.S. Passport Unexpired Permanent Resident Card or Unexpired Alien Registration Receipt Card with photograph Unexpired Foreign Passport with one of the following: I-551 Stamp; Attached INS Form I-94 indicating unexpired employment authorization; Unexpired Employment Authorization Document (I-766); OR with one of the following Unexpired Visas: E-1, E-2, E-3, H-1B, H-1B1, L-1, O-1, TN, M-1, C-1/D FAST (Free and Secure Trade) Card Merchant Mariner Document (MMD) List B (Need two and one must be a government-issued photo ID) U.S. Certificate of Citizenship (N-560, 561) U.S. Certificate of Naturalization (N-550 or 570) Driver s license or ID card issued by a State or outlying possession of the United States Original or certified copy of birth certificate issued by a State, county, municipal authority, or outlying possession of the United States bearing an official seal Voter s Registration Card U.S. Consular Report of Birth Abroad U.S. Military ID or U.S. Retired Military ID Military Dependent s Card Expired U.S. Passport Native American Tribal Document U.S. Social Security Card U.S. Citizen Card I-197 U.S. Military Discharge Papers DD-214 Department of Transportation (DOT) Medical Card Civil Marriage Certificate MML (Merchant Mariner License) bearing an official raised seal, or a certified copy By what date must I enroll? USCG will publish in the Federal Register the TWIC compliance dates for each Captain of the Port Zone (COTP). In accordance with the TWIC Final Rule, USCG will provide at least 90 days notice prior to the compliance date. In no case will the compliance date be later than September 25, 2008. The dates for the initial enrollment periods can be found in the current TWIC schedule available on the TWIC website. All mariners must be in compliance by September 25, 2008. Where to Enroll in Alaska? Currently there are four enrollment centers planned for Alaska. The enrollment centers will be in Anchorage, Juneau, Nikishki, and Valdez. The US Coast Guard, industry representatives, and the TWIC contractor are working together to add temporary enrollment centers throughout Alaska during the initial enrollment period. For more information, visit the TWIC Website at www.tsa.gov/twic or call 1-866- DHS-TWIC (1-866-347-8942) *All information was provided by TSA approved TWIC Outreach Materials available on the USCG Website Homeport. 2

SELF EXAM CHECK LIST: UPV Minimum Requirements Personnel Licensing 1. Operator has USCG license (*OUPV or Master) 46 CFR 15.605 &.905 ( ) ( ) ( ) 2. License is in operator's possession 46 CFR 26.20-1(a) ( ) ( ) ( ) 3. Operators are licensed for waters navigated 46 CFR 15.401 ( ) ( ) ( ) ( ) Local Area ( ) Inland ( ) Great Lakes ( ) Near Coastal ( ) **Oceans [Over 200 miles] * Operator Uninspected Passenger Vessel (OUPV) License ** OUPV endorsed for Oceans route limited to not more than 100mi offshore. 4. Sufficient number of operators for two watches (Voyages over 12 hrs only) 46 U.S.C. 8104(b) ( ) ( ) ( ) Documentation 5. Vessels, 5 net tons and over, documented for coastwise trade. 46 CFR 67.15 ( ) ( ) ( ) 6. Original Certificate of Documentation on board & properly endorsed and valid. 46 CFR 67.7/163 ( ) ( ) ( ) 7. Official number clearly visible on interior structural part hull: 4 in. high numbers 46 CFR 67.121 ( ) ( ) ( ) 8. Vessel name and hailing port marked on stern and port/starboard side of bow 46 CFR 67.123 ( ) ( ) ( ) Registration 9. Original State Numbering Certificate on board 33 CFR 173.21 ( ) ( ) ( ) 10. State Numbers clearly/ permanently marked on each bow in block letters not less than 3 inches in height. 33 CFR 173.27 ( ) ( ) ( ) General Safety 11.Safety orientation given (public announcements/instruction placards) 46 CFR 26.03-1(a) ( ) ( ) ( ) 12. Adequate emergency checkoff list posted in conspicuous/locations 46 CFR 26.03-2(a) & (b) ( ) ( ) ( ) 13. Passenger counts taken 46 U.S.C. 3502 ( ) ( ) ( ) 14. Aware of proper sexual offense reporting 46 U.S.C. 10104 ( ) ( ) ( ) Communications 15. Radiotelephone and FCC Ship/Station license (Vsls 20 meters and over) 33 CFR 26.03 ( ) ( ) ( ) Navigation Lights 16. Copy of Inland Navigation Rules aboard. Vsls 12 meters and greater 33 CFR 88.05 ( ) ( ) ( ) 17. Proper navigation lights 33 CFR 84 ( ) ( ) ( ) 18. All round anchor light 33 CFR 84 ( ) ( ) ( ) Fire Fighting Equipment 19. Fire extinguisher(s) USCG approved or UL listed for marine use 46 CFR 25.30(b) ( ) ( ) ( ) 20. Fire extinguisher(s) name plate attached 46 CFR 25.30-10(d) ( ) ( ) ( ) 21. Fire extinguisher mounted in approved marine specific bracket. 46 CFR 162.028-3(g) ( ) ( ) ( ) 22. Minimum number portable fire extinguishers 46 CFR 25.30-20(a)(1) & (b) ( ) ( ) ( ) Engineering Safety Equipment 23.Backfire flame control properly installed (gas only) 46 CFR 25.35-1 ( ) ( ) ( ) 24. Proper ventilation for fuel tanks 46 CFR 25.40-1 ( ) ( ) ( ) 25. Cooking, heating and lighting systems must be approved 46 CFR 25.45 ( ) ( ) ( ) Garbage Pollution Prevention 26. Garbage placard(s) posted for vsls > 26 ft 33 CFR 151.59 ( ) ( ) ( ) 27. Waste management plan for vsls > 40 ft 33 CFR 151.57 ( ) ( ) ( ) Oil Pollution Prevention 28. Prohibited Discharge Warning Placard (5" X 8") posted in machinery space or at bilge pump control station 33 CFR 155.450 ( ) ( ) ( ) 29. Proper retention of bilge slops practiced 33 CFR 155.330/350 ( ) ( ) ( ) 30. Oily mixtures retained on board then discharged at reception facility 33 CFR 155.330/350 ( ) ( ) ( ) Marine Sanitation Device 31. Is installed device a Certified Marine Sanitation Device (Type I, II or III) 33 CFR 159.7 ( ) ( ) ( ) 32 Marine Sanitation Device overboard shut off valve for Type III (Holding tank), closed when within 3 miles of shore 33 CFR 159.53(c) ( ) ( ) ( ) 33. If Type I or II device, does the device have identification placard attached 33 CFR 159.55 ( ) ( ) ( ) 34. If Type I device, was it installed before January 30, 1980 33 CFR 159.7 ( ) ( ) ( ) Sound Signals 35. Efficient whistle and bell or means of making efficient sound signal 33 CFR 86.239 ( ) ( ) ( ) Drug Testing Alaska DAPI: 907-271-6714 or 6726 For online details: http://www.uscg.mil/hq/g-m/moa/dapip.htm 36. Does company have a drug testing program 46 CFR 16.205 ( ) ( ) ( ) 37. Does the employer have evidence to verify: Pre-employment, serious marine incident, reasonable cause, & periodic tests have been done 46 CFR 16.210-220 ( ) ( ) ( ) 38. Random testing done 46 CFR 16.230 ( ) ( ) ( ) 39. Aware of actions to be taken when individual fails a chemical test 46 CFR 16.201 ( ) ( ) ( ) 40. Means for 2 hour Alcohol test after Serious Marine Incident ( ) ( ) ( ) 41. Records maintained by company (1 year negative results, 5 years positive) 46 CFR 16.260(a) ( ) ( ) ( ) Intoxicated Operation 42. Aware of prohibition against operating a vessel while intoxicated 33 CFR 95.050 ( ) ( ) ( ) Marine Casualty Reporting 43. Operator aware of marine casualty reporting requirements 46 CFR 4.05-1 ( ) ( ) ( ) Distress Signals 44 Day & Night Visual Distress Signals, number required readily accessible 46 CFR 175.120 ( ) ( ) ( ) Lifesaving Equipment 45. Type I approved life preserver of suitable size for each person aboard or approved hybrid PFD meeting all requirements 46 CFR 25.25-5(c)(f) ( ) ( ) ( ) 46. Retroreflective material on each life preserver 46 CFR 25.25-15 ( ) ( ) ( ) 47. Personal Flotation device light (Oceans, Coastwise, Near Coastal & Great Lakes Service Only) 46 CFR 25.25-13 ( ) ( ) ( ) 48. Throwable life ring (vessels > 26 ft) 46 CFR 25.25-5(d) ( ) ( ) ( ) 49. Wearable lifesaving equipment readily accessible 46 CFR 25.25-9 ( ) ( ) ( ) 50. Throwable lifesaving equipment immediately available 46 CFR 25.25-9 ( ) ( ) ( ) 51. Lifesaving equipment in serviceable condition 46 CFR 25.25-11 ( ) ( ) ( ) 52. Lifesaving equipment marked showing USCG approval numbers 46 CFR 25.25-7 ( ) ( ) ( ) CHARTS and Publications 53. Navigation chart, Coast Pilot, Light List, Tide Table, & Tide Current Table or extracts on board. 46 CFR 26.03-4 ( ) ( ) ( ) 54. EPIRB if 100 GT or greater and 3 miles seaward of territorial sea base line. Cat 1 406, registered. 46 CFR 25.26-10 ( ) ( ) ( )

Coast Guard Auxiliary and Active Duty Contacts for Scheduling UPV / 5 Star Examinations. If no one is listed for your community, contact the nearest Coast Guard Sector Command or Marine Safety Detachment. Location Name Tele (907) Cell (907) Email Anchorage Roy Stoddard 349-7903 748-5666 RoyStoddard@gci.net Whittier Gary Taylor 244-0352 gtaylor@alaska.net Sig Murphy 345 666 sem@alaska.net USCG Sector Anchorage 271-6700 Ask for Prevention Dept. Sig Murphy 345-6664 sem@alaska.net Roy Stoddard 349-7903 RoyStoddard@gci.net USCG Sector Anchorage 271-6700 Ask for Prevention Dept. Seward Gary Taylor 344-026 gtaylor@alaska.net Kenai-Soldotna- Deep Creek- Ninilchik- Anchor Point Sue Lang 224-8237 suelang@alaska.com George Leighton 776-8457 398-3526 kemale@alaska.net Bev Gurtler 376-6863 bgurtler@mtaonline.net USCG Sector Anchorage 271-6700 Ask for Prevention Dept. George Leighton 776-8457 398-3526 kemale@alaska.net Stan Gerhauser 398-6548 USCG MSD Kenai 283-3292 Ask for Prevention Dept Homer Mike Riley 235-7681 399-7860 mwriley@acsalaska.net Tom Youngblood 226-2149 299-3729 tomlouyy@alaska.net Sandy Mazen 235-6398 sandydmz@xyz.net USCG MSD Kenai 283-3292 Ask for Prevention Dept Kodiak USCG MSD Kodiak 486-5918 Ask for Prevention Dept Valdez USCG MSU Valdez 835-7200 or 7223 Ask for Prevention Dept Skagway Alan Sorum 983-2297 612-0166 a.sorum@skagway.org USCG Sector Juneau 463-2450 or 2471 Ask for Prevention Dept Juneau Bob Mattson 465-5349 789-5734 Bob.mattson@alaska.gov Monika Renke 523-6017 355-6503 borealis@mtaonline.net Jo Boehme 790-3250 joboehme@gci.net Chris Conder 789-5482 321-7100 rumrunnr@alaska.net USCG Sector Juneau 463-2450 or 2471 Ask for Prevention Dept Petersburg Brad Wells 518-0559 bradleyw@gci.net USCG Sector Juneau 463-2450 or 2471 Ask for Prevention Dept Sitka Ken Ash 747-5168 738-5168 Mike Morris 747-8039 morrisma@ptialaska.net Ted Allio 747-5124 tallio@acsalaska.net USCG MSD Sitka 966-5454 Ask for Prevention Dept Ketchikan William Halloran 247-8227 pondreef@kpunet.net USCG MSD Ketchikan 225-4496 Ask for Prevention Dept