APRIL

HOLIDAYS

1st - April Fools Day

15th - Taxes are Due!

17th - Palm Sunday

19th - Passover

22nd - Good Friday

24th - Easter

To submit an article, idea or

thought to be published in the

next issue of Soundings, please

email Stephanie Gullickson.

sgullickson@harleymarine.com

All feedback is appreciated!

SOUNDINGS Safe Responsible Reliable Efficient

Harley Mar ine Serv ices, Inc.Har ley Mar ine Serv ices, Inc.

Safety Incentive Program (SIP) Announced

Last month our CEO, Harley Franco, emailed the HMS fleet and asked them for a “Safety Tip of the Week”. The response was overwhelming. We received participation throughout the entire fleet and wonderful safety tips were shared. Your hard work and exertions to ensure we have a safe workplace, remain incident and spill free, as well as follow our policies and procedures are appreciated and we would like to recognize those efforts. To continue our focus on safety, we have created a Safety Incentive Program (SIP) for all vessel personnel, shore side tankermen and maintenance personnel. This was announced on March 14th and details of the SIP may be found on the Vessel Communication Center (VCC) or by contacting a regional SIP coordinator or QSE team member. Regional SIP coordinators are:

Alaska – Jim Weimer

Seattle – Jim Flies

Portland – Bryon Fletcher, Kirk Bonnin, Zach Farmer

Los Angeles – Carl Fessler

New York – Sloan Danenhower

Houston – Anthony Hall The QSE Team worked hard to develop a program that will add to our safety awareness and culture. It was well researched, and sought out to incorporate feedback, concerns, and gap holes to make a meaningful program and achieve our objective to encourage the use of safe work procedures and practices, participation in safety activities, and safety behavioral changes. SIP will ensure compliance with company safety programs and recognize individuals and groups for their participation in maintaining a safe work environment. Some of the ways to earn points are:

To submit monthly safety tips or safety article,

Participate in a regional Job Hazard Assessment Workshop or Job Safety Analysis (JSA),

Participate in a safety meeting,

Lead a safety topic discussion,

And, most importantly, be accident, injury, and spill free each quarter. We have started off with a great response to SIP. In the first two weeks of the program, we received 287 submissions. The first 200 submissions also received the choice of an HMS Safety t-shirt or hat in addition to regular points. All locations have been participating and the amount of safety meetings have nearly doubled! Please keep sending in your safety submissions to sip@harleymarine.com . Stay Safe! Deborah Franco Vice President – HR, QSE and Administration

Safe, Responsible, Rel iable, Ef f ic ient Page 2

Q Factor

WHY HARLEY MARINE SERVICES IS AN ISO 14001 ENVIRONMENTAL PROTECTION CERTIFIED COMPANY

By: Captain Richard Graham with credit to the British Standards Institute 2011

Harley Marine Services and its employees are working hard each day to reduce and eliminate the environmental

impacts associated with our industry. Each year management and employees meet to define Quality, Safety and

Environmental Objectives & Targets for the New Year. In 2011, the following significant impacts were chosen for our

environmental goals.

OIL SPILL TO WATER – Reduce and Eliminate Hazardous Releases of Oil Spills To Water – Goal Zero

Oil Spills to Water

AIR EMISSIONS – Reduce Our Carbon Footprint – Target is100% Regulatory Emissions Compliance

INCIDENTAL DISCHARGES – Eliminate EPA NPDES Incidental Discharges – Target 100% EPA VGP

Compliance

To show our commitment to meeting our environmental Objectives &Targets, Harley Marine Services implemented

an Environmental Management System and earned its ISO 14001 Certification in 2008. As part of our Quality

Management System, the ISO 14001 Environmental Standards have led the way to continuous improvement and

Environmental Excellence.

Overview of the ISO 14001 Environmental Standards

ISO 14001 is an internationally accepted standard that sets out how you can establish an effective Environmental

Management System (EMS). The standard is designed to address the delicate balance between maintaining

profitability and reducing environmental impact; with the commitment of your entire organization, it can enable you

to achieve both objectives.

What’s in ISO 14001:

General requirements

Environmental policy

Planning implementation and operation

Checking and corrective action

Management review

This means you can identify aspects of your business that impact the environment and understand those

environmental laws that are relevant to your situation. Then the company produces objectives for improvement and

a management programme to achieve them, with regular reviews for continual improvement. Your system is then

periodically assessed through external audits and, if compliant, the company will be registered to ISO 14001.

Who is it relevant to?

Environmental impact is becoming an increasingly important issue across the globe, with pressure to minimize that

impact coming from a number of sources: local and national governments, regulators, trade associations,

customers, employees and shareholders. Social pressures are also building up from the growing array of interested

parties, such as consumers, environmental and minority non-governmental organizations (NGOs), academia and

neighbours.

Continued on Following Page...

Safe, Responsible, Rel iable, Ef f ic ient Page 3

Q Factor

WHY HARLEY MARINE SERVICES IS AN ISO 14001 ENVIRONMENTAL PROTECTION CERTIFIED COMPANY

Continued from Previous Page...

So ISO 14001 is relevant to every organization, including:

Single site to large multi-national companies

High risk companies to low risk service organizations

Manufacturing, process and the service industries; including local governments

All industry sectors including public and private sectors

Original equipment manufacturers and their suppliers

Benefits

Certifying your company's environmental management system to ISO 14001 means that a third party,

such as the American Bureau of Shipping (ABS), has assessed that it meets the requirements set out

in the standard.

Certification to ISO 14001 allows you to:

Demonstrate a commitment to achieving legal and regulatory compliance to regulators and government

Demonstrate your environmental commitment to stakeholders

Demonstrate an innovative and forward thinking approach to customers and prospective employees

Increase your access to new customers and business partners

Better manage your environmental risks, now and in the future

Potentially reduce public liability insurance costs

Enhance your reputation

For particular industries, including the maritime industry, pressure is now being exerted by many large

organizations, such as the Major Oil Companies who expect their service suppliers to adopt environmentally-friendly

practices and may mandate ISO 14001 certification as a license to operate.

Continuous Improvement

At Harley Marine Services, continuous improvement is a quality process we use to ensure we meet the mark and

satisfaction of our customers. We are currently conducting annual internal audits, ABS intermediate audits and third

party audits of our tug boats and facilities to measure our performance against our plan and customer satisfaction

feedback. Our audit processes ensure the transparency of our operations and programs to drive improvement

throughout the company. This will allow Harley Marine Services to continue to grow and meet the ship assist and

bunkering demands of the maritime industry on the West Coast, East Coast and our newly added business Harley

Marine Gulf on the US Gulf Coast.

Environmental Awards

Our commitment to the environment has been getting significant recognition in the industry. In 2010, Harley Marine

Services/Harley Marine NY was the recipient of the 2010 EPA Environmental Quality Awards and won first place for

Environmental Initiative from the WorkBoat Environmental Awards. Recently, one of our oil customers gave Harley

Marine a “Best Practice” special recognition to the Environmental Management System Program (EMSP).

Upcoming Soundings articles will describe how the ISM Code and AWO-RCP add value and safety to all our

operations.

Safe, Responsible, Rel iable, Ef f ic ient Page 4

Harley Marine Recycling New Life for Old Barges

Los Angeles based, Millennium Maritime and Westoil Marine, recently undertook a recycling project that will

utilize retired Navy equipment as a tug docking system at Harley Marine’s new location at Pier 301 in Los

Angeles Harbor.

The barges started their service lives as US Navy self propelled work barges called “warping tugs”. Following

their service the veterans were retired and waited patiently for their next assignment. Pictured above in the

far left.

Harley Marine purchased the retired warping tug barges from the US Navy in San Diego and towed them to

Los Angeles. Pictured above in the middle.

Once in place at the company’s dock in the LA Harbor, the work began on

the conversion. Pictured above in the far right.

The barges were stripped of all machinery and deck equipment, sealed

and made completely water tight. After flipping the barges and cleaning the

bottoms, containments were welded to the decks. Pictured to the right.

The final stage of the conversion is to cover the decks with a layer of

concrete, creating a smooth, safe working surface. Pictured to the bottom

right.

This project required the teamwork of our Operations Management, Tug

crews, and the Shore-side Engineering and Maintenance department.

Once finished and in place, these veterans will serve the company for

many more years.

Thanks to all the hard working HMS employees who have and continue to

contribute to this project to improve our company while practicing good

environmental and safety practices!

Andre Nault, Safety Manager-California

APRIL BIRTHDAYS

HARLEY MARINE GULF

Kimberly Hatfield 4/11

Anthony Hall 4/21

Linda Palermo 4/27

HARLEY MARINE NY

Jack Sica 4/23

HARLEY MARINE SERVICES

Alberto Lacao 4/4

Deborah Franco 4/9

Stephanie Gullickson 4/26

MILLENNIUM MARITIME

Neal Salamunovich 4/7

Pat Lopez 4/9

David Cadiz 4/17

OLYMPIC TUG & BARGE

Ron Starheim 4/2

Paul Thompson 4/9

Derrick Hobbs 4/15

Mike Curry 4/17

Jonathan Maciel 4/23

Randall Reinders 4/29

PACIFIC COAST MARITIME

Ben Latham 4/10

Robert Johnston 4/18

STARLIGHT MARINE SERVICES

Michael Rubino 4/1

Jacob Grobler 4/4

Jacob Laprade 4/6

Martin Miller 4/25

WESTOIL MARINE SERVICES

Sean Humphreys 4/7

Brian Vartan 4/7

Vincent Logrande 4/9

Mark Aproda Jr. 4/13

Phil Roberts 4/24

Safe, Responsible, Rel iable, Ef f ic ient Page 5

USS Lane Victory

On February 24th, 2011, Millennium Maritime assisted the USS

Lane Victory to anchorage. This was done for a full day of

filming of the new installment of the X-Men movies. The John

Quigg and the Millennium Maverick stood by all day to

maneuver the World War II vessel while

FOX studios shot scenes for the movie.

Join us in welcoming Sydnie Ann Buckhalter to the

Harley Marine Family. Sydnie was born on March 7, 2011 at

8:13am. She was born weighing 9 pounds 2 ounces and 22.5

inches long. Proud parents Cory Buckhalter and Alicia Ann

Janicki report that everyone is healthy and doing well.

Cory is an Engineer at Olympic Tug & Barge.

APRIL ANNIVERSARIES

Harley Marine NY

Lewis Canterbury - 4 years

Jess Canterbury - 4 years

Kevin Kelly - 4 years

Marco Velez - 4 years

Miguel Ortiz - 2 years

Harley Marine Services

Keith Barnes - 6 years

Irene Dulay - 2 years

Millennium Maritime

Bob Castagnola - 11 years

Mark Fuette - 11 years

Mike Golden - 11 years

Donald Shundo - 11 years

Mario Meyers - 4 years

David Spanjol - 3 years

Olympic Tug & Barge

Hugh Maffett - 12 years

David Alexander - 11 years

Larry Holland - 10 years

Steve Ybarra - 10 years

Erik Starheim - 6 years

Bryan Adams - 5 years

Ron Eriksen - 5 years

Robert Higa - 4 years

Eric Boardman - 3 years

Howard Frank - 2 years

Pacific Coast Maritime

Jim Weimer - 11 years

Robert Johnston - 6 years

Starlight Marine Services

Jacob Grobler - 5 years

Edgar Martinez - 4 years

Jonathan Willingham - 3 years

Westoil Marine Services

Raul Hernandez - 11 years

Patrick Speers - 9 years

John Bearden - 7 years

Michael Castagnola - 5 years

Steven Erikson-Meyers - 2 years

Anthony Piceno - 1 year

Safe, Responsible, Rel iable, Ef f ic ient Page 6

SAFETY TIP OF THE MONTH

Submitted by: Tim J Brown. Pacific Falcon

Handheld and bench grinders can operate at speeds up to 14,000

RPM. It is extremely important to use the utmost caution when

operating grinders for painting prep work and material removal.

Proper precautions include an inspection of the tool and electrical

cord. Make sure the wire wheel and/or grinding disc/wheel is rated

for high speed use and is in good condition prior to use. PPE

should always include full cover eye goggles, dust mask, heavy

leather gloves and long sleeve shirt. In addition to the hazard of

flying debris from material removal, the wire wheel cup brush and

grinding pads will break down during use. The individual wires

from a cup brush operating at 14,000 RPM can easily penetrate

the eye or skin of the operator or a person close-by. Periodically,

check your clothing for the wires that are discharged from the tool.

The wires or debris from the tool can be a hazard if they remain

imbedded in your clothes after the work has been completed .

Always make sure bench grinders have the proper guards in place

and are mounted securely .

By submitting this safety tip, Tim Brown received 2 safety points

and for having his article chosen to be published in Soundings, he

received an additional 25 points. Thank you Tim for participating in

SIP, you have received 27 points to use towards some great

safety related prizes.

Safe, Responsible, Rel iable, Ef f ic ient Page 7

SAFETY CORNER Safety Article of the Month Submitted by: Doug Anderson, Z-Four Two safety items that come to mind immediately are: complacency and unfamiliarity. These two descriptors can be the root of many problems. After hours, days or even years performing the same task, whether it be chipping and painting or transiting the Columbia River Bar; if these two issues rear their ugly head the consequences can be stiff and the resulting penalty too high a price to absorb. Complacency and unfamiliarity are difficult to define, pinpoint and correct until they have been evidenced in an unfortunate incident and it is too late. Even the most mundane tasks such as checking the oil in the mains, one can fall victim to complacency. The person who maintains the engine gets in a routine. They check the oil every day, notice that it needs about a gallon a week and adjust their routine to these findings. Then, if we get complacent and neglect to check the oil, even if it is just once, the impact could be severe. A crew member who has been on the vessel for months, even years, thinks they know their vessel inside and out. However, with one missed turnover, the new crew is at a loss as to why an unfortunate incident has occurred; be it a collision, allision, mechanical or avoidable human error. This is why due diligence must be practiced at every turn, at every turn-over, and at every bar crossing. Situations are fluid; nothing stays the same long enough to avoid all mishaps. When a position is vacant, even for just a day or an hour, the open slot has to be filled to accomplish the task at hand, and there is not time to ask questions, things can and do go wrong. We hope they don’t, yet a bit of planning and slowing down to assess the situation can pay off in spades. I have experienced this myself. I spoke with Dave Gore a couple of years back regarding this very issue. He informed me that most accidents involving tugs and barges are the result of a new crew member being placed in charge of a new piece of machinery. One being new to the other or vice versa, doesn’t matter. This includes engineers and the equipment they maintain as well as operators and the vessels in their command. He impressed upon me the importance of training to bring us above the level of complacency and unfamiliarity in an effort to stave off avoidable circumstance. To bring another point to this discussion we must be aware of the “No worries, I got it” attitude. While this is definitely a desirable attribute to shop for in a prospective P.I.C., there is a point of diminishing return. When one takes charge of a task, machinery, barge, transit, etc., especially in this business, we better be sure they know what they are doing. The consequences can be disastrous. I know, as well from firsthand experience, that if we were to decline to take on a job for whatever reason, we ran the risk of being ostracized from the company and possibly a large part of the industry. I have not experienced this at Harley Marine much to this company’s credit. There are a lot of us in this business, but it is a small world. We all know someone who knows someone, etc. Please, let those days be gone. The climate of training is paramount if we are to retain what we have and remain in this industry. I bring these two issues to your attention so that they can be incorporated into your regular safety meetings. These issues require on the spot corrections that must be made by all. There is an even greater impetus for those of us who have been in the industry for a while to educate those who are up and coming. Those of us with less experience, and yet deeply involved in the task, must address these concerns with their relief to avoid any confusion. And, when we are to relieve someone of their responsibilities, we should make sure we are up to the task. In closing, I submit that we should all ask for direction from our superiors. Don’t be afraid or ashamed to ask for help. (After all no one learns everything, or even most things, on their own). Even superiors should learn to be redundant to their subordinates in as much as being made aware of how they, the subordinate, have accomplished their task in an effort to maintain continual improvement. Is the right equipment for the job available? Is it functional? Are those responsible for the mission, mission capable?

Doug Anderson

Safe, Responsible, Rel iable, Ef f ic ient Page 8

Cystic Fibrosis Southern California Walk-A-Thon April 30, 2011 Bonelli Regional Park, San Dimas, Ca.

The time has rolled around once more for the annual Southern California Walk to raise money for the cure of cystic fibrosis. Please read the letter our daughter has written and let it move your hearts to participate with us to help find a cure for this terrible disease. Thank you, Pete and Mary Hofmann

On April 30th, we will be walking in the Great Strides Cystic Fibrosis Walk-A-Thon in San Dimas, California. Cystic Fibrosis is the #1 genetic disease killing children and young adults in the United States. A defective gene causes the body to produce abnormally thick, sticky mucus that clogs the lungs and leads to life threatening lung infections. It also affects the digestive system, sinuses, liver and reproductive systems. Every day we are reminded of this dreadful disease. On the outside, our triplet 12 year old children (Allison, Jared and Nicholas) look completely healthy. They play baseball, soccer, volleyball and basketball. They swim, dance and argue with one another. But, on the inside, CF is slowly killing them. What few see is Jared’s permanent feeding tube inserted thru his abdomen, as he is constantly battling to gain weight. Not seen are the multiple medications, aerosol treatments or vest therapies. They spend countless hours at various doctor appointments getting blood tests, x-rays, ct scans and doing pulmonary function tests. Then there are the hospitalizations and the tears shed by them and those who love them. They have gone through more in their short 12 years, than anyone should have to endure in a lifetime. With the help of the CF Foundation, new therapies have made a difference in treating their symptoms. Hopefully soon, there will be new drugs that will prolong their lives. But, the reality is, there is no cure. It is wonderful donations from you and others that bring us one step closer to a cure. By making a tax deductible donation to the Cystic Fibrosis Foundation, you can help Jared, Allison, Nicholas and other children fulfill their dreams of a cure, proms, graduations, weddings and families of their own. What if it is your dollar or prayer that makes that dream come true? Checks can be mailed to Jerry and Lisa Cowan, 760 East Sierra Madre, Glendora, CA. 91741. Or you can donate on line using your credit card at: http://www.cff.org/Great_Strides/dsp_DonationPage.cfm?

walkid=6866&idUser=73630

For those of you who have supported this great cause in the past or are now considering, we are deeply touched and thank-you. Sincerely, Jerry and Lisa Cowan

Safe, Responsible, Rel iable, Ef f ic ient Page 9

Investment Changes

The Harley Marine Services 401(k) Plan Committee has agreed to make

the following changes to the 401(k) plan investment options effective May

4, 2011:

1. Replace the Growth Fund of America fund with the Wells Fargo

Advantage Growth Fund;

2. Replace the Masters’ Select Equity Fund with the Wells Fargo

Advantage Growth Fund;

3. Replace the Fidelity Cash Reserves Money Market Fund with

the Charles Schwab Stable Value Fund.

The Masters’ Select Equity Fund carries a redemption fee of 2% on

balances held less than 180 days. To avoid triggering that fee, on May 4,

2011 this fund will be closed to new investments, and any new elections to

the fund will be redirected to Wells Fargo Advantage Growth.

Be on the look out for an official notification which will provide more details

on the fund changes and the redemption fees.

A Great Opportunity

As part of the Tax Relief, Unemployment Insurance Reauthorization and

Job Creation Act of 2010, a law passed in December of 2010, the

employee portion of the Social Security tax will be reduced for 2011 from

6.2% to 4.2% on all earned wages up to the Social Security wage base

($106,800 for 2011).

With the reduction to the Social Security tax taking effect for 2011, this

may be time for you to consider changing your current deferral rate for

your retirement plan. By increasing your contributions by the same

amount, your take home pay remains the same, but you’ll be increasing

the amount you’re putting aside for your retirement. And remember that

June and December are the only times you can change your deferral

amount. (Note that the expiration of the Making Work Pay tax credit on

December 31, 2010 may also have impacted your tax withholding and

partially offset the Social Security tax reduction.)

Administrative Questions

If you have questions regarding

your quarterly statement,

participant website, or plan

provisions, please contact your

plan administrator:

G. Russell Knobel & Associates

1-800-822-9205

Investment Questions

If you have questions or need

guidance with the fund options

in your retirement plan, please

contact your plan education

specialist:

Kibble & Prentice

Melody Prescott

1-206-676-7421

melody.prescott@kpcom.com

Plan Eligibility

As a reminder, you are eligible to

enter your retirement plan if you

are age 21 or older, and have

completed 1 year of service.

MARCH EMPLOYEE OF THE MONTH

Starlight Marine Services

Todd Yeilding

Starlight Marine Services would like to recognize deckhand-engineer, Todd

Yeilding as the March Employee of the Month. Todd was hired in October

2008 and has fulfilled every job billet given to him. This past month he

volunteered to cover an engineers position without complaint. Thanks Todd for

helping out your shipmate and for filling in when we have needed you. Your

hard work and dedication are noticed, we appreciate your efforts.

Olympic Tug & Barge

Eric Chisman

Olympic Tug & Barge would like to recognize tankerman Eric Chisman as

the March Employee of the Month. Eric joined OTB in May of 2006 as a

Deckhand. Several years later, Eric received his Tankerman’s endorsement

and began working the barges full time. Eric does a great job on the barges

and is always willing to expand his knowledge and understanding of barge

operations. Eric has remained one of those crew members that can be

counted on to make the right decisions even during difficult times. Eric, we

appreciate your can-do attitude. Please keep up the good work.

MARCH NEW HIRES

Harley Marine NY

Kris Steffenson - Mate

Harley Marine Services

Jennifer Moore - Accounts Receivable Manager

Olympic Tug & Barge

Scott Shaw - Port Engineer

Starlight Marine Services

Jacob Otenbriet - Shoreside Dock Worker

Westoil Marine Services

Michael McClain - Port Mechanic

910 SW Spokane Street

Seattle, WA 98134

(206) 628-0051

www.HarleyMarine.com

Editor: Stephanie Gullickson

sgullickson@harleymarine.com

Harley Marine Services, Inc.