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Owners contest $1.8M fine after grounded yacht causes damage to Hawaiian coral reef

The owners of the 28.1-metre Nakoa have requested a formal case hearing to contest a $1,818,851.97 fine given by the Board of Land and Natural Resources. 

This follows an incident that saw the Sunseeker yacht break free of her mooring in the protected Honolua-Mokulēʻia Bay Marine Life Conservation District and cause damage to over 100 coral colonies and over 1,500 square metres of live rock on Maui’s west coast (20 February 2023).

Inclement weather resulted in Nakoa being stranded for two weeks and across three separate rescue attempts.

On 26 April 2024, the Board increased the fine from $117,000 to account for biological and cultural damages, as well as "emotional distress to the community".

"A slap on the wrist in this situation, would be a slap in the face of this community," said John Carty of the Save Honolua Coalition.

The owners' legal representative argued that there is no basis to impose liability as the grounding took place following the theft of the vessel. They also noted that damage from the initial grounding must be separated from the damage related to salvage.

Prior to the salvage, the DNLR confirmed that fuel, batteries and other pollutants were safely removed from the vessel. Around 470 gallons (1,779 litres) of petroleum products and 14 marine batteries were recovered from the yacht, with helicopters transporting 55-gallon (208 litres) drums of fuel from the boat to a staging area where it could be disposed of.

Before the defuelling began, eyewitness accounts reported considerable fuel leakage surrounding Nakoa.

At the time, DLNR first deputy Laura Kaakua said: "We understand everyone’s frustration with the grounding and harm to the reef at Honolua, a bay with abundant marine life that’s loved by many residents of Maui and visitors alike."

The initial fine was recommended by the DLNR Division of Aquatic Resources and included $26,700 for damaging stony coral, $33,520 for damaging live rock, $56,851 for the cost of the investigation, and $400 for violations.

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The Yacht Was Finally Freed From Honolua Bay — Then It Sank Off Maui

State officials say they will "aggressively pursue" recouping the nearly $500,000 cost of removing the vessel and any damage to the reef.

State officials say they will “aggressively pursue” recouping the nearly $500,000 cost of removing the vessel and any damage to the reef.

The 120-ton yacht that ran aground two weeks ago has finally been hauled away from the rocky shoreline at Honolua Bay. 

After being freed Sunday afternoon, the yacht began to take on water while being hauled toward Honolulu, according to a state news release.

In the channel between Maui and Molokai, the salvaging crew decided to scuttle the ship — in other words, deliberately allow it to sink to the bottom of the ocean, about 800 feet below. 

“I’ve been feeling like I had 120 tons on my mind all these weeks and holding my breath,” Maui County Council member Tamara Paltin said in a video statement for the Save Honolua Coalition . “Once it got off … it was like I could breathe again, like the whole valley could breathe again.”

The 94-foot vessel operated by Noelani Yacht Charters ran aground in Honolua Bay on Feb. 20. By the next day, the hull had been punctured, and diesel fuel spilled into the water leading into one of Maui’s most beloved marine sanctuaries.

Because of its sheer size and the complexities that would come with its removal, the Hawaii Department of Land and Natural Resources hired a contractor for $460,000 to try to haul the yacht away. A salvage ship operated by Visionary Marine teamed up with a tractor tug operated by Sause Brothers.

Sunday’s success in freeing the ship came after a number of unsuccessful attempts in less than ideal weather conditions over the last week and a half. 

Crews previously had removed all the fuel and other hazardous materials on board, according to DLNR.

“I’m beyond words,” DLNR Chair Dawn Chang said in a statement. “I extended our appreciation to (the owner of Visionary Marine) and his crew for doing a tough, thankless job when others in the industry were questioning the wisdom of taking it on.” 

Chang said the state will “aggressively pursue” recouping the cash for removal from the yacht’s owner, in addition to whatever it costs to repair damage to coral reefs and live rock in Honolua Bay. A team will return to Honolua Bay this week to assess the harm.

In an interview last week with Civil Beat, Jim Jones, the owner of Noelani Yacht Charters, said he wanted to make things right and wouldn’t leave DLNR with the bill .

Now that the yacht is gone, Maui residents say it’s time to work with state officials and community members to make changes to better protect Honolua Bay .

“We’re really hopeful for moving forward now with the new leadership of the DLNR,” John Carty, vice president of the Save Honolua Coalition, said in a video statement. “They really are interested in working with the community to make sure that nothing like this happens again.”

Civil Beat’s coverage of Maui County is supported in part by grants from the Nuestro Futuro Foundation and the Fred Baldwin Memorial Foundation.

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Maui businessman, captain sued for $2M after grounding luxury yacht

A business owner whose luxury yacht ran aground and leaked diesel fuel into waters off Maui last month is being sued for more than $2 million in damages by a trust that sold him the vessel.

The lawsuit filed in U.S. District Court in Honolulu on Monday seeks at least $1.45 million for the loss of the yacht, which was supposed to be paid off over the course of 15 years. It also seeks at least $500,000 for salvage work and at least $500,000 for environmental damages.

Kevin and Kimberly Albert, trustees of the Albert Revocable Trust in New Mexico, filed the lawsuit against Jim Jones, his company Noelani Yacht Charters, and ship captain Kimberley Kalalani Higa.

The lawsuit says the only approved captain on the insurance policy was Joe Bardouche. Both have a 100 T U.S. Coast Guard license.

The lawsuit says Jones and his company used the vessel “in a grossly negligent manner” for a personal trip without seeking the approval of the trust.

The 94-foot yacht Nakoa ran aground in Honolua Bay on Feb. 20 after its mooring line snapped. Private contractors towed the ship out to sea, where it sank in about 800 feet (244 meters) of water on March 5.

The state Department of Land and Natural Resources plans to bill Jones for the $460,000 cost of salvaging the boat. It's also considering fines after the episode damaged coral reef.

The lawsuit says Jones notified the trust after the grounding that he had taken the yacht out for personal use.

It says Jones and Noelani Yacht Charters breached a purchase agreement holding the buyer responsible for any risk of loss or damage. The agreement also outlined operations, crew requirements and restricted uses.

A phone message left for Jones at Noelani Yacht Charters was not immediately returned. The company's website says it's no longer in business.

The company told The Maui News in February that “this was a family retreat with an unfortunate ending.”

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Owners of grounded super yacht, ‘Nakoa,’ unresponsive to agreed-upon payment

HONOLULU — The issue of a $117,471.97 payment for the Feb. 2023 grounding and eventual removal of the luxury yacht, “Nakoa,” came back to a Board of Land and Natural Resources meeting on Friday since no payment by the yacht owners has been received, according to a Department of Land and Natural Resources news release.

What You Need To Know

In july 2023, the blnr reached a tentative settlement agreement with the owners of “nakoa” – jim jones, noelani yacht charters, llc, kevin and kimberly albert, and the albert revocable trust – to pay for damage to natural resources, its restoration and the cost of the dlnr investigation the dar noted in its submittal, “nearly six months have passed since the july 28, 2023, board meeting and, despite numerous requests to the alberts to finalize and pay the settlement amount, the settlement has not materialized” after hearing from community members in person and virtually on friday – many of whom desired a community meeting with officials to discuss the situation – the blnr deferred the matter until one can be held in west maui.

In July 2023, the BLNR reached a tentative settlement agreement with the owners of “Nakoa” – Jim Jones, Noelani Yacht Charters, LLC, Kevin and Kimberly Albert, and the Albert Revocable Trust – to pay for damage to the area’s natural resources, its restoration and the cost of the DLNR investigation.

The BLNR in return agreed to release the owners from “any and all liability from current and future claims by the state, deriving from the Feb. 20, 2023 ‘Nakoa’ grounding incident,” according to the release. The BLNR did reserve its right to assess fines and penalties against Jim Jones and Noelani Yacht Charters at a later date.

A submittal from the DLNR Division of Aquatic Resources to the BLNR noted the grounding had caused considerable angst and emotional distress to the public, especially the residents of northwest Maui.

“The DLNR does not have a tool to obtain a monetary value for emotional distress and cultural damage to the public, but DAR acknowledges the volumes of public testimony received at the July 2023 meeting regarding their emotional distress and cultural damage,” as stated in the submittal. “Therefore, the DLNR leaves the decision to levy additional appropriate fines against the responsible parties to the board in its discretion.”

The DAR also noted, “Nearly six months have passed since the July 28, 2023, board meeting and, despite numerous requests to the Alberts to finalize and pay the settlement amount, the settlement has not materialized.”

After hearing from community members in person and virtually on Friday – many of whom desired a community meeting with officials to discuss the situation – the BLNR deferred the matter until one can be held in West Maui.

In Feb. 2023, the “Nakoa” broke loose from its mooring and ultimately grounded on the shoreline between Honolua Bay and Lipoa Point. It took weeks to prepare the boat for removal and to conduct salvage operations. A salvage team determined it couldn’t be salvaged and “Nakoa” was then sunk in 800 feet of water off Maui west coast.

Two damage assessments by DAR found 1,640.5 square meters of live rock had been damaged and at least 119 living coral colonies had been damaged or destroyed. According to the DLNR, Hawaii Administrative Rules “lay a fine schedule for each specimen damaged or destroyed in a boat grounding.” However, the BLNR has broad discretion in assessing fines.

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Sarah Yamanaka covers news and events for Spectrum News Hawaii. She can be reached at [email protected].

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Luxury yacht finally freed from Maui near-shore reef only to sink in 800 feet of water

Nearly two weeks after a 120-ton, 94-foot luxury yacht grounded in Honolua Bay on Maui, a salvage ship and a tugboat from Honolulu finally freed the vessel named Nakoa from the rocky shoreline.

But there is no happy ending for the yacht.

It is now at the bottom of the ocean, about 800 feet deep.

The multimillion-dollar yacht had suffered severe holes in the hull during the days it was grounded, with the rough surf pounding it repeatedly against the rocks of the shoreline.

“It had taken on water, was listing starboard and riding bow high after being pulled free by a tractor tug early this afternoon,” according to the state Division of Boating and Ocean Recreation.

The yacht sank.

It was the end to an ordeal that began nearly two weeks ago when the yacht grounded just outside the Honolua-Mokulē‘ia Bay Marine Life Conservation District. Although the area has day-use moorings with a time limit of two hours, yacht owner Jim Jones told media that he didn’t know the rules  and stayed overnight with his family when one of the lines snapped and the boat hit the rocks.

It has been quite the ordeal to salvage the boat.

Once the boat stated leaking fuel, the U.S. Coast Guard federalized the vessel, meaning it has jurisdiction over the yacht which cannot be moved until all hazardous material was removed .

When that process was done the state Department of Land and Natural Resources took over because Jones said he did not have the money to pay for the salvage operation. The state organized and is paying for the operation, but will be sending Jones a bill, which initially was for $460,000 plus. But that will be sure to go up due to all the problems encountered during the salvage.

Once the hazardous material was removed, Visonary Marines’s salvage ship Kahi from Honolulu tried to removed the yacht from the reef but failed after multiple pulls. Sause Brothers’ tractor tug Mary Catherine was called in from Honolulu to help, but the second attempt with both boats also failed. Then bad weather forced both salvage boats to return to Honolulu.

They returned to Maui on Saturday.

A crew from the salvage ship rigged lines to the yacht Nakoa   all day Saturday and Sunday morning to prepare for the third attempt.

Prior to the 3,300-horsepower tug hooking up, the salvage crew used a carbon cutter to free either the yacht’s prop or rudder, believed to be the reason earlier attempts did not succeed, according to the Department of Land and Natural Resources.

On Sunday, there were ideal weather and ocean conditions for the complex and costly operation. Once the tug turned the boat 90 degrees it pulled out into deeper water. 

“The yacht was listing to one side and riding bow high and it’s unknown at this time whether it was successfully pulled all the way to Honolulu or had to be scuttled in 1,000-foot-deep water offshore,” the Department and Land and Natural Resources said.

Department Chair Dawn Chang watched the salvage operation on Sunday with Maui Mayor Richard Bissen and Maui County Council member Tamara Paltin. Chang said she heard almost immediately from Randy Cates, the owner and operator of Visionary Marine. 

“I’m beyond words,” Chang said. “I extended our appreciation to him and his crew for doing a tough, thankless job when others in the industry were questioning the wisdom of taking it on. We all thought today was it. It was either going to happen or not. I’m extremely pleased.” 

Chang said the state will aggressively pursue recouping all salvage costs from the owner, which originally were set at $460,000 plus before delays and the need for a second boat were included in the cost.

It also does not include the cost to repair damage to coral reefs and live rock. A team from the state Division of Aquatic Resources will return to the grounding location this week to conduct a post-incident damage assessment. 

To read more about yacht tales in Hawai’i waters involving a pop star, Russian oligarch, coral wrecker and thief, click here .

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Grounded yacht sinks to bottom of the sea after freed off Maui

By Star-Advertiser staff

March 6, 2023

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COURTESY DEPARTMENT OF LAND AND NATURAL RESOURCES

After two failed attempts, efforts to salvage the grounded luxury yacht in west Maui will continue this weekend.

The grounded luxury yacht Nakoa in west Maui as seen on Feb. 27. After several towing attempts and a fuel leak over the past two weeks, the luxury yacht Nakoa is now at the bottom of the channel between Molokai and Maui.

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After several towing attempts and a fuel leak over the past two weeks, the luxury yacht Nakoa is now at the bottom of the channel between Molokai and Maui.

Officials from the Hawaii Department of Land and Natural Resources announced Sunday evening that the yacht was scuttled at sea after taking on water.

It was pulled free by a tractor tug earlier that afternoon, but had been listing starboard, then sunk, with only its bow visible above the water a few miles offshore.

It is estimated to be resting about 800 feet deep, with no plans to bring it back up, officials said.

The 94-foot, 120-ton luxury yacht was finally pulled free after a third attempt Sunday. The original plan was to tow it back to Honolulu, according to officials.

The Nakoa first ran aground on President’s Day in February on a reef at Honolua Bay, just outside of the Honolua-Mokule‘ia Marine Life Conservation District on the northwestern coast of Maui, after slipping loose from a mooring.

The vessel belongs to Jim Jones, who runs Noelani Yacht Charters LLC, which business registration records show runs luxury yacht charters from a Honolulu address.

A business website advertises packages for chartered tours aboard Nakoa starting at $9,801.04 from Maui.

Dawn Chang, DLNR Chair, said this morning on “Spotlight Hawaii” that the department was working with the state attorney general’s office to fully investigate the situation and to hold the owner or owners accountable for the incident.

She said the owner was not authorized to be at Honolua Bay, nor to tie up to the mooring there.

At least 20 coral species have been impacted, she said, based on a DLNR Division of Aquatic Resources survey assessment prior to the vessel’s removal.

“We are going to utilize all of our resources to hold he and whoever owns that vessel accountable for all damages and all resources that were spent to take this action,” she said, “including the salvage crew, including administrative costs, including damages to the coral reef.”

DLNR said in a news release that DAR team would return for a post-incident damage assessment of the site.

Luxury yacht owner denied insurance coverage to remove grounded boat from Maui’s Honolua Bay

HONOLULU (HawaiiNewsNow) - The state’s efforts to recover $460,000 in expenses for the removal of a grounded luxury yacht at Maui’s Honolua Bay have hit a snag as the owner’s insurance company has denied coverage.

Jim Jones, the owner of the yacht Nakoa, confirmed in federal court that the insurance company denied coverage and that he has hired a bankruptcy attorney.

This leaves the state uncertain about who will pay for salvage and reef repairs.

Jones is representing himself in a lawsuit filed by his investors, who are seeking more than $2 million in damages, alleging that he violated his contract when the yacht ran aground in February.

Jones has denied any negligence.

The Nakoa, which had been used for luxury charters, was removed from the reef in March after being stuck for more than a month. The grounding caused significant damage to the reef , and experts say it will take years to recover fully.

PREVIOUS COVERAGE:

• Suit alleges ‘gross negligence’ in Maui yacht grounding that damaged reef
• DLNR: Grounded yacht scuttled at sea after being ‘successfully’ freed at Honolua Bay
• Salvage work continues for grounded yacht at Honolua Bay; owner faces hefty fines
• DLNR: Crews successfully defuel luxury yacht grounded at Honolua Bay
• Cleanup efforts underway after grounded luxury yacht leaked fuel into Maui bay
• Maui officials: Luxury yacht that ran aground near marine sanctuary leaked fuel into bay

Copyright 2023 Hawaii News Now. All rights reserved.

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