The incident began on April 19, 2017 when an out of service tugboat, the Tug Powhatan, sank in Starrigavan Bay near Sitka, Alaska, causing an oil spill. The tug released an unknown amount of refined fuels and lubricated oils over the course of nearly three months, until it was removed from the water on June 12.

Through the Natural Resource Damage Assessment process, NOAA evaluated injuries to natural resources and services resulting from the oil spill. Pacific herring eggs and larvae were injured and shellfish harvesting at a local beach was impacted.

Two restoration projects were identified to compensate for those losses. One project will remove marine debris from shorelines adjacent to Pacific herring spawning habitat in Sitka Sound to compensate for injuries to herring. Another project will provide additional funding for an existing shellfish monitoring program that provides information about environmental changes and seafood safety to local Tribes and communities. A final Damage Assessment and Restoration Plan and Environmental Assessment was published in January 2020, describing the injury determination and restoration.

The responsible party for the spill, Samson Tug & Barge, reached their limit of liability for the incident, so NOAA submitted a claim to the National Pollution Funds Center (NPFC), which administers the Oil Spill Liability Trust Fund, for assessment costs and funding to implement the restoration projects. This month, NOAA reached a settlement with the NPFC and will receive $1.3 million dollars, nearly $1 million of which will be used to fund marine debris removal and shellfish monitoring restoration projects in and around Sitka.