Hawaii tour-boat company to pay almost $400,000 for damaging coral reefs

HONOLULU — A Maui snorkel tour company has agreed to pay nearly $400,000 for damage to coral reefs when its boat sank off Maui near Molokini crater.

The state Board of Land and Natural Resources in January approved a recommendation that penalties totaling $550,000 be imposed on Maui Snorkel Charters Inc., which does business as Maui Dive Shop. But settlement negotiations resulted in a reduced amount.

The 32-foot Kai Anela sank Sept. 29, 2006, after one of the its bow lines became tangled in an engine. Fifteen people had to jump overboard, and all were rescued.

Marine biologists say hundreds of coral colonies were destroyed by the Kai Anela's aluminum hull and by a subsequent operation to salvage the vessel. Biologists say it will take 80 years for the coral bed to recover.

Officials say more than 600 coral colonies spread over more than 2,000 square feet were killed or injured.

The agreement reached Friday also calls for suspending the ship's permit to operate within the Molokini conservation district for 2 ½ months, with credit given for the two months the vessel was out of operation after the sinking.

The deal includes a $396,000 administrative fine — the largest state fine imposed for coral damage within a conservation district. It also had the snorkeling tour company to pay more than $10,000 in administrative costs.

Maui Snorkel Charters co-owner Jeffrey Strahn apologized and expressed remorse at a January meeting of the Board of Land and Natural Resources.