Drooid Logo
Back to story perspectives

Full Breakdown

Hawaii’s Struggle with Abandoned Vessels: The “Treasure Seeker” Case and State Costs

By Drooid · · How we work

Core Event – Diesel Leak and Scrapping of the “Treasure Seeker”

In May, the 72-foot former salmon boat-turned-pirate-themed party vessel Treasure Seeker released diesel into the Ala Wai Small Boat Harbor, creating a pink film on the water on May 17. The spill prompted a federal cleanup response from the U.S. Coast Guard, which deployed Pacific Environmental Corporation and used 23 sorbent-pad bags. After being deemed a navigation hazard, the hull was towed by state contractor Henry Marine Services in late August and subsequently crushed and dumped at the Wai‘anae landfill. The Department of Land and Natural Resources (DLNR) said it will attempt to recover the removal costs from the vessel’s legal owners, though the expense remains uncalculated.

Background & Context – Growing Burden of Derelict Boats in Hawaiian Waters

Hawaii has operated an abandoned-vessel program since 2002. State officials estimate roughly 375 wrecks and ghost ships have been grounded, sunk, or abandoned in state waters since that year. Between 2002 and 2019, DLNR reported spending $2.2 million to remove or salvage 91 vessels statewide. Since 2020, the agency has expended an additional $1.3 million on impounding, hauling out, and destroying boats abandoned in public harbors. A February state audit described the program’s cost-recovery track record as an “honor system” with “limited, almost non-existent” collections.

Data & Statistics – Financial Impact and Scale

  • Typical grounded vessel removal: $12,000 – $50,000.
  • Chapparal incident (January 2024): salvage cost $842,000; owner never reimbursed the state.
  • Princess Moana (sank 2022, salvaged summer 2025): cost over $350,000 to the boating division.
  • The Treasure Seeker’s removal cost has not yet been finalized, but similar cases have escalated quickly.

Official Statements & Responses – State Agencies’ Actions

  • Meghan Statts, administrator of the Division of Boating and Ocean Recreation, said the agency is exploring contracts with a collections company and will coordinate with the Attorney General’s office.
  • Toni Schwartz, spokeswoman for the Attorney General’s office, declined comment on enforcement discussions.
  • Bruce Swartz noted the department must front expenses in roughly 70 % of abandonment cases, a “significant part of lost revenue.”
  • Ed Underwood, former head of the boating division, explained that the 2019 insurance-coverage requirement (House Bill 1033) was suspended in 2022 because local insurers would not provide the mandated $500,000 policies.

Conflicting Reports & Gaps – Unsettled Ownership and Uncalculated Costs

Ownership of the Treasure Seeker remains ambiguous. Former owner Demetrius “DJ” Smith reported selling the vessel to Delano Wilson for $1 around early May, but Wilson never filed the required paperwork, and his contact number is now inactive. The department has not pursued Smith for the spill, and the final cost of the August towing and landfill disposal has not been disclosed. The audit’s cost-recovery figures also lack detail on individual vessel liabilities.

What’s Next – Potential Policy Adjustments and Lessons from Other States

Hawaii officials are considering a formal partnership with a collections firm to improve recovery rates, a step that would require coordination with the Attorney General’s office. State leaders are also reviewing voluntary surrender programs used in Washington and Florida, which have reduced salvage expenses by allowing owners to turn in vessels before they become derelict. No specific legislative timetable has been announced.