Salvage crews yesterday afternoon began to remove the broken remains of a fishing vessel that ran aground Saturday on the rocky shoreline near the Point Panic surf spot off Kewalo Basin.

The crew of the 54-foot Two Star contacted the Coast Guard at 4:30 a.m. Saturday, saying that the boat was having engine problems and had run aground. The vessel's four-man crew was able to make it to shore, but waves pummeled the Two Star and it began to break apart.

Yesterday, the state contracted PENCO — Pacific Environmental Corp. — to remove what remained of the Two Star, which was largely intact Monday but began breaking up yesterday. By 9 a.m., the wheelhouse had broken off and only the stern was visible along with the longline spool.

Crews spent most of the afternoon plucking large pieces of wood and other debris that were being washed in the surf.

PENCO was expected to return this morning to remove the boat's engine, keel and fuel tanks, said Rusty Nall, vice president of PENCO. He said he hopes to complete the job by Friday.

"We have to clear all the debris on top of it before we can get to that," Nall said. "If they were trying to rig something underneath there with all the timber with all those nails and screws sticking out, it's a safety issue."

On Saturday, PENCO also removed 750 gallons of fuel from the Two Star, Nall said.

"That was the primary potential damage to the environment," he said.

The work is estimated to cost $95,000 and state officials are concerned that they will not be able to recover the cost from the vessel's owner. Deborah Ward, spokeswoman for the Department of Land and Natural Resources, said boat owners are responsible for the cost of the salvage work, but the Two Star's owner, Leilani Fishing Inc., apparently has no insurance.

"Normally we do try to recover the costs. We would probably try, but I don't know if we'd be successful," Ward said.

Howard Um, the vessel's agent, could not be reached for comment.

Once the Two Star is removed, DLNR divers will assess any damage that may have been done to the reef. The grounding is being investigated by the Coast Guard and DLNR.

Reach Curtis Lum at culum@honoluluadvertiser.com.