Maui Snorkel Charters Inc. will pay the state nearly $400,000 for damaging coral within the Molokini Shoal Marine Life Conservation District, under a settlement approved today by the Board of Land and Natural Resources.

A $386,297 administrative fine against the company, which does business as Maui Dive Shop, is the largest ever issued by the state in a case involving coral damage within a marine life conservation district.

The company also is responsible for $10,618 in administrative costs incurred by the Department of Land and Natural Resources during its investigation.

The damage occurred Sept. 29 to Oct. 6, 2006, when the company's 32-foot boat Kai Anela suddenly sank after one of its bow lines became tangled in an engine.

Fifteen people aboard the vessel had to jump into choppy seas dangerously close to Molokini crater without life preservers, according to a DLNR report. All were safely rescued.

The sinking and subsequent salvage efforts killed or injured 661 to 871 coral colonies over a total area of 2,067 square feet.