If you observe any situation which presents a safety or pollution hazard during the fuel transfer operations, which action should you take FIRST?

Correct Answer: Option A — Shut down the operation.

33 CFR 156.120 requires that if a safety or pollution hazard arises, the person in charge must immediately stop the transfer. Immediate cessation of flow is the primary defense against catastrophic spills, taking precedence over notifying shore personnel or sounding alarms, which are secondary actions following the emergency shutdown.