RedactedNarrative: Vessel 1 was transiting from Matinicus Island to Rockland Harbor. Approximately 2 nm south of Monroe Island operator noticed decreased speed and steerage. Reduced throttle and opened engine hatch. Observed a large amount of water rushing forward into engine room. 
  
  Returned to full throttle and steered a course toward Monroe Island. Distress call made and received by USCG Station Rockland and Maine State Ferry. Operator had passenger put on survival suit and ready life raft. Operator then had passenger steer while he put on survival suit.
  
   Vessel observed steaming mostly submerged by Ferry vessel on scene. Engine failed and no longer making headway. Operator and passenger climbed onto bow of sinking vessel. 
  
  Vessel sunk from beneath operator and passenger. Ferry life boat recovered operator and passenger from the water. Transferred to USGC 47ft motor life boat. No injuries, operator and passenger refused medical.Vessel total loss. No collision noted. Suspect failure of wet exhaust, or other through hull for engine or steerage.