Shane Frasier

Neely Capshaw, the unwholesome, psycho lifeguard who tried to frame Matt for sexual harassment, arrives back at Baywatch for a job as the switchboard operator and is greeted with a hostile reception from everyone, especially C.J. who personally holds Neely responsible for Matt's departure from Baywatch. Meanwhile, Stephanie recruits Olympic hopeful swimmer Cody Madison as a new lifeguard, and decides to dedicate herself to be his personal training coach for the next Olympics. Also, Logan is trying to go into the fashion business with a new swim wear design with his Australian partner, Gator, while romancing his investor's daughter, Beth, and taking credit for everything. Mitch considers working as a private investigator in a detective agency at night. But everyone's paths collide when an abandoned offshore oil rig collapses after hitting an old submerged mine, trapping Cody, Neely and four other people under water.

Neely and Cody try to keep the four people (especially two seriously injured ones) alive on the sunken oil rig until help arrives when Mitch, Stephanie and Logan must find away to get into the structure to rescue them before the air supply runs out. At the end, despite Neely's heroic attempts and proving herself to be a very good lifeguard during the rescue, the Baywatch team still resents her presence and plans to give her a hard time. Logan finally gives into Gator's demands for the credit of the swim wear, and Mitch finally decides to join a detective agency.