The crew, working for Bibby Offshore, had been testing the safety of a drilling structure in the Huntington oil field, 115 miles off the east coast of Scotland when the emergency happened.
One of the divers, Chris Lemon, was left with just his emergency oxygen tank for 40 minutes before his crew mates got control of the vessel and could return and find him.
Mr Waterman explained: "We lost control of the vessel and lost one of the divers. To be honest it was nothing short of a miracle. We pulled out all the stops to get back and rescue him and we got there just in time."
Father-of-two Chris Waterman, 53 receiving his award from Sir Michael Bibby
Mr Waterman went to London on Monday to receive a plaque for his actions, which was presented by Sir Michael Bibby, the owner of Bibby Offshore. The captain, all three divers and the diving supervisor also received an award.
He said: "It feels nice to be recognised. I was in charge and the responsibility was mine and I told them what to do but it was the divers that were the heroes.
"I feel a bit humble about it really. I'm sure I'm not the one who deserves it."
Part of the award was a cash sum, which Mr Waterman has donated to the Children's Trust.
Chris contacted us recently;
"I have hardly been in touch with anybody since i left school ,so I thought I would send this link (news story) and info to anybody who new me about what I have been doing since school:
75-79 engineering apprentiship since then i have worked in the offshore oil and gas industry and have worked all over the world but mainly in the north sea
80-99 deep sea saturation diver oilfeild construction
90-95 saturation diving supervisor
95-2000 saturation diving superintendent
2000-present offshore construction project manager"
Thank you for getting in touch Chris and congratulations on your award!