To challenge Lt. Surge, you first need HM01 (Cut). Head to the S.S. Anne, a luxury cruise ship docked in Vermilion City. You'll need a ticket, which you received from Bill after helping him. Battle trainers on the ship, and you'll find your rival. After defeating him, head to the Captain's quarters to receive HM01 (Cut). Teach it to a Pokémon, then use it to cut down the tree blocking the Vermilion Gym. Lt. Surge uses Electric-type Pokémon. Ground-type Pokémon are highly effective. Defeat him for the Thunder Badge and TM34 (Shock Wave).
