William Boyer July, 2017

BP Macondo well underwater live video feed (2010)

Exxon Pegasus line leak in Arkansas – YouTube video (2013)

Millions of smart phones in the U.S. by year

Source: Statista.com

Several of the

incidents in the

presentation

today were from

2010

Almost 4X the

number of

phones in 2010

Examples: Facebook, Google+, Instagram, LinkedIn, Pinterest, Reddit, Snapchat,

Twitter, WhatsApp, Gab, YouTube.

These sites have more than 100,000,000 registered users.

“Social media are computer-mediated technologies that facilitate the creation and

sharing of information, ideas, career interests and other forms of expression via

virtual communities and networks.” Source: Wikipedia – “Social Media”

Billionaire Warren Buffet once said,

“It takes 20 years to build a reputation

and five minutes to ruin it.”

Carl-Henric Svanberg

Tony Hayward

"There's no one who wants this thing over

more than I do. You know, I'd like my life

back."

“And we care about the small people. I hear comments

sometimes that large oil companies are greedy companies or

don’t care. But that is not the case in BP. We care about the

small people.”

"the Gulf of Mexico is a very big ocean.

The amount of volume of oil and

dispersant we are putting into it is tiny in

relation to the total water volume."

The Deepwater Horizon Disaster: BP's Lethal Leadership Lessons – Forbes article Sept 21, 2016

BP Macondo Well / Deepwater Horizon Rig Fire – April 20, 2010

Studies and articles at Berkeley, MIT, Yale and other universities

Company/ Location Date Size of Spill Impacts Costs

($ million)

BP – 50 miles off

Louisiana in Gulf

Coast

April 2010 4.9 million bbls 11 fatalities. 17 injured.

Birds, fish, coast/

beach, businesses.

Employees sued.

28,000 +/-

Exxon Mobil –

Mayflower, Arkansas

March 2013 3,190 bbls 22 homes evacuated.

No fatalities. Birds,

other wildlife affected.

5 – fines and penalties

100+ for other costs(?)

PG&E – San Bruno,

CA neighborhood

September 2010 Gas released and

burned for hours

8 fatalities. 36 homes

destroyed

1,690+

Enbridge – Kalamazoo

River - Michigan

July 2010 23,000+ bbls 150 families displaced.

40 miles of river and

4,435 acres of land. No

fatalities.

2,800+

Plains – Goleta, CA –

Refugio State Beach

May 2015 3,000 bbls Birds, fish, rocks and

soil. No fatalities.

Employees sued.

269

Realize it is just a matter of time before you will have some level of significant incident Realize

Learn from the incidents of other companies – “could the same thing happen to us?” Learn

Spend time developing an emergency/ crisis management plan, and update it annually Spend

Ensure that outside resources are identified Ensure

Practice – various size incident drills; varying levels of management involved Practice

Realize it is just a matter of time before you will have some level of significant incident (don’t assume you are the exception!)

• Do things that support the communities and areas where you operate

• Get involved with industry associations – API, AOPL, INGAA

• Identify and risk rank line segments and facilities – and inspect accordingly (class 3 & 4 locations for gas / “HCA” areas for liquids)

• Train your people and document the training

• Instruct employees and contractors not to talk to reporters – designate who they should contact for information or comments

Learn from the incidents of other companies – “could the same thing happen to us?”

• Cheapest, most valuable source of training

• Read the published incident reports and news stories

• Note any PHMSA or NTSB reports and recommendations or proposed findings

• Look for similarities in your own facilities or operations

• Communicate throughout your company any changes in procedures, inspections, construction specifications, communications, reviews/ approvals, etc.

Fleishman - Hillard MWW - PR

Forefront Emergency

Mgmt

TRG – The Response Group

Regester Larkin

Americas

TRP – Technical Response

Planning

Weber - Shandwick Bernstein Crisis Management

Consultants listed in no particular order. None of these are necessarily endorsed or recommended by the presenter

Emphasize that it was an accident and unfortunate Emphasize

Exercise humility – don’t be arrogant or defensive in interactions Exercise

Take care of the local landowners early Take

Provide regular update meetings Provide

Have senior management meet with elected representatives Have

Emphasize that it was an accident and unfortunate

• Don’t hide from the public or the news media

• Whatever your spokesperson says initially will be repeated in the press

• Important to convey genuine interest in repairing the damage and finding the cause of the incident

• Its OK to say “we’re very sorry this happened”

• Coordinate all communications through your crisis management company

Exercise humility – don’t be arrogant or defensive in interactions

• Numerous articles on how not to handle an incident – BP’s Macondo incident in particular

• People want assurances that your company is treating the incident as “extremely high priority” – cleaning up the damage – taking steps to keep it from happening again – a commitment to “make things right”

Take care of the local landowners early

• Besides the emergency response resources and communications, someone with a checkbook needs to be on site early

• Exxon Mobil had neighbors moved into hotels or temporary housing almost immediately

• Plains mobilized hundreds of laborers to find wildlife impacted, place booms, and begin cleanup

Provide regular update meetings

• Both Exxon Mobil and Plains had websites with updates several times/ day

• Meet with local authorities – mayor, city council, other state agencies and boards

Have senior management meet with elected representatives

• Depending on the size of the incident, include state level representatives, but also U.S. Congressmen and Senators whose districts or states are affected

• If a particularly large incident, arrange meetings with Congressional and Senate Committee chairs

• Include the industry association representatives and lobbyists (AOPL, API, INGAA)

William Boyer

Southcross Energy Partners

Houston, TX