Increased Liability

Dramatically Enhanced Response Capability Requirements

Strengthens and changes USCG's role in responding to spills

The President and subsequently the USCG & EPA are  responsible to ensure that appropriate action is taken to minimize or mitigate damage to the public health or welfare threatened by an oil spill.  The costs of such action will be borne by the responsible party. This can be quite expensive.

If during an oil spill incident the U.S. Government is not satisfied that the responsible party is responding with appropriate amount of equipment and personnel, they can Federalize the spill.  This is a doctrine first established under the Federal Water Pollution Control Act of 1970.  Short of Federalizing the government routinely acts unilaterally to bring in additional resources.  This is routinely done without necessarily telling the responsible party that it is being done.  Of course the responsible party will still be billed for  all costs.

Under the Act, the Responsible Party pays for:

	All removal and restoration costs
	Damage to the environment

In the long term, these costs may be the highest under the act

Costs expended by the government

Federal, State and local, with respect to the incident.  They may include observers, equipment costs and overhead

	Loss of revenue to the Federal, State or local government
	Loss of profit and loss of revenue due to the incident

The key to company survival is to stay at least a little bit ahead of the government and how they are responding to the incident.  In most cases, the government will step back from the incident and not take a strong leadership roll if they think the company is acting aggressively and reasonably to the incident.

Planning Requirements

	Mobilize sufficient personnel and equipment resources to mitigate the spill.
	Respond to any media feeding frenzy using government sources whenever possible, but not allowing them to run away with expenditures.
	Respond to the local affected community to identify harm being done to persons and property and commence the mitigation process.
	Vigorously identify and follow-up on all deceased and injured company and non-company personnel.
	Meet with local community leaders to start defusing their problems.
	Identify industrial entities affected and take steps to mitigate their situation wherever possible.
	Develop practical removal and restoration plan based upon the facts.

The OPA 90 regulations all hinge on the concept of an in-house or sub-contracted consultant to provide expertise as a decision maker within the company and able to commit company funds.  This individual is called the Qualified Individual or QI.

The mandated planning process has required that transporters of oil perform extensive planning on how they will respond to an oil spill incident.  To accomplish this, many companies developed or hired in specific expertise to perform this function.  Most companies were very effective in performing the required planning and developing in-house expertise.

While some companies relied on subcontractors to be their QI, the most productive way was to use contractors to help develop in-house QI's.  This system has worked fairly well in developing QI's among transporting companies.  This system has been less successful in developing ancillary management expertise to support the QI in the event of a big incident.

Part of the problem is the very nature of the planning regulations.  They require that one organizational response structure be used.  The same organization that will be effective for a 1 gallon or a 30,000 barrel incident.  Companies uniformly developed a system  focalizing functions on their QI who could perform all company management functions for a very small incident allowing him to bring in added support whenever needed or for a larger incident.

Most companies have not been particularly successful in training all of the ancillary management support functions in how to perform these functions in support of the QI.

We have developed a system to help simplify the response organization.  We start with what we call an Information Flow Diagram.  This puts what is essentially the entire plan on one or in this case 2 pieces of paper  (attached is a generic vessel diagram).  This system is simplistic as it focuses on the way that information flows between participants.  We place the QI is in the center, but not all information flows through him.  This diagram is also intended to lead one into thinking in terms of  splitting the restoration of the plant or equipment back into service in the fastest possible time.  As the clean-up is ongoing, the plant or vessel needs to get back to business as soon as possible.

Much emphasis is placed on communication and contact with the QI throughout the response scheme under the Information Flow Diagram.  The QI will delegate tasks to other individuals in the organization.  Prompt and complete performance of these tasks is essential.  Thus, the QI can manage the entire project.

The tasks that will be assigned by the QI to individuals in response to an oil spill are the same type of tasks that are performed each day in the regular course of work.  However, when an oil spill occurs, the employee will change the focus of their performance so that he/she is acting to support the QI directly.  All information that is available to each person involved in the Information Flow Diagram needs to be communicated to the QI so that he/she can better feel the progress of the event and its magnitude.

For example, if a employee is injured while on the job, the company has procedures in place for responding to this sort of emergency.  When a person other than a employee is injured during an oil spill as a result of the company's activity, the focus of the same emergency procedure used in the above situation will shift so that outsiders can see the company's concern for this individual.  An important consideration in the event of an oil spill is the outside world's perception of the company.  The company's response efforts in an emergency must be highly visible.

Since the QI must take on intricate roles during this type of emergency, a strong organizational response will help reduce the potential for negative publicity.  Such a response also reinforces the company's ability to respond to the spill.

In addition, if the Coast Guard believes that the company  is in control of the incident and its cleanup, they will generally step back and allow the company to continue managing the operation.  This is preferred because the company can usually manage this situation at one-third to one-half of the cost if the government were to do the same job.

Thus, the QI must convince the government that the company is responding in a proactive and competent manner so that the government will allow the company to supervise and run the cleanup using its own discretion rather than more deeply involving Coast Guard, EPA or other agency action for which the company would be liable.

We want both the media and the government perceive the spill as a non-event.  As long as the government does not sense a potential for the incident to grow beyond their control, they will retreat and let the organization administer the cleanup operation.

The second page of the Information Flow Diagram connect to the first page.   Normally both pages would appear as one.  It shows some of the other planning elements that may be needed from time to time during a significant incident.

These people will generally be tasked to perform tasks that they perform in the normal course of business.  the primary difference is that they now must become much more proactive in their duties and must keep the QI advised of their activities.

Practicing activation of some of these functions is a most difficult thing to accomplish within normal organizations.  It can be done with only moderate expense one management understands the problem.

Unified Command System (UCS) - Coast Guard

The Unified Command is composed of the USCG or EPA, state governmental representatives, and responsible party,  also in attendance are various federal and state custodians of the land as well as local governmental representatives.  The Unified Command System performs as follows:

	Focus of all governmental activity with respect to the incident.
	Collection point for government-related costs to be paid by the responsible party.
	Aid in resolution of contentious issues between government agencies.
	Act as focal point for all External Affairs functions.

The UCS is intended to provide a "common ground" to help coordinate and control a large number of response agencies.  It incorporates decision making input from city, county, state, federal and commercial community groups.

The UCS uses a standard International Command Structure (ICS) organization chart.  It is comprised of 5 main sub-groups, each of which handles specific responsibilities.  These sub-groups are: 

Command Level

Unified Command and Command Staff.  Unified Command includes:

	OSC = Federal On Scene Coordinator
	QI = Qualified Individual representing the responsible party
	State IC = State Incident Commander representing state and local response agencies

	Planning Section - Gathers & Analyzes Data
	Operations Section - Directs Management of all Tactical Activities
	Logistics Section - Provides for all Support Needs, including Acquisition and Transportation of Resource delivery
	Finance Section - Facilitates and Documents all Activities Requiring Expenditures

The Responsible Party would be well advised to have their External Affairs people work through the Unified Command.  It should be noted that it is to the company's great advantage to not have the external affairs media interface on company property. We want them to be at a motel a mile or more away if possible.  Using the governments unified command for this make a lot of sense.

It is also appropriate to invite personnel from the Unified Command into the companies Incident Command Center.  It may also be appropriate to have one of the company QIs, not the most senior one, located at the Unified Command.

The company agenda at the Unified Command is fairly clear:

	Use External Affairs to help defuse both the local community and the media.
	Feed enough information to the Unified Command to keep them off the company's back.
	Join in with the UCS staff functions only to the minimum extent possible.
	Wherever possible have the UCS staff personnel become involve with company efforts.

Each group participates in the UCS at the appropriate level.  By coordinating each of the individually functioning units such as the USCG, custodians of the land (owners of adjacent property) and local officials, the UCS helps to eliminate potential conflict and delay between the separate organizations to proactively accomplish response objectives.

The Unified Command structure thrusts the QI into a high pressure position.  As the Company's  representative in this scheme, the QI is in control of the operation.  Thus, the QI will have to deal carefully with all of the other units and their representatives.

Unified Command is advantageous because it allows the governmental branches to work together to facilitate the "direction" of cleanup activities.  In addition, the focus that it provides for media response by handling scheduled news releases, giving updates, and allowing for helicopter flights once or twice a day to view the spill is also of some value.  By inviting Coast Guard officials as well as state, federal and local officials to participate in these activities, the Company maintains control of the situation and may continue to be proactive in its efforts.  The UCS can help The company to avoid media "feeding frenzies" and better deal with external affairs.

The company should consider whether or not its position in the UCS will allow it to remain in command and control of external affairs, mitigation of the spill, assuring personnel, site and vessel safety and cost management when determining whether such involvement is beneficial or not.  Furthermore, the company should keep in mind whether or not the USCG, State Environmental Agencies and others have publicly stated that they will locate the Unified Command as close to the incident site as practicable. 

The most strategic plan under the UCS will provide for an Incident Command Center closer to the incident site than could be gotten by the government where room is provided for all government players.  The company should invite USCG and other agencies to join in its activities at the operations center.

External Affairs

Company  personnel should expect contact with the media and members of the local community soon after an incident occurs.  It is important to depict the company as being totally prepared, in complete control and ready to cooperate in the remediation of any damage caused.  The ultimate goal of external affairs activities is to salvage the credibility of the company by becoming proactive as soon as possible rather than simply reacting to the incident.  The following guidelines should help prepare you to handle the dissemination of information to interested groups during an incident.

Q:    Who should speak for the Company?

A:    The Designated Spokesperson

The company's designated spokesperson is the individual who is appointed to speak to the media regarding the incident on behalf of the company.  This individual must keep himself abreast of the situation and any developments.  It is also helpful if this person has a technical background as well as some knowledge of emergency situations.  This will aid them in answering the media's questions as accurately as possible.  The spokesperson must be prepared to answer questions such as "Who is responsible for the spill?" and "How much was spilled?" 

The answers that are given to the media may seem vague at times.  This is O.K. if the spokesperson succeeds in convincing the media and the public that the incident is being taken care of.  This can be achieved by:

	Concentrating on the company's response to the incident, rather than the incident itself
	Stressing not only the company's concern for the safety of its employees, but also the safety and welfare of the community residents and the general public
	Mentioning regulatory compliance programs, improved environmental conditions and other company accomplishments and activities

Furthermore, the spokesperson should never refer to the incident as a "spill". Instead, the incident should be given a name using the geographical location of the spill, but  such name should not include the company's name.

Although the company spokesperson should always remain communicative, it is beneficial to keep the company's visibility low and let the USCG and the state authorities enjoy higher visibility.

Preparing a statement before talking to the media is one way of insuring that the information listed here is utilized in the event of an oil spill.

Supervisors

Although supervisors may not be the company's designated spokesperson, there may be times when they will have to say something more than simply referring the inquirer to the spokesperson.  The supervisor will have to use his/her judgment in this situation because different interest groups require different levels of appeasement. 

In answering any questions, the supervisor should remember the acronym CAT (Concern, Action, Teamwork), which is explained below.  By tailoring their response to fulfill this criteria, the supervisor should be able to respond without giving out too much information or jeopardizing the company's reputation.

Other Company Personnel

Company personnel should say as little as possible to outside groups and persons regarding a spill incident.   Employees should calmly and politely refer all information requests to the company spokesperson or to the office switchboard.  Never reply "No comment," because this is the equivalent of a comment - a negative comment.  The media, public officials, community organizations, environmental groups, and the public at large are seeking information and respect.  This is what they should be given.

A good example of a correct response in the event of an oil spill  follows:

"It is very important to us that we give you accurate information.  I may not be the best source for this information, so let me refer you to someone who is." 

Then give them a name and a phone number.

In addition, comments should never be given "off the record."  On an incident like this, there is no such thing as "off the record."

Q:    What kind of external affairs interest can a company expect to see during an incident?

A:    There are several outside agents that will take an interest in an incident - these include the media, local officials, members of the community (both leaders and average/concerned citizens), and environmental groups.

Media

Members of both the local and national medias may become involved depending on the size of the incident.  They may appear at the company offices,  approach people at off-facility sites, or call seeking press releases.

A primary concern regarding the media is security.  The company should increase its security around the facility in the event of an oil spill.  This will help prevent media from climbing over fences and having carte blanche rights to inspect the incident site or facility in order to "get a story".  It is likely that the company's manpower will be tied up elsewhere during an incident, so the company may have to hire outside security personnel.  This can be accomplished by calling the local sheriff's office or local security companies.  Members of the media must be informed by security that they are being kept out because the company cannot guarantee their safety, and not because the company is hiding anything.

The media should be used as a tool in handling the situation and not viewed as an adversary.  Use the media wisely to disseminate your information and project an image of a good company working to resolve a bad situation. 

The media will be seeking information and it should be given to them.  Periodic press releases and conferences are an excellent way of transmitting the right information to them. 

The following suggestions may provide for a successful press conference:

	Background information on the company, such as company officers, corporate address, number of employees, etc. should be provided at a press conference
	Local, state and federal authorities such as the USCG should be invited to participate in the press conference
	Ask that the USCG and government authorities to take the lead and speak first
	Speak with one voice

Keep in mind that the company will have to educate the national media about the company and its operations.  They will not be as familiar as the local media is with the company.

Public Officials

A spill incident is generally a photo opportunity for public officials.  Therefore, the company will want to enlist their help in keeping the community informed early on in the game.  The company will want to have their spokesperson personally notify officials and keep them appraised of the situation as it develops.

Members of the Local Community

These individuals will be calling to express their concerns about the incident or seeking redress for some damage caused by the incident.  It is important that the local community perceive the company as a good neighbor.  The company wants to avoid a situation where an industrial neighbor is on television talking about how his facility was shut down or damaged and that the company refused to help him. 

Local residents must be treated politely and should feel confident that the company is interested and willing to help.  Although the company may not be able to help them immediately, these people must be convinced that the company will help them as soon as possible.  Convey to area residents that, as soon as the company deals with the Coast Guard and government entities, they will send the next available personnel to address their concerns.

National Environmental Groups

These are organizations like the Sierra Club, Ducks of America, and many others.  These groups usually have an axe to grind, or could be otherwise hostile and potentially antagonistic.  The company should never be rude to these groups, because the company does not want to invite them to attack harder than they already do.  However, it is likely that they will place unreasonable demands on the company.  If they can be ignored, the company may do so, but this situation should be handled delicately.

Q:    What is CAT?

A:    CAT is, if correctly employed, an effective tool in dealing with the media and the local community in diffusing potentially troublesome situations. 

CAT stands for:

Concern

The company must convey a sense of its concern  about the situation to all external groups. This lets the public know that the company is acting in the best interests of the community. This will help ease the pressure from media scrutiny and special interest groups.

Action

The next step that the company must take is to convince both the media and local interests that the company is taking appropriate action to rectify the situation.  Action must follow Concern because this implies that planning and forethought have been given to the response efforts.

Teamwork

If you give external groups the feeling that you are working hand in hand with other responsible parties and agencies (EPA, OSRO's, USCG, etc.), they will perceive the company as part of a larger team, thereby alleviating some of the pressure from the company.  It may also change public perception that the company is solely responsible for cleanup efforts.

Practical Applications of CAT

The principles represented by CAT  can be used to directly affect the way external forces view a cleanup scenario.  No matter what question is asked by the media the answer should be prefaced with expressions of the company's concern, what action is being taken to mitigate the problem and the teamwork that is ongoing between the federal government, state government, local government and the company.  Then, the spokesperson can respond to the question.  A simple response might include:

"The company is making every effort to stay on top of the situation.  We have mobilized the following resources: [enumerate them in suitable detail or brevity]

We are very concerned about the ramifications that the incident will have upon the local community and the environment.  We are working in concert with local and national authorities, including the Coast Guard, the state, as well as local authorities to insure that the cleanup is completed quickly and efficiently...."

Q:    What information should be furnished to the media?

A:    All of the following questions should be addressed to the media as quickly and accurately as possible.  Remember, the public wants to be respected as well as reassured, so don't disregard their concerns out of hand, but do focus on the important aspects of the incident.

	What happened?  (E.g.,  fire, explosion, air or water pollution).
	Where?
	When?
	The number of company personnel involved?
	The number of casualties (injured, dead or missing persons) if any, and where they were taken?

The names of injured, dead or missing personnel should be withheld from the media until their immediate families have been notified.  Statements regarding the extent of injuries should be left to medical people unless it is obvious that injuries are minor and first aid is all that is required.

What equipment is involved and/or has been damaged?  The reporter should be furnished a non-technical description of the major equipment units damaged and the service they perform.

Positive Assertions

The following positive assertions should be furnished to the media in an emergency situation:

	Statements regarding the speed and efficiency with which the emergency was brought under control
	Actions being taken to control or eliminate pollution
	First aid measures that were taken by employees
	Previous safety record of vessel
	Assurances that everything possible is being done for the injured and their families

In many cases, some of the above statements, as well as corrections of any false reports published earlier, can be made the subject of follow-up stories on the day after the emergency occurred.

Information that should be handled with caution

Certain information should not be given prematurely to reporters because of its speculative nature.  Every effort should be made to inform reporters that a "don't know" reply may be more accurate and straight-forward than a misleading guess or estimate.  Information in this category includes:

	Quantity of cargo or other oil spilled
	Estimates concerning the extent of damage in dollars
	MAKE NO PROMISES!  Do not provide estimates concerning the length of time it may take to clean up a spill, salvage a vessel, put the damaged vessel(s) back into operation or other similar estimates.
	Information concerning the cause of the casualty or any statement that blames any individual for the incident.  Usually, the cause of an accident cannot be accurately determined without an extensive investigation, nor can the blame be placed on any individual without a thorough investigation.  If the cause is fully obvious, consider a partial statement, e.g., "All we know at this time is that the vessel went aground after there was an explosion on the barge."  Avoid speculation and conclusions.