CRISIS OR CASUALTY RESPONSE, INVESTIGATION AND MANAGEMENT

JurisdictionUnited States
Strategic Risk Management for Natural Resources Companies
(May 2008)

CHAPTER 11A
CRISIS OR CASUALTY RESPONSE, INVESTIGATION AND MANAGEMENT

Donald R. Abaunza
Liskow and Lewis
New Orleans, Louisiana


Overview -- Why Have a Catastrophe Response Plan?

While most organizations agree that having a current Catastrophe Response Plan is advisable, developing and maintaining such a plan is often deferred or not given adequate attention until it is too late. Corporate executives often rationalize that a catastrophe or other emergency situation will not occur on their watch, and in turn, they devote their attention to more pressing issues. But as fires, cave-ins, explosions, chemical releases, and recent hurricanes have proven, emergencies can occur quickly and with devastating results.

Take, for example, the Sago Coal Mine disaster which occurred on January 2, 2006 in Sago, West Virginia near the Upshur County seat of Buckhannon. An unexplained explosion occurred at approximately 6:30 am. The blast and ensuing aftermath trapped thirteen miners for nearly two days, only one of whom survived. It was the worst mining disaster in the U.S. since a 2001 disaster in Alabama that killed thirteen people, and the worst disaster in West Virginia since a 1968 incident that killed 78 people. The Sago Mine disaster is also widely remembered for its high-volume publicity and around-the-clock news coverage. For nearly two days it dominated the airwaves of major television stations such as CNN, Fox News Channel, MSNBC, and all major American news broadcasts. The disaster even gained significant international attention. As a result of the high-profile nature of the transpiring events, major misinformation was given to the public. The most significant misinformation lead to the wide-spread announcement in the press that twelve survivors were found and only one had died, only to report shortly after that in fact there had been only one miner who survived while the other twelve had perished.

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When catastrophic events occur, corporate executives should anticipate that little or no time will be available for planning the organization's response. Decisions that have multiple impacts must be made swiftly and deliberately. Having a detailed Catastrophe Response Plan enables the organization to orchestrate a logical, efficient, and effective response that will result in containing damage, shortening operational downtime, reducing injuries, and quite possibly saving lives.

Preparation -- What to Consider In Advance of Catastrophe?

The better prepared an organization is to respond to an event that disrupts operations, the faster the organization will have operations back up and running with minimal financial loss or service interruptions. While each catastrophe is unique and presents its own obstacles, the organization's Catastrophe Response Plan should provide the necessary framework to successfully deal with any situation that presents itself. This framework should address, at a minimum, the organization's plan to protect: (1) its people; (2) the environment; (3) its property; and (4) business operations.

The Catastrophe Response Plan must include detailed instructions on how the organization will respond to catastrophic events. For example, the plan should identify those individuals and/or teams that are on standby to deal with specific events, as well as the emergency contact information for all internal personnel and necessary governmental agencies. Likewise, the Catastrophe Response Plan should address the potential need for alternate access to the property or facility where the event occurred, a plan to recover potentially scattered and/or damaged debris and equipment, and the organization's plan to repair its infrastructure once the dust has settled.

Notice of Catastrophe -- What to Ask Once Notified of a Catastrophe?

Once notified that a catastrophe has occurred, or will occur, the organization must determine the specific facilities or locations that have been or will be affected. First responders must know exactly where to go and who to contact with little or no notice. To do this efficiently, responders should have directions to each potential location, as well as the emergency contact information for necessary on-site personnel before the event occurs.

The organization must also determine the exact nature and status of the incident (i.e., fire, collapse, explosion, release, equipment failure, collision, etc.), as well as what operations were underway at the time of the occurrence. Other necessary information includes, but is not limited to, the names and contact information for the individuals involved in the incident,

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the identity and telephone number of the on-site person in charge, the number and nature of injuries, deaths, or missing personnel, and the names and responsibilities of any other companies and/or parties involved. The organization must also assess what governmental agencies should be notified, and whether any such agency is already on site.

After Receiving Notice of Catastrophe -- Organization's Goal is to Protect Life and Property

The evacuation and protection of the organization's personnel should be a primary focus of the Catastrophe Response Plan. All non-essential personnel should be evacuated from the "danger zone" as quickly and safely as possible. The use of rendezvous points and pre-established methods of communicating the whereabouts of personnel are essential to such an endeavor. Call-in systems, internet postings, text messaging, and public service announcements are just a few of the methods available to the organization.

It is also imperative that the organization have personnel familiar with the particular operations at issue available to assist and answer any questions posed by the organization's operational experts, emergency responders, or governmental agencies. The organization may also need to consider retaining legal counsel, as well as notifying its insurers of the situation. It is important to note that many insurers have their own internal emergency response teams and procedures.

The Catastrophe Response Plan should also address the organization's plan to protect its infrastructure and communication systems in the event of a catastrophe. Detailed procedures should be developed to address the cessation of operations either before or once the catastrophe occurs. Likewise, the Catastrophe Response Plan should address the organization's plans to protect its information technology platforms, such as the offsite backup of company data, the use of portable equipment (i.e., laptops, cellular phones, two-way radios, etc.) and the use of redundant technology systems.

Notify the Appropriate Governmental Agencies

Depending on the type and severity of the catastrophe, the organization may be required by law to notify the appropriate governmental agency of the incident. For example, in the event of an oil or chemical spill, an organization is required to report the incident to the National Reporting Center (NRC). Likewise, OSHA must be contacted in the event of work-related injuries to the organization's employees. For any accident, injury, or

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illness that occurs at or in conjunction with any activity at a mine, the mine operator is required to report the incident to the Mine Safety and Health Administration (MSHA). Similarly, the Mineral Management Services' District Supervisor must be notified of all serious accidents, any deaths or serious injuries, and all fires, explosions, and blowouts connected with any activity or operation pertaining to an oil and gas lease. Knowing who to contact and how to do so before a catastrophe occurs is therefore essential for the organization to comply with its statutory obligations.

Protection of the Organization's Interests

Once resources have been mobilized and governmental agencies have been notified, the organization's focus should shift to protection of the organization's interests. Public relations is an extremely important component of this shift.

The organization should consult with its in-house public relations coordinator or retain an outside public relations firm to manage the organization's public relations. The organization must ensure that on-site personnel are briefed by the coordinator and are aware that the coordinator is the only party that should speak on behalf of the company concerning the event. The coordinator should also control the media's access to the site. Generally, the coordinator will designate a location for the media to set up, determine the time and manner of media briefings, and provide information regarding press releases.

Access to those sites affected by the catastrophe should be controlled by the organization. Only essential personnel should be allowed access. Generally, this involves setting up a perimeter and controlling entry and exit requests to the site. Often, law enforcement or private security can assist in this effort. Establishing a "sign-in" procedure is also recommended. At a minimum, the sign in sheet should include: (1) the name of the individual accessing the site; (2) the name of the individual's employer; (3) the purpose of the entry or exit; and (4) the date and time of entry and exit to the location.

The coordinator should also ensure that governmental responders are informed that the organization's attorney is to be present during all witness interviews. Likewise, the organization's agents should be instructed to request that the organization's attorney be present during any official or unofficial interview. Witnesses should be warned not to discuss the incident with family or friends. In many situations, it is advisable to remove potential witnesses from the location to avoid impromptu interviews.

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Likewise, it is never too early for the organization to be concerned about the waiver of legal privileges or the...

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