Preparing for oil spill response helps reduce potential liabilities.

The threat of state and federal penalties, in addition to the increasing costs of protracted cleanup operations make response preparedness an economic necessity for companies with the potential for having an oil spill.

Federal penalties alone include $25,000 per day, or up to $1,000 per barrel, for an oil discharge. In addition, failure to comply with a cleanup order can result in fines of $25,000 per day, or up to three times the costs incurred by the Oil Spill Liability Trust Fund. Failure to notify carries a $500,000 penalty and/or five years imprisonment.

Unfortunately, there's no crystal ball that can forewarn a company when it will have an oil spill. Therefore, it's vital that any company involved in the handling of petroleum products be prepared at all times to effectively manage an oil spill incident. Preparing to effectively manage all facets of an oil spill crisis will help reduce a company's risks for actual damages, governmental penalties and negative publicity.

DEVELOP A CONTINGENCY PLAN 

There are several elements to preparing for an oil spill. The first step is to develop a contingency plan that addresses a company's total response to an oil spill. Many operators handling petroleum products are required by both state and federal law to submit contingency plans.

Subjects covered in a contingency plan should include a crisis management structure, known as the Incident Command System (ICS); identification of potential sources of risks and environmentally sensitive areas that may need special attention during a spill response; as well as an action plan for containing and cleaning up varying types and sizes of spills.

By evaluating a number of representative scenarios for potential spill events, from the small chronic type of spill to a worst-case disaster, a company will be able to determine in advance what resources it needs to effectively manage a spill response operation.

PERSONNEL TRAINING

Spill-response training is one of the most important parts of spill preparedness. Through proper training, companies can avoid spills in the first place. But if an oil spill occurs, well-trained employees can carry out the roles assigned to them in the contingency plan more effectively. Depending on the extent of each individual's responsibilities, training should include notification procedures, the ICS organization, and health and safety courses for those personnel with a potential for direct exposure to the oil spill.

In addition, the company should hold a variety of drill and exercises to test its personnel's understanding of the plan and its operational effectiveness. This increases the confidence level of the response personnel, as well as provides an opportunity to evaluate how well the plan works. Response readiness should be a continuous cycle of planning, training, exercising and reevaluation of the plan.

Fast response to an oil spill is the most important element to effective containment and minimization of cleanup exposure. Therefore, companies should also evaluate their internal capabilities for initial response.

Depending on the location and type of operation, a company should also consider having its own in-house response equipment and materials. The equipment could include booms for initial containment of the spill, an inventory of sorbent materials for smaller spill recovery, and oil skimmers for larger spills. In addition, companies must train personnel designated as initial responders in OSHA-required Hazardous Waste and Emergency Response Operations (HAZWOPER) classes.

SELECTING A SPILL RESPONSE CONTRACTOR

For most companies, however, handling anything more extensive than a small spill is likely to require assistance from a professional oil spill response contractor. Choosing a capable contractor in advance is critical to being prepared to manage an oil spill crisis, and helps minimize the company's liabilities for oil spill damages.

There are several important elements to look for when selecting an oil spill response contractor:

(1) Is the contractor certified by state and federal authorities for oil spill response?;

(2) Does the contractor have adequate resources to handle the company's worst case spill?;

(3) Does the contractor maintain a steady, reliable work force trained specifically in oil spill response techniques?;

(4) Are resources available, 24-hours a day, every day of the year, for a rapid response to a spill site anywhere the company operates?

Smaller companies may also want to consider whether their response contractor can offer other support services, such as joint training and drills with their personnel, logistical services such as transportation and waste disposal, a ready supply of spill response products, and spill managers to fill out ICS roles for which company personnel are unavailable.

PUBLIC RELATIONS AND CRISIS MANAGEMENT

Another element critical to developing a company's comprehensive oil spill crisis management capabilities is the preparation of a media and public relations plan. Outlining a policy for media interaction and a developing proactive plan for working with the media to disseminate timely, positive information during a spill response can greatly enhance a company's ability to present a positive image during an oil spill response.

The economics of spill response weigh in favor of being prepared. With increasing regulations and regulatory fines, the price for being unprepared can be substantial, not to mention the exceptional environmental impact a spill can cause. Investing in a contingency plan, training, and the appropriate in-house and contractor resources is an inexpensive hedge against a potentially costly disaster.

This article was prepared by Foss Environmental Services Co., based in Seattle, Washington