Presentation delivered by William (Bill) C. Boyer, Senior Vice President – Operations, Southcross Energy at the marcus evans Energy Pipeline Management Summit 2017 held in Dallas, TX

1. William Boyer
July, 2017

2. BP Macondo
well underwater
live video feed
(2010)
Exxon Pegasus
line leak in
Arkansas –
YouTube video
(2013)

4. 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

5. 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”

6. Billionaire Warren Buffet once said,
“It takes 20 years to build a reputation
and five minutes to ruin it.”

8. 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

13. 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

15. Realize it is just a matter of time before you will have some level of
significant incidentRealize
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 annuallySpend
Ensure that outside resources are identifiedEnsure
Practice – various size incident drills; varying levels of management
involvedPractice

16. 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

17. 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.

18. 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

22. Emphasize that it was an accident and unfortunateEmphasize
Exercise humility – don’t be arrogant or defensive in interactionsExercise
Take care of the local landowners earlyTake
Provide regular update meetingsProvide
Have senior management meet with elected representativesHave

23. 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

24. 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”

25. 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

26. 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

27. 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)

30. William Boyer
Southcross Energy Partners
Houston, TX