Managing in a Crisis

1. Managing in a Crisis The Buncefield Oil Depot Disaster – 2005 Jeremy Evans Director, JECCS Ltd & Ex-Head of Legal Northgate Information Solutions

2. Managing in a Crisis - The Buncefield Disaster ITV Footage

3. Managing in a Crisis - The Buncefield Disaster What was the cause? • 6.00am, 11 December 2005 – series of explosions • 2.4 on the Richter scale • Was it terrorists? 7/7 and 21/7 earlier that year… • …no – human error/negligence leading to igniting of a vapour cloud • Resulting fire – largest in Europe since WWII

4. Managing in a Crisis - The Buncefield Disaster Significant impact • Severe damage to the storage depot & one of UK oil pipelines • Some transport links affected for a period of time • Private property damage over a wide area • National businesses lost offices • Northgate lost its HQ and primary data centre – no IT systems working • Six years of litigation between claimants & oil companies…

5. Managing in a Crisis - The Buncefield Disaster …and • Then there was the “ripple effect” • Northgate was responsible for the processing of approx. 40% of UK company payrolls; and • The provision of critical services to UK emergency services • 2 weeks to Christmas…”Houston, we have a problem…”

6. Managing in a Crisis - The Buncefield Disaster

7. Managing in a Crisis - The Buncefield Disaster

8. Managing in a Crisis - The Buncefield Disaster

9. Managing in a Crisis - The Buncefield Disaster

10. Managing in a Crisis - The Buncefield Disaster

11. Managing in a Crisis - The Buncefield Disaster Immediate challenges – a flavour: • Injuries or worse • Securing the site – looters at work • Activating the DR facility – starting the task of restoring service to customers • Initial communication to customers – “force majeure” • Communication with stakeholders, staff and outside agencies Longer-term challenges – a flavour: • Re-housing 500 displaced HQ staff: • Temporary • Long-term • Insurance claim • Dealing with customers and their claims • Was Northgate negligent in having its HQ so close to the depot? • On-going communication during the recovery process

12. Managing in a Crisis - The Buncefield Disaster Business Continuity/Disaster Recovery: • Corporate requirement to have BC and DR plans • Some companies will carry out a “live test” of their plan but only against a pre-determined set of circumstances • Others may choose to undertake a “walk-through” of their DR plans as Northgate did in the weeks prior to Buncefield • The main limitation is that people tend to go through such exercises believing it will never happen to them • Consequently, the impact on property damage and potential loss of life can be grossly under-estimated

13. Managing in a Crisis - The Buncefield Disaster Business Continuity/Disaster Recovery (cont.): • Despite the close proximity of the depot (it could be seen from the Northgate staff canteen): • Assumptions were made that the facility was well-managed, safe and secure • The depot was operated on a joint venture basis between Total and Chevron, two respected international organisations • HSE (and its forerunners) had approved extensions to the depot in what was a busy and well-populated area • What could possibly go wrong?

14. Managing in a Crisis - The Buncefield Disaster Conclusions: • Think the worst outcome – loss of life, etc. • Incorporate “shadow teams” into DR planning for each location • Test the plan realistically – walk-throughs are theoretical • Finally – two short anecdotes to close