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Page 1: STAKEHOLDER RELATIONSHIP MANAGEMENT: A SUCCESS STORY TIOGA, ND PIPELINE SPILL CLEANUP

STAKEHOLDER RELATIONSHIP MANAGEMENT: A SUCCESS STORY

TIOGA, ND PIPELINE SPILL CLEANUP

Page 2: STAKEHOLDER RELATIONSHIP MANAGEMENT: A SUCCESS STORY TIOGA, ND PIPELINE SPILL CLEANUP

TIOGA Pipeline Spill

• Pipeline release of 20,600 bbls of Bakken crude oil discovered by landowner (September 2013)

• Source of release: probable lightning strike that damaged the near surface pipeline

• Release covers about 14 acres of Jensen Wheat Field

• This is (one of) the largest oil spills to land in continental U.S. history

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Key Takeaways Upfront – Stakeholder Relationships

• Limit assumptions as it’s best to keep an open mind• Fill your team with the best experts and rely on them; get creative• Be the interpreter – highly technical concepts need non-technical

explanations and presentations• Visual presentation of key concepts is essential to understanding• Provide consistent project narrative and build on it• Above all else, build AND maintain trust of Stakeholders

- Be honest, gain their input, manage expectations- Understand their unique values and concerns

TSOuser
i think a better'"SLB/BZ optimized" version of this slide needs to go between slides 2 and 3.
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Project History

• September 29, 2013 - Steve Jensen discovers Bakken Crude Oil release in his wheat field during harvest and contacts Tesoro, who shut pipeline down soon thereafter

• October 1, 2013 - Tesoro Contingency Planning Manager and Response Team plus Environmental Consultant on-site

• October 2013/March 2014 - Emergency Response/Pipeline Relocation

• March 2014 to Present – Investigation and Cleanup (Excavation and Thermal Desorption)

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Looking Southwest

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Looking East

Looking Northwest

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Soil Treatment After Excavation – Thermal Desorption Unit (TDU)

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Numerous Constraints

• Very significant release, high profile • Numerous stakeholders – property owners, local community, state

regulators and government• Return land to farming use - requirement of owner• Limited infrastructure available – hinders cleanup choices • Short timeframe – state regulators demanded remediation plan be

submitted quickly• Evolving remediation approach – adjustments to match site conditions

- Building remedy before completion of investigation

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Additional Considerations

• High amount of national attention:- Hinged off of interest about North

Dakota/Bakken crude - Greenpeace was monitoring, multiple stories

in the NY Times

• Local values:- Farming/agricultural area- Very high value put on land ownership- Limited options for remediation

(purchase of the site by Tesoro was “off the table”)

- Return to agricultural use is key

Photo Credit: NY Times, November 2014

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Stakeholders and Resources

• Landowners - Steve and Patty Jensen- Final authority on cleanup plan- Site located on 31 acres of 160 acre parcel of larger

property

• North Dakota Department of Health (NDDH) - Responsible for regulatory cleanup goal decision- Remediation technical review

• Neighbors/Public - Very involved community- Generally accepting of oil companies- Transparent nature of North Dakota Dept of Health

information (website)

• North Dakota State University- Agricultural/soil experts- Helped Tesoro understand local values

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Long-Term Response – DEVELOPMENT OF PLAN

• Collaborated with Landowner:- Explored and aligned expectations, concerns & communication needs- Incorporated site specific Issues: land use, limitations with planting and harvesting- Utilized their local knowledge of available resources (e.g. trucking and materials)- Onsite presence was/is key

• Collaborated with NDDH: - Identified applicable cleanup standards and permitting requirements for air, water,

NPDES, SPCC, SWPPP- Identified other stakeholders/resources – NDSU Dept. of Soil Science- Helped Tesoro appreciate stakeholder interdependencies (Landowner/NDDH/NDSU)- Identified information needed to build project consensus, including larger public

• Technical Team:- Engaged a high performing team of technical experts- Included agricultural soil scientists, site characterization experts, remediation engineers,

world-class cleanup contractors, Lean practitioners

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Long Term Response - IMPLEMENTATION

• Stakeholder:- Involved NDDH and Stakeholders in resolution- Engaged Stakeholders as part of the team, not as adversaries- Constantly applied ‘Check and Adjust’ mentality

• Landowner:- Communicated schedule, approach, technical nuances “In English” to them- Respected and embraced their different paradigms and values- Welcomed their ongoing input and ideas

• NDDH:- Presented them with routine progress updates, built upon a familiar

template- Built the foundation for open, honest and frequent communication with

these important regulators

• NDSU:• Provided guidance and research on crude-impacted agricultural soil

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Long-term Response - REPORTING

• Understand differences in audiences• Internal Tesoro • External: landowners, NDDH, NDSU, public

• Standard, consistent, transparent, visual, intelligible content in presentations and reports

• Maintain stakeholder engagement to ensure path is agreed upon

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Current Stakeholder Relationship

• Landowners and Tesoro have continued to work together (the pie is very important!)• NDDH and Tesoro work together to solve problems

- Approaches developed at Tioga site being used at other cleanups- NDDH considers how cleanups are handled when assessing potential

enforcement- Positive stakeholder relations can result in a significant reduction in potential

fines

• NDSU is an integral Project Team Member- NDSU is key to returning site to agricultural use- On-site field research will not only help the landowners, but also the State,

Tesoro & other companies in the future

• Soil Remediation Contractor (Nelson Environmental) is involved in project optimization and troubleshooting

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Key Takeaways

• Use your resources – field personnel are key to maintaining positive landowner and stakeholder relationships• They are your main eyes and ears• Integral for Landowner satisfaction

• Understand and integrate local values into all work – understand that the values of others may differ significantly from your own, or from other projects• Communicate early and often to all Stakeholders• You meet someone every day that knows more about a topic than you do, so why not

try to learn every day (PDCA)• Good decisions require good data, constant collaboration and strong trust. Don’t

short change the process by “saving money” up front (“go slow to go fast”).

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Questions?


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