stakeholder relationship management: a success story tioga, nd pipeline spill cleanup

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TIOGA, ND PIPELINE SPILL CLEANUP

STAKEHOLDER RELATIONSHIP MANAGEMENT: A SUCCESS STORYTIOGA, ND PIPELINE SPILL CLEANUP

TIOGA Pipeline SpillPipeline 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

2Key Takeaways Upfront Stakeholder RelationshipsLimit assumptions as its best to keep an open mindFill your team with the best experts and rely on them; get creativeBe the interpreter highly technical concepts need non-technical explanations and presentationsVisual presentation of key concepts is essential to understandingProvide consistent project narrative and build on itAbove all else, build AND maintain trust of StakeholdersBe honest, gain their input, manage expectationsUnderstand their unique values and concerns

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

4

Looking Southwest

Looking EastLooking Northwest

Soil Treatment After Excavation Thermal Desorption Unit (TDU)Numerous ConstraintsVery significant release, high profile Numerous stakeholders property owners, local community, state regulators and governmentReturn land to farming use - requirement of ownerLimited infrastructure available hinders cleanup choices Short timeframe state regulators demanded remediation plan be submitted quicklyEvolving remediation approach adjustments to match site conditions Building remedy before completion of investigation

9Additional ConsiderationsHigh 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 areaVery high value put on land ownershipLimited options for remediation (purchase of the site by Tesoro was off the table)Return to agricultural use is key

Photo Credit: NY Times, November 201410Stakeholders and ResourcesLandowners - Steve and Patty JensenFinal authority on cleanup planSite located on 31 acres of 160 acre parcel of larger property

North Dakota Department of Health (NDDH) Responsible for regulatory cleanup goal decisionRemediation technical review

Neighbors/Public Very involved communityGenerally accepting of oil companiesTransparent nature of North Dakota Dept of Health information (website)

North Dakota State UniversityAgricultural/soil expertsHelped Tesoro understand local values

11Long-Term Response DEVELOPMENT OF PLANCollaborated with Landowner:Explored and aligned expectations, concerns & communication needsIncorporated site specific Issues: land use, limitations with planting and harvestingUtilized 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, SWPPPIdentified other stakeholders/resources NDSU Dept. of Soil ScienceHelped 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 expertsIncluded agricultural soil scientists, site characterization experts, remediation engineers, world-class cleanup contractors, Lean practitioners

Long Term Response - IMPLEMENTATIONStakeholder:Involved NDDH and Stakeholders in resolutionEngaged Stakeholders as part of the team, not as adversariesConstantly applied Check and Adjust mentality

Landowner:Communicated schedule, approach, technical nuances In English to themRespected and embraced their different paradigms and valuesWelcomed their ongoing input and ideas

NDDH:Presented them with routine progress updates, built upon a familiar templateBuilt the foundation for open, honest and frequent communication with these important regulators

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

Long-term Response - REPORTINGUnderstand differences in audiencesInternal Tesoro External: landowners, NDDH, NDSU, public

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

Maintain stakeholder engagement to ensure path is agreed uponThis slide duplicates what is said in previous slides doesnt seem necessary14Current Stakeholder Relationship Landowners and Tesoro have continued to work together (the pie is very important!)NDDH and Tesoro work together to solve problemsApproaches developed at Tioga site being used at other cleanupsNDDH considers how cleanups are handled when assessing potential enforcementPositive stakeholder relations can result in a significant reduction in potential finesNDSU is an integral Project Team MemberNDSU is key to returning site to agricultural useOn-site field research will not only help the landowners, but also the State, Tesoro & other companies in the futureSoil Remediation Contractor (Nelson Environmental) is involved in project optimization and troubleshooting

Key TakeawaysUse your resources field personnel are key to maintaining positive landowner and stakeholder relationshipsThey are your main eyes and earsIntegral for Landowner satisfactionUnderstand and integrate local values into all work understand that the values of others may differ significantly from your own, or from other projectsCommunicate early and often to all StakeholdersYou 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. Dont short change the process by saving money up front (go slow to go fast).Questions?

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