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LESSONS IN CRISIS RESPONSE & RISK MITIGATION FROM THE BC SAWMILLING SECTOR

Crisis Response and Risk Mitigation

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This is an overview of lessons learned in crisis response and risk mitigation from the British Columbia Sawmilling sector.

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Page 1: Crisis Response and Risk Mitigation

LESSONS IN CRISIS RESPONSE & RISK MITIGATION FROM THE BC SAWMILLING SECTOR

Page 2: Crisis Response and Risk Mitigation

Within the span of three months during the winter of 2012, the province of British Columbia in Canada was hit with a double shot of tragedy.

Between January and April, two sawmills exploded and burned to the ground.

This is the story of what happened, what the response was from government and industry, and what we might learn from this experience so the same thing doesn’t happen again.

Page 3: Crisis Response and Risk Mitigation

Within the span of three months during the winter of 2012, the province of British Columbia in Canada was hit with a double shot of tragedy.

Between January and April, two sawmills exploded and burned to the ground.

This is the story of what happened, what the response was from government and industry, and what we might learn from this experience so the same thing doesn’t happen again.

Page 4: Crisis Response and Risk Mitigation

Within the span of three months during the winter of 2012, the province of British Columbia in Canada was hit with a double shot of tragedy.

Between January and April, two sawmills exploded and burned to the ground.

This is the story of what happened, what the response was from government and industry, and what we might learn from this experience so the same thing doesn’t happen again.

Page 5: Crisis Response and Risk Mitigation

Disclaimer:

The investigations into these two incidents are before the courts. All opinions expressed in this presentation are the author’s, and are not intended to assign or accept blame.

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WHAT HAPPENED?

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Babine Forest Products Sawmill...Burns Lake, British Columbia

January 20, 2012, 8:09 p.m....2 dead, 20 injured

‘Chaos reigned supreme’

at Burns Lake mill explosion

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Lakeland Mills Sawmill...Prince George, British Columbia

April 23, 2012, 9:38 p.m....2 dead, 22 injured

Huge explosion rocks sawmill

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What was the cause?

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The short answer is, we don’t know.

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But theories abound...

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public enemy #1

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public enemy #1

The Mountain Pine Beetle infestation in British Columbia has killed between 70% and 100% of the lodgepole pine stands in the two sawmills’ operating regions.

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public enemy #1

So, naturally, many people’s minds went first to the unique nature of the wood dust involved in processing MPB-killed timber.

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Three elements are required for a fire to start:

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fuel oxygen

ignition

fire triangle

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Two more elements need to be present for an explosion to occur.

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fuel oxygen

ignitiondispersion confinement

explosion pentagon

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Because WorksafeBC, the provincial workplace health and safety regulator, did not release its investigation report before sending it to the Crown prosecutor’s office, we still don’t know what their findings are.

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But they did provide a hint about what they think caused the explosions...

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WorksafeBC said that, in their opinion, and in both cases, the fuel source was wood dust and the ignition source was a gear reducer motor set.

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No word on the other three elements or how they combined to meet the deadly criteria for an explosion.

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These findings, of course, have yet to be proven.

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WHAT WAS GOVERNMENT RESPONSE?

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January 20 - April 23, 2012

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January 20 - April 23, 2012

Very little action occurred to address the potential causes of the first explosion, or the possibility that a similar incident could happen again...

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January 20 - April 23, 2012

...it just seemed too far-fetched.

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April 24, 2012 and beyond

Immediately following the second incident, government and regulators jumped into action.

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April 24, 2012 and beyond

Immediately following the second incident, government and regulators jumped into action.Dual investigations were ramped up.

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April 24, 2012 and beyond

Immediately following the second incident, government and regulators jumped into action.Dual investigations were ramped up.An industry-wide mill cleanup was ordered.

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April 24, 2012 and beyond

Immediately following the second incident, government and regulators jumped into action.Dual investigations were ramped up.An industry-wide mill cleanup was ordered.A province-wide inspection program was implemented.

Page 32: Crisis Response and Risk Mitigation

April 24, 2012 and beyond

Immediately following the second incident, government and regulators jumped into action.Dual investigations were ramped up.An industry-wide mill cleanup was ordered.A province-wide inspection program was implemented.Hazard alerts were distributed dealing with specific aspects.

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WHAT WAS INDUSTRY RESPONSE?

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May 2, 2012

10 CEOs from BC’s largest forest companies formed the Forest Industry Task Force on Mill Safety.

It had four primary objectives in two key areas:

Page 35: Crisis Response and Risk Mitigation

May 2, 2012

Ten CEOs from BC’s largest forest companies formed the Forest Industry Task Force on Mill Safety.

It had four primary objectives in two key areas:

Page 36: Crisis Response and Risk Mitigation

May 2, 2012

Ten CEOs from BC’s largest forest companies formed the Forest Industry Task Force on Mill Safety.

It had four primary objectives in two key areas:

Page 37: Crisis Response and Risk Mitigation

Quantify combustion risks related to

dust from both green and dry wood.

Page 38: Crisis Response and Risk Mitigation

Quantify combustion risks related to

dust from both green and dry wood.

Identify best practices for dust mitigation

from other industries that have issues

related to dust manufacturing.

Page 39: Crisis Response and Risk Mitigation

Quantify combustion risks related to

dust from both green and dry wood.

Develop an industry-wide auditable

standard that can be utilized to provide

independent assurance of mill safety.

Identify best practices for dust mitigation

from other industries that have issues

related to dust manufacturing.

Page 40: Crisis Response and Risk Mitigation

Quantify combustion risks related to

dust from both green and dry wood.

Develop an industry-wide auditable

standard that can be utilized to provide

independent assurance of mill safety.

Identify best practices for dust mitigation

from other industries that have issues

related to dust manufacturing.

Undertake outreach to all wood products

manufacturing companies in BC to create

an industry-wide approach to enhancing

worker safety.

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task 1: dust sampling analysis report

Page 42: Crisis Response and Risk Mitigation

task 1: dust sampling analysis report

380 test samples were taken from 18 mills across the province, ensuring a representative cross-section of regions and species.

Results are still to be released.

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Wood Dust Mitigation and

Control Audit

task 2: wood dust mitigation

and control audit

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Wood Dust Mitigation and

Control Audit

task 2: wood dust mitigation

and control audit

Proposed as an industry standard governing dust control, housekeeping and safe work programs.

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Wood Dust Mitigation and

Control Audit

task 2: wood dust mitigation

and control audit

Currently in draft form, but indications suggest regulators may be prepared to recognize the audit as an industry standard.

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Wood Dust Mitigation and

Control Audit

task 2: wood dust mitigation

and control audit

Next steps are to establish an auditor qualification process and develop training materials for managers and employees.

Page 47: Crisis Response and Risk Mitigation

WHY IS THIS IMPORTANT TO

THE PELLET INDUSTRY?

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fuel oxygen

ignitiondispersion confinement

explosion pentagon

Remember this?

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same raw material

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same raw material

About 20% of the wood pellets exported from North America come from MPB-infested timber regions.

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same raw material

Therefore, it’s important to understand the unique properties of the wood dust involved in these explosions.

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similar operating environments

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similar operating environments

Lots of potential ignition sources.

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similar operating environments

Lots of potential ignition sources.Lots of potential fuel sources.

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similar operating environments

Lots of potential ignition sources.Lots of potential fuel sources.Confined spaces.

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similar operating environments

Lots of potential ignition sources.Lots of potential fuel sources.Confined spaces.Oxygen present at many process points.

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So the conditions are right (or wrong) for the same thing to happen in the pellet industry.

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LESSONS LEARNED(or, what to do if this happens to you, and how to ensure it doesn’t)

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immediate term: issues management

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immediate term: issues management

The most important thing is to ensure the site and your employees are safe.

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immediate term: issues management

Public scrutiny will be high. Your employees, your community, and the media will want answers.

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immediate term: issues management

You’ll need to be prepared to deal with an overwhelming amount of issues and the need for information management.

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short term: employees, investigation, legal

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short term: employees, investigation, legal

Once the initial shock wears off, your employees will want to know what this means to them.

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short term: employees, investigation, legal

What happens to their paycheque? How will they pay their mortgage? Can they get retrained? How do they ensure their health care needs are looked after?

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short term: employees, investigation, legal

A swarm of government regulators, investigators, lawyers and insurance agents will descend on the scene demanding answers.

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long term: regulation, legislation, reputation

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long term: regulation, legislation, reputation

An incident like this happens in a fraction of a second. The fallout from the incident will last months or years.

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long term: regulation, legislation, reputation

You need to be prepared for close scrutiny from legislators, regulators, and the public.

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long term: regulation, legislation, reputation

How will you ensure your voice is heard and your reputation maintained in the ensuing debate that may impact your business?

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3 STEPS TO A SAFER INDUSTRY

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1. reduce the risks at the site

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a. Conduct a facility risk assessment.

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a. Conduct a facility risk assessment.

b. Put in place a combustible dust control program, including:Proper ventilation and engineering controls.Housekeeping and safe work protocols.

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Outcome:

You will be protecting your assets and making your facilities safer places to work.

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2. collaborate to mitigate risk industry-wide

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a. Break down silos and build communications channels, formal and informal.

b. Build relationships, within industry, among industries, and between industry, government and regulators.

c. Establish and share best practices.

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a. Break down silos and build communications channels, formal and informal.

b. Build relationships, within industry, among industries, and between industry, government and regulators.

c. Establish and share best practices.

Page 79: Crisis Response and Risk Mitigation

a. Break down silos and build communications channels, formal and informal.

b. Build relationships, within industry, among industries, and between industry, government and regulators.

c. Establish and share best practices.

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Outcome:

Industry will maintain its social license to operate, and facilities industry-wide will be safer places to work.

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3. be prepared in case it happens to you

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a. Establish (or update) an emergency response plan.

b. Build a crisis communications plan.

Page 83: Crisis Response and Risk Mitigation

a. Establish (or update) an emergency response plan.

b. Build a crisis communications plan.

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Outcome:

You will be better prepared to respond to a crisis.The human toll of a crisis will be reduced.

The intensity and duration of public scrutiny will be reduced.Reputational impacts will be minimized.

Bottom line impacts will be mitigated.

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Outcome:

You will be better prepared to respond to a crisis.The human toll of a crisis will be reduced.

The intensity and duration of public scrutiny will be reduced.Reputational impacts will be minimized.

Bottom line impacts will be mitigated.

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what’s new?

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On December 3, 2012, Hampton Affiliates announced it will rebuild the Babine Forest Products sawmill in Burns Lake, British Columbia.

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On March 31, 2013, Sinclar Group Forest Products announced it will rebuild the Lakeland Mills sawmill in Prince George, British Columbia.

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Al Little Glenn Roche

in memoriam

Carl Charlie Robert Luggi

Page 90: Crisis Response and Risk Mitigation

www.premedia.ca

250.961.6611

[email protected]

download this

presentation at

www.slideshare.net/cmcalpine

Cam McAlpine

thank you

Page 91: Crisis Response and Risk Mitigation

slide 1: Andrew Johnson

slide 4: cbc.caslide 5: Morgan Andreychuk

slide 50-54, 57-64, 85-86, 88: Brent Braaten

slide 65-68: John Lehmann

all other photos: istockphoto.com

photo credits