ERCI HALO Backgrounder

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Transcript of ERCI HALO Backgrounder

  • 1. CONFIDENTIALHistorical And Legacy Operations (HALO)DatabaseManaging Institutional Knowledge ofEnvironmental Management Programs Contact: John Rosengard (415) 2012 Environmental Risk Communications, Inc.

2. What is environmental institutional knowledge?Regulatory Compliance When and how were the cleanup goals set? Why are we involved in this CERCLA multiparty cleanup project?Cost History What are transactional costs (program management, common counsel, financial assurance) for this site? Any trends over the last five years? Are all de minimis and insurance recovery projects complete? When was our allocation adjusted? Did we cash out of this site already?Transaction / Counterparty Knowledge When and how did we transfer a facility to a successor owner? Any provisions for taking back a property, property or the liability reverting back to us? When and how did we acquire this facility from a previous owner? Any allocation for remedial investigation and cleanup costs?Property Knowledge Who owned the site? Is it being redeveloped? What were the terms of the purchase and sale agreement?Remediation Knowledge What remedial activities were completed? Did we survey for asbestos and USTs already? Which landfill was used for waste disposal? 2012 Environmental Risk Communications, Inc.2 3. Institutional Knowledge The ProblemLoss of environmental program knowledge is expensive Over 40-year span, turnover with 10-member environmental staff triggers loss of at least 245 years of institutional knowledge; over half of the value is lost (over long term, term all of it can be lost) 450 $6,000,000 InstitutionalKnowledge 400 PMKnowledge CostofLostKnowledge$5,000,000 350 300 $4,000,000ofKnowledgeotalCost 250 $3,000,000Yearso To 200 150 $2,000,000 100 $1,000,00050 0 $Assumptions: 1980 1985 1990 1995 2000 2005 201020152020 20252030Year 10 employees started work in 1985 With cost metric of $200 / hr for project manager time, and two 1985 to 2005, turnover was one employee / 5 yrs t 2005 t lhours / week f site knowledge management (Outlook, hk for it kl d t (O tl k 2005 to 2025, turnover increased to two employees / 5 yrsspreadsheets, presentations, phone calls, meetings, etc.) By 2025, without turnover, accumulated institutional knowledge By year 2025, this equates to $3.5 MM of lost institutionalwould be 400 yrs; with turnover, net knowledge is only 155 yrs;knowledge245 yrs worth of institutional knowledge lost 2012 Environmental Risk Communications, Inc.3 4. HALO Database The OpportunityStoring institutional knowledge reduces costs and increases efficiency Institutional environmental knowledge is retained in HALO database (the company) and with employees Future project transitions (to new project managers, public affairs experts, attorneys) are accelerated; key data points, correspondence, and action logs are retained in the database, thereby creating a story of environmental liability As environmental projects evolve, history, best practices, and lessons learned can be used to help with strategic planning on new liabilities$6,000,000 Costwith HALODatabase$5,096,000$5,000,000 CostofRecapturingLost InstitutionalKnowledge I tit tilKl d$4,000,000 TotalCost$3,000,000 15 mins spent accessing data$2,000,000instead of 2 hrs$1,000,000$637,000 $0 1980 1985 19901995 2000 2005 2010 2015 2020 20252030 Year 2012 Environmental Risk Communications, Inc.4 5. HALO Database The SolutionWhat questions can the HALO database answer efficiently?What liabilityexists? Are there any What were thereopeners at this historical and legacy site? operations? ti ?Was there anyWhat was thesettlement? Full orcause for thepartial? liability?WhatWhat is thecorrespondencecompanystook place withallocation?regulators? 2012 Environmental Risk Communications, Inc.5 6. HALO Database ConfigurationConfiguration begins with legacy databases (Access, Excel, SQL)Moves to project manager interviewsEvolves to periodic maintenance Scheduled public domain record searches Email imports File review and archiving ProjectP j tManagerLegacy InputParent p y Company p y Company DatabaseDatabase B Import Import Legacy HistoricalCompanyHALO One-time Activity DatabaseDatabaseDatabaseContinuous Activity ImportA Import 2012 Environmental Risk Communications, Inc.6 7. Halo Database Screen CapturesExamples Log In and Front Page Site Details Address Book and Project Management Search Site Reportsp Periodic Maintenance and Database Support 2012 Environmental Risk Communications, Inc. 7 8. Login and Front PageLogin Page Password protected Hosted locally or at SAS70-compliant hostFront Page Fast access to site-specific data Advanced search feature 2012 Environmental Risk Communications, Inc. 8 9. Site Details General Critical site informationSite summary for key narrative from project managers, counsel, etc. 2012 Environmental Risk Communications, Inc.9 10. Site Details Action Log and Contacts Action Log allows project manager to track correspondence and tasksSite specific contact list andassociated roles 2012 Environmental Risk Communications, Inc. 10 11. Site Details Regulatory Regulatory information including 5-Year Review watchlist items database will alert project manager of upcoming reviews List of notable documents for future reference includes descriptions and links to document location 2012 Environmental Risk Communications, Inc.11 12. Site Details LegalWith the PRP List, PRP data can be reviewed across the portfolioto connect PRPs to several sites in the database usingdatabases SmartSearch capabilities, if news is reported for siteregarding a PRP, database can be used to confirm the PRPsg g , status with all other sites in the database 2012 Environmental Risk Communications, Inc.12 13. Site Details Financial Historical spend and annual budget data multiple years of datacan be updated as often as needed (example shows yearlyupdates including PM hours and cash call data) 2012 Environmental Risk Communications, Inc.13 14. Site Details TimelineTimeline includes options to add items in several categories (general, media, operational, etc.) user can filter for specific typesTimeline helps create story for liability at the site recent mediaattention is tracked using SmartSearch system and updated in the timeline 2012 Environmental Risk Communications, Inc. 14 15. Address Book and Action List When a project is imported or transferred, new PM and attorney have access to same contact infoMultiple with the same contact(project manager, inside counsel, regulator, common counsel) l tl)Contacts are stored in Outlook-compliant format in HALOPMs can add action items withfollow-up dates; the database will alert PMs and attorneys ofoutstanding / upcoming items 2012 Environmental Risk Communications, Inc. 15 16. Advanced Search Feature Keyword search of database e.g.COCs, consultant name, street, etc.CORPShareQuick search of important criteria Example: Searched for sites with cash calls from previous year thatare also on final NPL database l fi l NPL; d t boutputs matching sites 2012 Environmental Risk Communications, Inc. 16 17. Site ReportsCreate site reportsPrint and archive site reportsReports can be used for efficient management of change (MOC) processesCustomizable for multiple reporting needsRun complete database for full portfolio report 2012 Environmental Risk Communications, Inc. 17 18. Periodic Maintenance and Database SupportTrack USEPA CERCLA Comprehensive 5-Year Review Reports Review and update database with any potential watch list items (future environmental liability reserve increases) New operable units New contaminants of concern New pathways or receptors New sources Update site-specific information Monitor and plan for potential cost escalationSmartSearch Sma tSea ch Track sites through customizable alerts Update timeline for any recent media attention Monitor and plan for potential cost escalation / media attention 2012 Environmental Risk Communications, Inc.18