erci halo backgrounder
TRANSCRIPT
CONFIDENTIAL
Historical And Legacy Operations (HALO) Database
Managing Institutional Knowledge of Environmental Management ProgramsEnvironmental Management Programs
Contact:
John RosengardJohn Rosengard(415) 982-3100
www.erci.com
© 2012 Environmental Risk Communications, Inc.
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 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 or the liability reverting back to us? 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
© 2012 Environmental Risk Communications, Inc. 2
What remedial activities were completed? Did we survey for asbestos and USTs already?
Which landfill was used for waste disposal?
Institutional Knowledge – The Problem
Loss 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 all of it can be lost)term, all of it can be lost)
$5,000,000
$6,000,000
350
400
450
Institutional Knowledge
PM Knowledge
Cost of Lost Knowledge
$3,000,000
$4,000,000
200
250
300
otal Cost
of Kno
wledge
$1,000,000
$2,000,000
100
150
200 To
Years o
$‐0
50
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
YearAssumptions:
10 employees started work in 19851985 t 2005 t l / 5
With cost metric of $200 / hr for project manager time, and two h / k f it k l d t (O tl k
© 2012 Environmental Risk Communications, Inc. 3
1985 to 2005, turnover was one employee / 5 yrs 2005 to 2025, turnover increased to two employees / 5 yrs By 2025, without turnover, accumulated institutional knowledge
would be 400 yrs; with turnover, net knowledge is only 155 yrs; 245 yrs worth of institutional knowledge lost
hours / week for site knowledge management (Outlook, spreadsheets, presentations, phone calls, meetings, etc.)
By year 2025, this equates to $3.5 MM of lost institutional knowledge
HALO Database – The Opportunity
Storing 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
$5,096,000$5,000,000
$6,000,000
Cost with HALO Database
Cost of Recapturing Lost I tit ti l K l d
$3,000,000
$4,000,000
al Co
st
Institutional Knowledge
$1,000,000
$2,000,000
Tot 15 mins spent
accessing data instead of 2 hrs
© 2012 Environmental Risk Communications, Inc. 4
$637,000
$0
1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030
Year
HALO Database – The Solution
What questions can the HALO database answer efficiently?
What liability exists?exists?
What were the historical and legacy
ti ?
Are there any ‘reopeners’ at this
site? operations?site?
What was the cause for the
liability?
Was there any settlement? Full or
partial?
What correspondence took place with
regulators?
What is the company’s allocation?
© 2012 Environmental Risk Communications, Inc. 5
HALO Database – Configuration
Configuration begins with legacy databases (Access, Excel, SQL)
Moves to project manager interviews
Evolves to periodic maintenance Evolves to periodic maintenance
Scheduled public domain record searches
Email imports
File review and archiving P j t File review and archiving
Legacy Company
Project Manager
Input Parent Company p y
Database B Import
p yDatabase Import
HALO Database
Legacy Company Database
Historical Database Import
One-time Activity
Continuous Activity
© 2012 Environmental Risk Communications, Inc.
A Import Import
6
Continuous Activity
Halo Database – Screen Captures
Examples
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
Login and Front Page
Login Page
Password protected
Hosted locally or at SAS70-compliant host
Front Page
Fast access to site-specific data
Advanced search feature Advanced search feature
© 2012 Environmental Risk Communications, Inc. 8
Site Details – General
Critical site information
Site summary for key narrative from project managers, counsel, etc.
© 2012 Environmental Risk Communications, Inc. 9
Site Details – Action Log and Contacts
Action Log allows project manager to track correspondence and tasks
Site specific contact list and associated roles
© 2012 Environmental Risk Communications, Inc. 10
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
Site Details – Legal
With the PRP List, PRP data can be reviewed across the portfolio to connect PRPs to several sites in the database – using
database’s SmartSearch capabilities, if news is reported for site regarding a PRP, database can be used to confirm the PRP’s g g ,
status with all other sites in the database
© 2012 Environmental Risk Communications, Inc. 12
Site Details – Financial
Historical spend and annual budget data – multiple years of data can be updated as often as needed (example shows yearly can be updated as often as needed (example shows yearly
updates including PM hours and cash call data)
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Site Details – Timeline
Timeline includes options to add Timeline includes options to add items in several categories
(general, media, operational, etc.) – user can filter for specific types
Timeline helps create “story” for liability at the site – recent media
attention is tracked using SmartSearch system and updated
in the timeline
© 2012 Environmental Risk Communications, Inc. 14
Address Book and Action List
Multiple with the same contact (project manager, inside counsel,
l t l)
When a project is imported or transferred, new PM and attorney have access to same contact info
regulator, common counsel)
Contacts are stored in Outlook-compliant format in HALO
PMs can add action items with follow-up dates; the database will
alert PMs and attorneys of outstanding / upcoming items
© 2012 Environmental Risk Communications, Inc. 15
Advanced Search Feature
Keyword search of database e.g.
CORPShare
COCs, consultant name, street, etc.
Quick search of important criteria
Example: Searched for sites with cash calls from previous year that
l fi l NPL d t b
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are also on final NPL; database outputs matching sites
Site Reports
Create site reports
Print and archive site reports
Reports can be used for efficient Reports can be used for efficient management of change (MOC) processes
Customizable for multiple reporting needs
Run complete database for full portfolio report
© 2012 Environmental Risk Communications, Inc. 17
Periodic Maintenance and Database Support
Track 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 New sources
Update site-specific information
Monitor and plan for potential cost escalation
Sma tSea ch SmartSearch
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