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Three lessons your business can learn from the Gulf Coast oil spill
By T.J. Koewler
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In the days immediately following the oil spill in the Gulf Coast all the parties involved were engaged in finger pointing. The owner of the oil platform, Transocean, blamed the operator BP. In the middle stood the U.S. government, who did not know who was at fault. One can only imagine the speed with which each party was scrambling to read the fine print in their contracts and lease agreements. Lawyers began arming their respective clients with ammo to blame the other parties.
In the end, BP claimed responsibility for the accident and ensuing environmental catastrophe. Did BP wait to long to take responsibility? Was the accident avoidable? Does BP’s recent poor safety record have anything to do with the explosion that caused the well head to fail? We may have to wait years to find answers to such questions. We can only hope that policies and procedures are put into place immediately to avoid another failure and accident in the future.
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Although there are differences between petroleum and used cooking oils, there are also some subtle similarities. As a substance, oil of any kind requires professional systems, know-how and standard operating procedures in order to properly store, haul, process and reuse it. All oils have a long life and it is important that proper care be taken at all points in the life cycle management.
The accident brought an important subject to the forefront and that is liability. Liability is something we often forget about until an accident has occurred.
Liability
A lesson can be learned surrounding the partnership between BP and Transocean and how the government could have helped. Think about oil streams your business creates in the context of the discussion below:
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- We often don’t think about our liability until its too late due to an accident or unforeseen event;
- It is during the initial aftermath of an accident when we realize the true value of partnerships and cooperation between ourselves and our partners, both internally and externally.
Some questions to ask yourself are:
- Are the companies with whom we do business going to be there when an accident occurs, no matter who, what, when, how or why?
- Are the companies we do business with, both internally and externally, considered the experts in their field? Do they have the knowledge and experience to back up the claims they make to see our used oils through their life cycle?
- Are the companies that handle our oils properly certified with the Ministry of the Environment and municipal government?
- Do they employ the best technology with the best people?
- Are the companies we do business with, both internally and externally, properly covered with the appropriate insurance policies?
- Can our vendors and partners deliver documentation to prove the insurance is up to date and has a dollar amount that satisfies our potential exposure?
- What happens if the policy dollars of the responsible party run out? What is the probability that our business is named as the responsible party that has to see the clean up through to completion no matter the cost?
Think long-term
Discuss taking the long-term approach to all aspects of your grease and oil management systems. After all, saving a few dollars may cost you in the end when an unforeseen event occurs and you are dealt with an illegitimate business.
- Choose long-term partners
- Choose vendors and suppliers that have a reputation for acting responsibly in your communities and beyond
- Always take price into consideration, but not at the cost of increasing your exposure to risk and unforeseen events
Start today
Try to avoid finger pointing; reading the fine print of a contract to find out who is at fault when accidents happen is the recommended method.
- Engage your vendors, suppliers, and partners at all levels and ensure that a plan is in place to handle unforeseen events
- Engage your local authorities for up to date information on regulation surrounding insurance, containment, accident notification and all other aspects that may affect grease and handling/recycling it safely
Act responsibly at all points of your business. Avoid falling into the same trap as many restaurant and food processors by neglecting your commitments. Start engaging the businesses that haul away your waste and organic streams.
Accidents are unfortunate. Being ready for them will greatly diminish the cost associated with correcting them. I encourage you to begin to ask questions about all those you do business with. Although we cannot change what happened in the Gulf Coast, we can look it as an opportunity for us to better ourselves and our practices to reduce the risks and mitigate accidents in the future.
About the author:
T. J. Koewler, Rothsay, A Member of Maple Leaf Foods, Key Account Manager, Yellow Grease Procurement koewletj@rothsay.ca, www.rothsay.ca
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