Managing in a CrisisThe Buncefield Oil Depot Disaster – 2005

Jeremy EvansDirector, JECCS Ltd

& Ex-Head of Legal

Northgate Information Solutions

Managing in a Crisis - The Buncefield Disaster

ITV Footage

Managing in a Crisis - The Buncefield DisasterWhat was the cause?

6.00am, 11 December 2005 – series of explosions 2.4 on the Richter scaleWas it terrorists? 7/7 and 21/7 earlier that year……no – human error/negligence leading to igniting of a

vapour cloud Resulting fire – largest in Europe since WWII

Managing in a Crisis - The Buncefield DisasterSignificant impact

Severe damage to the storage depot & one of UK oil pipelines

Some transport links affected for a period of timePrivate property damage over a wide areaNational businesses lost officesNorthgate lost its HQ and primary data centre – no IT

systems working Six years of litigation between claimants & oil companies…

Managing in a Crisis - The Buncefield Disaster…and

Then there was the “ripple effect”Northgate was responsible for the processing of approx.

40% of UK company payrolls; and The provision of critical services to UK emergency

services 2 weeks to Christmas…”Houston, we have a problem…”

Managing in a Crisis - The Buncefield Disaster

Managing in a Crisis - The Buncefield Disaster

Managing in a Crisis - The Buncefield Disaster

Managing in a Crisis - The Buncefield Disaster

Managing in a Crisis - The Buncefield Disaster

Managing in a Crisis - The Buncefield DisasterImmediate challenges – a flavour:

Injuries or worse Securing the site – looters at work Activating the DR facility – starting

the task of restoring service to customers

Initial communication to customers – “force majeure”

Communication with stakeholders, staff and outside agencies

Longer-term challenges – a flavour:

Re-housing 500 displaced HQ staff: Temporary Long-term

Insurance claim Dealing with customers and their

claims Was Northgate negligent in having

its HQ so close to the depot? On-going communication during

the recovery process

Managing in a Crisis - The Buncefield DisasterBusiness Continuity/Disaster Recovery:

Corporate requirement to have BC and DR plansSome companies will carry out a “live test” of their plan but

only against a pre-determined set of circumstances Others may choose to undertake a “walk-through” of their DR

plans as Northgate did in the weeks prior to BuncefieldThe main limitation is that people tend to go through such

exercises believing it will never happen to themConsequently, the impact on property damage and potential

loss of life can be grossly under-estimated

Managing in a Crisis - The Buncefield DisasterBusiness Continuity/Disaster Recovery (cont.):

Despite the close proximity of the depot (it could be seen from the Northgate staff canteen):Assumptions were made that the facility was well-managed,

safe and secure The depot was operated on a joint venture basis between

Total and Chevron, two respected international organisationsHSE (and its forerunners) had approved extensions to the

depot in what was a busy and well-populated areaWhat could possibly go wrong?

Managing in a Crisis - The Buncefield DisasterConclusions:

Think the worst outcome – loss of life, etc. Incorporate “shadow teams” into DR planning for each

locationTest the plan realistically – walk-throughs are theoreticalFinally – two short anecdotes to close