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RESPONDING TO A WATER
SUPPLY CONTAMINATION EVENT
KENT MAYO & MOLLY CAGLE
BAKER BOTTS
It Can Happen to You
 Question is “when,” not “if,” a business
will have to deal with a crisis
 “It takes 20 years to build a business and 5
minutes to ruin it. If you think about that
you’ll do things differently.”
- Warren Buffett
2
Recent Examples
 Charleston, WV
 Release of unregulated substance from AST
 Short distance to intake
 Do Not Use order in place for 4-8 days
 System and residential flushing
 Toledo, OH
 High levels of algae measured; immediate response
deemed necessary
 Do Not Use order in place for 2-3 days
3
A Perfect Storm
 During a crisis, decisions must be made
quickly on a range of high risk issues
 Priority No. 1: Public Safety/Water Supply
 Follow-on Issues:
− Media Blitz
− Governmental Investigations
− Potential Third Party Lawsuits
− Criminal Prosecution Risk/Internal Investigations
− Business/Brand Reputation Risk
4
Taking the Right First Steps
 Successful preparation is the key to
successful crisis management
 First few hours and days set the tone for
entire crisis response
 Crisis preparation tools
 Emergency Response Planning and Practice
 Crisis Management Team
 External Support Network
5
It’s a Team Game
 Crisis Management Team
 Crisis Manager with Decision-making Authority
 Senior Management/Officers
 Business/Plant Team Leaders
 Environmental, Health and Safety
 Public Relations
 Government Relations
 In-house Legal
 Outside Legal Counsel
 Media Consultants
6
Hello……WHAT??!!!
 So you actually get the call – what happens
now?
 Activate the team
 Call in external resources
 Work through the plan
 Develop the initial communications
7
Responding to the Contamination
 Actions to Protect Users and the Water Supply
 Investigation: What? Where? How much?
 Treatment: Existing or enhanced capabilities
 Shutting the Intake: How big is the plume? What are
potential effects of shut down?
 Do Not Use orders: When and how long? For what
uses?
 Resumption of service: Health standards? Data quality?
 Post-event: Boil water advisory? Flushing?
 Don’t Go It Alone – Work with the Regulators!
8
Getting the Message Out
 Communicate decisions effectively
 Notice to customers
 TV; social media; robo-calls
 Conservation orders
 When and why?
 Alternative water supplies
 Where, and more importantly, when will they be
available?
 Resumption of use
 Agency buy-in
 What limitations exist?
 What steps should be taken by customers?
9
Guess Who’s Coming to Dinner…
 Response to contamination may be first
step in a long process
 Expect a crowd of government regulators
with authority over the incident
 Exercise firm, but reasonable control
 Secure and preserve documents
 Identify and collect critical data and evidence
 Instructions to employees about contacts
 Employ counsel to maintain privileges
10
What the &$%$^% happened?
 Internal Investigation
 Tricky privilege issues for overlapping
investigations
 Employee interviews
 Contractor interviews
 Warn of potential conflicts of interest
 Beware potential criminal issues
 CWA allows for criminal negligence
 Identify and isolate rogue behavior
11
Media Circus
 Media is increasingly focused on
responding to catastrophic incidents
 Coverage immediate and live; need the right face
 Evolution of coverage
 Front page as investigation unfolds
 Editorial page as advocacy starts
 Business page as impacts are assessed
 Social media cannot be ignored
 Customers expect timely updates
12
DON’T DO THIS
 “There's no one who wants this over more than I
do. I would like my life back.”
13
OR THIS
 https://www.youtube.com/watch?feature=player_d
etailpage&v=a5Jpz-rvzLA
14
The Next Wave
 Third Party Lawsuits can come fast
and furious
 Legal hold
 Get the key documents and information
 Coordinate statements with counsel
 Anticipate possible preservation orders
 Identify and vet corrective actions
 Plan strategically for your defense
15
What Is the Takeaway?
 CRISIS MANAGEMENT is an offensive action
 Be ready when the phone rings
 Put the right people in the right places
 Get the right message out
 Think beyond the moment
16
QUESTIONS
For More Information
Kent Mayo
kent.mayo@bakerbotts.com
(202) 639-1122
Molly Cagle
molly.cagle@bakerbotts.com
(512) 322-2535
18
RESPONDING TO A WATER SUPPLY CONTAMINATION EVENT

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RESPONDING TO A WATER SUPPLY CONTAMINATION EVENT

  • 1. © 2015 RESPONDING TO A WATER SUPPLY CONTAMINATION EVENT KENT MAYO & MOLLY CAGLE BAKER BOTTS
  • 2. It Can Happen to You  Question is “when,” not “if,” a business will have to deal with a crisis  “It takes 20 years to build a business and 5 minutes to ruin it. If you think about that you’ll do things differently.” - Warren Buffett 2
  • 3. Recent Examples  Charleston, WV  Release of unregulated substance from AST  Short distance to intake  Do Not Use order in place for 4-8 days  System and residential flushing  Toledo, OH  High levels of algae measured; immediate response deemed necessary  Do Not Use order in place for 2-3 days 3
  • 4. A Perfect Storm  During a crisis, decisions must be made quickly on a range of high risk issues  Priority No. 1: Public Safety/Water Supply  Follow-on Issues: − Media Blitz − Governmental Investigations − Potential Third Party Lawsuits − Criminal Prosecution Risk/Internal Investigations − Business/Brand Reputation Risk 4
  • 5. Taking the Right First Steps  Successful preparation is the key to successful crisis management  First few hours and days set the tone for entire crisis response  Crisis preparation tools  Emergency Response Planning and Practice  Crisis Management Team  External Support Network 5
  • 6. It’s a Team Game  Crisis Management Team  Crisis Manager with Decision-making Authority  Senior Management/Officers  Business/Plant Team Leaders  Environmental, Health and Safety  Public Relations  Government Relations  In-house Legal  Outside Legal Counsel  Media Consultants 6
  • 7. Hello……WHAT??!!!  So you actually get the call – what happens now?  Activate the team  Call in external resources  Work through the plan  Develop the initial communications 7
  • 8. Responding to the Contamination  Actions to Protect Users and the Water Supply  Investigation: What? Where? How much?  Treatment: Existing or enhanced capabilities  Shutting the Intake: How big is the plume? What are potential effects of shut down?  Do Not Use orders: When and how long? For what uses?  Resumption of service: Health standards? Data quality?  Post-event: Boil water advisory? Flushing?  Don’t Go It Alone – Work with the Regulators! 8
  • 9. Getting the Message Out  Communicate decisions effectively  Notice to customers  TV; social media; robo-calls  Conservation orders  When and why?  Alternative water supplies  Where, and more importantly, when will they be available?  Resumption of use  Agency buy-in  What limitations exist?  What steps should be taken by customers? 9
  • 10. Guess Who’s Coming to Dinner…  Response to contamination may be first step in a long process  Expect a crowd of government regulators with authority over the incident  Exercise firm, but reasonable control  Secure and preserve documents  Identify and collect critical data and evidence  Instructions to employees about contacts  Employ counsel to maintain privileges 10
  • 11. What the &$%$^% happened?  Internal Investigation  Tricky privilege issues for overlapping investigations  Employee interviews  Contractor interviews  Warn of potential conflicts of interest  Beware potential criminal issues  CWA allows for criminal negligence  Identify and isolate rogue behavior 11
  • 12. Media Circus  Media is increasingly focused on responding to catastrophic incidents  Coverage immediate and live; need the right face  Evolution of coverage  Front page as investigation unfolds  Editorial page as advocacy starts  Business page as impacts are assessed  Social media cannot be ignored  Customers expect timely updates 12
  • 13. DON’T DO THIS  “There's no one who wants this over more than I do. I would like my life back.” 13
  • 15. The Next Wave  Third Party Lawsuits can come fast and furious  Legal hold  Get the key documents and information  Coordinate statements with counsel  Anticipate possible preservation orders  Identify and vet corrective actions  Plan strategically for your defense 15
  • 16. What Is the Takeaway?  CRISIS MANAGEMENT is an offensive action  Be ready when the phone rings  Put the right people in the right places  Get the right message out  Think beyond the moment 16
  • 18. For More Information Kent Mayo kent.mayo@bakerbotts.com (202) 639-1122 Molly Cagle molly.cagle@bakerbotts.com (512) 322-2535 18