ERCI HALO Backgrounder

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


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


$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?


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


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


Site Details – General

Critical site information

Site summary for key narrative from project managers, counsel, etc.


Site Details – Action Log and Contacts

Action Log allows project manager to track correspondence and tasks

Site specific contact list and associated roles


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


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


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)


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


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


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


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


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


Documents

ERCI HALO Backgrounder