Ashland Oil Inc.: Trouble At Floreffe

20 Pages 4885 Words

ntributed in the clean-up efforts, including (AOI) employees; the Coast Guard, Gulf Coast emergency strike force, O.H. Materials Co. of Ohio, a professional hazardous material clean-up company hired by AOI, the Red Cross, and the Audubon Society.

John Hall, CEO and Chairman of the board at AOI, was first informed of the spill on Sunday morning at approximately 9:00 a.m. He knew right away that he had a major environmental problem to deal with. However, he believed the major logistical problems could be dealt with by AOI associates who were already on site. Hall delayed his trip, and stayed in the office and communicated with the site via phone, so he could gather more information, and authorize expenditures to accelerate clean-up activities. His immediate goal was to determine an overall company response that would minimize the spill’s impact.

On Monday morning January 4, 1988 at a news conference at the terminal where the crisis management team was stationed, the press began increasing its coverage and the investigation of the spill. The media prolonged its original story from the details of the collapsed tank and began investigating the potential water crisis and issues related to the tank construction, quality, and the testing of the tank. They began to question AOI on such things as the age of the tank, whether it had been properly tested before it was filled, and whether the company had received a proper permit allowing its construction.

Not being able to respond, Ashland Oil Inc. representatives began to investigate these issues brought up by the press. Sources at Floreffe pointed out that Ashland had followed all the proper procedures. At that time, a project engineer had produced a document at the spill site as proof of a permit for the tank. It was also stated, by other associates of Ashland, that the tank was newly constructed in 1986, and had been fully tested before it was filled. A member of the press had cont...