Insight

Mine Disasters and Crisis Management: Keeping Your Client Out of Trouble

It is important to have a plan of action to respond to disasters. Find out the different elements that make up these types of plans.

NT

Noelle Holladay True

September 15, 2014 02:00 PM

It is the worst nightmare that any professional who works in the mining industry can face — getting notification of a disaster at the mine. A disaster not only affects employees and their families at the particular mine, but can affect an entire community and beyond. While no two disasters are ever alike, there are some general guidelines that can be used to form an effective plan of action prior to any disaster.

How a company responds during a crisis is predetermined by a well-tailored plan that should be formulated before the crisis strikes. To prepare for any possible emergencies, a company needs to make sure it has formed a crisis management team, including

A team leader, who has authority to make quick decisions;

A safety department representative, who is familiar with the mine and all state and federal mine safety laws;

An engineering/environmental department representative, who can interface with regulators and quickly locate mine maps and other essential documents;

A plant site communications person, who is very familiar with the layout of the mine;

An off-site communications person, who can gather and summarize all incoming and outgoing communications from the plant site;

A supply person, who can efficiently gather materials for rescuers, respondents and victims;

A public relations person, who can coordinate all communications from the mine to the media, and other external audiences;

A family liaison, to keep affected family members apprised of any developments with rescue operations; and, last but not least,

Experienced legal counsel, who is prepared to oversee document control, deal with all of the regulatory agencies who will be on mine property, and oversee investigations and interviews of individuals.

The team should be prepared to move to action at a moment’s notice (with alternatives designated for members who may be unavailable), and be familiar with the mine’s emergency response plans (that are required by law under the MINER Act of 2006). Having the team be involved in a mine emergency response drill at the mine is also an invaluable tool for crisis management preparedness.

After a disaster occurs, the first area of focus in any disaster is obviously the protection of human life. In any disaster, there could be people trapped or imperiled on the mine site itself, or even some distance away if there is a public danger. So the first response is to notify all persons who may possibly be affected, or agencies needed to respond, which could include:

The crisis management team,

The nearest ambulance service,

Nearest medical facility,

Applicable federal, state and local mandatory emergency contacts (note that federal and state agencies often require notification within at least 15 minutes),

Nearest mine rescue team,

The local civil defense disaster officer,

The local and state police, and

company officials.

Once persons have been rescued, the public protected, and immediate danger has been placed in check, there will be an investigation. This will involve both civil and criminal liability. Oftentimes the most serious charges arising from a disaster are not a result of what actually led to the disaster, but are a result of hasty actions that were taken during the chaos surrounding a disaster. If a company is not prepared for a disaster, and experienced counsel is not involved, it is more likely that overworked, exhausted employees and management will make poor decisions, which could result in tainted or destroyed evidence, or inadvertent remarks that could prove costly for the company or the individuals. Employees should be advised in advance that there is no such thing as an “off the record” statement to an investigator, and that every person is protected from self-incrimination by the Fifth Amendment to the United States Constitution.

There will eventually be formal interviews conducted by regulatory agencies. Most of these interviews will be voluntary, but individuals should be advised that they could become investigation targets, and that they are entitled to have a (legal) representative attend any interviews with them. Where a conflict between an individual and the company is present, it is proper in most cases for a company to pay for separate legal counsel for the individual. Counsel for the company should be mindful of the possibilities of such conflicts before talking to individuals and preparing them for interviews. Company attorneys should always be prepared to call in other experienced counsel for individuals on short notice. The stakes are serious – it is not uncommon for these cases to be turned over to the U.S. Attorney for prosecution. A federal investigation will also not preclude a separate state investigation and state charges.

Anytime you have a disaster, there is the threat of civil lawsuits. The disaster could trigger wrongful death civil suits, and civil actions for personal injuries. While most state workers compensation statutes provides some protection for the company, plaintiff ’s attorneys have increasingly attempted to go after parent companies, subsidiaries and any other corporate entity that might be connected in some manner to that particular mining operation. A company can also face claims from any business or persons who might have been affected by some off-site consequences, including property damage.

Many companies have failed to survive following a disaster. Those companies who have survived have done so by having a plan of action to respond to disasters. The best defense is to have a strong offense, and experienced counsel to call the plays.

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