Turnpike Spill Leaves 39-Mile 'Sticky Situation'

It's almost time for a family tradition at my house: Watching A Christmas Story marathon on TBS. One of my favorite scenes is after Ralphie's friend Flick, on a triple-dog dare, stuck his tongue to a frozen pole on the playground. The teacher calmly tried to draw a confession or a tattle from Ralphie's class. Even thought he knew exactly what had happened, Ralphie looked at his classmates with wide-eyed innocence of a sweet cherub.

I hope that Marino Transportation Service isn't responding to its crisis with the Ralphie look. I can't tell so far. There's nothing on the website, and it's too soon to find mention on the National Transportation Safety Board's investigation page. Plus, "A call to Stevensville, Md.-based Marino Transportation Services from msnbc.com on Wednesday morning was not returned." (http://usnews.msnbc.msn.com/_news/2011/11/23/8976015-gooey-tar-paralyzes-more-than-150-vehicles-in-pa)

Here is the crisis -- and it's a big and potentially expensive one. "A leaking valve on the tanker, which was transporting liquid driveway sealant, caused black tar-like fluid to flood the highway (Pennsylvania Turnpike), stopping motorists in their tracks as their wheels and undercarriages became mired in sludge.

The tanker began leaking near New Castle, Pa., and continued to spill sealant as it drove eastbound for 39 miles until it exited the turnpike at a service plaza in Oakmont, Turnpike spokesman Bill Capone said."

More than 150 cars were damaged, including turnpike maintenance vehicles and police cars. This happened Tuesday, and no dollar damage figures are available yet.

"Dan Gordon, owner of Cranberry Auto and Dan’s Towing, said his crews had received about 40 calls from stranded drivers as of 9 p.m. Tuesday. Gordon said he’s never seen a similar incident in the 26 years he’s been in the business.

“'Most of these cars are ruined, up underneath. That car over there’s got a transmission that’s ruined. It’s bad, I’ve never seen anything like it,' Gordon said. Turnpike maintenance crews were plowing and using sand to clean up and dry the tar Tuesday night, but all lanes remained open to traffic." (http://www.timesonline.com/news/local_news/tar-spill-snarls-traffic-on-turnpike/article_a045a45b-eb4b-52d1-a1ba-c3637556a4cb.html)

Affected travelers have been told to get a Pennsylvania State Police incident number from the turnpike’s Customer Assistance Center.

I wonder if MTS has the resources and insurance to cover the costs to motorists whose cars have been damaged and perhaps totalled. We can expect civil suits from stranded drivers, some of whom were on their way to visit families and friends for Thanksgiving.

According to Manta.com, MTS has annual sales of less than $500,000 and employs 48 people. (http://www.manta.com/c/mm8zvyz/marino-transportation-service) It's been in business since 2000.

I can imagine co-founder Nicholas Marino (whose picture is at http://www.gomts.com/) looking around his Thanksgiving table today innocently as his family discusses the tar spill. "'But those who did it know their blame, and I'm sure that the guilt you feel is far worse than any punishment you might receive. Now, don't you feel terrible? Don't you feel remorse for what you have done? Well, that's all I'm going to say about poor Flick.'

"Ralphie as Adult: [narrating] Adults loved to say things like that but kids knew better. We knew darn well it was always better not to get caught." (http://www.imdb.com/title/tt0085334/quotes#qt0348955)

The Ralphie look won't work for the NTSB and state police.

Death of FAMU Band Major Appears To Be a Pattern of Dangerous Behavior

Penn State isn't the only university that finds it needs to take swift and strong actions to move beyond a crisis. I hope Florida A&M manages its crisis better than Penn State's "Off with their heads" approach.

A band member died, reportedly due to a hazing. Furthermore, this has the appearance of an incident that's not isolated.

"Clarinet player Ivery Luckey just wanted to march on a football field with one of the nation's most prominent bands, the Marching 100 from Florida A&M University. He knew it would take hard work, practice and dedication. But Luckey eventually found out what it really took -- a trip through a gauntlet in which he was severely beaten by a group of established clarinet players.

"Luckey went through with it and says he was struck 300 times by his fellow performers during a 1998 hazing. That incident resulted in the suspension of 20 members from the band, a lawsuit filed by Luckey against the state Board of Regents and injuries that Luckey says led to several weeks in the hospital and permanent physical and emotional scars....

"And now it apparently has happened again, raising concerns by police, administrators and Luckey that FAMU officials haven't done enough to prevent hazing in the tight-knit marching band. According to news accounts, the Marching 100 has a long history of hazing incidents and has been the subject of at least seven formal investigations into hazing in the past decade." (http://savannahnow.com/stories/112001/LOChazing.shtml)

According to FAMU's website, the latest alleged hazing incident involved a drum major, Robert Champion. "According to Ginette Rodriguez, spokeswoman for the Orange County Sheriff's Office, 'after the game, the band returned to the Rosen Plaza Hotel (9700 International Drive) and the victim reportedly threw up in the parking lot and started complaining of not being able to breathe.... This is an ongoing investigation. There is no sign of foul play at this time.'" (http://www.famu.edu/index.cfm?a=headlines&p=display&news=2511)

No sign of foul play? What about this? "FAMU President James Ammons announced Tuesday he is immediately suspending 'any and all performances and engagements for bands and other ensembles under the auspices of the Music Department, including the Marching 100.' The suspension will stay in place during the investigations of Champion's death, Ammons said, and it will not be lifted until he authorizes it.

"Ammons vowed to convene a task force 'to determine if there are any unauthorized and questionable activities associated with the culture of the Marching 100.'" (http://www.cnn.com/2011/11/22/justice/florida-possible-hazing-death/index.html?hpt=hp_t3)

Julian White, director of the Marching 100 said he and administrators have made hazing prevention a priority in the past several years. He said all new members of the band attend workshops where they are briefed on the state's anti-hazing law, the university's strict policy against hazing and the consequences of hazing. Hazers will be suspended or expelled and can face criminal penalties.

"Despite a second round of suspensions during his term as director, White said he is unaware of any established hazing or initiation rituals in the band.

"But skeptics claim otherwise. Erika Bush, an attorney representing Luckey, said FAMU officials were aware for years that hazing was an established practice in the Marching 100. Bush points to news reports that trace hazing incidents back at least 20 years. In 1989, for example, eight band members were charged with battery and jailed after a fellow band member was shoved into a wall and elbowed in the head numerous times.

"William P. Foster, who retired in 1997 after directing the Marching 100 for 52 years, said hazing has been an annual event in the band for decades. He said he urged the university to take stronger sanctions against students who were involved in hazing, but administrators balked, he said." (http://savannahnow.com/stories/112001/LOChazing.shtml)

This tragedy seems to have been a smoldering crisis. Apparently hazing in the band is a long-standing and widely known practice. When you, as a communicator and defuser of smoldering crises, know of something that could cause embarrassment and shame to your organization, your duty is to be relentless to fix the problem and avert a crisis.

In this case, FAMU leadership failed to act, and now a student is dead. The university must take quick action to regain the support of key stakeholders. Suspending band performances is the right first step. But it's only the first step.

Egg Crisis Involves Big Dogs and Helpless Chickens

The bigger they are, the harder they fall. No one understands that concept better than PETA and rival Mercy for Animals. Ronald McD had the audacity to buy eggs from a farm that allegedly treats its chickens cruelly. There's no attack against the people who have been youtubed torturing the chickens; the effort has been against the customer, who never met a chicken he didn't like.

Likewise, the criticism and legislation against the nutritional value of a McDonald's Happy Meal hasn't spilled over to Hardee's and Jack in the Box; just against the biggest, most visible player.

Nevertheless, McDonald's is taking this latest criticism eggstremely seriously this time. If you raise chickens and want to play ball with McDonald's, you better start doing things Ronald's way.
"The McDonald's restaurant chain has launched a major effort to improve the way egg farmers care for their hens -- a move that reflects rising scientific and public concern over how farm animals are treated. McDonald's Corp. sent letters to the farmers who supply the company with 1.5 billion eggs yearly outlining strict new regulations for raising hens.

"The guidelines require 50 percent more space for each caged hen, ban the controversial practice of withholding food and water to increase egg production, and require a gradual phasing out of the 'debeaking' that is common in the poultry industry.

"The move -- the first of its kind by any major U.S. food supplier -- was prompted by a combination of factors, including pressure from animal rights activists and growing concern among government and academic scientists that current methods of caring for chickens may increase the risk for diseases that can be spread to humans. Analysts also called it a potentially profitable business move -- to win credit for taking a step that might otherwise be required by the government." (http://www.jivdaya.org/mcdonald_tells_farmers_to_treat.html)

Aha! Read that last paragraph carefully. McDonald's is taking steps to prevent a smoldering crisis that will have an impact on its revenue from breakfasts.

As a lover of animals, I was glad to hear: "The fast-food giant McDonald's has severed ties with one of its US egg suppliers after a video taken by undercover animal rights activists exposed shocking cruelty to chickens at a farm.

"The footage showed chicks having the tips of their beaks burnt off by a machine and then being tossed into cages, along with images of barely-identifiable corpses of birds that were left to rot in cages.

"It also showed (male) chicks left to die in plastic bags, birds mangled by the bars of overcrowded cages and a chicken flapping its wings in distress as a plant worker swung the creature on a rope in a wide circle." (http://www.smh.com.au/environment/animals/mcdonalds-in-flap-over-chicken-cruelty-20111119-1noc7.html)

The company in question is Sparboe Farms, a family-run business. It too is responding appropriately, firing four employees and launching an investigation into treatment of its egg makers. Sparboe's owner, Beth Sparboe Schnell, wrote on the company's website, I was deeply saddened to see the story because this isn’t who Sparboe Farms is. Acts depicted in the footage are totally unacceptable and completely at odds with our values as egg farmers. In fact, they are in direct violation." (http://www.sparboeupdate.com/) Sparboe's entire chronological list of actions taken is really quite good and worth viewing for crisis communicators.

Mercy for Animals is using McDonald's, not the little-known Sparboe, to get its message across. It's easier for activists to get what they want by gaining the attention of the biggest dog wagging the biggest tail. "(Nathan Runkle, executive director of Mercy for Animals) said the decision to drop Sparboe as a supplier failed to provide a solution to the real problem - the use of cramped battery cages, which give hens no room to walk or spread their wings.

"Mercy for Animals said it was urging McDonald's to use its influence as the largest egg buyer in the US to improve industry standards and stop buying eggs from farms that use such cages." (http://www.smh.com.au/environment/animals/mcdonalds-in-flap-over-chicken-cruelty-20111119-1noc7.html)

If you are a McDonald's or a WalMart or a Subway, you need to be prepared for an attack against your size and name. If you supply the big dogs, be ready for indirect criticism of the way you do business. McDonald's is experiencing a small crisis and is handling it well. A bigger crisis is at Sparboe, which apparently has lost McDonald's as a customer. It should have seen that coming and acted sooner. It's now doing a good job trying to recover its fumble.

Crises Can Arise When Religious Beliefs And Laws Clash

An 18-year-old man is dead. Something like this was bound to happen sooner or later. The most tragic thing is that it didn't need to happen. Sticking to your religious beliefs is one thing; breaking the law and putting lives at risk is quite another. This was and is a smoldering crisis on several fronts.

In September, 10 Amish men were arrested in Kentucky for refusing to place orange triangles on their buggies to alert drivers of a slow-moving vehicle. The defendants tried to say reflective orange tape was just as good. All 10 are from a strict Amish sect called Old Order Swartzentruber. And all 10 were sentenced to 10 days in jail. (http://www.huffingtonpost.com/2011/09/15/police-arrest-amish-men-i_n_964682.html)

This doesn't seem to be a matter of religious persecution, but of public safety. After all, "The men were offered and accepted dark uniforms and shoes instead of prison-issued uniforms. Additionally, the group is being kept together in a large holding cell....

"The group has been represented by an ACLU lawyer since 2008. In a phone interview, Bill Sharp told Local 6, 'We're certainly disappointed the judge decided to go forward with the hearing and impose these sentences. Nevertheless, we remain hopeful the Kentucky Supreme Court will decide to hear their appeals.'" (http://www.wpsdlocal6.com/news/local/Amish-spend-first-day-behind-bars.html)

Sheriff Dewayne Redmond was quoted as saying,"I hate they had to go to jail. But it comes down to their safety and the safety of others."

Now we fast-forward from mid-September to mid-November. "Authorities say a teenager has been killed when the buggy he was driving was hit by a sport-utility vehicle in south-central Kentucky. Kentucky State Police say the horse-drawn buggy did not display a slow-moving sign or reflectors. Police say 18-year-old Aaron Byler of Cub Run was thrown from the buggy and died while being airlifted to a hospital....

"Police say a Chevrolet Blazer struck the buggy from behind. The SUV driver was taken to a local hospital, where he was treated and released." (http://www.kentucky.com/2011/11/18/1964454/teen-killed-when-buggy-struck.html)

This could become, if it not already is, a crisis for Amish communities everywhere, even the less strict and conservative ones. It may be a crisis for Hart County, Kentucky, where the accident occurred. It already appears to be a smoldering crisis for Graves County, which jailed the 10 men. Remember that the Civil Liberties Union has lawyers, and they're not afraid to use them.

There are no easy solutions to this problem. Would an orange square alert drivers as well as an orange triangle? Could they use some sort of flashing or strobe light? There must be some safe solution. If this Amish sect says there's no way it will use a triangle, and the police and courts say there's no way you will jeopardize lives, we have a stalemate. Until someone gives in or both compromise, more people may be injured and killed. This needs fast action.

Occupy Wall Street Creates Conflict, But Still Hasn't Created a Message

We define news at the Institute for Crisis Management as that which creates conflict. News has been defined as man bites dog and in several other ways through the years. But these days, if you don't have conflict, you don't have much of a story.

Occupy Wall Street or Occupy Whatever is a good example. Occupy is the only story I can get on CNN today, as thousands in New York City attempted to shut down the New York Stock Exchange this morning. They couldn't get past the police, so they've been milling about for hours. Some are chanting something that's indiscernible.

"Demonstrators lifted metal barricades that ringed the financial district park in Lower Manhattan, scuffling with authorities and blocking traffic as police reported up to 75 arrests, many of them on streets near the Exchange.... Early Tuesday morning, police swept into the group's former encampment at Zuccotti Park and forcibly evicted demonstrators, a move that was ultimately upheld by a New York State Supreme Court." (http://www.cnn.com/2011/11/17/us/new-york-occupy/index.html?hpt=hp_t1)

You see? Conflict.

"In Portland, Oregon, plans include 'occupy banks.' 'Let's shut them down!' the organizing website n17pdx.org says. Large groups of demonstrators gathered in front of downtown hotels, carrying placards and chanting 'We are the 99%.'

"In Dallas, CNN affiliate WFAA broadcast images of police sweeping through a downtown area where protesters had been gathering and camping. And in Los Angeles, organizers called for a protest downtown, shutting down an intersection. Large groups of protesters flooded downtown city streets in an apparent standoff with authorities. Events are also planned in Boston, Minneapolis, and other cities."

The protesters want to make news, and politicians and police are obliging them by breaking up camps and making arrests.

And then, there's Oakland. "As the Occupy movement moves to a post-camping phase, left in tatters is the once promising administration of Oakland Mayor Jean Quan. Never the favorite of the city’s Downtown establishment, Quan’s response to Occupy’s presence at Frank Ogawa Plaza has permanently destroyed much of her progressive base. Quan will either be recalled or not seek re-election.... The tragedy is that Quan abandoned the collaborative approach that had served her and the city well. Instead, she unilaterally ignored better options for dealing with growing pressure around Occupy." (http://www.beyondchron.org/articles/The_Tragedy_of_Jean_Quan_9698.html)

Meanwhile, in Louisville, Kentucky, where I live: "But even as a wave of police actions this week cleared protest sites in such cities as Oakland, Calif., and New York, Occupy Louisville remains undisturbed. Although the protesters have had to move several times, they now have a permit to camp out in Founders Square until the end of the year... Things were quiet in the park on Monday, as some protesters had left for work or to take part in a student walkout at the University of Louisville." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011311160120)

Joining the protesters in Louisville are homeless people who have found a community and warm food. There are no harsh words from the mayor nor police intimidation, but there are legal permits to camp out and protest and so...no conflict.

However, there's also no message, from either the quiet camps or the disruptive camps. I repeat from earlier blog posts: What is it these people want? There's no leadership. They offer no solutions to economic and other problems they want some unnamed somebody to fix. Closing the stock exchange accomplishes nothing. And do you suppose the economy and job market will improve if protesters successfully shut down a bank for a day? Will Republicans and Democrats kiss and make up and start working for the good of the entire country? Somebody set me straight.

CNN today did as good a job as I've seen trying to capture the point of this two-month protest. "The movement, which is modeled after social-media-driven demonstrations in the Middle East, aims to raise awareness about the role financial institutions played in the continued economic downturn affecting the world markets, and to show their discontent at the lukewarm attempts to prosecute those at fault. Demonstrators are also rallying against the state of the war in Afghanistan, the state of the environment, and a wide array of other domestic and international issues. (http://ireport.cnn.com/open-story.jspa?openStoryID=682030&hpt=hp_t1#DOC-694036)

The whole thing reminds me of Li'l Abner, a satirical comic strip by Al Capp from 1934-1977. During the 1960's era of protests, he created S.W.I.N.E. (Students Wildly Indignant about Nearly Everything).

In PR 101, we learned to identify our key messages, but limit them to one or two or no more than three. If S.W.I.N.E. -- I mean Occupy Wall Street -- has any good ideas for change, we'll never hear them in their cacophony of indignation about nearly everything.

Dust Explosions Are Common and Should Be in Your Crisis Communications Plan if There Is Even a Remote Risk

I wrote on November 1 about a dust explosion at a grain elevator in Kansas that killed six people. (http://crisisexperts.blogspot.com/2011/11/grain-dust-explosion-in-kansas-kills.html) It seems dust explosions happen more frequently than they should. In fact, OSHA has been chastised in the past for not emphasizing dust explosion prevention.

That's not really my area of expertise -- unless it's to reassure myself that management takes the risk seriously. My main responsibility is to ensure I am prepared to communicate if an explosion were to occur. Such blasts can come with loss of lives, damage so severe the facility goes out of business, a community that loses a major employer either temporarily or permanently, suppliers who lose a customer, customers who lose a supplier, family members in mourning, civil suits, and maybe even criminal suits.

Clearly there can be many aftershocks for a long time. If you work for a company where dust explosions are a possibility, how well does your crisis communications plan prepare you to respond quickly and with the appropriate talking points?

"Not all dusts are combustible. Some, such as sand, cement and rock are typically not combustible. Organic dusts such as plant dusts are combustible. These include a wide variety of materials, such as sugar, flour, grain, linens, etc. Many synthetic organic materials, such as plastics, organic pigments and pesticides, are combustible. Coal and peat are combustible, as are some metals, such as aluminum, magnesium, zinc and iron.

"The proper conditions must exist to realize a dust cloud deflagration or explosion. The dust must be of the proper size. A material must be of the correct particle size to enter into an explosive reaction." (http://www.matrixrc.com/documents/Dust_Explosions.pdf)

And of course there has to be a source of ignition. "Ignition sources may include smoldering or burning dusts; open flames from welding, cutting, matches or lighters; hot surfaces, such as heaters, ovens, furnaces or hot bearings; heat from mechanical impact; and electrical discharges or arcs." Sometimes, even a lightening strike nearby may be all it takes.

A plant where I worked once had two explosions in the same unit within a week. Both received media attention. We were ready to explain that we were investigating the incidents, that we had made a thorough cleaning of the area, and that the explosion doors opened as they were designed, thus minimizing damage. This could have turned into a bigger story, but no one followed up for any day-2 updates. Either something less boring was going on in town or assignment editors thought explosions without injuries or damage just weren't very sexy.

The point is we were ready to gather the information we needed from managers and plant emergency responders, we had the right answers and said the right things. You might not be so lucky if you suffer injuries or fatalities. Your plan needs to take that into account.

Be sure your crisis communications plan contains holding statements, general talking points for after you know more, and a list of key stakeholders including the best way to reach each of them and a priority timing list to make sure you take care of the key-most of your key stakeholders first.

Ohio House Explodes, Gas Company Asks, 'What Explosion?'

Work was under way on a water line at a house in Fairborn, Ohio last weekend. According to the AP, workers hit a gas line, causing an explosion that killed a man and injured six others, including four children.

"A 13-year-old was transferred in critical condition to Shriner's Hospital for Children, one of about four hospitals in the country specializing in pediatric burns, said spokeswoman Louise Holker.... The 1-year-old baby was in fair condition and a 5-year-old was in good condition Sunday morning, a spokesman for Dayton Children's Medical Center said. A third child, whose age wasn't available, was treated and released Saturday." (http://www.usatoday.com/news/nation/story/2011-11-13/ohio-house-explosion-death/51185856/1)

I would have expected a statement of sympathy from Vectren, the gas company, and words to the affect that the company was cooperating in the investigation and that it was paying the bills for those burned children.

Instead, I can't even read Vectren's news releases without subscribing first. (https://www.vectrenenergy.com/web/holding/discover/media/media_room_i.jsp) There's no statement of sympathy or cooperation with authorities. Instead, "Chase Kelley, a spokeswoman for Vectren Corp., said it hasn't been confirmed that there was a gas leak and the company would likely conduct its own investigation into the cause of the explosion." (http://www.usatoday.com/news/nation/story/2011-11-13/ohio-house-explosion-death/51185856/1)

Now there's a company with a big heart, eh?

"A woman who lived about 100 yards from the Ohio home that exploded, Cybil Poole, told the Dayton Daily News that the blast felt like a car hitting it. She said she saw the infant lying in the yard and that some of the other victims were still on fire....

"Another neighbor, Paula Corelli, told the newspaper that she was almost hit by a flying piece of wood from the explosion. When she saw two adults running down the sidewalk carrying three bloodied children, she offered to take them while the adults returned to the scene."

Meanwhile, Vectren stands with hands in pocket, whistling, and looking aimlessly in the other direction. Maybe it wasn't natural gas that exploded. But either way, the company should at least pretend that it cares about those burned babies. The civil suits will come flying faster than the debris.

Sticking to My Story: Trustees Threw Paterno to the Lions Just To Appease the Crowd

I thought I was done writing about Penn State, but the latest developments in the underage-sex scandal are worth addressing. I continue in my view that Joe Paterno was fired merely for symbolic reasons. Others who witnessed or were told about Jerry Sandusky with boys have been ignored unless they are prominent figures at PSU. Comments to my Facebook posting and opinions from sports columnists and secular editors alike show me to be in the minority on the subject.

Some columnists are even calling for Penn State to suspend the rest of its football season (must be Michigan State fans or something). Why in the world would you want to punish today's players for something that happened 11 years ago? Dumb suggestion.

But on the ESPN crawler last night, a trustee was quoted as admitting that firing Paterno was meant only to quell the "public furor."

I kept wondering in past blogs and conversations why the witness who told Paterno about Sandusky and a boy in the shower remained untouched through all this. Assistant receivers coach Mike McQueary is untouched no longer. He has been placed on paid administrative leave, but he told the team via speakerphone Friday that he was done as their coach. Why would an eye witness receive better treatment than Paterno, who vaguely remembers McQueary telling him about Sandusky and a boy without specifically mentioning the sexual nature of their "horsing around."

"(Interim) President Rod Erickson notified McQueary of the decision to place him on administrative leave Friday, a day after the school said the receivers coach would not be present Saturday when the Nittany Lions play Nebraska because he has received threats. Asked if McQueary was placed on leave for his conduct or to ensure his safety, Erickson said it was 'a complicated situation....'

"Asked if McQueary would be fired, Erickson said 'There are complexities to that issue that I am not prepared to go into at this point.'"
(http://espn.go.com/college-football/story/_/id/7221182/penn-state-nittany-lions-mike-mcqueary-placed-administrative-leave-interim-president-says)

Those "complexities" may involve whistleblower protection. "Stephen Kohn, the executive director of the National Whistleblowers Center in Washington, D.C., (said) that reporting the incident to Paterno alone could be enough to protect McQueary from being dismissed under the state's whistle-blower law.

"'You have to look at where the employee is on the totem pole,' Kohn said. 'There are different expectations at different levels. A manager versus an employee. A student versus a teacher. It's just how it goes. The last thing you want to do is create an environment where people don't even tell the supervisor.'" (http://espn.go.com/espn/otl/story/_/id/7219659/penn-state-assistant-coach-whistleblower-protection-reporting-sandusky-alleged-incident)

I'll buy that last sentence, but I still contend that McQueary did the same thing as Paterno: communicate up the organizational chain without telling the police.

Meanwhile, at the Paterno residence, JoePa hired a prominent attorney out of fear of potential civil suits against him.

"On Friday, Paterno's son Scott said he had retained prominent Washington D.C. attorney J. Sedwick Sollers, of the law firm of King & Spalding. He also announced that that on Sollers' advice, the Paterno family will make no further public statements on the scandal." ((http://espn.go.com/college-football/story/_/id/7221182/penn-state-nittany-lions-mike-mcqueary-placed-administrative-leave-interim-president-says))

That's too bad. I think Paterno has said the right things. Scott Paterno did well yesterday, too.

"'Like everyone who has watched this story unfold, my father is experiencing a range of powerful emotions. He is absolutely distraught over what happened to the children and their families. He also wants very much to speak publicly and answer questions,' Scott Paterno said. 'At this stage, however, he has no choice but to be patient and defer to the legal process. He cooperated fully with the grand jury and he will continue to cooperate with the investigation as we move forward.'"

ESPN's Brian Bennett, in his Big 10 blog, provided a brief but I think accurate assessment of the way the university has handled communications during the past week while he wrote of interim head coach Tom Bradley's first news conference.

"For someone who admitted he hadn't slept in the past 24 hours, Bradley handled a very difficult press conference about as well as anyone could expect. That in itself was an accomplishment. Penn State had spent the previous five days bungling every possible public relations opportunity, from president Graham Spanier's ridiculous statement of 'unconditional support' on Saturday, to the last-minute cancellation of Paterno's Tuesday press conference to Wednesday night's chaotic free-for-all when the board of trustees announced the dismissal of Spanier and Paterno. About the only people who have acquitted themselves well in this whole mess so far have been the players who spoke to the media on Wednesday and Bradley." (http://espn.go.com/blog/bigten/post/_/id/38233/bradley-gets-dream-job-amidst-nightmare)

Postscript: One of the people privy to a campus police department detective's investigation of Sandusky in 1998 was the county district attorney. Despite the evidence, he declined to press charges. My friend Mark commented on Facebook about a mystery surrounding that attorney. "The DA went 'missing' in 2005 all they found was his car and laptop - minus the hard drive....... hmmmmmmmmmmmm."

Paterno's Firing a Premature Knee-Jerk Response to Those Seeking Blood

Most of the public reaction I hear and read to Joe Paterno's firing last night seems to be that the board of trustees acted responsibly and did what it had to do. I, on the other hand, would have joined the thousands of students who protested across campus following the announcement.

Paterno did nothing illegal, according to the grand jury that investigated child sex abuse on campus. He reported what a graduate assistant said he saw in the shower to his boss, Athletic Director Tim Curley, and to Senior Vice President Gary Schultz, whose responsibilities included overseeing the campus police. They in turn met with President Graham Spanier and told him Sandusky was "horsing around" with a younger child in the shower. Spanier denied he was told the incident was sexual.

JoePa announced earlier in the day that he would retire at the end of the season. That's three games, probably the Big 10 championship, and a bowl game. It seems like 46 years and 409 wins should buy a man five more games.

I wrote a couple days ago that more bloodshed could be expected because no communications would make this furor die down. The trustees picked the two biggest names on campus for their bloodbath last night: Paterno and Spanier.

The sharks now have their victims. Maybe they'll swim away.

Rodney Erickson, interim president, has a statement on the Penn State website. "In addition to the legal process under way, Penn State's Board of Trustees has authorized a full investigation.... As those involved pursue their cases, I also urge you, as Penn Staters, to be patient, to avoid speculation, and to refrain from passing judgment until the facts are known." (http://live.psu.edu/wire/4)

The trustees apparently didn't get that memo.

During the board of trustees news conference last night, someone asked, if the board doesn't have all the facts, how can it justify declaring Paterno guilty? There was only a wishy-washy, stuttering stock answer.

Here's something else I don't understand. The first-hand witness who reported what he saw to Paterno isn't being prosecuted. In fact, he wasn't even mentioned by name in the grand jury report. (http://assets.espn.go.com/photo/2011/1107/espn_e_Sandusky-Grand-Jury-Presentment.pdf) How then can you fire Paterno who was aware that something sordid he never saw went on in the shower? That witness was Mike McQueary (No, I didn't make that name up), who is still on staff at Penn State as assistant coach of wide receivers and recruiting coordinator. Why not go after the man with first-hand knowledge? After all, he didn't call police. He told Paterno and then the matter was out of his hands. It's the same lack of action that cost Coach his job.

Others were more aware of what was going on than was Paterno or Spanier. The mother of one of the young victims notified campus police in 1998 of Sandusky's inappropriate behavior with her son. After a "lengthy" investigation by University Police Detective Ronald Shreffler, the county district attorney didn't press charges, and the director of campus police, Thomas Harmon, ordered Shreffler to drop the investigation.

In 1998, Sandusky admitted to Jerry Lauro, an investigator with the Pennsylvania Department of Public Welfare, that he hugged a boy while naked in the shower and acknowledged it was wrong. Lauro did nothing.

In 2000, a janitor named Jim Calhoun witnessed Sandusky performing oral sex on a boy in the shower. He told the rest of the janitorial staff. He also told Ronald Petrosky, who had seen the two leave holding hands. Calhoun was in tears. Yet none of them reported the incident, allegedly out of fear for their jobs. Calhoun also told his immediate supervisor, Jay Witherite. Not a single one reported the event to police or child welfare. Not a single one is being prosecuted or persecuted.

If you are keeping score, not one janitor or assistant football coach or campus detective or district attorney or welfare investigator has been fired nor has made the news, not even the eye witnesses. But bloodied are the athletic director, a senior vice president, the university president, and the head football coach. All this, and the trustees have yet to even select the investigation committee. That's right, Interim President Erickson: "refrain from passing judgment until the facts are known."

I wrote yesterday that I hadn't heard a peep out of President Spanier. As I was writing that, he was posting a lengthy message on the Penn State website. A few hours later, he was fired. He stated, "Our great university has been rocked by serious charges against a former coach. The presentment by the Attorney General describes acts that should never be tolerated or ignored. I was stunned and outraged to learn that any predatory act might have occurred in a University facility or by someone associated with the University.... I would never hesitate to report a crime if I had any suspicion that one had been committed." (http://live.psu.edu/story/56308#rss49)

Now he's history anyway.

Poor communications and failure to act. That's a deadly combination that creates smoldering crises. For thoughts on how a Management Early Warning System (MEWS) might have prevented this crisis, or at least minimized it, see Larry Smith's blog on the subject yesterday at http://www.crisisconsultants.blogspot.com/.

Joe Paterno Will Retire; President Spanier -- Who Knows?

Word is out today that Penn State's Joe Paterno will retire at the end of this season. Whether the board of trustees allows him to remain football coach that long is still an open question.

Walt asked following yesterday's Penn State post below: "Do you find it disturbing that the PSU president has been silent on this to date?"

The answer is yes. I haven't heard a peep. President Graham Spanier continues with his best Harpo Marx impersonation. He's probably laying low because ultimately, the proverbial buck stops with him. Paterno reported what he heard second-hand up the chain of command. Spanier apparently did nothing. His job is on the line, and rightly so.

The board of trustees has spoken up. It released a statement Tuesday that said:

"The Board of Trustees of The Pennsylvania State University is outraged by the horrifying details contained in the Grand Jury Report. As parents, alumni and members of the Penn State Community, our hearts go out to all of those impacted by these terrible events, especially the tragedies involving children and their families. We cannot begin to express the combination of sorrow and anger that we feel about the allegations surrounding Jerry Sandusky. We hear those of you who feel betrayed and we want to assure all of you that the Board will take swift, decisive action.

"At its regular meeting on Friday, November 11, 2011, the Board will appoint a Special Committee, members of which are currently being identified, to undertake a full and complete investigation of the circumstances that gave rise to the Grand Jury Report. This Special Committee will be commissioned to determine what failures occurred, who is responsible and what measures are necessary to insure that this never happens at our University again and that those responsible are held fully accountable. The Special Committee will have whatever resources are necessary to thoroughly fulfill its charge, including independent counsel and investigative teams, and there will be no restrictions placed on its scope or activities. Upon the completion of this investigation, a complete report will be presented at a future public session of the Board of Trustees.

"Penn State has always strived for honesty, integrity and the highest moral standards in all of its programs. We will not tolerate any violation of these principles. We educate over 95,000 students every year and we take this responsibility very seriously. We are dedicated to protecting those who are placed in our care. We promise you that we are committed to restoring public trust in the University." (http://espn.go.com/college-football/story/_/id/7209890/penn-state-nittany-lions-sex-abuse-scandal-board-trustees-meeting-scandal)

Well said! No matter whether Spanier is guilty of wrongdoing or not, his silence is telling. He should make a statement of regret toward the boys and pledge his and the university's full cooperation. He doesn't need to take questions or say anything more. But he should have said that much by now.

Times Says Penn State Scandal Will Be the End of Joe Paterno's Reign

I've been a fan of Penn State and Coach Joe Paterno for as long as I can remember since I was a kid. The sex abuse scandal and failure to report it that rocks the campus now is like watching the slow death of a dear old friend.

The New York Times reported just moments ago, "Joe Paterno’s tenure as coach of the Penn State football team will soon be over, perhaps within days or weeks.... The board of trustees has yet to determine the precise timing of Paterno’s exit, but it is clear that the man who has more victories than any other coach at college football’s top level and who made Penn State a prestigious national brand will not survive to coach another season. Discussions about how to manage his departure have begun, according to the two people."

As you probably know, Jerry Sandusky, former defensive coordinator under Paterno, has been charged with sexually abusing eight boys within a 15-year span. Paterno has not been named in the investigation, but has been criticized for failing to involve the police when he was told of an assault against a young boy in 2002.

So far, Gary Schultz, senior vice president for finance and business, and Tim Curley, athletic director, have been charged with perjury and failure to report the alleged abuses to authorities as required by state law. Both resigned from their positions. Penn State President Graham Spanier, like Paterno, has come under scrutiny for failure to take action about Sandusky's alleged child abuse.

Penn State cancelled Paterno's weekly news conference at noon today. Paterno reported later that he wanted to face the media, but others at Penn State called off the event.

"On Monday law enforcement officials said that Paterno had met his legal obligation in alerting his superiors at the university when he learned of the 2002 allegation against Sandusky. But they suggested he might well have failed a moral test...."

Michael Rosenberg of Sports Illustrated has a good sense of this crisis and how it should never have happened. "Today, Penn State looks precisely like the Catholic Church looked for so many years. There were accusations of pedophilia. The allegations were so horrific that they threatened to undermine the reputation of the institution. The people in charge should have brought the allegations to light. But they were more worried about how the institution would look than the values it is supposed to uphold....

"Paterno will apparently avoid charges in this case. But his reign at Penn State will end poorly, just as Woody Hayes' reign at Ohio State ended poorly, and as Bob Knight's reign at Indiana ended poorly. In all three cases, you could see a lousy ending coming -- though of course, it was hard to imagine this particular lousy ending.

"There is no joy in saying that. But there is no joy anywhere in this awful story. Strip away the fame, the money and the popularity of Penn State's football program, and you have a sordid allegation that demanded a powerful response from powerful people."

But no response was made. Now there is no communication that will clear up this mess. The way to appease critics, which include alumni, donors, students, and future students, is for more blood to hit the floor. People who allowed the deviant behavior to continue for years will be fired. Will that mean the end to the Joe Paterno dynasty? Personally, I hope not. Realistically, I hope he can last out the season and retire after Penn State's bowl game. The winningest coach in football history, who has donated millions of dollars to the university, deserves at least that much dignity.

Cain's Lesson a Good One for All: Don't Copy His Strategy to Make a Scandal Go Away

I feel like I need to weigh in on the Herman Cain campaign crisis. He hasn't done much so far to right his listing ship. In Larry Smith's Institute for Crisis Management blog last week, he wrote, "It’s not the right example, but it certainly is a teaching moment, not only for politicians, but for executives at every level of a business or organization." (http://www.crisisconsultants.blogspot.com/)

Cain not only remains in denial, but he blames others for this distraction. He started out blaming Rick Perry's camp for leaking the news. Then it was the media's fault. His strategy for answering reporters' questions about the sexual harassment allegations is to pass out copies of the Society of Professional Journalists' code of ethics. How dare these reporters focus on a scandal! His latest tactic is to blame an alleged victim.

According to columnist Ruth Marcus, "Reporter-bashing is always a handy tactic, especially when you don’t have the facts on your side.... 'There are too many people in the media who are downright dishonest,' Cain said. 'They do a disservice to the American people.'

"Spare me the lectures about honesty from a man who denied that he was aware of a financial payment to settle the sexual harassment claims, then acknowledged it, then said he was distinguishing between a 'settlement' and an 'agreement.'” (http://www.courier-journal.com/article/20111108/OPINION04/311080017/Ruth-Marcus-Reporting-Cain-has-not-been-witch-hunt-)

At first, Cain's response was to admit he was only vaguely familiar with a harassment complaint, then later remembered commenting on a woman’s height one time.

So far, he categorically denies allegations by the one of four alleged victims who went public. How many politicians, when faced with some past transgression, don't start out denying it ever happened? But Cain errs again when he takes his denial one step further and attacks the character of his accuser. In an e-mail to supporters, Cain's campaign wrote, "The fact is that Ms. Bialek has had a long and troubled history, from the courts to personal finances - which may help explain why she has come forward 14 years after an alleged incident with Mr. Cain, powered by celebrity attorney and long term Democrat donor Gloria Allred." (http://www.cbsnews.com/8301-503544_162-57320568-503544/herman-cain-seeks-to-salvage-reputation-as-scandal-continues/)

Bill Clinton faced a similar crisis during his campaign when Jennifer Flowers accused him of having an affair with her. But Clinton defused the crisis. He and Hillary went on TV and Clinton admitted to making a serious mistake he deeply regretted. We all know how the Democratic Convention and November election turned out.

Cain might not be so fortunate. He will hold a news conference at 5 p.m. EST today. I'll be interested to see if he changes his strategy. He needs to. "Meanwhile, it's impossible to know what other accusations could emerge if Cain doesn't clear the air. In the latest story, one former government employee came forward on Tuesday to say she found Cain's motives suspicious when he asked her to help arrange a dinner date between him and a young woman, the Washington Examiner reports."

What should Cain say at today's news conference? If he listened to ICM's Smith, his statement would go something like this: "You’ve seen me speak and interact with staff and supporters and voters. Sometimes my attempt at humor succeeds and sometimes it doesn’t. There were two co-workers at NRA that apparently miss-interpreted something I said or did. At the time I said I didn’t mean to offend anyone, and I can say it again – if I offended either of those two ladies or anyone else, forgive me. I love my wife, I don’t need anyone but her." Read more at http://crisisconsultants.blogspot.com/2011/11/mr-cain-continues-to-set-example.html.

'Deadly Consequences of a Child Welfare System That Has Completely Insulated Itself From Meaningful Public Scrutiny'

I wrote yesterday about how failure to release information gives the appearance that one has something to hide. Today I present Exhibit B.

The Kentucky Cabinet for Health and Human Services has long held out against Freedom of Information Act requests for records. The cabinet claims it is protecting the privacy of its clients. Maybe. But more important, it seems to be protecting against public knowledge of its mistakes.

"A Franklin Circuit Court judge blasted state officials Monday for ignoring suspected prior abuse of a 9-year-old Western Kentucky girl beaten to death by her adoptive brother, saying they turned a “blind eye” to repeated reports of her horrific mistreatment.

"In his second such order in four days, Judge Phillip Shepherd ordered the Cabinet for Health and Family Services to release records of child abuse death investigations — this time in the case of the Feb. 4 murder of Amythz 'Amy' Dye. State officials have repeatedly refused to release such records, citing confidentiality." (http://www.courier-journal.com/article/20111107/NEWS01/311070081/State-blasted-Western-Kentucky-girl-s-slaying?odyssey=tabtopnewstextHome)

Cabinet officials are the ones who approved Amy’s adoptive home in Todd County after removing her from her birth parents because of “severe neglect and sexual abuse.”

“'This case presents a tragic example of the potentially deadly consequences of a child welfare system that has completely insulated itself from meaningful public scrutiny,' Shepherd said in his order. 'The Open Records Act is the only method available by which the public and the legislature can obtain information regarding the systematic breakdown of our child protective services that contributed so directly to this child’s death.'”

Spokeswoman Jill Midkiff said the cabinet is reviewing the order. Here's the kind of dirt the public might uncover if it has access to Health and Family Services case histories:

"Garrett Dye, 17, Amy’s adoptive brother, pleaded guilty Oct. 21 in Todd Circuit Court to murdering her on Feb. 4 by beating her in the head with a jack handle. At the time, she was outside on a cold, snowy evening shoveling gravel as punishment for stealing pudding and juice from a friend’s lunch box at school, Shepherd’s order said....

"After Amy’s death, police found the girl’s clothes in a dresser in a trailer outside the house, Shepherd’s order said. It said Amy sometimes soiled her clothes because of poor bowel control, and when she did, her adoptive mother — as punishment — forced her to go outside for clean clothes."

Nevertheless, the cabinet "turned a 'blind eye' to repeated reports of her horrific mistreatment," according to Shepherd.

This is the kind of tragedy that comes from secrecy. Some business secrets are worth protecting and must remain inhouse. The safety of children placed in the cabinet's care outweighs any feeble claims of client confidentiality.

Be careful about what you keep confidential and what the public and other stakeholders have a need to know.

You Should Have No Secrets When You Have Nothing to Hide

One of the major stories in Louisville, Kentucky, this year has been a proposed hospital merger of University Hospital (affiliated with the University of Louisville, but more on that later), Jewish Hospital & St. Mary’s HealthCare, and Lexington’s St. Joseph Health System. The merger would create Kentucky's largest health care network, and proponents claim it would improve health statewide and lead to better trained physicians, a role University fills.

No one would be paying much attention, except that the merged hospitals will be under the direction of Catholic Health Initiatives, considered a ministry of the Catholic church. That means they would have to follow Catholic directives covering Vatican no-no's such as sterilizations, abortions, birth control, and euthanasia. The area Bishops won't approve a merger otherwise.

No where are Catholic directives any more controversial than at University Hospital, the safety net for the poor and uninsured. Part of the controversy involves the question of whether University Hospital, with its connections to a public university, is a private or public facility.

"Legal experts say if University is a public hospital, the merger could run afoul of the First Amendment's prohibition against government favoring any religion. Several watchdog groups have questioned the merger because of that issue. U of L and University Hospital maintain the hospital is private because it is operated by a nonprofit corporation, University Medical Center Inc. But several elected officials disagree, and Attorney General Jack Conway ruled recently that UMC is a public agency.' http://pqasb.pqarchiver.com/courier_journal/access/2494721301.html?FMT=FT&FMTS=ABS:FT&type=current&fmac=f10b7ae69f2d041a9c3c286c06d01411&date=Oct+25%2C+2011&author=&pub=&desc=Hospital+merger+stance+softens)

The private/public controversy appears headed for court. Here is where open communications come into question.

"University Hospital has filed a lawsuit against The Courier-Journal, the American Civil Liberties Union, WHAS-TV and people associated with those organizations to overturn Attorney General Jack Conway’s ruling last month that it is a public entity. The suit, filed Friday in Jefferson Circuit Court, seeks to avoid turning over documents requested by those organizations under Kentucky’s open records law." (http://www.courier-journal.com/apps/pbcs.dll/article?AID=2011311050113)

Why, I wondered, was the hospital being secretive about turning its documents over to the news media? “'All of the parties operate in highly competitive markets where they would be unfairly disadvantaged if their competitors could learn about their internal workings and strategic initiatives,' the lawsuit says."

I've never worked directly in the health care industry. But it seems to me that patients show up, you make them well, you send them home. What "strategic initiatives?"

What could be in those documents that is either so secretive or so embarrassing? By taking the attorney general's opinion to court and stiff-arming efforts to open its books to the public, University Hospital is taking on the appearance of an organization that has something to hide. It seems like some deep, dark secrets -- perhaps back-room negotiations with the Catholics or criticisms of certain entities, for instance? -- are being protected.

Attempts at secrecy, whatever your business, make you appear to be hiding something from your stakeholders. It's a given that competitive information and business plans are off limits. But in this case, whether University Hospital is private or public, it appears to be hiding something juicy. When you are in the midst of a crisis, remember the lesson of University Hospital. Be as up front and honest as you can, yet without baring all. Wear a fig leaf but not much more.

Corzine the Wrong Kind of CEO in a Crisis

This development in the MF Global bankruptcy and FBI investigation may be sort-of old news by now. But it's worth a mention as a follow-up to the blog post I write on November 2, below.

Jon Corzine resigned Friday as CEO. This is the same Corzine who was once a Senator, a governor, and a trader for Goldman Sachs who lost $150 million of his employer's money on some gambles that didn't pay off. He later earned the money back, but other risky trades cost the firm almost $2 billion.

"Corzine, 64, is in the midst of a professional meltdown that began when he bet heavily on European debt, and lost. As head of MF Global, he pushed for the $6.3 billion gamble on debt issued by Italy, Spain and other European nations with troubled economies that ultimately doomed the securities firm he took over last year.

"The company filed for bankruptcy protection Monday, after a presale audit revealed potentially millions in missing client funds, scaring off a potential buyer. MF Global was in court Tuesday, asking a judge to allow it to borrow $8 million to finance the bankruptcy. By that night, the FBI and federal prosecutors had gotten involved." (http://abcnews.go.com/US/wireStory/corzine-risk-hand-hand-14876339)

The AP story by Angela Delli Santi calls Corzine, "Ambitious. Impatient. Stubborn. Highly tolerant of risk. The personality traits that helped Jon Corzine move...to the heights of power on Wall Street and in New Jersey politics also may be partially responsible for his spectacular downfalls in government and finance."

A crisis communicator would have become quickly frustrated working for Corzine, based on the picture the AP paints of him. "Supporters and detractors agree that on issues big and small, Corzine is not one to heed the counsel of others or surround himself with a wide circle of advisers. His extreme self-confidence can come off as stubbornness."

If you have the misfortune of working for a boss like this, you better either adopt an Alfred E. Newman attitude of "What? Me worry?" or find another employer who will listen to your advice and take seriously your crisis communications plan.

Cabot Oil & Gas Is a Lesson in Transparency on the Web

The airwaves have been crowded of late with oil and gas companies boasting of the benefits natural gas provides -- not in the companies' profit and loss statements, which is the real thrust behind the ads of course, but in providing jobs along with a steady supply of "safe, clean natural gas."

Much of this gas is being fracked in my home state of Pennsylvania. The reports of contaminated water bring me pause when considering whether this mining technique, which involves blasting millions of gallons of water and chemicals into the ground to free oil previously inaccessible, is environmentally sound.

One thing that is sound is the website of Cabot Oil & Gas, which is heavily involved in extracting Appalachian gas. What led me to the website was a story about an environmental oops and the ensuing battle.

"Cabot Oil & Gas Corp. has been delivering water to homes in the northeastern Pennsylvania village of Dimock since January 2009. The Houston-based energy company asserts Dimock's water is safe to drink and won regulatory permission last month to stop the water deliveries by the end of November....

"Regulators previously found that Cabot drilled faulty gas wells that allowed methane to escape into Dimock's aquifer. The company denied responsibility, but has been banned from drilling in a 9-square-mile area of Dimock since April 2010.

"A December 2010 agreement between the agency and Cabot required the company to offer residential treatment systems that remove methane from the residents' water, and to pay them twice the assessed tax value of their homes. A half-dozen treatment systems have been installed, and Cabot said they are effective at removing the gas. The agreement does not make the company liable for any chemicals or metals that have turned up in the residents' water, nor does it require the company to treat the water for anything other than methane.... Residents who are suing Cabot have appealed the settlement. They favor an earlier, scuttled DEP plan that would have forced Cabot to pay nearly $12 million to connect their homes to a municipal water line." (http://www.idahostatesman.com/2011/11/04/1865644/ap-lawyers-demand-water-for-tainted.html)

I wanted to see what, if anything, Cabot posted on its website regarding the agreement last winter and suspension of that agreement recently. What I found surprised me and is worth a look from any company afraid to communicate.

Among a long list of mostly financial releases is one announcing the settlement with the Pennsylvania Department of Environmental Protection. (http://www.cabotog.com/news.html) The real treasure lies under the Community Tab, the Susquehanna County subtab, and the Surveys, Studies, and Settlements sub-sub tab. There you will find a wealth of information. (http://www.cabotog.com/comm_surveys.html)

At the top of the list is a copy of the letter from the state that granted Cabot at least a partial out from the responsibilities of the December agreement. What follows (I hope you will at least skim this list to get an idea of what Cabot has posted) is this:

Water Well Summary (PDF)
-- Posted October 19, 2011

A summary of the findings from numerous tests conducted on water wells in the Dimock area.

Water Well Summary Data (PDF)
-- Posted October 19, 2011

Summary of the water well data presented to the Department of Environmental Protection on October 17, 2011

--------------------------------------------------------------------------------

Gas Well Data
Gas Well Summary (PDF)
-- Posted October 19, 2011

A summary of the findings from numerous tests conducted on gas wells in the Dimock area.

--------------------------------------------------------------------------------

Consent Order and Settlement Agreement (COSA)
Cabot’s Letter to DEP – October 17, 2011 (PDF)
-- Posted October 19, 2011

Data Presentation to the DEP (PDF)
-- Posted October 19, 2011

All of the data presented to the Department of Environmental Protection on October 17, 2011

Original COSA (PDF)

Settlement agreement issued on December 15, 2010 between Cabot Oil & Gas Corporation and the Pennsylvania Department of Environmental Protection in regards to the Dimock/Carter Road Gas Wells.

--------------------------------------------------------------------------------

Sautner Data
Sautner Data (PDF) 2008 to August 2011
-- Posted October 11, 2011

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Water Test
URS Cabot Plaintiff Letter (PDF) - Posted August 3, 2011
Focused Site Assessment Analytical Data Switzer (PDF)
Focused Site Assessment Analytical Data Sautner (PDF)

Switzer Water Test Data (PDF) - Posted August 3, 2011
Switzer Water Test Data - Part 2 (PDF) - Posted August 3, 2011
Sautner Water Test (PDF) - Posted August 3, 2011

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Cabot/DEP Global Settlement Document
Cabot/DEP Global Settlement document (PDF)
Settlement agreement issued on December 15, 2010 between Cabot Oil & Gas Corporation and the Pennsylvania Department of Environmental Protection in regards to the Dimock/Carter Road Gas Wells.

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Water Well Test Data and Press Release
Water Well Test Data and Press Release (PDF)
Results of the well water test performed on 14 wells in Dimock and the accompanying press release explain the findings.

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Robert W. Watson Information

White Paper - Robert W. Watson PhD PE (PDF)
Report of Cabot Oil & Gas Corporation's Utilization of Effective Techniques for Protecting Fresh Water Zones/Horizons During Natural Gas Drilling – Completion and Plugging Activities

Robert W. Watson Full Report (PDF)

The complete 26-page report by Dr. Watson

There's a lot of material here and, sure, it's self-serving. But after seeing so many companies in crisis whose websites are all sunshine and butterflies without referencing the crisis, Cabot's openness truly is sunshine. Your website should be this filled with documents and information. It could help keep the "ambivalents" on the fence, or maybe even push them over to the "advocates" side.

To ignore a public issue involving your company isn't going to win love from any of your stakeholders. Open communications just might help you weather your next crisis.

MF Goldman Juggles Multiple Crises

How's this for a crisis: The FBI is investigating you to see whether you were dishonest or merely sloppy. There doesn't appear to be a choice C. You've declared bankruptcy. Your best-case scenario is that everyone in the company can stay out of prison.

That's the crisis facing investment broker MF Global.

"'The question with MF Global is going to be: Was this fraudulent or was it sloppy paperwork and sloppy oversight?' (Brian) Gardner (Keefe, Bruyette & Woods) said. 'I think there are going to be lots of questions for CME and CFTC and a lot of good congressional hearings.'" (http://money.cnn.com/2011/11/01/news/economy/mf_global_fbi_investigation/index.htm?source=cnn_bin&hpt=hp_bn5)

It's too late to hope for good management well communicated to make this crisis disappear. Instead, the company has to seek ways to minimize the damage and, perhaps, emerge with at least a remnant of the company still in place.

MF Global's website has a disclaimer at the very top, advising that liquidation-only orders are being accepted. Two separate links from the home page take readers to a five-line news release announcing the bankruptcy filing. (http://www.mfglobal.com/)

If you're into finance, here's what went wrong: "MF Global's downfall has been attributed to, among other things, making bad bets on some $6.3 billion of European government debt. When those bets went sour and its financial troubles worsened, MF Global may have tapped its clients' money, according to the Wall Street Journal. It's unclear how the money may have been used.

"Using clients' money to help its own bottom line through risky bets would violate Commodities Futures Trading Commission rules on such trades, according to regulators and financial experts."
Clearly the jury -- and the FBI -- is still out on this one, and almost certainly will be for many months. Meanwhile, MF Global's employees and clients remain in limbo. Dishonest or sloppy, the FBI, and bankruptcy. This will be a tough crisis to survive. I would advise, as always, transparency and cooperation. Instead, "MF Global did not return requests for comment."

Grain Dust Explosion in Kansas Kills Six; No Website

An apparent dust explosion at a Bartlett Grain Company silo Saturday night shook the town of Atchison, Kansas (population 11,000) in more ways than one. Six people died in the blast, four of them under the age of 25.

"The blast, which shook the ground so hard that it was felt into neighboring Missouri, is a harrowing reminder of the dangers workers face inside elevators brimming with highly combustible grain dust at the end of the harvest season. The explosion on Saturday night at the elevator in Atchison sent an orange fireball into the night sky, shot off a chunk of the grain distribution building directly above the elevator and blew a large hole in the side of the one of its concrete silos." (http://www.dailymail.co.uk/news/article-2055337/Kansas-grain-elevator-explosion-Search-stopped-factory-3-left-missing.html)

Bartlett issued a statement. In it, "senior vice president Bob Knief said the company’s thoughts and prayers are with the affected families. 'This is a horrible day for the families. It is extremely sorrowful for the rest of us as well,' he said." (http://www.kansascity.com/2011/10/31/3241110/final-three-victims-of-atchison.html)

I wish I could read the entire statement. I naturally went looking first to Bartlett's website. What website? Based on my Google search, there isn't one. I can't judge how well the company is communicating with loved ones, the two badly injured employees who survived, the mourning farming community, employees at other locations, civic leaders, and shareholders assuming it's a publicly traded company.

Grain elevator operators need to be wary.

"Over the past four decades, there have more than 600 explosions at grain elevators, killing more than 250 people and injuring more than 1,000, according to the Occupational Safety and Health Administration. Just last year, there were grain explosions or fires in several states including Nebraska, Illinois, Ohio, South Dakota and Louisiana. None were fatal, but several sent workers scrambling and one in Toledo, Ohio in September 2010 forced people to evacuate from a nearby mobile home park." (http://www.dailymail.co.uk/news/article-2055337/Kansas-grain-elevator-explosion-Search-stopped-factory-3-left-missing.html)

If you find a website for Bartlett Grains, let me know. (I thought I found one, but it was for an Australian company of the same name.) I want to see how the company is dealing with the tragedy publicly -- if it is at all.

Watch for tightened inspections and regulations, as happened in the coal industry I wrote about below. "OSHA has expanded its inspections and efforts to control volatile grain dust in Kansas elevators since an explosion in 1998 at DeBruce Grain, Inc.'s facility in Haysville, which killed seven workers and injured 10 others, said Tom Tunnell, executive director of the Kansas Grain and Feed Association, the industry group representing Kansas grain elevators.

"He said the industry as a whole has increased awareness of the dangers since a number of elevator explosions along the Gulf in the 1970s."

Another awareness lesson may be called for here, for the sake of saving lives.