ENVIRONMENTAL MANAGEMENT

Environmental Management



Environmental Management

Introduction

Buncefield is a major fuel storage and distribution depot located just outside Hemel Hempstead, some 40 kilometres north-west of central London. It was opened in 1968 and is the fifth largest oil depot in the United Kingdom (UK). In December 2005, a huge explosion in Buncefield oil repository in Hertfordshire occurred which is percieved as the leading peacetime detonation in Europe. It was origined when a huge mist of clouds created subsequent to 300 tons of petrol seeped out from a storage tank, was burst into flames. The container consisted of of the site “operated” by Hertfordshire Oil Storage (HOS) a joint venture (JV) between Total UK and Chevron. The detonation distressed not only a great division of the Buncefield locality but striked noteworthy harm to numerous business-related and suburban chattels ahead of its perimeters. Liability for the damage estimated to exceed 750m (pounds sterling), subjected to Colour Quest Ltd v Total Downstream UK plc (2009) EWHC 540 (Comm.); (2009) 2 Lloyd's Rep 1, one of the most significant litigation cases heard in the Commercial Court in recent years. It is a useful reminder of the practical precautions required when establishing a JV company and what can happen if the documentation is not accurate. “Joint venture” has no concrete definition in English law. It indicates deliberate collaboration; conditions in which two or more groups combine wherewithal and work in partnership in a movement for communal advantage. The amount to which legal responsibilities are beared by the member depends on the manner in which the enterprise is prepared. The contractual JV is arguably the simplest form and is typically established via a collaboration agreement. Each member preserves its own possessions and, considerably, its own debts. In the situation of disagreement, neither member is typically accountable for the debts or liabilities of the other, even if they were incurred in connection with the JV, unless the agreement specifies otherwise. The alternative is to establish a vehicle, which can take a variety of forms ranging from partnerships (commonly established for tax reasons), including limited liability partnerships, to the classic corporate vehicle, the limited company. Fortunately nobody was killed but over 40 people were injured. The explosion caused significant off-site damage to industrial and domestic properties and the fire destroyed one major off-site office block. Residents and businesses had to find alternative accommodation while their properties were repaired. Civil damages claims in excess of £660 million have been lodged (Coppola 2007, 10-40).

Discussion

Mitigation Measures

From the environmental point of view, the consequences were not as severe, but could have been avoided. The government reports stressed the very severe impact on public health due to the pollutants released after the Buncefield incident. TOTAL as active operating company owned 60% of Hosler, negligence and sentenced was declared responsible for the disaster in March 2009. The amount of compensation to victims (both residents, businesses and other affected companies such as Shell and BP fuel) amounted to USD $ ...