For hub oil disaster in calgary in 1999, choose 6 types of losses in the picture
ID: 359429 • Letter: F
Question
For hub oil disaster in calgary in 1999, choose 6 types of losses in the picture below and state a fact for each catagories. (fact caused by hub oil incident)
I cannot find sufficient information on hub oil incident, the only thing I found is "Fatal: 2 killed, explosion and fire"
Environment spill /release 425 kg. no adverse impact spill /release 25 kg. no adverse impact spill /release 25 kg. adverse impact regulatory exceedance off-plant adverse impact Assets Minor S5.000 Serious S5,000-$50,000 Major S50,000-S500,000 Catastrophic>S500,000 Business Interuption Minor S5.000 Serious S5,000-$50,000 Major S50,000-S500,000 Catastrophic>S500,000Explanation / Answer
Answer :
(only 3 categories have been listen in the image uploaded)
Category #1 : Environment
Spill / Release Greater than 25kg adverse impact
While the details of the exact spillage or oil release have not been disclosed by the investigators or hub oil, the fact remains that the refinery was used to produce oil, jet fuel and propane with cooking gas as by product. Oil, jet fuel and propane were burning for almost nine hours after the explosion due to explosion caused because of a build up pressure in a 25 year old second hand storage tank with two employee or worker casualties, who dies because of a brick room collapsing due to the explosion.
Nine hours of burning is enough to burn through more than 25kgs of oil, jet fuel and propane.
Category #2 : Assets
Catastrophic : 50,000 - 500,000$
The assets that were lost in the explosion include the employees and their reimbursement costs of 400,000 $ to their families with 100,000 $ direct compensation and 100,000$ in a trust fund for their children's education for both the employees, totalling upto 400,000$. Apart from that the employee compensation, the total cost of the tank ,the adjoining fuel pumps and the structure. soil of the plant and the net loss of oil totalled upto more than 500,000 $
Category #3 :Business Interruption
Catastrophic : 50,000 - 500,000$
The reason why i'm classifying the business interruption as catastrophic is due to the fact that the after the investigation the plant was only allowed to operate as a place to collect store and ship fuel but wasn't allowed to refine it. The management of hub oil chose to shut down the refinery plant in the interest of the town. This meant that the business was perpetually interrupted due to its shutdown.
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