Ashland Oil Inc.

6 Pages 1410 Words

Introduction

In 1987 Ashland Oil, Inc. was the sixtieth largest company in the country with revenues exceeding $7 Billion; it was also the nation’s largest independent oil refiner. A significant portion of oil supplies came from the Middle East and Nigeria under contract. In order to reduce dependence on the volatile refining industry Ashland Oil, Inc diversified into other activities such as transportation of products, chemical marketing, coal etc. Refining continued to be a corporate leader however Ashland Petroleum Company captured 30% of sales in 1987.

Catastrophe struck on January 2, 1988 when a 4 million gallon storage tank owned by Ashland Oil, Inc. split apart, collapsed and spilled diesel fuel in the surrounding area. The tank had formerly been at an Ohio location where it was dismantled and moved to the facility in Floreffe, Pennsylvania for reassembly. The spilled diesel fuel breached containment dikes ran through the adjacent property and ran into a storm drain that emptied into the nearby Monongahela River. The river within minutes washed the fuel over dam locks into the Ohio River contaminating drinking water affecting residents in Pennsylvania, West Virginia, and Ohio. Vast areas of river ecosystems were contaminated destroying wildlife, causing damage to private property and adversely affecting businesses in the area.

Over the next three days following the spill, nearly 200 people contributed to 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.

The following day at approximately 9:00 AM the CEO and Chairman of the board at AOI, John Hall, was informed of the spill. Hall knew immediately he had an environmental problem to contend with however, he felt the major logistical problems could be handled by AOI associates who were al...