PR/MARKETING CASE STUDY

Building Trust with a Fearful Public

Background Baseline Pipeline Company is a division of MarkWest Hydrocarbons, Inc. of Denver, Colorado. The company constructed and was planning startup of a pipeline to transport natural gas from wells in West Michigan in the counties of Mason, Manistee and Oceana in 1997. Natural gas produced from wells in the area includes hydrogen sulfide, a poisonous gas. Environmental organizations and area residents became active in opposition to startup of the pipeline because of concerns and fears about personal safety. They began a letter writing campaign and spoke out in public meetings. One group in particular (AIRE - Advocates for Intelligent, Responsible Environment), was very vocal in the Ludington area.

PACE AWARD, 1998

Background
Baseline Pipeline Company is a division of MarkWest Hydrocarbons, Inc. of Denver, Colorado. The company constructed and was planning startup of a pipeline to transport natural gas from wells in West Michigan in the counties of Mason, Manistee and Oceana in 1997. Natural gas produced from wells in the area includes hydrogen sulfide, a poisonous gas. Environmental organizations and area residents became active in opposition to startup of the pipeline because of concerns and fears about personal safety. They began a letter writing campaign and spoke out in public meetings. One group in particular (AIRE - Advocates for Intelligent, Responsible Environment), was very vocal in the Ludington area.

Research

• Conducted interviews with MarkWest corporate executives from Denver and Basin Pipeline leaders and staff in Michigan about activities of individuals and groups concerned with startup of the pipeline
• Interviewed the company's engineering and safety consultants to learn about safety features of the pipeline
• Reviewed newspaper stories and letters to the editor about the crisis
• Attended a public meeting on pipeline safety at the Pere Marquette Township offices in Ludington. About 50 citizens in opposition to the pipeline were there to ask questions and make statements to officials of Basin Pipeline Company
• Company speakers were too technical and long-winded in their presentations, making it difficult for the audience to understand safety precautions taken
• Many citizens were strident and emotional, often yelling, even calling company speakers liars at times
• Conducted a literature review of oil industry crises
• Interviewed leaders of the Michigan Oil and Gas Association to learn about public attitudes and industry activities on gas pipeline safety
• Conducted a public opinion survey among neighbors living within one-half mile of the pipeline and community leaders in Ludington and Manistee
• Reviewed research on communicating risk, identifying what is effective when communicating risk and what is not effective in reducing fears of people

Planning

Objectives

• Reduce vocal public opposition to startup of the pipeline in Ludington
• Establish Basin Pipeline's image as a safe natural gas pipeline operator
• Get the pipeline in operation

Tactics to accomplish objectives

1. Train staff to build trust when they talk and listen to the public. Include:
   1. Key messages to use when talking with others. For instance: "Our goal is to protect public safety while making more natural gas available."
   2. How to use key messages in conversations, repeating them frequently
   3. How to use active listening skills. What to say to encourage people to talk and then let them know that you are listening and hearing their concerns
   4. Risk communications: What to say and not to say when talking about low risk
   5. How to "talk technical" and be understood
2. Build trust with key pipeline neighbors
   1. 1. Identify key influentials/opinion leaders among pipeline neighbors (AIRE)
   2. 2. Identify key influentials among community leaders
   3. 3. Begin making personal contacts with both types of leaders
   4. 4. Respond to safety concerns of AIRE leaders by taking action to fulfill some of their requests for emergency response and public communication

Execution

• Training materials were prepared to coach the staff and safety/ engineering consultants on more effective ways to respond to the public in crisis situations
• Meeting scheduled to listen to leaders of concerned citizens (AIRE). The group leader said, "I'm so relieved. This is just what we wanted." MarkWest General Manager Randy Nickerson agreed to attend and only listen, not argue positions

Activities week of May 5

• Staff and technical consultants were trained in listening skills, use of key messages and how to talk about the pipeline in a more persuasive and influential way
• Successful meeting with AIRE leaders at home of one of the leaders, facilitated by Face to Face Matters, Inc. AIRE leaders were pleased the company would listen to their concerns and would consider taking action on the group's 22 requests

Activities week of May 12

• Opinion research of pipeline neighbors and community leaders (influentials) began
• Brainstorming meeting to seek ways to reduce emergency response time was held with AIRE and pipeline leaders. AIRE group was pleased to be a part of the activity. Good relationship with AIRE continued to grow
• Pipeline startup was delayed 10 days in response to AIRE. This showed AIRE group that the company backed its talk with action. Relationship continued to get better

Activities week of May 19

• Development of company responses to AIRE concerns and requests continued
• Editorial briefing held with the Ludington News publisher, editor and news reporter
• Letter sent to pipeline neighbors about safety and pipeline startup (AIRE request)
• Display ad of letter to neighbors placed in three newspapers (AIRE request)
• AIRE group meeting at township hall. AIRE informed members about its encouraging meetings with Basin Pipeline officials. There was a significant change in the attitude of AIRE leaders. Every time the company was mentioned, it was with respect
• Meeting with county emergency coordinators and an AIRE representative. County emergency coordinators were pleased with the generation of additional ideas for emergency response if gas pipeline leak occurred
• AIRE leaders toured pipeline facilities

Evaluation

• All objectives were achieved
• In just a few weeks, AIRE leaders reversed vocal opposition to MarkWest Michigan and Basin Pipeline. They began to talk about the company with respect
  1. MarkWest General Manager Randy Nickerson said: "This program showed me we must do more than build pipelines. We also have to build relationships."
  2. He remarked to AIRE leaders: "Your willingness to share your concerns and work with us led to improvements in our safety response program. Other environmental organizations have not had this impact on our operations."
• Following tour and review of extensive safety features incorporated on pipeline, an AIRE member, described by one of the group as its most "bull-headed" member, said he was beginning to think Basin Pipeline could be trusted. Two weeks earlier he had said it would take five years to build his trust
• Concerns of the AIRE group changed. At a public hearing of the Michigan Public Service Commission on an extension of the pipeline October 9, 1997, statements by AIRE members were aimed at more responsible action and coordinated efforts by state agencies, not at MarkWest. Sue Hogensen said: "We appreciate MarkWest's efforts to keep us informed and help us understand oil/gas production technology." She also said: "We fear wells more than pipelines."
• 19 of the 22 safety requests of AIRE leaders were instituted by MarkWest
• Opinion research showed that negative perceptions of the company are neither strongly held, nor deeply seated. More work is needed with community leaders to show the company's openness to criticism and responsiveness to public concerns

» Contact Jack Pyle for information.

Face to Face Matters, Inc. 1560 Little Lake Drive #16 Ann Arbor, MI 48103 517-243-3223