Newport-St. Paul Cold Storage Co. - Executive Summary

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RISK MANAGEMENT PLAN 
EXECUTIVE SUMMARY 
June 14, 1999 
 
 
Newport St. Paul Cold Storage was established in 1959 as a public refrigerated warehouse serving frozen and refrigerated food companies storage needs. Newport St. Paul Cold Storage has transformed their older multi-story facility into a modern single story facility with an updated refrigeration system. Our two stage refrigeration system utilizes over 20,000 lbs. of ammonia (anhydrous). The key individuals involved in the day to day operations are Andrew R. Greenberg, Vice President, General Manager, Ross Beard, Warehouse Manager,  and Jim Clark, Chief Engineer.  
 
Newport St. Paul Cold Storage has an on-going safety program, which includes ammonia safety, prevention, and emergency response. We are a member of the International Association of Refrigerated Warehouses. We utilize the resources of the IARW for information, education, and training. We invest significant time and money into maintaining our refrigeration system and facilit 
ies. Our Chief Engineer handles most day to day operations of our refrigeration system. Each year we review, repair, and audit all critical refrigeration components. We utilize the services of a qualified ammonia refrigeration contractor for major repairs. 
 
Newport St. Paul Cold Storage's worst case scenario was based on the potential  liquid ammonia release from the Hi-Pressure Receiver. The Hi-Pressure Receiver(HPR) can hold up to 10,479 lbs. of liquid ammonia at 80%capacity, but we maintain 4,000 lbs. or at 30% capacity. Based on the release rate of 1,050 lbs. per minute, it would take the HPR 10 minutes to empty.  There are 100 residents within the .6 mile toxic end point if we have an ammonia liquid spill. The ammonia should have minimal impact on the surrounding community because of the dissipation level of ammonia, ammonia is lighter than air. We can somewhat control the release rate of ammonia if we maintain an acceptable pressure level. Each of our critical equipment, includi 
ng vessels, have critical process control 24 hour per day monitoring through SecurityLink. If there is any disturbance with the refrigeration system our Chief Engineer or Gartner Refrigeration are contacted. 
 
Our alternative case scenario was based on the potential liquid release from the Inter Cooler(IC). The IC can hold up 5,631 lbs. of liquid ammonia at 60% capacity, we maintain less than 3,000 lbs. or 30% capacity. Based on the release rate of 563 lbs. per minute, it would take the IC 10 minutes to empty. There are 44 residents within the .4 mile toxic end point if we have an ammonia liquid spill.  
 
In our forty years of business we have had one significant ammonia leak. On July 14, 1997 at 3:30 PM an outside ammonia leak was reported. Newport St. Paul Cold Storage and the Newport Fire Department responded within 5 minutes. Based on the south east wind direction there was no need to evacuate the building or surrounding areas. An immediate decision was made to fog the affected area, 
which contains and dissipates the ammonia cloud. We assessed where the leak was and took proper action to minimize the ammonia loss. After we gained control we assessed that the check valve connected to the low pressure receiver had fractured causing a slow but noticeable leak. We estimated that we lost about 2,000 lbs. of liquid ammonia over a 45 minute period. The system was shutdown, repaired, and recharged within 2 hours. There were no injuries or deaths.  
 
Through efforts of Newport St. Paul Cold Storage's Safety committee we have a detailed emergency response plan. We have developed easy to use manuals to help with the details of the ERP. Our plan includes a flow chart of individual responsibilities, emergency phone numbers, a summarized Crisis Management procedures, containment and repair procedures, and decontamination procedures. We provide the Newport Fire Department with our Crisis Management manual and facility layout. Each year we initiate a facility walk through with the 
entire NFD department.  Our Chief Engineer has the initial 24 hour certification for Emergency Response training and each year he is sent to the 8 hour refresher training. In addition, he is trained each year to use all the personal protective gear and devices; ammonia indicator, suit, respirators, and safety harness. NCS has certain employee's trained in CPR and first aid. Safety training is provided to each of our employee's through company safety meetings. It is in  
 
NCS best interest to provide for the safest work environment for our employee's, customers, and shareholders. Safety is an ongoing improvement process that management mandates. The safety program is constantly reviewed, evaluated and changed as needed.
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