1. Protecting Yourself from Liability: Before, During, and After the Shot Jeff Taylor Sauls Seismic & Ralph Burnham Kelly Ratliff Montgomery Rennie & Jonson 2015 Illinois Mining Institute

2.  Not normal times in the blasting industry.  Witnessing an increase in claims and litigation against contractors, mining companies, quarry operators, blasting companies and blasters.  Resulting in increased insurance costs and other financial tolls, including delays, downtime, bad publicity, increased citations, fines, administrative costs, higher deductibles and premiums, and out-of- pocket expenses.

3.  No matter how careful, blasters are liable for damage CAUSED by blasting.  Both the general contractor and the independent contractor are strictly liable.  Burden of Proof is on the operator and blaster to prove that blasting did not cause alleged damage.  Must overcome people’s inherent fears of blasting and presumptions of damage.

4.  Incorporate best management practices into daily blasting operations:  Provides a competitive advantage  Improves safety, productivity & efficiency  Reduces accidents, complaints, claims, and liability  Lessens downtime responding to complaints  Reduces overall financial tolls  Overview of important topics to consider when drafting & implementing standard operating procedures before, during, & after you blast.

5.  Cosmetic / structural damage to homes and/or buildings:  Cracks in concrete  Separation of trim  Cracks in drywall / plaster  Unlevel floors and/or ceilings  Mortar joint separations  Settlement of foundations  Fly Rock  Well water damage  Landslides / Subsidence  Personal injury / death

6.  Increase in Claims: Bad Economy = More Litigation  Mining, Blasting, & Construction Operations  Frivolous Claims  One shot over 4,800 feet away resulted in jury trial  Multi-property claims  10-25 homes = norm; 80-90 homes becoming more common.  Suing Contractor, Subcontractor, & Blasters Personally  Blaster in Charge named as defendant  Increase in Public Awareness and Opposition  Internet, Social Media, Newspapers, and Blogs  Stricter Federal, State, and Local Regulations  More citations, notices of non-compliance, and fines

8.  Research the area, nearby communities & site exposures :  Nearby utilities, previous opposition to blasting, previous operations by bad companies, presence of environmental and/or anti-blasting groups.  Create a pro-active Blast Plan that is site-specific.  Blasters & mine management should be involved in drawing up the blast plan.  Blasters and helpers should know all details of Blast Plan.

9.  Advances in available technology help optimize blasting operations.  Examples include:  electronic shot reports, GPS coordinates, seismograph monitoring, aerial mapping, electronic detonators, high wall profiling, enhanced drilling technology, blast and vibration optimization software, and crack displacement monitors.  Reduces risk & potential liability.  Improves efficiency & productivity.

10.  Pro-Active Community Relations Program  Community meeting(s) before blasting operations  Introductory letters  Internal Limits on PPV and Air Blast Levels  50% of the legal limits (or below)  Pre-Blast / Existing Condition Surveys  ALWAYS recommended (may be required)  Hiring independent third-party is best option  Emphasis on Blast Records  Legible, Accurate, Complete and Organized  Seismograph Records for All Blasts  Organized and Quickly Accessible

11.  Avoid complacency - blasting operations #1 problem!  Site-Specific Blaster Checklists (Laminated & Markers)  Noise and Dust Considerations  Site security, radio communication, trained sentries  Good communication between Driller & Blaster  Drill Logs vs Flagging  Blaster should observe drilling when possible  Video Recording of Shots & Pre & Post Conditions  Must be done well with attention to detail  MUTE AUDIO  Review potential causes of elevated readings before next shot.

12.  Shot Records Completed A.S.A.P.  Before blaster leaves site that day  Completeness, Accuracy, & Legibility  Consider second party review  Math accuracy, completeness, legibility  Corrections made immediately  Maintaining Records  Minimum of 3 years in Illinois  Electronic and/or Hard Copies  Organized and easily accessible

13.  ESSENTIAL  Tell the story of the shot  Provide Critical Information:  Location of shot (GPS vs. Grid Map)  Location of nearest structure (Name / I.D. #)  Distance from closest loaded hole to nearest structure  Amount of explosives per delay  With this information, it is possible to calculate the PPV at any structure and defend a claim.  When a record is incomplete, inaccurate, or illegible, makes it very difficult to defend a blasting claim.

14.  Missing Information Location of shot Location of shot Location of nearest structure Location of nearest structure Date Date Pounds-Per-Delay Pounds-Per-Delay  Legibility If the report is impossible to read, it is useless. If the report is impossible to read, it is useless. Reflects on the professionalism of the blaster & company. Reflects on the professionalism of the blaster & company.  Contradictions Distance v. GPS / Map Distance v. GPS / Map Total weight vs. Inventory Total weight vs. Inventory Report vs. Seismograph Reading Report vs. Seismograph Reading Time Time PPV PPV Location Location

15.  Ensure shot report meets all regulatory requirements  Missing Information = Automatic Violation  Include Compliance Method  Scale Distance vs. Seismograph  If possible, should comply with both  Emphasis on Completeness, Accuracy, & Legibility  If all the information is on the report, but it is impossible to read, it is useless.

16.  Pounds Allowed vs. Pounds Used  Corroborate expected PPV at the nearest structure with actual PPV reading from seismograph.  Electronic Blast Records - Highly Recommended  Can Eliminate Most Common Mista kes  Information In = Information Out

19.  All Complaints Must Be Taken Seriously!  If not, will likely result in claim / lawsuit  Basis for Punitive Damages  Standard Operating Procedures:  Written Documentation - Complaint Form  Consider appropriate adjustments to blast design.  Use Third-Party Consultant(s) as needed.

21.  Good communication and clearly defined roles.  Designate the appropriate contact person.  Notify supervisor(s) / management of complaints.  Respond to complaints promptly.  Be professional and courteous.  Provide them with the number for the regulatory agency.  Document your investigation – photographs /video.  Respond to complainant in writing.

25.  Provide accurate PPV readings at the nearest structure or any point around the blast site.  Best factual and scientific evidence of the vibration levels.  Seismograph readings corroborate the anticipated PPV on the shot report with an ACTUAL PPV READING!  Should be placed at the nearest structure  Less than 10 feet from the nearest structure, with GPS coordinates of exact location.  Installed pursuant to 2009 ISEE Field Practice Guidelines  “The seismograph reading was doctored.”

29.  If (when), you experience a claim, despite your best efforts, EXPERIENCE is ESSENTIAL!  You want insurance representatives, consultants, and attorneys who know & understand blasting.  It is important that you respond promptly and correctly to protect yourself and your company.  Provides an advantage from the beginning.  Available 24 x 7 to provide assistance before & after.

30.  Public Perception  Homeowners & Jurors want to believe blasting is dangerous and causes damage.  Our Perception  Blasters are highly trained, certified, and competent.  Follow strict federal and state laws designed to prevent property damage and personal injury.  In the end, the best way to protect yourself and the company from liability:  Standard Operating Procedures  Before, During, and After the Shot  Use all available resources:  www.isee.org  www.explosives.org

32.  Jeff Taylor  Sauls Seismic, Inc.  502-682-8196  jeff@saulsseismic.com  Ralph Burnham & Kelly Ratliff  Montgomery, Rennie & Jonson  513-241-4722  rburnham@mrjlaw.com  kratliff@mrjlaw.com