Two updates on the Australian Avgas problems

Moorabbin pilots warn of delays in getting airborne

The Moorabbin Operators Group warns light aircraft may be grounded for months, despite a step forward in the contaminated fuel crisis.

Mobil has delivered more test kits to airports in eastern Australia, and has pledged to pay the costs of cleaning aircraft fuel systems.

The company, which is facing two class actions, has warned compensation payments may be jeopardised by the legal action.

But Max Quartermaine from the Moorabbin Operators group says before considering compensation, pilots just want to get back into the air.

"All the delays are costing," he said.

"If the aircraft require parts as a subject to the cleansing that's been taking place now, they might find that fuel pumps and fuel lines are beyond repair and have to be replaced."

Mr Quartermaine says a rush on parts could force some aircraft to wait months for replacement parts.

Link to story:

http://www.abc.net.au/news/state/vic/metvic-25jan2000-22.htm

Mobil threatens to cut compo if court bids continue

Class actions launched over the aviation fuel crisis could impact on compensation offered by Mobil.

The company has pledged to pay the costs of cleaning its customers' aircraft fuel systems and will this week release a compensation package to cover direct business losses.

It has also hired three jet aircraft to deliver kits to test for contaminated fuel to airports across eastern Australia.

Two legal firms representing aircraft owners and pilots yesterday launched class actions over the crisis.

But Mobil's corporate manager, Alan Bailey, says that could have an impact on any payments to affected customers.

"The fact that legal action is being taken does complicate the process of establishing a program to reimburse our customers," he said.

"If some of our customers are actually taking legal action against us, it places some limits on how we can deal with them, in terms of reimbursing them for losses that they have incurred."

http://www.abc.net.au/news/newslink/nat/newsnat-25jan2000-66.htm

-- Carl Jenkins (Somewherepress@aol.com), January 25, 2000

Answers

Thank You Carl,

"Mr Quartermaine says a rush on parts could force some aircraft to wait months for replacement parts."

A similarity to the domino-sytemic cascading failure theory, charlottes web, if you will.

Best Regards,

-- Tom McDowell (bullriver@montana.com), January 25, 2000.

Thanks for the update, Carl. I have a bit to add to it.

link< /a>

Excerpt:

"Test kit troubles delay fuel crisis

By NICK LEYS

Australia's general aviation industry is likely to remain crippled for several weeks after test results showed most light aircraft were still contaminated.

Aircraft operators were also frustrated yesterday when Mobil delivered only only one test kit to Bankstown, Moorabbin, Essendon and Archerfield airports instead of the 500 kits promised to each facility.

Of 18 aircraft tested at Bankstown airport yesterday, only one passed the test."

(end of excerpt)

And I did some digging around Mobil's site yesterday. Found some of the following on their modernisation description page for the problem refinery, apparently last updated in early 1997 or prior to that. The ten-year project began in 1992.

"Phase 2 of the Modernisation is now underway, with the replacement of the existing Thermofor Catalytic Cracker with a Fluid Catalytic Cracker (FCC). The FCC represents the latest in refining technology, and is the cornerstone of the modernisation, and represents an investment in excess of A$250 million. The program (phase two) will be completed by mid 1997. Over 400 contractors were directly employed at the peak of the FCC program."

"The FCC project has been a successful joint effort between Mobil employees and specialist contractors. Technology used was developed by Mobil and M W Kellogg. Toyo Engineering are in charge of engineering, construction and procurement."

"Central Control Building

A new Central Control Building has been constructed to centralise process operations and computer monitoring control systems. The refinery is in the process of updating its computer systems to state-of-the-art technology and control equipment. The new computer systems will accommodate new applications, which will in turn improve product quality and environmental and safety performance.

"The Central Control Building will also bring the refinery's workforce closer together. Having the new building adjacent to the main administration building, on Kororoit Creek Road, will facilitate greater interaction between the entire workforce."

(end of info from that page of their website)

The following is from their FAQ page re year 2000 program.

"Q. Does Mobil have an Australian Stock Exchange statement on Year 2000?

A. Mobil Oil Australia Limited is not listed as a public company on the Australian Stock Exchange. We are therefore not required to submit a Year 2000 statement to the ASX. However, Mobil Corporation regularly submit statements to the United States Securities and Exchange Commission (SEC). These can be viewed on the Mobil global web page address listed above."

"Q. What is the completion date, and current status of Mobil's Year 2000 Project?

A. We are pleased to announce that all of our business critical systems have been assessed, remediated and/or tested. We have developed, documented and tested a comprehensive set of contingency plans and held a number of exercises which simulated possible scenarios for the year end."

"Q. Can Mobil guarantee uninterrupted supply of product in the year 2000?

A. Given the scope and detail of our efforts at this stage, Mobil anticipates no significant disruption to our business as a result of the Year 2000 problem, other than possible disruptions caused by entities or events beyond our reasonable control. We are working towards the year-end being 'business as usual' for Mobil and our business partners."

"This updated Year 2000 statement dated 4 August 1999 replaces any previously issued Year 2000 statements by Mobil Oil Australia. It is suggested that readers periodically check this webpage for updates."

(This appears to be their most recent update to their Year 2000 pages.)

I could not find any referral to the present contamination problem at their website. I emailed with queries but am not holding my breath.

-- Rachel Gibson (rgibson@hotmail.com), January 25, 2000.

Hi Rachel, wow! great post, extremely useful information thank you! concerning the following quote I have a question: Do you have a link to that press release/website it came from?

"Central Control Building

A new Central Control Building has been constructed to centralise process operations and computer monitoring control systems. The refinery is in the process of updating its computer systems to state- of-the-art technology and control equipment. The new computer systems will accommodate new applications, which will in turn improve product quality and environmental and safety performance.

"The Central Control Building will also bring the refinery's workforce closer together. Having the new building adjacent to the main administration building, on Kororoit Creek Road, will facilitate greater interaction between the entire workforce."

Thanks

-- Carl Jenkins (Somewherepress@aol.com), January 25, 2000.

Carl, it's about halfway down this page:

http://www.mobil.com.a u/company/tcalfc.htm

The site www.mobil.com.au has a lot of info; just click on "site map" from there and follow the links. But I don't think we're going to find what we're looking for on their site.

BTW, I discussed this fuel contamination with a GA pilot who grew up in and who learned to fly in Australia. He says he has never heard of this kind of situation happening before. Problems with water in aviation fuel, yes, but never contaminated fuel making it through the strict controls at a refinery. However, I'm wondering if we will ever know what really happened. I would think Mobil will do its very best to settle out of court; thus the truth may not be told.

-- Rachel Gibson (rgibson@hotmail.com), January 25, 2000.

Rachel,
try Link

Some interesting tidbits on the subject of fuel and contamination.

-- Possible Impact (posim@hotmail.com), January 26, 2000.

Thanks for the link, PI. I hadn't read it before. The only thing that seems possibly relevant is industrial sabotage. Or did you mean something else that has sailed over my head?

Links to latest articles:

Mobil obfuscates payouts

Avgas crisis will have an effect on the economy

-- Rachel Gibson (rgibson@hotmail.com), January 26, 2000.

here's the latest on avgas:

Mobil misleading and intimidating pilots, says lawyer

Source: AAP | Published: Wednesday January 26, 4:36 PM

Mobil was trying to mislead and intimidate pilots and firms hit by the contaminated fuel crisis, a Melbourne lawyer said today. And the company's recent statement that customer claims from Mobil's $15 million compensation package would be 'complicated' if they pursued legal action was wrong, Peter Gordon from Slater Gordon said. 'The law is not used and does not operate in the way that they would have the public believe,' he said. The law firm lodged a writ on behalf of 6,500 members of the national Aircraft Owners and Pilots Association in the Supreme Court last Monday. But while the firm has also written to Mobil urging negotiations, Mr Gordon said the petrol giant's 'silence has been deafening'. 'Mobil have said (in the press) that this hardship fund that they've established does not mean people can't claim damages,' Mr Gordon said. 'What you're seeing from Mobil (now) is an attempt to mislead and intimidate people in relation to their rights.' Slater Gordon wrote to Mobil today urging discussions 'without prejudice'. 'We already have instructions on behalf of a large number of affected customers and we are in a position to sit down with you and make arrangements to begin compensating them this week,' Mr Gordon wrote. The letter also said if a suitable claims handling procedure could be resolved out of court some legal fees would be waived. Mr Gordon said if Mobil refused to negotiate he would be asking the Supreme Court for a speedy trial on a claim running into tens of millions of dollars. The case is set down for a first hearing on February 4. A spokesman for Mobil was not immediately available for comment.

Link to story:

http://www.theage.com.au/breaking/0001/26/A47520-2000Jan26.shtml

-- Carl Jenkins (Somewherepress@aol.com), January 26, 2000.