ENV-06-140 The Invisible Business Risks in the Refinery Fuels Laboratory: It doesn't have to be Fraud to be Frightening

Description:

Whether a refiner subcontracts fuels analysis, or operates their own internal laboratory, there is a need for close attention to the quality assurance practices of the laboratory operation. This is true not only for the purpose of successfully producing accurate data, but increasingly in order to provide documentation to defend the company against accusations of bad practice or even fraud. Recent regulatory changes have created a situation in which EPA and others can become more focused on the data quality associated with fuels. A cursory review of the problems experienced by the environmental laboratory industry over the last 20 years (data rejection, accusations and prosecutions for fraud, business closures, and heavy fines) provides a chilling indication of the potential for disaster. That potential is increased due to the fact that fuels laboratories are not accustomed to the level of scrutiny that environmental laboratories have experienced over the years and may not be ready for it. However the problems associated with fuels laboratory data do not have to be elevated to the level of fraud to create expensive and time-consuming problems. As an illustration, this paper summaries a case history of a real event that impacted a refiner directly during 2005, and how it was successfully resolved by honest and open management. From this we will provide a checklist of actions that can be taken to help you ensure that fuels laboratory data are fully defensible and does not come back to haunt you.