TEXAS CITY — When the Occupational Safety and Health Administration announced it was proposing $87 million in fines against BP’s Texas City refinery, many worried the latest government action would force the company to shut down. Even Texas City’s mayor suggested it was a possibility.
The administration announced Oct. 30 it had found 270 instances where BP failed to comply with changes to systems at the refinery required in an agreement with the government to settle violations found in the investigation into the March, 23, 2005, explosions that killed 15 people and injured more than 200.
In addition, OSHA found 439 new “willful” violations involving pressure release systems on units at the refinery.
For those violations, the agency proposed a record fine.
Four years ago, OSHA slapped BP with a $21 million fine — what was then a record monetary punishment — after its six-month investigation into the deadly blasts.
On top of that, BP reached a plea deal with the U.S. Department of Justice to pay $50 million to avoid a criminal conviction for violations of federal environmental laws.
Earlier this year, Texas Attorney General Greg Abbott threatened to sue BP for violations of state environmental laws. That case eventually was settled, but no monetary penalties were announced.
The company also has paid out more than $2 billion to settle lawsuits stemming from the blasts, and BP said it spent more than $1 billion upgrading the refinery.
No OSHA Shutdown
So, can OSHA force a shutdown of the nation’s third-largest refinery for the latest round of violations?
No. Not directly, anyway.
“The OSHA Act doesn’t give carte blanche that authority to OSHA,” Dean McDaniel, OSHA’s regional administrator in Dallas, said. “The only mechanism we would have to proceed along that line would be if we believe there is an imminent danger — that there would be something catastrophic that needed to be taken care of immediately.
McDaniel said if the agency saw an “imminent danger of a catastrophic disaster,” officials would seek a restraining order.
While OSHA considers the latest citations as problems that need to be fixed, the agency stops way short of saying the refinery or any of its units are near a catastrophic event such as the explosions four years ago.
The agency believes if BP fixes the problems it cited, the refinery would be in full compliance “and that will resolve the matter,” McDaniel said.
BP argues the company is already in compliance and disputes claims of violations — new and old.
No BP Shutdown
Would BP consider shutting down some or all of the refinery?
Not likely, even at a time when profit margins for fuel production are low. The Texas City refinery accounts for about 3 percent of the nation’s fuel supply.
Still, even local concerns linger.
“One of these days, BP is going to say enough is enough and shut down and leave,” Texas City Mayor Matt Doyle said last week as he blasted the OSHA fines.
“Three or four years ago, I would have said that would never happen, but now I would say it’s a keen possibility.
“Sooner or later, it’s cheaper to shut down than keep the plant open.”
BP Texas City’s manager was adamant the refinery is safe.
“Let’s be perfectly clear, if we believed the refinery was unsafe, or any unit in the refinery was unsafe, we would take immediate corrective action including, if necessary, shutting it down,” refinery manager Keith Casey said. “We believe we are in compliance, and we look forward to demonstrating that before the Occupational Safety and Health Review Commission.”
As for the company’s commitment to the refinery’s future in Texas City?
“The men and women of BP Texas City have delivered tremendous results while working in a challenging environment during the last four years,” Casey said.
“We believe that our refinery has a vibrant future that will continue to build upon the investments that our company and our work force have made in our facility.”
This story was brought to you thanks to our partnership with The Galveston County Daily News.
