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OSHA finds more problems at BP refinery

08:43 PM CDT on Friday, July 20, 2007

Associated Press

A government agency that oversees workplace safety has fined BP Products North America $92,000 for one willful and four serious safety violations found during monitoring it performs at the company's Texas City plant following a deadly 2005 blast.

The U.S. Occupational Safety and Health Administration cited BP for four violations of rules related to process safety management and one for rules related to hazardous locations.

"The citations issued today are based on the identification of hazardous conditions similar to those that led to the tragic March 2005 explosion," said Dean McDaniel, OSHA's regional administrator in Dallas.

BP spokesman Ronnie Chappell said the oil company will review the latest citations and alleged violations.

OSHA is accusing BP of one willful violation for failing to ensure that a pressure relief system for a large pressure vessel called the "fractionator" conformed to industry codes.

The fractionator, a long tower, is part of the Fluid Catalytic Cracking Unit, which converts heavier oils into lighter products such as gasoline.

"The hazard cited is that the inadequate pressure relief equipment could fail, leading to another catastrophic accident," the agency said.

OSHA also alleges four serious violations related to the following failures: not identifying, evaluating or addressing the hazards in the fractionator processing unit; not ensuring that piping and instrument diagrams were accurate; not ensuring the installation of the correct type of pressure relief valves; and not ensuring use of intrinsically safe (non-sparking) electrical equipment in locations where flammable liquids and gases are processed.

Chappell said BP had previously identified problems with the pressure relief system on the fractionator and had put safeguards in place to allow for its continued safe operation.

BP has ordered a new fractionator with a new pressure relief system that will be delivered to the plant sometime next year.

Another step BP has taken to improve safety at the plant is the removal of all temporary structures from the refinery and the creation of office space for 400 workers in nearby downtown Texas City, Chappell said. All 15 deaths in the Texas City accident happened in the two trailers closest to the blast site.

"We've taken people out of the refinery to reduce the risk of another tragedy like March 2005," he said.

Friday's fines follow a $21.3 million fine OSHA issued to BP in September 2005 in connection with an explosion that killed 15 people and injured more than 170. At that time, the agency found that BP had committed more than 300 willful violations.

As part of an agreement BP signed with OSHA at the time the 2005 citations were issued, the London-based oil giant agreed to review process safety management systems and equipment throughout the refinery.

The company has 15 working days after receiving the citations to comply, to request an informal conference with OSHA officials or to contest the citations and fines.

The Texas City explosion occurred when part of the plant's isomerization unit, which boosts the level of octane in gasoline, overfilled with highly flammable liquid hydrocarbons. A geyser-like release of flammable liquid and vapor ignited as the unit started up. Alarms and gauges that should have warned of the overfilling equipment failed to work at the plant about 40 miles southeast of Houston.

The U.S. Chemical Safety and Hazard Investigation Board, in its final report, issued in March, said overly lax federal oversight and cost-cutting by BP were factors in the explosion.

The explosion has so far cost the company around $2 billion in compensation payouts, repairs and lost profit.

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