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Energy company agrees to pay reduced fine following investigation

June 27th, 2017 by Dakota Software Staff Industry News

Energy company agrees to pay reduced fine following investigation

A renewable energy business in South Sioux City, Nebraska, was under OSHA investigation for the last year following multiple health and safety violations and worker hospitalizations. The company was initially fined a large sum following the probe but disputed the specifics of the fines. It recently settled for a reduced sum and implemented new onsite safety regulations.

OSHA lowers fines but issues safety mandate

OSHA began its investigation into the company in October 2016 after an employee contracted by the energy facility was hospitalized due to hydrogen sulfide exposure while conducting an internal inspection. Over subsequent months, multiple instances of worker hospitalization due to the gas were reported to OSHA. The colorless, highly flammable, and very toxic gas is a common hazard at sites that treat human and animal waste, and the company in contention specializes in the conversion of waste into methane gas.

The investigations resulted in OSHA highlighting numerous serious violations, according to documents received by the Sioux City Journal. OSHA issued citations based on improper protection and safety practices for employees, which exposed them to toxic gases within the facility. Fines were then divided across three separate inspections and amounted to over $100,000. The first set of citations, including penalties of more than $50,000, was contested by waste recycling company in an effort to earn more time to agree upon a settlement.

In a statement given to the Sioux City Journal, a senior member of the energy company's leadership said it was in the best interest of both OSHA and the company to contest the first citation. This was to give both parties the chance to further examine the incident, then come together and resolve any issues all at one time. That approach ultimately proved fruitful for the renewable energy organization, which avoided the full brunt of the charges and instead negotiated a smaller total fine amount with the federal regulator.

According to local news source KSCJ, OSHA reduced the total fine amount to $60,844 after a re-evaluation and the company agreed to settle. However, OSHA stated the company admitted no fault or liability by agreeing to pay the charges.

The company has also agreed to follow several new safety protocols, including:

  • Using alarms to continuously monitor levels of gas exposure.
  • Increasing training given to contractors entering work areas.
  • Devising emergency response plan and building a relationship with Sioux City Fire Department.

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