Oil company settles with EPA over fatal fire at Texas refinery

March 8th, 2019 by Dakota Software Staff

The U.S. Department of Justice and Environmental Protection Agency announced a settlement with a multinational oil and gas corporation over a deadly fire that occurred at one of the company's refineries in Beaumont, Texas.

The fatal accident occurred on April 17, 2013, killing two employees and injuring ten others. In a complaint filed along with the settlement on March 7, 2019, the U.S. accused the company of violating Section 112(r) of the Clean Air Act, which requires employers to take measures to prevent the accidental release of hazardous substances that can have serious impacts on the environment and public health.

The fire broke out when workers at the oil refinery were removing bolts from the head of a device called a heat exchanger. The employees used a torch to remove the bolts, which ignited hydrocarbons released from the head. A subsequent EPA inspection uncovered violations of Section 112(r) of the CAA, and of regulations known as the Chemical Accident Prevention provisions.

"When companies shortcut the safety requirements that have been put in place, especially in high risk situations like this, people can die," U.S. Attorney Joseph D. Brown of the Eastern District of Texas said in a statement. "It is important that companies understand that there is not only liability in private civil suits, but administrative fines to pay. We cannot put a price on the lives lost, but we hope to deter these kinds of violations to save lives in the future."

"We rely on companies to carefully follow environmental regulations, which are designed - above all - to protect human health," added EPA Regional Administrator Anne Idsal. "As the incident at [the company's Beaumont] facility shows, failing to comply with these rules can have devastating consequences."

The 2013 accident resulted in the deaths of two employees and injuries to 10 others.

Under the terms of the consent decree, the Texas-based oil company is required to pay a $616,000 civil penalty for the alleged violations. The settlement also requires the company to hire an independent third-party auditor, who will conduct a compliance audit of the company's procedures for opening process equipment at 10 different process units at its Beaumont refinery. The auditor will also conduct an investigation of the company's procedures for performing risk-based mechanical integrity inspections.

Under the EPA's Supplemental Environmental Project Policy, the company will perform an SEP by purchasing a hazardous materials Incident Command Vehicle for the Beaumont Fire & Rescue Service.

The ICV, valued at $730,000, will contain equipment specifically designed to enhance BFRS's hazardous-material incident response capabilities. These include BFRS's 24-hour emergency response services from 12 fire stations which provide fire, hazardous materials, disaster, technical rescue and first responder emergency medical services over 90 square miles of land containing multiple petroleum and chemical facilities. The ICV will also improve the Service's ability to communicate and coordinate emergency response activities the next time a fire, explosion or similar incident occurs.

"The deaths and injuries resulting from the 2013 fire at [the oil company's] Beaumont refinery are a terrible tragedy," said Jeffrey Bossert Clark, Assistant Attorney General for the DOJ's Environment and Natural Resources Division. "Today's settlement sends a clear message to companies handling hazardous substances in their operations that they must take the necessary steps to protect their workers under the environmental laws or face the consequences of vigorous enforcement."

"Additionally, the relief the United States has secured will aid in protecting a vulnerable surrounding community from future tragic episodes like this one," Clark added, in reference to the $730,000 ICV provided to the BFRS.

According to the Associated Press, the oil refinery is part of a complex near downtown Beaumont, which is located approximately 90 miles northeast of Houston, the most populous city in Texas.