BCA In The News (BCA Main)

BCA In The News (BCA Main) http://www.bcoonlaw.com BCA In The News RSS Feed from BCA Main en-us All Rights Reserved. © Copyright IBCTV 2010 Fri, 25 Jun 2010 12:06:54 CDT Fri, 25 Jun 2010 12:06:54 CDT BCA Main BCA In The NewsRudy Lombergerrudy@ibctv.com BP settlement money helps with safety training http://www.bcoonlaw.com/site/bca_in_the_news?post_id=877 BCA Main BP settlement money helps with safety training 00:00 BP settlement money helps with safety training Originally posted by Monica Hatcher - Houston Chronicle - March 23, 2010 It's been five years since Eva Rowe's parents, James and Linda Rowe, and 13 others were killed in the explosion at BP's Texas City refinery. After a ceremony and conference Tuesday marking the anniversary of the disaster, Rowe said she no longer thinks daily about the tragedy that took her parents' lives and that a large part of the pain had faded, though she quietly wept during parts of the event. Beaumont lawyer Brent Coon, who represented Rowe and numerous others who suffered losses in the blast, hosted the event at his firm's downtown Houston office. Rowe expressed her gratitude that numerous endowments âА" established with $44 million included in her settlement with the British oil company âА" were improving safety in the refining industry. âАЬIt brings a little bit of peace,âАЭ said Rowe, now 25, and a mother-to-be. Rowe's settlement âА" the total amount of which remains confidential, as do other plaintiffs' settlements âА" secured funds for the hefty charity program and made public more than 7 million pages of court documents that helped bring to light safety lapses that led to the blast. BP was invited to the event, Coon said, but did not send a representative. Keith Casey, manager of the Texas City refinery, issued a statement noting that workers there observed a moment of silence at 1:20 p.m., the moment of the blast on March 23, 2005. âАЬThis anniversary is a time for reflection and remembrance, but not a single day goes by where we don't think about the tragic events of the day and rededicate ourselves to being an industry leader in process safety,âАЭ Casey said. State District Judge Susan Criss, who oversaw the Rowe case and others and attended the downtown event, also gave credit to BP for agreeing to the settlement terms in Rowe's case, which Criss said allowed the industry to learn from BP's mistake and help make workplaces safer. The session Tuesday included remembrances of the victims, who died when faulty alarm equipment and gauges failed to alert plant workers to a dangerous overflow of flammable material that ignited. The session Tuesday included remembrances of the victims, who died when faulty alarm equipment and gauges failed to alert plant workers to a dangerous overflow of flammable material that ignited. And representatives from organizations that received charitable funds expressed pride in what they said has emerged as the tragedy's positive legacy, thanks to settlement proceeds they received: âА¢ âА¢ Texas A&M has educated more engineers in process safety and has launched new research into fires, explosives and fire suppression, said Dr. Sam Mannan, of the university's Mary Kay O'Connor Process Safety Center. It got $12.5 million and $2 million for a matching grant program. âА¢ âА¢ The University of Texas Medical Branch at Galveston, where many of the injured were taken after the explosion, has trained 30 doctors from around the world in burn and trauma treatment, and has developed new medicines, said Dr. David Herndon of UTMB, which also got $12.5 million and $2 million for a matching grant program. âА¢ âА¢ College of the Mainland, a community college in Texas City, has established the Gulf Coast Safety Institute, along with a new degree program in occupational safety and health technology, said Monica O'Neal, who directs the college's foundation. The college got $5 million and $2 million for a matching grant program. âА¢ âА¢ And seniors at Hornbeck High School, in Rowe's Louisiana hometown, are benefiting from $1 million in college scholarships. St. Jude's Hospital also received $1 million. Criss credited Rowe with courage, vision and foresight for using the money to create the endowments, but in also making sure âАЬthe world knew what happened.âАЭ âАЬThe easiest thing in the world would have been for Ms. Rowe to have taken the money âА" a large sum of money âА" and move on,âАЭ Criss said, noting how unusual it was to work out a deal where all case evidence would be released in the public domain. âАЬThere is no greater tribute that could have been paid to the 15 and to the many others that were hurt than that,âАЭ Criss said. The U.S. Chemical Statement and Hazard Investigation Board in 2007 found BP fostered bad management at the plant and that cost-cutting moves by BP were factors in the Texas City explosion. BP says it has spent $1âАЙâАЙbillion in upgrading and modernizing the Texas City refinery and is continuing to invest in plant improvements. In October, however, the Occupational Safety and Health Administration said the company had not gone far enough in complying with safety upgrades required in a separate settlement with the government. The agency is seeking $87 million in new fines. BP is contesting the decision. http://www.bcoonlaw.com/site/bca_in_the_news?post_id=877 BCA Main Events mark fatal Texas City refinery explosions http://www.bcoonlaw.com/site/bca_in_the_news?post_id=876 BCA Main Events mark fatal Texas City refinery explosions 00:00 Events mark fatal Texas City refinery explosions Originally posted by TJ Aulds - Galveston Daily News - March 23, 2010 TEXAS CITY, Texas âА" Five years after a series of explosions rocked BPâАЩs Texas City refinery, survivors and family members of those killed will come together in Houston not only to reflect on the fatal blasts but also to mark the progress made in petrochemical plant safety across the country as a result of the lessons learned. Meanwhile, at the refinery where the explosions killed 15 contractor workers and injured more than 200 others, employees will mark the occasion with a moment of silence at the time the blasts happened. It was at about 1:20 p.m. on March 23, 2005, that an overflow of highly flammable material shot from a sub-unit at BP Texas CityâАЩs isomerization unit and was ignited by a truckâАЩs idling diesel engine. That set off a cascade of explosions that leveled nearby office trailers and changed safety operations not just at BP but at similar facilities across the nation. Changes have taken place at BP, but many doubt its safety culture âА" found in every federal, state and even its own internal investigation as wanting âА" has changed significantly. Even those who battled the company about its safety culture note there have been positive changes industrywide. "The industry has moved toward an increased appreciation for process safety," attorney Brent Coon said. Coon, who represented many of those injured in the 2005 blasts, including Eva Rowe, whose mother and father, James and Linda Rowe, were killed in the explosion, said: "In many cases, it was not done as aggressively as it should have. But thatâАЩs because of the expenses related to upgrading equipment." Keith Casey, who took over managing the refinery just as a $1 billion retooling of the facility was getting under way, points to new approaches to safety as evidence it wonâАЩt make the same mistakes again. He said the commitment to take lessons learned and increase process safety standards was now a part of life at the refinery. "This anniversary is a time for reflection and remembrance, but not a single day goes by when we donâАЩt think about the tragic events of the day and rededicate ourselves to being an industry leader in process safety," Casey said. "We deeply regret what occurred five years ago and have since made real progress in our systematic approach to process safety and in improving the culture of our organization to see that it never happens again." Company officials said that, in addition to the $1 billion overhaul to upgrade and modernize the 76-year-old refinery, BP has reduced its risk profile materially to lessen the likelihood of a similar blast. The company points to reduced chemical emissions and a declining recordable injury rate as evidence the safety culture within the facility is far better than it was five years ago. Coon is hosting todayâАЩs look back, but noted it also includes a look forward with updates on educational safety programs, scholarships and burn treatment programs that received millions in funding from RoweâАЩs settlement with BP. BP still is facing the fallout from the blasts, however. In October, the Occupational Safety and Health Administration said BP had failed to meet its obligations of improving safety systems within the refinery that it agreed to fix when the federal regulator slapped the company with a $21 million fine related to the 2005 explosions. OSHA proposed a new round of fines totaling $87 million and noted what it claims were 439 new "willful" violations involving pressure-release systems on units at the refinery. The company has contested OSHAâАЩs latest action and has asked for a review panel to take a look at the findings. http://www.bcoonlaw.com/site/bca_in_the_news?post_id=876 BCA Main Cost cutting causes worry about refinery safety http://www.bcoonlaw.com/site/bca_in_the_news?post_id=875 BCA Main Cost cutting causes worry about refinery safety 00:00 Cost cutting causes worry about refinery safety Originally posted by Brett Clanton - Houston Chronicle - March 22, 2010 A deadly explosion at BP's Texas City refinery five years ago today did more than force the British oil giant to upgrade the plant, pay millions to settle lawsuits and shift its thinking about safety. The tragic event âАЬfundamentally changed BP,âАЭ said Keith Casey, BP's Texas City refinery manager. But there are questions about whether a new wave of cost-cutting by BP and other oil refiners, struggling amid the worst conditions for the business in decades, could push corporate survival to the forefront and relegate safety to a back burner. âАЬRight now, it's sort of an unknown,âАЭ said Joe Howicz, a retired safety trainer with the U.S. Occupational Health and Safety Administration who worked on refinery safety programs at the agency after the BP blast. âАЬHow is it going to affect safety if they go through another cycle of closing refineries and reducing capacity and downsizing staff and money for operations?âАЭ Refining profits have plunged amid higher oil prices and as the weak economy stunts demand for transportation fuels, forcing some refiners to cut output, close plants and slash staff. Chevron Corp. said this month it will cut 2,000 refining and marketing jobs worldwide and plans to sell a British refinery, while Shell said it will cut 2,000 global jobs, mainly in refining, by the end of 2011, and may close or sell European refineries. Independent U.S. refiners Valero Energy and Sunoco also have sold or closed plants recently. BP has no plans to close refineries, but has cut 4,500 jobs in its refining and marketing division in last two years and reduced cash costs last year by 15 percent. It now aims to get the unit's costs below 2004 levels, or another $1.5 billion, with a focus on its U.S. operations, division CEO Iain Conn said earlier this month in a presentation to investors. In a 2007 report, the U.S. Chemical Safety and Hazard Investigation Board found BP fostered bad management at the plant and that cost-cutting moves by BP were factors in the Texas City explosion. The Chemical Safety board pushed OSHA for stricter oversight of refinery safety on several fronts. And it warned that safety regulators should keep tabs on how corporate downsizing could affect safety, said Howicz. BP officials insist, however, say corporate turnaround efforts launched with the arrival of CEO Tony Hayward in 2007 have not come at the expense of safety. They say BP has elevated the role of safety in operations while making the company more efficient. In Texas City, for instance, the recordable injury rate has declined every year since 2005, and the refinery finished 2009 with a safety performance that placed it among industry leaders, the company said. Lives lost since 2005 Even so, five more lives have been lost at BP refineries since the 2005 disaster, including three at Texas City. By comparison, the nation's other 146 refineries together had nine fatal incidents from 2005 to 2008. BP says it's taken direct steps in Texas City to address unsafe conditions that contributed to the blast, including the removal of portable buildings from process areas, replacement of outdated blowdown drums with safer flare systems to get rid of excess vapors and refurbishment of major process units. The changes have been physical, such as spending more than $1 billion to upgrade the Texas City plant, as well as systemic, like addressing the broken culture that contributed to the tragedy. The aftermath of the BP disaster also helped usher in several important reforms by the broader U.S. refining industry. âАЬIt was obviously a major catastrophe for BP, but it also wakened the industry to what could happen to them. It pushed them in the right direction,âАЭ said John Bresland, chairman of the Chemical Safety and Hazard Investigation Board. Finding by OSHA The March 23, 2005, explosion at the BP plant occurred after a blowdown drum overfilled with highly flammable liquid hydro-carbons. The excess liquid and vapor hydrocarbons were vented from the drum and ignited at the startup of the isomerization unit âА" a device that boosts the octane in gasoline. Alarms and gauges that were supposed to warn of the overfilled equipment did not work properly. The resulting explosion killed 15 workers, most of them in a trailer parked close to the unit, and injured scores more. Despite the ignominy the accident brought to BP, OSHA said in October that BP still hadn't done enough to fix problems in Texas City. Citing âАЬsystemic safety problems,âАЭ the agency proposed $87 million in fines against the company for failing to make safety upgrades required under a settlement agreement with the agency following the blast, as well as for new safety violations. BP is contesting the decision. Bottom line? Brent Coon, the Beaumont lawyer who handled many of the civil cases against BP, said the company has shown before that it is willing to scrimp when it comes to safety, saving its investments for things that improve the bottom line. He says it's a short-sighted approach. âАЬRefineries are like cars,âАЭ he said. âАЬYou can run them without changing the oil, but sooner or later it's going to break down on you.âАЭ Business columnist Loren Steffy contributed to this report. http://www.bcoonlaw.com/site/bca_in_the_news?post_id=875 BCA Main BP Refinery Blast: 5 Years Later http://www.bcoonlaw.com/site/bca_in_the_news?post_id=874 BCA Main BP Refinery Blast: 5 Years Later 00:00 BP Refinery Blast: 5 Years Later Originally posted on click2houston.com - March 23, 2010 TEXAS CITY, Texas -- Tuesday marked the fifth anniversary of a fatal explosion at the Texas City BP refinery that claimed 15 lives, KPRC Local 2 reported. Eva Rowe lost both of her parents in the tragedy. But, she said time has helped to heal her wounds. On Tuesday, she said she's looking forward to bringing a new life into the world. Her first child is due in June. "I'm going to teach her about it very young, why her grandparents aren't around, not because they don't love her, but because they passed away," Rowe said. Thanks to Rowe's persistence, the deaths of Linda Rowe, James Rowe and 13 others was not in vain. Her court settlement made sure BP released internal documents so that others would know what caused the explosion. It also provided millions of dollars to charitable foundations, including $12.5 million to UTMB. "This was a terrible tragedy that happened this day. To be able to change that to good is a great gift," said Dr. David Herndon with UTMB. Still, the refinery continues to receive OSHA fines and citations. Rowe said she is not satisfied. "They haven't really upheld their end of the bargain. I'm very disappointed in that," she said. The BP Texas City refinery manager released the following statement. "We deeply regret what occurred five years ago and have since made real progress in our systematic approach to process safety and in improving the culture of our organization to see that it never happens again," said Keith Casey. According to the U.S. Chemical Safety board, the explosions happened when a tower flooded with hydrocarbons and was over-pressurize, causing a release from the vent stack. The hydrocarbons found an ignition source and exploded. Rowe said she will continue to fight "so people don't forget what happened and all the good that came out of a terrible situation," she said. BP officials said the company spent more than $1 billion to upgrade and modernize the Texas City refinery. They said they have an ongoing investment program to further improve the plant. http://www.bcoonlaw.com/site/bca_in_the_news?post_id=874 BCA Main BP faces $3 million safety fines for Ohio refinery http://www.bcoonlaw.com/site/bca_in_the_news?post_id=873 BCA Main BP faces $3 million safety fines for Ohio refinery 00:00 BP faces $3 million safety fines for Ohio refinery Originally posted by Erwin Seba - Reuters HOUSTON, March 8 (Reuters) - BP Plc was accused of more problems in its U.S. operations on Monday when the U.S. Occupational Safety and Health Administration announced dozens of safety violations found at the BP-Husky refinery in Toledo, Ohio, that could cost the energy giant more than $3 million in fines. OSHA's announcement comes five months after the agency slapped BP with a record $87.4 million fine for failing to fix safety problems at its giant Texas City, Texas, refinery found after a March 2005 explosion that killed 15 workers and injured 180 other people. "OSHA has found that BP often ignored or severely delayed fixing known hazards in its refineries," said U.S. Labor Secretary Hilda Solis in a statement. "There is no excuse for taking chances with people's lives. BP must fix the hazards now." BP faces a total of $3,042,000 in fines for the violations cited by OSHA at the Toledo refinery. BP has 15 days to appeal the violations to the Occupational Safety and Health Review Commission, which is already weighing the appeal of the latest fine against the Texas City refinery. In a statement, BP again reiterated its commitment to safety throughout all its operations. "The Toledo refinery's 2009 rate of recordable injuries was more than 25 percent lower than the refining industry average," said BP spokesman Scott Dean in a statement. "In addition, the Toledo refinery has made steady, measurable improvement in matters of process safety." Dean said BP was disappointed OSHA characterized the majority of violations as willful. "We will continue to work closely with our local OSHA representatives and look forward to further cooperation with the agency," Dean said. An internal OSHA memo, provided by Ohio Rep. Marcy Kaptur's office, said problems with pressure relief valves at the Toledo refinery were "similar to the conditions that existed shortly before the massive 2005 Texas City refinery explosion." Brent Coon, lead attorney for BP blast victims, said OSHA's findings about the Toledo refinery were not surprising and the financial penalties would do little to change the company's behavior. "Until our regulatory agencies start throwing the decision-makers in jail to think about it for a while things will never change," Coon said in a statement. A Husky Energy spokesman said the company had no immediate comment and would probably defer to BP, which operates the plant. As BP has had to contend with federal and independent safety investigations at its refineries since 2005, the company also has come under scrutiny for maintenance of pipelines in Alaskan oil fields. In December, BP discovered three oil leaks from Prudhoe Bay field pipelines. BP previously pleaded guilty to a U.S. Clean Water Act violation for a 2006 spill that released 212,252 gallons of oil on to the tundra, the largest recorded on Alaska's North Slope. The company was placed on probation and told to improve pipeline maintenance. Last year, BP pleaded guilty to a criminal violation of the U.S. Clean Air Act stemming from the 2005 Texas City refinery blast and paid a $50 million fine. The company was also placed on probation for that violation. The company paid out more than $2 billion to settle civil lawsuits brought against BP for the Texas City explosion. BP also has said that it has spent more than $1 billion to fix safety problems at the 455,790-bpd Texas City refinery, which is the third largest in the United States. At 155,000 bpd, the Toledo refinery is the 47th largest refinery in the country. BP and Husky formed BP-Husky LLC, a 50-50 joint venture to upgrade the refinery to run sour crude from the Canadian oil sands fields. The Toledo refinery has been inspected 12 times since 1991 by OSHA. In the most recent inspection, OSHA said it found 38 per-instance, willful violations including 26 instances of deficient pressure relief. (Editing by Lisa Shumaker; editing by Carol Bishopric) http://www.bcoonlaw.com/site/bca_in_the_news?post_id=873 BCA Main Wrongful death lawsuit filed in lignite mine accident http://www.bcoonlaw.com/site/bca_in_the_news?post_id=871 BCA Main Wrongful death lawsuit filed in lignite mine accident 00:00 Wrongful death lawsuit filed in lignite mine accident Originally posted by Vickie Welborn - Shreveport Times - March 4, 2010 MANSFIELD - A wrongful death lawsuit has been filed on behalf of the family of a Robeline man killed a year ago while working on a massive dragline used in surface mining operations in DeSoto Parish. Stanley Nolen Freeman, 44, died on March 6, 2009, while working as a dragline oiler for Dolet Hills Lignite Company at the mine in southeast DeSoto Parish. FreemanâАЩs job was to lubricate the slide/cam mechanism of the dragline using bags of grease. Freeman died after he fell and was crushed by the moving machine. His death is the first in the mine since lignite excavation began there in the mid-1980s. The petition for damages was filed Friday in DeSotoâАЩs 42nd Judicial Court. Plaintiffs are Jennifer Hensley, Patrick Freeman and Stanley Freeman. Named as defendants are Dolet Hills Lignite Company, American Electric Power Co. Inc., AEP Energy Services Inc., Southwestern Electric Power Co., Terry Bowden, Dennis Meyer, Dale Hill, Steve Moore, John McCorkle, Rodney Basco and David Grubb. âАЬWe do not comment on any lawsuit issues,âАЭ said Scott McCloud, SWEPCO corporate communications, wrote in an e-mail today in response to the court filing. Lawrence Gettys, managing attorney of the Baton Rouge firm of Brent Coon & Associates, said today in a news release Freeman should not have been physically on the dragline while it was in motion. âАЬThe requirement was a clear violation of several government safety standards,âАЭ the release states. âАЬThis particular accident is just one in a long line of accidents that have occurred at Dolet, a company that has a reputation for negligence, poor safety conditions and suspending safety protocols. The lawsuit seeks compensation on behalf of FreemanâАЩs two children from Dolet and other defendants.âАЭ Gettys added: âАЬThis is a company that has repeatedly put workers in harmâАЩs way, resulting in serious injury and death. We intend to send a message to Dolet that risking the lives of its employees will not be tolerated. âАЬ Dolet Hills Mining Co., a subsidiary of SWEPCO, uses two draglines to expose the lignite vein. The larger dragline has a 77-cubic yard bucket, weighs about 8 million pounds and is as tall as a 20-story building. ItâАЩs powered by electricity and moves at a slow pace on its mechanical âАЬfeet.âАЭ The mine provides lignite for the 650-megawatt CLECO-SWEPCO Dolet Hills Power Station that is operated by CLECO. http://www.bcoonlaw.com/site/bca_in_the_news?post_id=871 BCA Main Ohio Residents Appeal Chevron Refinery Suit Dismissal http://www.bcoonlaw.com/site/bca_in_the_news?post_id=868 BCA Main Ohio Residents Appeal Chevron Refinery Suit Dismissal 00:00 Ohio Residents Appeal Chevron Refinery Suit Dismissal Originally posted by Pete Brush - Law360.com Law360, New York (November 19, 2009) -- Ohio residents who say Chevron USA Inc. should be held liable for land contamination caused by a refinery are appealing the dismissal of their negligence, strict liability and conversion state law claims. Wednesday's filing by the plaintiffs, who include William Balsley, Karl Zoller and others living in the neighboring Buckeye State towns of Hooven and Cleves, also asked the U.S. Court of Appeals for the Sixth Circuit to revisit District Judge Sandra Beckwith's order granting Chevron's motion to exclude an expert's testimony and her denial of a motion seeking discovery-related sanctions against the San Ramon, Calif.-based petroleum giant. The plaintiffs sued in April 2005 asserting claims of personal injury and property damage they say resulted from operations at a Gulf Oil refinery now owned by Chevron USA Inc. The matter was subsequently split between personal injury claimants, and bellwether plaintiffs were chosen for each trial group. Bellwether property damage claimants included Balsley and Zoller among several others. Their claims stem from the leakage of petroleum products into the soil in their environs, mainly through spills and leaks, from the refinery, operated by Chevron since its 1985 merger with Gulf Oil Co. The extent and volume of the fuel leakages remain matters of dispute, according to Judge Beckwith's Nov. 4 memorandum explaining her one-page ruling, issued Oct. 23 in the U.S. District Court for the Southern District of Ohio, that granted summary judgment to Chevron. That opinion reasoned that the claims were improperly brought and concluded "that the record fails to show that the hydrocarbon plume caused any damage to plaintiffsâАЩ property or interfered with their property rights or with the use and enjoyment of their properties." The opinion explained that "plaintiffs do not use the groundwater for any purpose. PlaintiffsâАЩ water supply does not come from ground wells ... [and] plaintiffs have not indicated that the plume has caused them to abandon any particularized and nonspeculative plans." The plaintiffs also intend to appeal Judge Beckwith's Nov. 4 order excluding the testimony of an expert witness who told the court, among other things, that in his opinion the hydrocarbon plume was the only source for the positive hydrocarbon soil vapors recorded in the town of Hooven. The plaintiffs also intend to challenge Judge Beckwith's order denying the plaintiffs' motion for a finding of spoliation and for sanctions. The motion stemmed from the plaintiffs' contention that, during discovery, the defendants claimed that they could not locate seven discs from 1994 that contained groundwater modeling data. There was no legitimate basis for the defendants not to produce the data, the motion said. "Although Brent Coon & Associates remains disappointed in Judge Sandra BeckwithâАЩs recent order involving the property claims of its clients residing in Hooven and Cleves, Ohio, it will continue to steadfastly pursue, through the appeals process, their clientsâАЩ full opportunity to have their day in court and to right their wrongs in trial against Chevron which has caused long-term environmental contamination to their properties," plaintiffs' attorney Linda G. Lagunzad said Thursday. In 1993, Chevron and the U.S. Environmental Protection Agency reached an agreement to remediate the contamination. The plaintiffs are represented in the appeal by Brent Coon & Associates. Chevron, which did not return a request for comment, is represented by Steptoe & Johnson LLP and Dinsmore & Shohl LLP. The case is Baker et al. v. Chevron USA et al., number 05-cv-00227, in the U.S. District Court for the Southern District of Ohio. All Content Â© 2003-2009, Portfolio Media, Inc. http://www.bcoonlaw.com/site/bca_in_the_news?post_id=868 BCA Main US safety authorities impose record Â£53m fine on BP for Texas City failings http://www.bcoonlaw.com/site/bca_in_the_news?post_id=867 BCA Main US safety authorities impose record Â£53m fine on BP for Texas City failings 00:00 US safety authorities impose record Â£53m fine on BP for Texas City failings November 1, 2009, 9:22 am British company has not fixed hazards after 2005 explosion at industrial complex that cost 15 lives Andrew Clark in New York The US government raised grave questions over BP's safety culture today by imposing a record fine of $87.4m (Â£53m) on the British company for failing to fix hazards at its Texas City oil refinery in the wake of a disastrous explosion that killed 15 people four years ago. The fine is four times higher than any previous penalty levied by America's workplace safety regulator, the Occupational Safety and Health Administration (OSHA), and it raises the possibility that a criminal prosecution of BP over the tragedy could be reopened. In a sharply worded critique, the Obama administration's labour secretary, Hilda Solis, said that BP had reneged on commitments to fix flaws at America's third-biggest refinery, leaving the plant, south of Houston, in a condition that "could lead to another catastrophe". "This administration will not tolerate disregard of our laws," said Solis, who said that BP had a moral responsibility to look after its employees at Texas City. "We don't need to see another loss of another life there. Our motto is we would like to see people go into work and be able to come home to their families." The Texas City disaster was the worst industrial accident in the US for a generation. It happened in March 2005 when workers overfilled a container with volatile chemicals, sparking an explosion that sent a geyser of burning liquid cascading over nearby accommodation trailers. In addition to claiming 15 lives, the resulting chaos left more than 170 people injured. The fresh sanction over the accident comes amid a tougher attitude towards business from the new Democratic administration in Washington. It is a severe setback to BP's efforts to repair its reputation in the US after a string of problems earlier in the decade, including leaking oil pipelines in Alaska and a price-fixing scandal in the propane trade. An official investigation into the causes of the Texas City explosion concluded in 2007 that senior BP executives, under the company's former chief executive, Lord Browne, had failed to act on red flags over safety at Texas City. Fatigue was a factor as one of the employees involved had worked 12-hour shifts for 33 consecutive days. And living quarters were positioned too close to safety-critical machinery. After the disaster, BP paid a $21.3m fine to OSHA and undertook a long list of improvements under the supervision of an independent safety auditor. But the authority today announced that it had since issued 270 notifications to BP for failure to correct hazards and that it had found 439 new "willful violations". BP immediately pledged to appeal against the fine, which it described as "disappointing", and said that it "strongly disagrees" with OSHA's findings. "We believe our efforts at the Texas City refinery to improve process safety performance have been among the most strenuous and comprehensive that the refining industry has ever seen," said Keith Casey, manager of BP's Texas City site. "We remain committed to further enhancing our safety and compliance systems and achieving our goal of becoming an industry leader in process safety." Senior BP officials expressed dismay, saying that, until recently, they had enjoyed a good relationship with regulators, who have carried out 17 inspections of the plant over four years. Most of the violations relate to management of safety procedures and failures to install pressure relief systems on the type of chemical tower that exploded at Texas City. Lawyers acting for victims of the disaster suggested that the renewed action could put BP in breach of a plea agreement two years ago in which it pleaded guilty to a single felony and paid $373m to settle a string of criminal charges. Among those bereaved at Texas City was Eva Rowe, who lost both her parents in the disaster. Through her lawyer, Brent Coon, she issued a statement saying she wanted "criminal prosecution and conviction" of BP executives. "I think it's fantastic that OSHA is standing up to BP," said Rowe, who secured a settlement that included $32m of donations by BP to her chosen charitable causes. "I hope this sends a message that this behaviour will not be tolerated." <a href="/site/headlines?post_id=792">Read full article</a> http://www.bcoonlaw.com/site/bca_in_the_news?post_id=867 BCA Main BP contests a record $87M US fine for lax remedies since fatal 2005 Texas refinery explosion http://www.bcoonlaw.com/site/bca_in_the_news?post_id=866 BCA Main BP contests a record $87M US fine for lax remedies since fatal 2005 Texas refinery explosion 00:00 BP contests a record $87M US fine for lax remedies since fatal 2005 Texas refinery explosion November 1, 2009, 9:20 am By SAM HANANEL | Associated Press | Oct 30, 09 2:23 PM CDT The Occupational Safety and Health Administration on Friday imposed a record $87 million fine against oil giant BP PLC for failing to correct safety hazards after a 2005 explosion killed 15 workers at its Texas City refinery. The fine _ the largest in OSHA's history _ comes after a 6-month inspection revealed hundreds of violations of a 2005 settlement agreement to repair hazards at the refinery. BP officials formally contested the fine, saying they believed the company had fully complied with the settlement agreement. OSHA said the company also committed hundreds of new violations at the nation's third largest refinery by failing to follow industry controls on pressure relief safety systems and other precautions. Labor Secretary Hilda Solis said BP failed to live up to the terms of its commitment to protect employees. If the problems are not addressed, Solis said it "could lead to another catastrophe." "An $87 million fine won't restore those lives, but we can't let this happen again," Solis said. "Workplace safety is more than a slogan. It's the law." The deadly explosion at BP's Texas City refinery, about 40 miles southeast of Houston, also injured more than 170 people. In a statement, the company said most of the alleged violations relate to an ongoing disagreement between OSHA and BP that is already pending before the Occupational Health and Safety Review Commission, a body that is independent of OSHA. "We are disappointed that OSHA took this action in advance of the full consideration of the Review Commission," said Keith Casey, BP's manager of the Texas City refinery. "While we strongly disagree with their conclusions, we will continue to work with the agency to resolve our differences." The largest prior OSHA fine was $21 million, also leveled against BP in connection with the refinery explosion. In the latest case, OSHA officials found 270 violations totaling $56.7 million in penalties for BP's failure to take corrective action as required by terms of the 2005 settlement agreement with OSHA. Agency inspectors also identified 439 new willful violations totaling $30.7 million in penalties for failure to repair pressure release safety devices. OSHA officials said the 2005 explosion was caused by defective pressure relief systems. The explosion occurred after a piece of equipment called a blowdown drum overfilled with highly flammable liquid hydrocarbons. Alarms and gauges that were supposed to warn of the overfilled equipment did not work properly. Jordan Barab, acting assistant secretary of labor for OSHA, said the agency found "some serious systemic safety problems within the corporation" and at the Texas refinery. "The fact that there are so many still outstanding life-threatening problems at this plant indicates that they still have a systemic safety problem in this refinery," Barab said. But BP's Casey called efforts to improve safety performance at the refinery "among the most strenuous and comprehensive that the refining industry has ever seen." Since the 2005 accident, four additional people have died at the Texas refinery, including one employee and three contractors. Eva Rowe, whose parents, James and Linda Rowe, were killed in the blast as they worked at the refinery, praised OSHA for "standing up to BP." "I hope this sends a strong message to the industry that this behavior will not be tolerated," Rowe said. "I hope that this will still lead to criminal prosecution and conviction of the BP officials that were responsible." Brent Coon, an attorney for several blast victims, said Friday that noncompliance with the OSHA agreement would mean BP is not meeting the terms of a highly criticized federal plea agreement between the oil giant and the Justice Department that settled criminal charges in the explosion. The plea deal was approved in March by a federal judge in Houston. Under the deal, a BP subsidiary pleaded guilty to a violation of the Clean Air Act _ a felony _ and BP was sentenced to three years probation and fined $50 million. Coon said he planned to ask the Justice Department to revoke BP's probation and the plea deal and proceed with criminal prosecution in the case. A Justice Department spokesperson did not immediately return an e-mail seeking comment. <a href="/site/headlines?post_id=791">Read full article</a> http://www.bcoonlaw.com/site/bca_in_the_news?post_id=866 BCA Main BP Faces Record Fine for âАЩ05 Refinery Explosion http://www.bcoonlaw.com/site/bca_in_the_news?post_id=865 BCA Main BP Faces Record Fine for âАЩ05 Refinery Explosion 00:00 BP Faces Record Fine for âАЩ05 Refinery Explosion October 30, 2009, 10:08 am By STEVEN GREENHOUSE Published: October 30, 2009 The Occupational Safety and Health Administration announced the largest fine in its history on Friday, $87 million in penalties against the oil giant BP for failing to correct safety problems identified after a 2005 explosion that killed 15 workers at its Texas City, Tex. refinery. The fine is more than four times the size of any previous OSHA sanction. Federal officials said the penalty was the result of BPâАЩs failure to comply in hundreds of instances with a 2005 agreement to fix safety hazards at the refinery, the nationâАЩs third-largest. According to documents obtained by The New York Times, OSHA issued 271 notifications to BP for failing to correct hazards at the Texas City refinery over the four-year period since the explosion. As a result, OSHA, which is part of the Labor Department, is issuing fines of $56.7 million. In addition, OSHA also identified 439 âАЬwillful and egregiousâАЭ violations of industry-accepted safety controls at the refinery. Those violations will lead to $30.7 million in additional fines. Contacted Thursday night after federal officials disclosed the OSHA citations to The New York Times, BP said it was disappointed. <a href="/site/headlines?post_id=788">Read the full article</a> http://www.bcoonlaw.com/site/bca_in_the_news?post_id=865 BCA Main BP Texas refinery hit with record safety fine http://www.bcoonlaw.com/site/bca_in_the_news?post_id=864 BCA Main BP Texas refinery hit with record safety fine 00:00 BP Texas refinery hit with record safety fine November 1, 2009, 9:37 am By Erwin Seba of Reuters HOUSTON - US safety regulators ha shit oil giant BP with a record $US87.4 million fine for failing to fix safety violations at its Texas City, Texas, refinery after a deadly 2005 explosion. In announcing the fines, US Labor Secretary Hilda Solis said old and new safety violations found by the US Occupational Safety and Health Administration at the nation's third largest refinery "could lead to another catastrophe" like the 2005 explosion that killed 15 workers and injured 180. BP filed a contest to the fine, calling OSHA's actions disappointing as the company believed the Texas City refinery had honored a 2005 agreement with the agency to fix safety problems that led to the blast. BP said contesting fines will send the dispute to a US administrative law judge for a ruling. BP also has an appeal pending before the Occupational Safety and Health Review Commission, an independent panel that reviews OSHA actions. "We believe our efforts at the Texas City refinery to improve process safety performance have been among the most strenuous and comprehensive that the refining industry has ever seen," Texas City Refinery Manager Keith Casey said in statement. A United Steelworkers safety official said the union, which represents Texas City refinery workers, would seek to participate in any settlement talks or hearings before the commission and judge. "We want this settlement to be fair to company, fair to OSHA and especially fair to workers and to the community around the refinery," USW spokesman Michael Wright said. Of the fine, $US56.7 million was for 270 instances of failure to abate problems found in 2005. The remaining $US30.7 million was for 439 new willful violations for not following industry standards on pressure relief systems and other process safety failures, according to the agency. BP took multiple steps to fix problems found at Texas City in the first three years after the 2005 blast, "but later their commitment waned," OSHA regional administrator Dean McDaniel said. Systemic problems persist within the company, said a Labor Department official. "There are some serious systemic safety problems within the corporation, specifically within this refinery as well," acting assistant labor secretary for OSHA Jordan Barab said. "I think that just the fact that there still are so many life-threatening problems indicates they have a systemic safety problem at this refinery." In 2005, BP paid a then-record $US21.3 million fine to OSHA and entered into a four-year agreement with the agency. As the agreement neared its end in September, OSHA warned the company that numerous problems remained. "BP gets to claim they have the first and second largest fines of any industry under OSHA supervision," attorney for victims of the BP blast Brent Coon said. BP has said it has invested more than $US1 billion to repair safety problems at Texas City. The company has paid more than $US2 billion to settle civil lawsuits stemming from the blast. Earlier this year, BP pleaded guilty to criminal charges in the explosion and paid a $US50-million fine to the US Justice Department. The company was placed on three years' probation, a condition of which was fulfilling the agreement with OSHA. The US attorney's office in Houston was reviewing OSHA's action, a spokeswoman said in a statement. "We will take all appropriate actions to ensure the plea agreement is not violated and cannot comment further at this time," spokeswoman for the US attorney's office Angela Dodge said. Eva Rowe, who lost both her parents in the explosion hailed OSHA's action. "I think it's fantastic OSHA is standing up to BP," Ms Rowe said in a statement issued by her attorney. "I hope that this will still lead to criminal prosecution and conviction of the BP officials that were responsible." An investigation by the US Chemical Safety Board found cost-cutting by BP amid pressure to meet production targets led to the explosion. <a href="http://www.businessspectator.com.au/bs.nsf/Article/UPDATE-2-US-hits-BP-with-record-fine-for-Texas-ref-XBK8L?OpenDocument">Read the full article</a> http://www.bcoonlaw.com/site/bca_in_the_news?post_id=864 BCA Main US government continues to let BP slide http://www.bcoonlaw.com/site/bca_in_the_news?post_id=863 BCA Main US government continues to let BP slide 00:00 US government continues to let BP slide Originally posted by Sheila McNulty - Financial Times - September 24, 2009 The US government has let pass another deadline for BP to come into compliance with federal safety standards. And, once again, the UK oil giant has asked for yet more time to comply - a request that may, as explained below - expose the company to considerable legal risk. It has been four years since BPâАЩs biggest refinery, in Texas City, exploded; the accident killed 15 people and injured hundreds more. And the company says it has invested enormous amounts of money and spent considerable time improving safety at the facility. Yet, here we are, with the US Department of LaborâАЩs Occupational Safety and Health Administration noting that an audit had identified âАЬsystemic deviations from industry standardsâАЭ at the facility that have yet to be addressed. OSHA also outlined in detail other âАЬareas of concernâАЭ, including a failure four years after the blast to complete a determination of which alarm functions in each unit were critical to process safety. The deadline to come into complete compliance was Wednesday. Yet, here is what OSHA had to say about where BP was: "Fifteen people died in 2005 as a result of the explosion at this BP refinery in Texas City, Texas. Secretary Solis has made it clear that the Department of Labor takes worker safety very seriously, and that the Department will enforce the law to ensure such tragedies are avoided. OSHA has received BPâАЩs petition for modification of abatement request, in reference to the companyâАЩs 2005 settlement agreement, and is presently taking that request under advisement as part of its on-going inspection at BP." The Department of Transport granted several extensions between 2006 and 2008 waived a deadline for BP to perform high-tech maintenance and corrosion checks on Alaska pipelines, after a spill from a corroded pipeline. Well, as commendable as OSHA is in calling out BP on its continued lapses, the body is not getting results by going easy on the oil giant. OSHA said it is considering BPâАЩs request to delay compliance. But more time is not what BP needs; real penalties are what it is going to take to comply. Brent Coon, the lawyer who represented victims of the explosion, noted that complying with OSHAâАЩs safety regulations was part of BPâАЩs settlement with the Department of Justice to end the chances of criminal action in relation to the explosion. He told a news conference that, by missing the deadline, BP had opened the door for US authorities to set aside that plea agreement. Mr Coon said it would probably take some time for the US to decide what it was going to do as the issue worked its way through the system. In the meantime, he said, he hoped the Obama Administration would provide additional funding for oversight of refineries. These refineries, he said, do a poor job of self-policing. Here, for the record, is BPâАЩs statement: "BP places the safe, compliant and reliable operations of all of our manufacturing facilities as our highest priority. Since 2005, we have made substantial investments at Texas City in our people, our work processes, and in upgrading our facilities." "BP Products has completed more than 550 OSHA citation abatement requirements and process safety related recommendations and has significantly reduced hazards on-site and off-site. We believe we are in full compliance with our commitments. We continue to work with OSHA through the appropriate processes to resolve any expressed concerns." http://www.bcoonlaw.com/site/bca_in_the_news?post_id=863 BCA Main BP Asks For More Time For Texas City Safety Deal http://www.bcoonlaw.com/site/bca_in_the_news?post_id=862 BCA Main BP Asks For More Time For Texas City Safety Deal 00:00 BP Asks For More Time For Texas City Safety Deal Originally posted by Erwin Seba - Reuters - September 23, 2009 HOUSTON, Sept 23 (Reuters) - BP Plc (BP.L) (BP.N) has requested more time to meet the terms of an expiring agreement with the federal government to improve safety at its Texas City, Texas, refinery, where an explosion killed 15 workers and injured 180 others in 2005, the U.S. Occupational Safety and Health Administration said on Wednesday. "OSHA has received BP's petition for modification of abatement request, in reference to the company's 2005 settlement agreement, and is presently taking that request under advisement as part of its on-going inspection at BP," the agency said in a statement. The British energy giant entered into the 2005 agreement with OSHA to settle worker safety rules violations the agency found after the March 23, 2005, explosion. The agreement expired on Tuesday. A BP spokesman said the company remains committed to resolving safety problems at the refinery. "We continue to work with OSHA through the appropriate processes to resolve any expressed concerns," said BP's Scott Dean. "This petition is part of that process. We believe we are in full compliance with our commitments." In anticipation of the agreement's end, OSHA told BP in a letter last month that the Texas City refinery was failing to meet the terms of the deal because of a long list of uncompleted safety improvements. "We believe that the failure to correct the issues addressed in this letter ... by Sept. 23, 2009, would constitute a failure to comply with the terms of the 2005 agreement and/or a failure to abate," OSHA wrote to BP's Texas City refinery manager on Aug. 3. Among the items listed in the letter were needed alarms, instrumentation and overdue machinery and pipeline inspections. No time frame was set for OSHA's decision on BP'S request, but the agency's statement took a stern tone. "(Labor) Secretary (Hilda) Solis has made it clear that the Department of Labor takes worker safety very seriously, and that the Department will enforce the law to ensure such tragedies are avoided," OSHA said. The 2005 settlement with OSHA included the payment of a $21.4 million fine to the agency. The settlement does not spell out what steps OSHA can take to enforce compliance by BP beyond "appropriate action in the event it deems BP has not appropriately complied with the agreement in good faith." Adherence to the OSHA settlement was made part of BP's probation after the company pleaded guilty in March to criminal charges stemming from the explosion brought by the U.S. Justice Department. BP also agreed to pay a $50 million fine. An attorney who represented victims of the 2005 explosion said the U.S. government could change the terms of BP's probation, levy further fines, impose outside supervision of safety programs or possibly close the refinery, which is the third-largest in the United States. "I'm not in favor of shutting a plant down if the plant is not a risk to the people who work there," said Brent Coon in a Wednesday afternoon conference call with reporters. The Texas City refinery can refine 455,790 barrels of crude oil per day and accounts for 2.6 percent of the nation's refining capacity. BP has also paid more than $2 billion to settle lawsuits from the explosion. http://www.bcoonlaw.com/site/bca_in_the_news?post_id=862 BCA Main Upgrades at BP refinery not made in time http://www.bcoonlaw.com/site/bca_in_the_news?post_id=861 BCA Main Upgrades at BP refinery not made in time 00:00 Upgrades at BP refinery not made in time Originally posted by Brett Clanton - Houston Chronicle - September 24, 2009 Federal regulators say BP has failed to make certain agreed-upon safety upgrades to its Texas City refinery, reviving questions about safety at the plant where a blast killed 15 workers in 2005. The Occupational Safety and Health Administration said the London-based oil giant missed a Wednesday deadline for making the safety improvements at the plant, one of the world's largest refineries. OSHA said late Wednesday that it had received a request by BP that could delay enforcement action. The agency said it is taking the request under advisement. OSHA had warned BP last month that it if did not make the safety upgrades by Wednesday it would be in violation of a settlement agreement the two parties struck in September 2005, which included a $21 million fine. If OSHA decides BP has broken the agreement, the agency will be allowed to take âАЬappropriate actionâАЭ to enforce compliance, according to the settlement, which does not outline specific remedies. Brent Coon, a Galveston lawyer who represented workers and families affected by the BP accident, said OSHA has a range of enforcement options, including extending the agreement until the fixes are made, levying additional fines or even closing the plant temporarily. BP could face still more penalties from the Justice Department, with which it made a separate plea agreement in 2007. As a condition of that deal, BP pleaded guilty to a felony violation of the federal Clean Air Act and agreed to fully comply with the OSHA pact. Breaking the pledge could void the plea agreement and spur the Justice Department to slap BP with more fines on top of the $50 million it already has paid, as well as extend BP's existing three-year probation, Coon said. OSHA did not indicate its next step in the case Wednesday, but agency spokeswoman Diana Petterson said the office takes worker safety âАЬvery seriouslyâАЭ and will âАЬenforce the law to ensure such tragedies are avoided.âАЭ A spokeswoman for the U.S. attorney's office in Houston did not respond to an e-mail seeking comment. The compliance issues first were outlined in a letter to BP early last month from Mark Briggs, area director of OSHA's Houston South Area Office, which highlighted âАЬcertain areas of concernâАЭ about the Texas City plant. An outside audit of pressure relief systems at the plant identified problems that BP still has not addressed, Briggs said in the letter. The company also has fallen short on other items, including full installation of proper safety instruments in some plant areas, he said. BP spokesman Daren Beaudo said the company has made âАЬsubstantialâАЭ investments in the plant since the accident and is working with OSHA âАЬthrough the appropriate processes to resolve any expressed concerns.âАЭ http://www.bcoonlaw.com/site/bca_in_the_news?post_id=861 BCA Main Jury trial could decide Chevron case http://www.bcoonlaw.com/site/bca_in_the_news?post_id=860 BCA Main Jury trial could decide Chevron case 00:00 Jury trial could decide Chevron case Originally posted by Dan Horn - Cincinnati Enquirer - September 13, 2009 More than 200 residents near the old Chevron refinery in Whitewater Township will find out next week what a jury thinks of their multimillion-dollar claim that the oil company dumped toxic waste into their soil and water. The jury's verdict is not binding because it will be part of a summary jury trial, which is essentially a practice trial designed to help both sides settle the case. But the outcome could move the hard-fought case closer to a resolution after years of battling in court. The case began more than five years ago when residents sued Chevron in federal court in Cincinnati, accusing the company of harming their health and property values with contamination from the now-closed refinery. They say the company knew about the risks to residents but did nothing to prevent spills and other toxic releases. They also accused company officials of concealing the extent of the contamination from residents and federal regulators. The company "knowingly, intentionally and maliciously conspired to mislead and defraud the governmental agencies and ... communities," lawyers for the residents wrote in a court filing last week. The lawyers said the refinery, which operated for 54 years before closing in 1985, dumped so many pollutants into the ground and water that residents now suffer from a variety of physical ailments, such as asthma, liver problems and other conditions. The pollution also has reduced property values around the refinery, especially in Cleves and Hooven, the residents say. "When you try to sell our houses, you have to let them know about Chevron," said Velma Cates, who recently joined the lawsuit. "It has dropped the value of our property." Lawyers for the residents and the company either declined to comment or could not be reached. But Chevron has argued in U.S. District Court that toxic releases from the refinery have not hurt residents' health or property values. Company lawyers say Chevron, which bought the refinery after acquiring Gulf Oil Co., quickly closed the facility and launched a $100 million investigation and clean-up of the property. They say investigators discovered a plume of leaked fuel oil in the groundwater, but they concluded it was too deep to threaten residents' health. "The plume poses no health risk and has never posed a health risk to Hooven residents," company lawyers wrote in a recent court filing. The company also disputes residents' claims that their proximity to the old refinery, near the Great Miami River, creates an "environmental stigma" that lowers property values. "The opinion that there has been any diminution in value ... is speculative and derived from unscientific and unreliable techniques," company lawyers say. Residents are seeking tens of millions of dollars in damages and a jury trial is set for October before Judge Sandra Beckwith. But before a full-blown trial, both sides will take part in the summary jury trial next week in hopes of settling the case. Summary jury trials are rare but have been used before in Ohio and other states. Each side presents an abbreviated form of their case to an actual jury and then awaits a non-binding decision, which can then be used to develop the terms and monetary value of a potential out-of-court settlement. http://www.bcoonlaw.com/site/bca_in_the_news?post_id=860 BCA Main