OSHA Proposes $2.5 Million Penalty Against Phillips Chemical Complex

Sept. 25, 2000
Just days after announcing a new plan to improve\r\nsafety at its Houston Chemical Complex, Phillips Chemical Co. has\r\nbeen fined $2.5 million by OSHA.

Just days after announcing a new comprehensive plan to improve safety at its Houston Chemical Complex, Phillips Chemical Co. has been fined $2.5 million by OSHA for a March 27 explosion that killed one worker and injured 69.

(See story from 9/22 at www.occupationalhazards.com/news/news_loader.asp?articleID=29492)

Failure to train worker properly was a key factor in the accident at the HCC Plant in Pasadena, Texas, according to OSHA investigators.

The plant employs 850 workers who make high quality plastic resins for use in medical and consumer products.

HCC, doing business as Phillips Chemical Co., has been succeeded by Chevron Phillips Chemical Co.

Chevron Phillips CEO James Gallogly, said last week that the company has initiated a series of actions to further enhance safety at the HCC.

Now facing citations for 50 alleged safety violations, it seems as though the plan to turn safety around at Chevron Phillips may be more of a challenge than previously thought.

"Unfortunately, this tragedy is not an isolated incident, but one in a series of incidents at this site," said Labor Secretary Alexis M. Herman. "Three workers lost their lives in explosions at this plant in less than a year''s time, and 23 others were killed in a major explosion in 1989."

OSHA determined that the March explosion took place when a runaway chemical reaction occurred in a tank containing an unknown quantity of butadiene that burst the 12,000-gallon vessel.

This explosion resulted in a fire and damage to other nearby chemical tanks.

The butadiene tank was out of service for cleaning and had no pressure or temperature gauges that could have alerted workers in the control room to the impending hazard.

More importantly, workers were not trained in safety procedures for handling butadiene, and they were unaware of the potential for explosion, said OSHA.

In addition, while the vessel was not in use, butadiene continued to flow into the tank through a non-functioning valve that had not been properly locked out.

"We have cited similar violations again and again at this plant, yet tragedies continue to occur," said OSHA Administrator Charles Jeffress. "What is really needed here is a full reassessment of worker safety and health in all areas of the plant, significantly improved training for employees and a firm commitment from plant and corporate management to make safety an ongoing high priority. We recognize that the plant is now under new ownership and we look to the new owners to assure that the problems of the past do not continue."

As a result of the inspection, OSHA alleged:

  • 30 willful instance-by-instance violations for failure to train plant operators with a total proposed penalty of $2.1 million ($70,000 per instance);
  • four alleged willful violations of process safety management and lockout/tagout standards with a proposed penalty of $280,000;
  • two alleged repeat violations of the process safety management standard for a proposed penalty of $70,000;
  • 13 alleged serious violations with proposed penalties of $66,000; and
  • one other-than-serious violation with a proposed penalty of $1,000 for a total of 50 alleged violations with proposed penalties of $2,517,000.

OSHA inspected this site 46 times, including four inspections in 1999. Three of the 1999 inspections were related to explosions.

In June 1999, two workers died in an explosion in the same unit of the plant where the explosion occurred in March this year.

by Virginia Sutcliffe

About the Author

EHS Today Staff

EHS Today's editorial staff includes:

Dave Blanchard, Editor-in-Chief: During his career Dave has led the editorial management of many of Endeavor Business Media's best-known brands, including IndustryWeekEHS Today, Material Handling & LogisticsLogistics Today, Supply Chain Technology News, and Business Finance. In addition, he serves as senior content director of the annual Safety Leadership Conference. With over 30 years of B2B media experience, Dave literally wrote the book on supply chain management, Supply Chain Management Best Practices (John Wiley & Sons, 2021), which has been translated into several languages and is currently in its third edition. He is a frequent speaker and moderator at major trade shows and conferences, and has won numerous awards for writing and editing. He is a voting member of the jury of the Logistics Hall of Fame, and is a graduate of Northern Illinois University.

Adrienne Selko, Senior Editor: In addition to her roles with EHS Today and the Safety Leadership Conference, Adrienne is also a senior editor at IndustryWeek and has written about many topics, with her current focus on workforce development strategies. She is also a senior editor at Material Handling & Logistics. Previously she was in corporate communications at a medical manufacturing company as well as a large regional bank. She is the author of Do I Have to Wear Garlic Around My Neck?, which made the Cleveland Plain Dealer's best sellers list.

Nicole Stempak, Managing Editor:  Nicole Stempak is managing editor of EHS Today and conference content manager of the Safety Leadership Conference.

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