OSHA settles PSM citations with refinery ($400,000)

New Mexico OSHA and the refinery entered a settlement agreement for citations issued resulting from an investigation of a March 2010 accident, which killed two employees and seriously injured two others at the refinery. As part of the agreement, the company will pay a $400,000 fine, the highest penalty ever collected by the state OSHA program.

The accident occurred when contractors were performing welding operations on top of a storage tank at the refinery. The four victims, all contractors, had just finished lunch on March 2, 2010. When the crew resumed work after the lunch break a welder ignited vapors from flammable liquids within the tank. The resulting explosion ripped open the top of the tank and the ensuing fire burned for more than an hour before being extinguished by the refinery’s fire brigade. As a result of the settlement, the refinery does not admit fault, but does agree to settle to a $400,000 fine.

New Mexico OSHA cited both the refinery and contractor for violations which included failing to properly inspect the work area prior to welding, failing to instruct employees on methods for determining the presence of flammables, and permitting the employees to weld in an area where flammable liquids and vapors were present. The state’s case against the contractor was settled in January 2011. Both companies have provided documentation of actions taken to abate all violations and the refinery is subject a follow-up inspection to verify continued correction.

I hope to get the citations and break them down in a week or so.  CLICK HERE (pdf) to download the press release from NM-OSHA.

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