OSHRC rules that a boiler providing steam used in safety systems is part of the PSM Covered Process

This case is not final orders of the Review Commission as it is pending Commission Review!

This decision can have HUGE impacts throughout the PSM/RMP community, as many covered processes are “interconnected” to a boiler and many may also be “co-located” such that a boiler explosion could impact the covered process.  This case involved a boiler that used “refinery fuel gas” as its main fuel source; the RFG was a collection of unusable fuels from the refining processes (e.g. PSM covered processes) that were dumped into a header and sent to the boiler as a fuel.  The refinery argued against all three of OSHA’s positions: 1) interconnectivity, 2) not used SOLELY as a fuel, and 3) co-location in an attempt to say the boiler was not part of a PSM-covered process and the court disagreed with every aspect of their argument(s).  Both OSHA and ALJ both viewed the steam this boiler generated as a “critical utility” (my term) used in “safety systems” such as inerting, fire extinguishment, snuffing, etc.  So in the end, the ALJ agreed with OSHA that the boiler was “connected” to a PSM-covered process AND it was “co-located”and was NOT exempted under the “used solely as a fuel”, making this boiler part of the PSM-covered process.

On September 28, 2012, a boiler exploded during a turnaround at a Refinery killing two employees. In response, OSHA initiated an inspection of the Refinery on September 29, 2012. On October 29, 2012, OSHA initiated a second, simultaneous inspection of the worksite in response to complaints about the conditions in the refinery warehouse. As a result of the inspections, OSHA issued two separate Citations and Notifications of Penalty (“Citations”) to Respondent. The Citation for Inspection No. 663538 alleges one other-than-serious, eleven serious, and five repeat violations of the Act, with a total proposed penalty of $234,500.00. The Citation for Inspection No. 778042 alleges one repeat, one other-than-serious, and eleven serious violations of the Act, with a total proposed penalty of $46,600.00.

NOTE: this article will focus on Inspection No. 663538 which involved a boiler explosion and the PSM-covered process.

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