This is an interesting agreement, none like I have seen before. Had OSHA done this inspection, using their new Wilfull Instance-by-Instance Penalty Adjustments, this case could have exceeded $1M in fines. Yet, the case resulted in $0 in fines and a correction plan. This facility had two (2) releases (Oleum and Ammonia) in the same month last year, prompting the EPA inspection. They found many missed opportunities to address MI issues that had been identified in early MI inspections. The paper trail was wide and long, but there was a lack of action on the facility’s part. How these issues got negotiated down to $0 fines, even after two LOPC events in the covered processes, is amazing to me.
Respondent is a chemical company that owns and operates a caprolactam manufacturing facility. Respondent uses and stores toxic and flammable chemicals at the Facility that are used in the caprolactam manufacturing process.
On May 10-11, 2022, EPA inspected the Facility to determine whether Respondent complied with 40 C.F.R. Part 68 (referred to as the “Risk Management Program Regulations” or “RMP Regulations”) (“Inspection”).
The Inspection occurred in the aftermath of a March 29, 2022, release of oleum/sulfur trioxide from the Facility, which resulted in a shelter-in-place for two neighboring facilities, and a March 9, 2022, release of anhydrous ammonia from the Facility.
Based on its observations during the Inspection and its review of documents received from Respondent during the investigation, EPA determined that Respondent had the following chemicals present at its Facility, among other chemicals, in approximately the following amounts, from 2017 through 2022:
- 24,400,000 pounds of oleum (fuming sulfuric acid);
- 40,000,000 pounds of ammonia (anhydrous);
- 300,000 pounds of ammonia (concentration 20% or greater);
- 204,000 pounds of acetaldehyde; and
- 32,200 pounds of a flammable mixture containing hydrogen.
Respondent submitted risk management plans for the Facility on September 5, 2017, and August 30, 2022. According to the August 30, 2022 risk management plan, the caprolactam manufacturing process is subject to the Process Safety Management regulations promulgated by OSHA, at 29 C.F.R. 1910.119, and is subject to regulation under the Program 3 Prevention Program of the RMP Regulations, 40 C.F.R. Part 68, Subpart D. S
EPA has determined that more than a threshold quantity of regulated substances oleum (fuming sulfuric acid), ammonia (anhydrous), ammonia (concentration greater than 20%), acetaldehyde, and flammable mixture are present in a process at the Facility.
Based on its investigation, EPA has determined that Respondent did not fully comply with Section 112(r)(7) of the CAA and the RMP Regulations by failing to comply with certain mechanical integrity, process hazard analyses, and process safety information requirements, as outlined in more detail below.