Respondent owns and operates a natural gas processing well site and facility, which includes a separator used for separating well fluids produced from the natural gas well into gaseous and liquid components and a tank battery which consists of interconnected storage tanks situated to receive output from the natural gas well and separator. Natural gas is a highly flammable gaseous hydrocarbon mixture containing methane, ethane, propane and butane, which are extremely hazardous substances listed in Table 3 of 40 CFR ยง 68.130 that may ignite, flashback or explode when exposed to a source of ignition. On Monday, February 3, 2014, multiple maintenance projects were underway at the facility. A coil tubing job was underway on one part of the facility. Cuttings and crude oil from the coil tubing job were placed in the “water storage tank” for storage. A welder and assistant were tasked with connecting a two inch water line running from the “water tank”. Hydrocrarbon vapors collected in the two inch line due to the offloading of cuttings and crude oil that had been placed in the “water tank” from the coil tubing job. When the welder struck an arc on the two inch line, the flammable vapors ignited and traveled down the two inch line until they reached the water tank, which then exploded.
The welder was working WITHOUT a hot work permit and failed to realize that the two inch line and the water tank contained flammable hydrocarbon vapors. As a result of the fire and explosion the entire production tank battery, production vessels, and production piping had to be demolished. The hazards associated with welding in and around piping that contains flammable or explosive substances are well established as are the standards for preventing or minimizing fires while welding in such areas. Pursuant to section 112(r)(1) of the CAA, an owner/operator of a stationary source producing, processing, handling or storing substances listed pursuant to section 112(r)(3) of the CAA, or any other extremely hazardous substance, has a general duty to:
- identify hazards which may result from accidental releases of such substances using appropriate hazard assessment techniques
- design and maintain a safe facility, taking such steps as arc necessary lo prevent releases; and
- minimize the consequences of accidental releases that do occur
The release of natural gas and crude oil and associated vapors at the Facility on February 3, 2014, constituted an “accidental release” as that term is defined by section 112(r)(2)(A) of the CAA.
Respondent failed to design and maintain a safe facility and did not take such necessary steps to prevent accidental releases by not ensuring safety during hot work, including failing to issue a hot work permit for the hot work taking place at the facility. Respondent’s failure constitutes a violation of the general duty clause in section 112(r)(1) of the CAA.
Taking into consideration the size of the Respondent’s business, the economic impact of the penally on the Respondent ‘s business, the Respondent’s full compliance history and good faith efforts to comply, the duration of the violation, payment by Respondent of penalties previously assessed for the same violation (if any), the economic bene fit of noncompliance, and the seriousness of the violation, as well as other factors which justice may require, EPA and Respondent agree that an appropriate penally to settle this matter is$ 30,000.
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