Respondent owned and operated the natural gas production site which stored produced water including residual hydrocarbons in a 400-barrel fiberglass tank, and natural gas condensate in a 21O-barrel steel tank (tank battery), from natural gas production wells located at the site. A second 210-barrel steel tank was also present in the tank battery. On July 6, 2012 at around 9:45pm, lightning struck the tank battery. The lightning strike compromised one or more of the tanks, causing flammable hydrocarbon vapors in one or more of the tanks to ignite causing a fire and explosion.
An estimated 133.5 barrels of condensate and 216 barrels of produced water were released from the respective tanks. The fire lasted for an hour and 28 minutes (approximately). Two of the tanks were propelled into the air by the explosion, with a condensate tank landing on an uninhabited mobile home, 115 yards away, and the produced water tank landing on a chain link fence, 75 yards away. In addition to damage to the tanks, mobile home and fence, the explosion and fire also damaged a shop that adjoined a mobile home, two other mobile homes, a wooden swing set, and an automobile wind shield.
The tanks were grounded; there was no additional lightning protection installed at the site. 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:
(1) identify hazards which may result from accidental releases of such substances using appropriate hazard assessment techniques;
(2) design and maintain a safe facility, taking such steps as are necessary to prevent releases; and
(3) minimize the consequences of accidental releases that do occur.
The release of flammable hydrocarbons from the 400-barrel produced water fiberglass tank and the 210-barrel natural gas condensate steel tank at the Facility on July 6, 2012, 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 minimize the consequences of accidental releases. Respondent’s failure constitutes a violation of the general duty clause in section 112(r)(1) of the CAA.
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