Respondent owns and operates a disposal facility associated process equipment. At the facility the Respondent stored produced water, including residual hydrocarbons, in a 500-barrel fiberglass tank. Produced water stored in this tank was generated from multiple wells. Produced waters, and their associated vapors, are extremely hazardous substances due to their flammability and explosive nature. On November 26, 2014, a two man contractor crew cut an existing four inch fiberglass inlet collar and began to install a neck tank collar. Instead of allowing the repair to naturally “cold cure” a heat gun was used to accelerate the fiberglass curing process. Flammable hydrocarbon vapors from the produced water tank and a disconnected vent line ignited, causing a fire and destruction of the produced water tank and damage to the rest of the disposal facility. The two contractor crew members were treated for burns and various broken bones from jumping from the burning tank, and they were subsequently released from medical care.
The hazards associated with using heat guns and other heat sources in and around tanks containing flammable or explosive substances is well established as are the hot work standards for preventing or minimizing explosions and fires from fiberglass tanks during the repair process. The vapors associated with produced water are highly Flammable hydrocarbon mixtures containing methane, ethane, propane and butane, which are extremely hazardous substances listed in Table 3 of 40 CfR § 68.130. These vapors may ignite, flashback or explode when exposed to a source of ignition as evident by the incident at the Respondent’s disposal facility.
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 are necessary to prevent releases; and
- minimize the consequences of accidental releases that do occur.
The release of flammable hydrocarbons from the 500-barrel produced water fiberglass tank on November 26, 2014, constituted an “accidental release”. Respondent failed to oversee and ensure that its contractor took the necessary steps to minimize the consequences of accidental releases by ensuring recognized hot work practices were utilized by workers during the produced water tank repair, 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.
Pursuant to the authority granted in sections 113(a)(3) and 113(d)(1)(B) of the CAA, and taking into consideration the size of the Respondent’s business, the economic impact of the penalty 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 benefit of noncompliance, and the seriousness of the violation, as well as other factors which justice may require, EPA and Respondent agree that an appropriate penalty to settle this matter is $37,500.
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