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Home Construction

Middletown blast draws $16.6m in OSHA fines

Alexander Soule by Alexander Soule
August 9, 2010
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The U.S. Occupational Safety and Health Administration proposed $16.6 million in fines on contractors building an energy plant in Middletown, where a February explosion killed six workers and injured 50 more.

“The millions of dollars in fines levied pale in comparison to the value of the six lives lost and numerous other lives disrupted,” said U.S. Secretary of Labor Hilda Solis, in a statement. “However, the fines and penalties reflect the gravity and severity of the deadly conditions created by the companies managing the work at the site. No operation and no deadline is worth cutting common sense safety procedures. Workers should not sacrifice their lives for their livelihoods.”

OSHA said it identified some 370 workplace violations at the energy plant site under development by Kleen Energy Systems L.L.C.
OSHA proposed fining O&G Industries Inc. $8.3 million for lapses in its role as the project”™s general contractor; and Keystone Construction and Maintenance Inc. $6.7 million in its role overseeing the piping and a procedural “gas blow” blamed for the explosion. Bluewater Energy Services Inc. could pay a penalty of nearly $900,000 in its role as commissioning and startup contractor for the plant.

The three companies and their subcontractors have the option of contesting the proposed penalties to the independent Occupational Safety and Health Review Commission.

On the morning of Sunday, Feb. 7, workers performed a gas-blow operation in which flammable natural gas was pumped under high pressure through new fuel lines to remove debris. A large amount of natural gas vented into areas where it could not easily disperse. Welding and other work was being performed nearby, and the explosion occurred when the gas contacted an ignition source.

OSHA investigators said Bluewater, Keystone and O&G undertook the gas blow procedure in a way that exposed workers to the risk of an explosion, including locating vent pipes in close proximity to scaffolding and other structures; and failing to keep nonessential personnel from the area. Citations were also issued for failing to install and use electrical equipment in accordance with its listing and labeling; allowing welding work during the gas blows; and failing to train employees to recognize hazards associated with the procedure.

“These employers blatantly disregarded well-known and accepted industry procedures and their own safety guidelines in conducting the gas blow operation in a manner that exposed workers to fire and explosion hazards,” said David Michaels, assistant secretary of labor for OSHA. “We see this time and time again across industries when companies deliberately ignore safety precautions in the interest of completing jobs quickly, and workers end up being killed or seriously hurt.”

Another 14 subcontractors have been cited for additional serious hazards with penalties totaling nearly $700,000, some for activities that occurred in the explosion recovery efforts. They include:

Ӣ Ducci Electrical Contractors Inc., the electrical insulation contractor;
Ӣ Instrument Science and Technology, which performed electrical testing and small bore pneumatic piping;
Ӣ Coverflex, which was installing insulation blankets on gas turbines;
Ӣ United Anco, which performed scaffold erection, inspection and dismantling;
Ӣ Smedley Crane, which performed crane hoisting and rigging for pipefitting work;
Ӣ API Construction Inc., which performed pipe insulation;
Ӣ North American Energy Services, which was hired to operate the power plant upon completion;
Ӣ Siemens Energy, which supplied gas turbines and provided limited construction support services;
Ӣ Team Industrial Services, which performed pipe welding heat stress services and instrument testing;
Ӣ Tucker Mechanical, a welding subcontractor;
Ӣ Securitas, which provided site security;
Ӣ Worley Parsons, which designed and engineered the Kleen Energy facility;
Ӣ Berlin Steel, which performed post-explosion steel erection and demolition activities and
Ӣ Barnhart Northeast, which provided rental cranes and operators for post-explosion activities.

Due to a reporting error, an earlier version of this story incorrectly stated the number of people that died in the Kleen Energy explosion.

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