Friday, October 30, 2009

REPORT: OSHA FINES BP $87 MILLION

An extraordinary report from the New York Times says OSHA will announce later today an $87 million fine against petroleum refiner BP for failing to correct safety problems stemming from the highly chronicled 2005 Texas City, TX explosion that killed 15 workers.

The newspaper report, citing anonymous sources, noted that the fine is the largest levied in OSHA history -- more than four times the size of a $21.4 million fine BP agreed to pay the government after Texas City.

The magnitude of the fine will reverberate in Washington and globally and dramatically raises the stakes for all employers facing OSHA enforcement actions. Confirming the fine to the Times in advance of a formal announcement is intended to have maximum news-cycle impact.

Over several weeks since September, OSHA and BP have waged a de facto public relations skirmish over OSHA's determination that BP failed to carry out the promised safety improvements at its U.S. facilities as part of the settlement agreement. In recent days, OSHA denied BP's request for more time to document improvements. BP has said it has been diligent in making changes.

OSHA likely will have amassed significant evidence to substantiate its claims of BP's alleged intransigence in the matter. Since June 2007, the agency has operated a National Emphasis Program, targeting process safety management hazards in the refinery industry with stepped up enforcement resources.

Under the Occupational Safety and Health Act, BP will have the opportunity to contest the penalty.

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