BP fatal blasts were 7 years ago today

TEXAS CITY — Seven years after a series of explosions ripped through BP’s Texas City refinery, killing 15 people, federal officials said the troubled refinery has fixed the problems uncovered as a result of the investigations into the fatal blasts.

While BP still is in talks with the Occupational Safety and Health Administration over safety issues not related to the explosions, company officials are moving ahead with the possible sale of the nation’s third largest refinery.

The March 23, 2005, explosions that were ignited during the restart of isomerzation unit of the refinery killed 15 contract workers and injured 170 other people at the refinery that afternoon. Investigations by OSHA and the U.S. Chemical Safety and Hazard Board, as well as BP’s own internal investigation, laid blame for the blasts on a lack of process safety culture at BP. The investigations also found BP management gave priority to cost savings over the safety of workers.

Federal Agreement, Plea Deal

In 2005, OSHA and BP reached a settlement agreement to implement safety changes within the refinery. Those provisions were included in a 2009 criminal plea agreement with the U.S. Department of Justice that put the company on probation.

On March 12, BP’s probationary period ended, and DOJ officials said the company met all of its obligations.

“In 2010, a new settlement agreement was reached, which included accelerated deadlines, all of which were met by BP before the end of its probation,” Wyn Hornbuckle, justice department spokesman, said.

BP has been low key about the end of that chapter in the refinery’s safety history. The company declined to comment about the end of the criminal probation.

The company has spent about $1 billion to upgrade units, replace aging equipment and implement a new safety culture at the 1,200-acre refinery since the fatal blasts.

Issues Unresolved

While that chapter might be closed, BP still is under the thumb of OSHA for a series of violations unrelated to the 2005 blasts. OSHA fined the company $87 million in 2009.

At the time, many BP critics called on a federal judge to revoke BP’s probation and hold its senior management accountable for the 2005 blasts. But the justice department didn’t seek to have the probation revoked or extended.

“In the process of OSHA’s continued close inspection of the BP Texas City facilities, OSHA cited BP for additional numerous violations in 2009,” Hornbuckle said. “These violations were unrelated to the 2005 settlement agreement and did not, in the department’s view, rise to criminal conduct.”

Department of Labor spokeswoman Elizabeth Todd said BP and OSHA continue to discuss the 2009 findings with hopes of closing the book on the willful violations the agency found during inspections at the refinery.

The company has settled and paid fines for the lesser violations found by OSHA, Todd said.

For Sale Sign Still Up

Last year, BP CEO Bob Dudley announced BP was seeking to sell the Texas City refinery as well as other assets as the company shifted its focus away from the refining of oil.

Recently, the sale of the refinery was put in some doubt when Iain Conn, BP’s head of refining, said the refinery was not officially on the market. His comments came during interviews with reporters following a speech during the IHS CERA Week energy conference in Houston a few days before BP was off probation.

Conn’s remarks contradict what regulatory officials and BP Texas City refinery manager Keith Casey said and by the actions by the company.

“OSHA would not be involved in any way with the sale of the refinery,” Todd said. “OSHA does not have jurisdiction or authority to prevent the sale of the refinery.”

Likewise, the justice department noted in its plea agreement with the refinery that while BP was required to notify the department of any possible sale, that agreement did not require additional approval.

End Of The Year

During an extensive interview with The Daily News about the sale of the refinery, Casey confirmed that starting in August, when the company opened a data room for potential buyers, the facility was actively marketed.

While not directly contradicting what Conn said, BP officials confirmed the timeline for the sale of the refinery was unchanged. BP hopes to have the Texas City refinery and its Carson, Calif., facility sold by the end of the year.

“By announcing (in February 2011) that we were for sale, we have had people express interest,” Casey said. “Once we have the data room built, we will follow up with you and be able to schedule discussions.

“Once the data room was built, (BP was) ready to do the formal marketing.”

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At A Glance

The commemoration of the March 23, 2005, explosions that killed 15 people and injured more than 170 others will be a low-key affair at BP’s Texas City refinery today. Refinery manager Keith Casey is expected to issue a memo to employees commemorating the incident and outlining improvements made at the refinery. There will also be a moment of silence in honor of those killed and injured, company officials said.