OSHA Sets $16.6 Million in Fines Over Fatal Gas Explosion

Three companies, 16 contractors cited for hazards at Connecticut construction site

The federal Occupational Safety and Health Administration this month cited three construction companies and 14 site contractors for 371 alleged violations of workplace safety regulations, resulting from the agency’s investigation into the causes of a natural-gas explosion at the Kleen Energy Systems LLC power plant construction site in Middletown, Conn. The February 7 explosion killed six workers and injured 50 more. 

A total of $16.6-million in penalties to the companies and contractors has been proposed by OSHA. “The millions of dollars in fines levied pale in comparison to the value of the six lives lost and numerous other lives disrupted,” stated U.S. Secretary of Labor Hilda L. Solis. “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.” 

On the day of the incident, a gas blow was being performed a the site: flammable natural gas was being pumped under high pressure through new fuel gas lines to remove debris. During this operation, a high volume of natural gas was vented into areas where it could not easily disperse, OSHA explains. Welding and other work was being performed in the areas, creating a dangerous workplace: The explosion happened when the gas contacted an ignition source.   

OSHA has cited the general contractor on the project, O&G Industries Inc.; the firm contracted to handle the piping installation, and which was overseeing the gas blow, Keystone Construction and Maintenance Inc.; and Bluewater Energy Services Inc., the commissioning and startup contractor for the plant.  

All three companies were cited for performing the gas blow procedure in a way that exposed workers to fire and explosion hazards, including the configuration of the vent pipes in close proximity to scaffolding and other structures, and the failure to remove non-essential personnel from the area. Citations were issued, too, 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 gas blows. 

O&G was issued 119 willful, 17 serious and three other-than-serious citations with penalties totaling $8,347,000. Keystone Construction and Maintenance was issued 94 willful, 16 serious and one other-than-serious citation with fines of $6,686,000. Bluewater Energy Services was issued 12 willful citations and eight serious citations totaling $896,000. 

In OSHA’s standards, a “willful violation” is one committed with plain indifference to or intentional disregard for employee safety and health.  A “serious citation” involves substantial probability that death or serious physical harm may result from a hazard about which an employer knew or should have known.  

Each employer was given 15 business days from receipt of its citations and proposed fines to comply, meet with OSHA or contest the findings to the independent Occupational Safety and Health Review Commission.  

In addition to the three main companies cited today, 14 subcontractors were cited for additional serious hazards with penalties totaling $686,000. These contractors are:
•  Ducci Electrical Contractors Inc., the electrical insulation contractor at Kleen Energy; Instrument Science and Technology, which performed electrical testing and small bore pneumatic piping;
•  Coverflex, which was installing insulation blankets on gas turbines;
•  United Anco, which performed scaffold erection, inspection and dismantling;
•  Smedley Crane, which performed crane hoisting and rigging for pipefitting work;
•  API Construction Inc., which performed pipe insulation;
•  North American Energy Services, which was hired by Kleen Energy to operate the power plant upon completion;
•  Siemens Energy, which supplied gas turbines and provided limited construction support services;
•  Team Industrial Services, which performed pipe welding heat stress services and instrument testing;
•  Tucker Mechanical, a welding subcontractor;
•  Securitas, which provided site security;
•  Worley Parsons, which designed and engineered the Kleen Energy facility for O&G;
•  Berlin Steel, which performed post-explosion steel erection and demolition activities; and
•  Barnhart Northeast, which provided rental cranes and operators for post-explosion activities.

“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,” asst. secretary of Labor for OSHA Dr. David Michaels claimed.  “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.”

OSHA said that the Kleen Energy plant incident will be the basis of a warning letter it will issue to natural gas power plant operators regarding the dangerous practice of cleaning fuel gas piping using natural gas, and the need to ensure that safety procedures and practices are implemented to prevent these disasters.

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