Exxon Fined for California Refinery Fire

Exxon Mobil Corp. has asked air quality officials to allow it to increase refining operations at its Torrance facility – a move that comes as Los Angeles-area gasoline prices jumped almost 6 cents because of refinery woes. The proposed penalties total $566,600.

The agency reported in its news release that 18 of its 19 citations were “serious”, as the accident could have resulted in multiple injuries or deaths.

Gasoline production at Exxon Mobil Corporation (NYSE:XOM)’s California refinery could begin as early as September the company having sought regulatory approval for the same. “Despite committing to OSHA that it would eliminate serious hazards, Case Farms continues to endanger the safety and health of its workers”.

“Petroleum refineries have the responsibility to keep workers safe and to also protect nearby communities and the environment”, said Christine Baker, director of the Department of Industrial Relations, of which Cal/OSHA is a part.

A U.S. Department of Labor’s Occupational Safety and Health Administration investigation of the Ohio poultry processing facility operated by Case Farms Processing Inc. found that the company was aware of the dangers, but continued to expose workers to serious and potentially fatal injuries.

“We are reviewing the citations to determine the appropriate administrative and legal next steps”, Exxon Mobil spokesman Todd Spitler said. The refinery’s fluid catalytic cracker-a key gasoline-making unit-has been shut down since the incident, contributing to high fuel prices at the pump in the state. A safety review in 2007 addressed concerns about the leakage, but the company failed to fix it, according to Cal/OSHA.

Cal/OSHA determined the company’s management knew the electrostatic precipitator could explode during a flammable vapor leakage.

The FCC unit is no longer working since nine years before the blast. Monitoring of hydrocarbon pressure buildup was also rendered impossible by the fact that that there was no functional pressure transmitter.

Cal/OSHA issued an order prohibiting use of the FCC unit on February 18, and that order remains in effect until ExxonMobil can demonstrate that the unit is safe to operate.

Cal/OSHA has investigated the refinery twice in the last five years for serious accidents resulting in injuries. The worker suffered a fractured jaw and lost six teeth in the accident.

Case Farms has contested those citations. “Cal/OSHA is working closely with other members of the Governor’s Interagency Refinery Task Force toward more protective refinery safety regulations”, said Cal/OSHA Chief Juliann Sum.