The Occupational Safety and Health Administration on Friday imposed a record $87 million fine against oil giant BP PLC for failing to correct safety hazards after a 2005 explosion killed 15 workers at its Texas City refinery.
The fine - the largest in OSHA’s history - comes after a six-month inspection revealed hundreds of violations of a 2005 settlement agreement to repair hazards at the refinery.
BP officials formally contested the fine, saying they thought the company had fully complied with the settlement agreement.
OSHA said the company also committed hundreds of new violations at the nation’s third-largest refinery by failing to follow industry controls on pressure-relief safety systems and other precautions.
Labor Secretary Hilda L. Solis said BP failed to live up to the terms of its commitment to protect employees. If the problems are not addressed, Mrs. Solis said, it “could lead to another catastrophe.”
“An $87 million fine won’t restore those lives, but we can’t let this happen again,” Mrs. Solis said. “Workplace safety is more than a slogan; it’s the law.”
The deadly explosion at BP’s Texas City refinery, about 40 miles southeast of Houston, also injured more than 170 people.
In a statement, the company said most of the purported violations relate to an ongoing disagreement between OSHA and BP that is already pending before the Occupational Health and Safety Review Commission, a body that is independent of OSHA.
“We are disappointed that OSHA took this action in advance of the full consideration of the Review Commission,” said Keith Casey, BP’s manager of the Texas City refinery. “While we strongly disagree with their conclusions, we will continue to work with the agency to resolve our differences.”
The largest prior OSHA fine was $21 million, also leveled against BP in connection with the refinery explosion.
In the latest case, OSHA officials found 270 violations totaling $56.7 million in penalties for BP’s failure to take corrective action as required by terms of the 2005 settlement agreement. Agency inspectors also identified 439 new willful violations totaling $30.7 million in penalties for failure to repair pressure-release safety devices.
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