OSHA issues $16.6 million in fines over power plant blast

O&G Industries of Torrington, Conn., stood to gain a $19 million incentive if it finished construction early on the Kleen Energy plant in Middletown, federal officials said as they issued $16.6 million in fines to O&G and other firms for the Feb. 7 explosion at the power plant that killed six workers and injured several dozen.

It was the third highest total fine ever issued by the U.S. Occupational Safety and Health Administration, behind the two it has levied against BP.

The companies have 15 days to file challenges against the fines and can pursue an appeal beyond that. O&G said it will contest the fines.

The Hartford Courant has reported that workers were logging 84-hour weeks at the plant in the days and weeks leading up to the natural gas explosion, and the owners were pressing for a May/June opening - five months before regulators expected the plant to be ready. The blast took place on Super Bowl Sunday, and workers were directed to carry on their tasks while gas was coursing through pipes at a tremendous pressure to clean out debris. Safety standards require that workers be evacuated during these "gas blows" and that all potential ignition sources be removed. Neither precaution was taken in this instance.

Officials of the U.S. Department of Labor and its OSHA division said in a conference call with reporters yesterday that O&G, Keystone Construction and Maintenance Services, a major subcontractor; and Blue Water Energy Solutions, which was involved in the commissioning of the power plant, cut corners and failed to prepare workers for the dangerous gas-blow procedure. The companies created deadly conditions that led to the massive explosion, the officials said.

"These employers blatantly disregarded well-known and accepted industry procedures and their own safety guidelines in conducting the gas blow operation," said OSHA director Dr. David Michaels. "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 the $19 million early-completion bonus would have been paid by the owners of the plant.

A top union official in Connecticut cautioned that overtime hours and early completion incentives "aren't necessarily linked to the explosion."

"They were ahead of schedule, but this can happen if you're working 35 hours a week," said John Olsen, president of the Connecticut AFL-CIO, adding that the state legislature and regulators should focus on toughening safety standards. He said financial incentives are common in the construction industry.

O&G said in a written statement yesterday that before the blast, 1.7 million work hours were logged at the Kleen Energy site with only one "lost time" incident.

"This is an impressive safety record by any standard and demonstrates the rigor of O&G's safety programs and the company's commitment to workplace safety," O&G said in the statement.

The company said it passed an OSHA inspection six months before the accident.

"Our contesting of these citations should not be confused with any wavering in our commitment to safety. O&G will continue to review and enhance our safety programs, partnering with agencies such as OSHA and the Chemical Safety Board, and working with other industry leaders on the development of new best practices and construction standards," the company said.

A separate criminal investigation into the blast by Middletown and state police is still under way. Several civil lawsuits have been filed on behalf of dead and injured workers.

OSHA slapped O&G with 119 willful, 17 serious and three other-than-serious citations, with penalties totaling $8.3 million. Keystone Construction and Maintenance was issued 94 willful, 16 serious and one other-than-serious citation with fines of $6.6 million. Bluewater Energy Services was issued 12 willful citations and eight serious citations totaling $896,000. (next page »)