OSHA Levies Record $87 Million Fine Against Oil Giant BP

The Occupational Safety and Health Administration (“OSHA”) levied a record $87 million fine against oil giant BP. The fine stems from events that took place in 2005, in connection with an explosion at a Texas City, Texas oil refinery owned and operated by BP. At the time of the explosion(in 2005), 15 workers were killed and 170 other workers were injured. Ironcially, Texas City is also the site of a 1947 ammunition explosion that killed 581. The 1947 Texas City Disaster is acknowledged as the largest industrial disaster on American soil.

The fine comes on the heels of OSHA’s 6-month inspection of the Texas City facility that revealed hundreds of violations of a 2005 settlement agreement to repair hazards at the refinery. OSHA officials found and cited 270 violations totaling $56.7 million in penalties on BP’s part in failing to correct violations indentified and required to be correct as part of the 2005 settlement agreement with OSHA. Additionally, OSHA inspectors uncovered 439 new willful violations which totaled $30.7 million. The new fines stem from BP’s failure to repair pressure relief valves and safety devices at the refinery.

This is the largest fine that OSHA has levied in its entire history. BP has 15 days to agree to pay the fines and take corrective measures. Alternatively, BP has the option of contesting the fines through a hearing process. BP has indicated that it might appeal the decision.