Cal/OSHA and Chevron Reach Settlement of Citations Appeal Following the August 2012 Richmond Refinery Fire

OAKLAND, Calif., July 24, 2017 /PRNewswire-USNewswire/ -- Cal/OSHA and Chevron have reached a settlement agreement for a comprehensive plan that will improve safety at the Chevron Richmond refinery and for surrounding communities. The agreement meets and exceeds California's landmark regulation to reduce risk at refineries, which was approved by the Occupational Safety and Health Standards Board in May and is currently pending approval by the Office of Administrative Law.

"The settlement requires Chevron to exceed current and upcoming requirements and to use new and innovative methods recently developed by engineering experts in the petroleum refining industry to ensure the safe operation of process safety equipment," said Cal/OSHA Chief Juliann Sum. "This means safer operations at the refinery, which will help protect refinery workers and those who work and live nearby."

The agreement resolves Chevron's appeal of citations issued by Cal/OSHA on January 30, 2013, following an investigation into a fire that occurred at the Richmond refinery on August 6, 2012. Cal/OSHA cited Chevron for 17 workplace safety and health violations, including six serious and nine willful in nature. During the settlement negotiations, Cal/OSHA received input from the United Steelworkers and the US Environmental Protection Agency.

The negotiated settlement requires Chevron to institute the following extraordinary measures to ensure process safety at the Richmond refinery:

    --  Replace all carbon steel piping that transports corrosive liquids with
        chrome-alloy piping, which has better corrosion resistance, at an
        estimated cost of $15 million. This exceeds current and upcoming
        workplace safety requirements for refineries.
    --  Develop and implement criteria and procedures, at an estimated cost of
        $5 million, to monitor equipment to alert operators when equipment
        should be replaced. This is a new and innovative practice recently
        developed by refinery engineering experts.

In addition:

    --  Chevron agrees to:
        --  Provide specialized, hands-on training on incident command
            situational awareness and hazard recognition for all Chevron Fire
            Department personnel at the Richmond refinery with rank of
            lieutenant and above. The training will include at least three hours
            of instruction and focus on emergency response.
        --  Provide at least eight hours of in-person training on process safety
            management for operators at the refinery beyond the training that is
            already provided.
        --  Continue its collaboration with the United Steelworkers in order to
            meet the training requirements imposed by the new refinery safety
            regulation pending approval by the OAL.
        --  Donate $200,000, in addition to any monies already donated in 2016,
            to the Regional Occupational Program in Richmond, a job-readiness
            course offered by the Contra Costa County Office of Education in
            partnership with Chevron to help prepare students for jobs in the
            petrochemical and related industries.
        --  Pay the citation penalties originally proposed by Cal/OSHA in
            January 2013 ($782,700), plus an additional $227,300.
    --  Cal/OSHA agrees to:
        --  Withdraw nine of the 17 violations cited. The withdrawn citations
            include four willful-serious category violations, three serious and
            two general in nature.
        --  Amend five of the remaining eight violations cited, as follows:
            --  Three willful-serious category violations downgraded to two
                serious and one general,
            --  Two serious category violations downgraded to general category.

Cal/OSHA helps protect workers from health and safety hazards on the job in almost every workplace in California. Employers and employees who have questions or need assistance with workplace health and safety programs can call Cal/OSHA's Consultation Services Branch at 800-963-9424. Employees may also file complaints confidentially with a Cal/OSHA district office.

Employees with other work-related questions or complaints may contact DIR's Call Center in English or Spanish at 844-LABOR-DIR (844-522-6734).

Members of the press may contact Erika Monterroza or Peter Melton at (510) 286-1161, and are encouraged to subscribe to get email alerts on DIR's press releases or other departmental updates.

The California Department of Industrial Relations, established in 1927, protects and improves the health, safety, and economic well-being of over 18 million wage earners, and helps their employers comply with state labor laws. DIR is housed within the Labor & Workforce Development Agency. For general inquiries, contact DIR's Communications Call Center at 844-LABOR-DIR (844-522-6734) for help in locating the appropriate division or program in our department.

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SOURCE California Department of Industrial Relations