Tesoro refinery explosion penalty appeal hearing begins July 21

Press Release from LNI.WA.GOV on Tesoro Refinery:

Tumwater – A hearing is set to begin next week on Tesoro’s appeal of safety and health violations and more than $2 million in fines related to one of Washington’s worst-ever industrial disasters. An industrial appeals judge will hear arguments starting July 21 in Mount Vernon.

Seven workers, five men and two women, died in the Tesoro refinery explosion on April 2, 2010, in Anacortes. A six-month investigation by the Department of Labor & Industries (L&I) determined that the incident was preventable.

A heat exchanger at the petroleum refinery blew apart along cracks in welded areas. Tesoro was required by state law and industry standards to test the equipment for cracks, but L&I inspectors determined the company had failed to do this correctly.

On Oct. 1, 2010, L&I cited Tesoro for 39 willful violations and five serious violations of state workplace safety and health regulations. The accompanying $2.39 million fine is the largest ever issued by L&I.

Tesoro filed an appeal on Oct. 22, 2010. In the five years since Tesoro appealed, numerous legal motions have led to delays in the hearing start date.

“The loss of seven lives was a needless tragedy for the families, the community and for our state,” said Anne Soiza, assistant director of L&I’s Division of Occupational Safety and Health. “Prevention of catastrophic chemical incidents is of paramount importance, and we continue to work diligently to that goal.”

Under state law at the time, employers who appealed did not have to correct hazards until the appeal was final, a process that can take months, and sometimes years. That’s changed now, in part because of this case. In 2011, the state legislature revised the law to require employers to correct hazards while an appeal is pending, rather than waiting for a final decision.

“Workers in the state are safer since the law was changed,” said Soiza. “Employers have to step up and fix serious hazards, even if they appeal the violations, rather than putting it off for months or years until the appeal is final.”

The appeal hearing is scheduled to begin Tuesday, July 21, from 9 a.m. to 5 p.m., with a one-hour lunch break. It will continue the rest of the week, as well as July 28, July 30-31, and Aug. 25-28. Additional dates are scheduled for September through December. The hearing is scheduled to conclude Dec. 29.

The hearing will be held at the Days Inn Motel, 2009 Riverside Drive, in Mount Vernon.

The appeal will be heard by an industrial appeals judge, who will issue a proposed decision. The decision will be reviewed by the Board of Industrial Insurance Appeals (BIIA), which will issue a final order. The BIIA is a separate state agency independent of L&I. Its three board members are appointed by the Governor and include a business representative, a labor representative and a public member.