Inspection teams from the US Department of Occupational Safety & Health Administration are visiting refineries as part of the National Emphasis Program (NEP).
Steve Arendt, a vice-president with ABS Consulting, said NEP inspectors work from two lists of questions. An already published list involves more than 90 “static” questions covering process safety management (PSM) elements.
The other list includes “dynamic questions,” which are undisclosed in advance. During an audit, OSHA inspectors randomly select 15-20 from a list of 700 possible questions.
Arendt said NEP has its pros and cons.
He said the audits will improve process safety for companies that might not already have been serious about their obligations under the PSM standard.
But he believes most refiners already strive for improved performance and efficiency as defined by the Center for Chemical Process Safety’s risk-based process safety guideline.
“The NEP will create a tendency for these companies to divert attention and resources away from a good and continuously improving job in process safety in order to deal with, get ready for, and protect themselves from the NEP,” Arendt said.
Mike Marshall, PSM Coordinator in OSHA’s Directorate of Enforcement Programs agrees. “It would not be a good situation if employers diverted attention and resources away from continually improving PSM systems to prepare for an NEP inspection.”
Costs to refiners
The NEP program could prove costly for refiners and could disrupt refinery operations by requiring the full-time attention of certain refinery employees for a period of a few weeks to several months or more.
“The major cost for a refinery is not necessarily the preparation, but the time spent when OSHA is on site,” Arendt said. “The inspectors are in there with five or six people for weeks to months. Then there is the cost of fixing things, although many fixes usually are more analysis and paperwork than capital.”
He estimates the NEP cost could amount to “several million dollars” for a medium-size refinery (100,000-200,000 b/d). This includes preparation time, the time to escort OSHA inspectors around the refinery and answer questions, and the amount of time needed for the company to respond after the inspection.
Arendt recommends the following steps before the OSHA NEP team arrives:
- Decide how to prepare, and coordinate that preparation within the company and refinery.
- Contact internal or external legal counsel to address potential issues.
- Develop responses to OSHA’s questions before the inspection team arrives.
- Find and organize the records that OSHA inspectors will request.
- Review the status of all process hazard analysis, incident investigations, and cost-analysis action items.
- Conduct limited compliance reviews for areas of concern.
- Develop a communication package for the NEP program by preparing employees, supervisors, and management.
- Identify the refinery subject matter experts and personnel for liaising with OSHA.
- Identify the process for satisfying OSHA requests for documents, tours, interviews, and photographs.
- Consider coordination and information-sharing with other refineries in the company and with industry groups.
Upon arrival of the OSHA NEP team, Arendt recommends that a company:
- Assign a companion to accompany inspectors and scheduled interviews.
- Coordinate OSHA’s document requests and logistical needs.
- Conduct daily close-out meetings with OSHA.
- Arrange for experts to be available to explain the refinery’s “thought process” on compliance with the NEP inspection questions.
