CHEVRON SETTLES FIRE SAFETY CASE WITH OSHA

March 25, 1991
Chevron U.S.A. Inc., while denying any wrongdoing, has agreed to pay fines totaling $275,000 and beef up fire protection policy at all 10 of its U.S. refineries. The agreement, announced for the U.S. government by the Labor Department, settled allegations of 109 willful violations and five serious violations of federal fire safety rules at Chevron's 280,000 b/sd Richmond, Calif., refinery. The government issued the citations after an Occupational Safety and Health Administration

Chevron U.S.A. Inc., while denying any wrongdoing, has agreed to pay fines totaling $275,000 and beef up fire protection policy at all 10 of its U.S. refineries.

The agreement, announced for the U.S. government by the Labor Department, settled allegations of 109 willful violations and five serious violations of federal fire safety rules at Chevron's 280,000 b/sd Richmond, Calif., refinery. The government issued the citations after an Occupational Safety and Health Administration investigation of a fire and explosion at the plant Apr. 10, 1989.

Three employees were burned in the accident.

WHY THE SETTLEMENT

"Although we continue to have a serious dispute with OSHA over the facts and legal issues involved, we decided to settle this case because of the time consuming nature of pursuing the litigation," said Mike Hannan, general manager of the refinery. "We also want to put this behind us so our people can focus their attention on our continuing efforts to significantly improve the refinery's operating efficiency, profitability, and safety."

Hannan noted that the OSHA allegations had nothing to do with the fire-fighting equipment and gear Chevron provides for its fire-fighting personnel. The dispute involved whether fire-fighting gear should be supplied to certain equipment operators who are not normally expected to fight large fires.

Chevron agreed to provide flame resistant clothing for all personnel who work in designated areas at Richmond, Hannan said, "to demonstrate our commitment to be an industry leader in the area of employee safety."

Chevron also will provide similar clothing for nonfirefighting personnel at its nine other U.S. refineries. They are in Port Arthur and El Paso, Tex., El Segundo, Calif., Pascagoula, Miss., Perth Amboy, N.J., Kenai, Alas., Philadelphia, Salt Lake City, and Honolulu.

OSHA originally proposed an $877,000 penalty, which was reduced by more than two-thirds in the settlement. The agreement contains Chevron's denial of allegations that it violated rules under the Occupational Safety and Health Act.

OSHA defines a willful violation as one in which an employer either knew a condition constituted a violation or was aware a hazardous condition existed and made no reasonable effort to correct it. The agency defines a serious violation as one in which there is substantial probability that death or serious injuries could result, and the employer knew or should have known of the hazard.

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