Utah Petroleum Association Utah OSHA Presentation Paul C. Cannon, CSP Safety and Health Compliance Officer January 30, 2014 Achieving compliance and providing assistance with safety and health Agenda Introduction New Utah OSHA Director Overview of Utah OSHA Priorities – Oil/Gas/Petroleum Refineries & High Hazard Industries ◦ Silica – Date Extended for Comments ◦ High Risk Industries Emphasis ◦ Petroleum Refinery Process Safety Management National Emphasis Program (NEP) ◦ Rulemaking to Improve Chemical Safety Q&A Introduction Paul Cannon, CSP, ◦ Safety and Health Compliance Officer, Utah OSHA Work Cell Phone: 385-232-0177 Email: pcannon@utah.gov 33 plus years in safety, health, regulatory and program management professions. ◦ (Overall experience in explosives, propellants, pyrotechnics, hazardous materials/chemicals) ◦ ◦ ◦ Reynolds Metals Company, St. Louis, MO (1979-1981) Safety Manager Olin Corporation, Marion, Illinois (1981-1988) Safety Engineer Senior Safety Engineer Plant Safety Supervisor Thiokol/ATK, Brigham City, Utah (1988-2010) Senior Engineer, Aerospace Group, Corporate Auditor Senior Engineer Manager, Safety & Health Safety Engineer Program Manager New Utah OSHA Director Scott McKenzie • 32 years Active Duty in the U.S. Navy • Primary Specialties in Environmental Health, Occupational Safety and Health and Public Health • 801-530-6898 • smckenzie@utah.gov Overview of Utah OSHA Priorities – Oil/Gas/Petroleum Industries • Silica – Date Extended for Comments – February 11, 2014 • OSHA Designated High Hazard Industries – 2014 • Petroleum Refinery Process Safety Management National Emphasis Program (NEP) – Complete in 2014 • Rulemaking to Improve Chemical Safety – March 10, 2014 Silica • OSHA has published in the Federal Register a “Notice of Proposed Rule Making for Respirable Silica” on September 12, 2013. • Current permissible exposure limit (PEL) for crystalline silica is based on a formula and in which industry you work in. • The PEL’s for the Construction and Shipyard industries allow exposures twice as high as for workers in General Industry. • The proposed PEL is 50 micrograms per cubic meter (µg/m3), averaged over an 8-hour day. The new PEL would be the same for all industries covered by the rule. • Public comments on the proposed rule has been extended to February 11, 2014 OSHA Designated High Hazard Industries Utah OSHA will be inspecting more High Hazard Industries in the State of Utah. • • Utah OSHA uses OSHA’s FY 14 High Hazard Health and Safety List • High Hazard Health • High Hazard Safety • High Hazard Non-Manufacturing Industries Petroleum Refinery Process Safety Management National Emphasis Program (NEP) • Utah OSHA adopted NEP CPL 03-00-010 on September 26 2009 • Five Oil Refineries in the State of Utah • Big West Oil LLC • Chevron Products Company • Holly Refining & Marketing Company • Silver Eagle Refining Inc • Tesoro Refining & Marketing Company • NEP to be completed in 2014 Petroleum Refinery Process Safety Management National Emphasis Program (NEP) Cont’d Nationally, these four categories account for 70% of all violations MECHANICAL INTEGRITY: Failure to perform inspections and tests, and failure to correct deficiencies in a timely manner. This is a particular concern given the aging of refineries in the United States. PROCESS SAFETY INFORMATION: Failure to document compliance with Recognized and Generally Accepted Good Engineering Practices to keep process safety information up to date, and to document the design of emergency pressure relief systems. OPERATING PROCEDURES: Failure to establish and follow procedures for key operating phases, such as emergency shutdowns, and using inaccurate or out-of-date procedures. PROCESS HAZARDS ANALYSIS: Lack of attention to human factors and facility siting, and failing to address PHA findings and recommendations in a timely manner-- or, all too often, failing to address them at all. Rulemaking to Improve Chemical Safety President Obama’s Executive Order 13650, dated August 1, 2013, “Improving Chemical Facility Safety and Security” • • “Process Safety Management and Prevention of Major Chemical Accidents”, Federal Register 12/9/13. Response due March 10, 2014 • Proposed changes to 29 CFR 1910.106 (Flammable Liquids), 29 CFR 1910.107 (Spray Finishing F.L./C.L.), 29 CFR 1010.109 (Explosive & Blasting Agents), and 29 CFR 1910.119 (PSM) Standards. Rulemaking to Improve Chemical Safety Cont’d 17 Proposed Changes • PSM Standard to cover the following: 1. Include flammable liquids in atmospheric storage tanks within or connected to a PSM covered process. • (29 CFR 1910.119(a)(1)(ii)(B)) 2. Retain or remove exemption for oil-and gas-well drilling and servicing operations. (29 CFR 1910.119(a)(2)(ii)) 3. Define the “production” phase after the well has been drilled, completed and placed into operation or has been returned to operation. (29 CFR 1910.119(a)(2)(ii)) 4. Expand PSM coverage for “Reactive Hazards”. 5. Update the List of Highly Hazardous Chemicals in Appendix A of the PSM Standard. (29 CFR 1910.119, Appendix A) Rulemaking to Improve Chemical Safety Cont’d 6. Require additional Management-System elements. • Center of Chemical Process Safety (CCPS)-Risk Based Process Safety (RBPS) + Other (New) 7. Require employers to evaluate updates to Recognized and Generally Accepted Good Engineering Practices (RAGAGEP). (New) 8. Add Definition of RAGAGEP. (New) 9. Expand PSM Standard to cover the Mechanical Integrity of any Safety-Critical Equipment. (29 CFR 1910.119(j)(1)) 10. Clarify that Employers must follow Management-of Change (MOC) for Organizational changes, such as management structure, budget cuts, personnel changes, etc. (29 CFR 1910.119(l)) Rulemaking to Improve Chemical Safety Cont’d 11. Require Coordination of Emergency Planning with Local Emergency Response Authorities. (29 CFR 1910.119(n)) 12. Add required Third-Party Compliance Audits. (29 CFR 1910.119(o)) 13. Expand Requirements to cover Dismantling and Disposal of Explosives, Blasting Agents, and Pyrotechnics. (29 CFR 1910.109(k)(1)) 14. Update the Flammable Liquids and Spray Finishing Standards to current consensus standards. (29 CFR 1910.106 & .107) 15. Update regulations addressing the Storage, Handling and Management of Ammonium Nitrate. (29 CFR 1910.109) Rulemaking to Improve Chemical Safety Cont’d 16. Change PSM Standard to include Retail Facilities in NAICS Codes 44-45. (29 CFR 1910.119(a)(2)(i)) 17. Adopt EPA’s policy for Risk Management Plan (RMP)listed chemicals that do not have listed concentrations. • Change Enforcement Policy for Highly Hazardous Chemicals Listed in Appendix A of the PSM Standard without specific concentrations. • 11 Chemicals has listed concentrations • 126 Chemicals are silent on concentrations What Utah OSHA Is Seeing • Assumptions are made without validation • Don’t Assume • Verify 2 + 2 = 4 • If 2 + 2 ≠ 4, you don’t have the answer • Higher incidence of serious injuries and fatalities with Oil & Gas Service Companies • Companies are organized and designed to increase profit and reduce risks. This creates unique challenges. What Utah OSHA Is Seeing • The interface and verification when jobs are “handed off” to another individual or company needs to be strengthened. • Lack of or inadequate hazard recognition by employees and supervision • Non-routine, maintenance, and “we have always done it that way before” allows complacency to creep in. What Utah OSHA Is Seeing • Inadequate or lack of communication with employees • Multiple Languages, Cultures Questions