A chemical terminal fire ignited when a circulation pump leaked during the blending of butane into naphtha, leading to a multi-day incident and a dispute over emergency response costs. Baker & O'Brien reviewed the preventive maintenance procedures, incident preparation and planning, emergency response procedures, emergency drills, and pre-incident contracts with third-party responders. We presented our opinions about the reasonableness of the response costs in an expert report and testified in a deposition before the matter was settled in mediation.

Chemical storage terminals are the crossroads of bulk liquid logistics. They don’t just hold products—they often enhance their value by blending them with other products. A typical example is mixing lower-cost butane into naphtha, a component of gasoline, to expand volume and boost revenues while staying within specifications. Other blends pair compatible chemicals to create products for specific customer needs. These activities drive revenue but also add operational complexity and safety risk.

One such facility faced those risks firsthand when a circulation pump leaked near a naphtha tank shortly after butane blending had occurred. The leak ignited, sparking a multi-day fire that spread to adjacent tanks despite significant firefighting efforts. Following the incident, a dispute arose between the terminal owner/operator and the pump manufacturer.

Baker & O'Brien was engaged to opine on whether the terminal was prepared for such an emergency and whether the resulting costs were reasonable. We reviewed preventive maintenance on the blending pumps, emergency drills, mutual aid agreements, and pre-incident contracts with third-party responders. Drawing on our significant experience in terminal operations, maintenance practices, emergency planning, and root cause investigations, we analyzed whether the terminal’s readiness aligned with industry expectations.

We delivered our findings in an expert report and provided deposition testimony on the fire’s origin, escalation, and the terminal’s state of preparedness. The case ultimately settled in mediation—but not before putting the price of emergency response under a bright spotlight.