An explosion at a petrochemical storage terminal disrupted the operations of several chemical companies whose products were stored there, leading to a dispute involving the terminal operator’s process safety management. Baker & O’Brien evaluated the operator’s management systems and risk-management practices. Our technical analysis gave the parties a basis for evaluating the dispute, which they resolved during mediation.

An explosion and fire at a petrochemical storage terminal caused significant property and environmental damage, disrupting the operations of several chemical companies whose products were stored there. The tank associated with the incident [KK1.1][MS1.2]stored naphtha, a motor gasoline blendstock. Several years previously, the terminal operator had installed an injection piping system and circulating pump to blend butane into the naphtha. On the day of the incident, the circulating pump released a significant amount of naphtha, which went undetected until a vapor cloud formed and ignited.

Such a terminal[KK2.1][MS2.2], storing 10,000 pounds or more of a flammable liquid in one location, is required to maintain process safety management (PSM) systems compliant with 29 Code of Federal Regulations, 1910.119. Baker & O’Brien was retained to independently evaluate the terminal operator’s PSM practices related to the loss of containment. Our review included engineering and construction records for the blending system, hazard and operability (HAZOP) studies, and management of change documentation. We also examined deposition testimony and descriptions of the operator’s management systems, including its process for tracking and resolving high-risk actions identified during process hazard analyses.

Our work included a review of comparable industry incidents over the preceding decade and industry guidance on risk-reduction measures, including remotely operated emergency isolation valves. This broader review provided context for evaluating process safety practices and risk-management decisions.

Baker & O’Brien’s report provided expert opinions on the incident’s cause and the applicability of process safety regulations, industry standards, and risk-management practices. The report also addressed the operator’s risk-management framework and decision-making process. It provided the parties with a technical basis for evaluating the dispute, which they resolved during mediation.