MGMT 510 Strategic Management- Texas City Refinery Incident

1. Lawsuits

http://mapalaw.com/judge-dismisses-20000-cases-against-bp-in-benzene-release-lawsuit/

https://www.bizjournals.com/houston/news/2016/09/21/thousands-of-cases-against-bp-dismissed-in-texas.html

http://abcnews.go.com/Business/bp-2005-texas-city-refinery-blast-victim-bp/story?id=11095640

https://www.rt.com/usa/oil-texas-refinery-bp-961/

2. Environmental Impact

https://www.epa.gov/enforcement/bp-texas-city-clean-air-act-settlement

3. Company Reputation 

http://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7625561/BPs-reputation-at-risk-after-oil-rig-explosion.html

http://www.api.org/oil-and-natural-gas/health-and-safety/process-safety/process-safety-standards/rp-754

Answers

Safety Case Study: Texas City Refinery Incident

The Texas City Refinery Incident or Texas City Refinery explosion is one of the significant incidents in the history of Texas City. This is the second-largest oil refinery in the state and the third largest in the United States where due to an explosion 15 workers has killed and more than 180 people injured and other damages occurred.

1. Lawsuits

Several cases have filled due to the explosion in the oil industry against British Petroleum but most of them has dismissed by the courts. One of the incidents is the highly toxic chemical reaction make hundreds of people sick. The days between 6^th April to 16the May, the oil industry make a conflict with a compressor on the refinery’s ultra cracker which caused the release of carbon monoxide and benzene in air. Another lawsuit has found against BP where they alleged for the violation of state’s air quality laws and the company has paid $50 million as comprehensive settlement (Galveston Attorneys, 2017).

2. Environmental Impact

Due to the severe explosion in the oil refinery it affect badly to the environment, which causes great environment pollution. Therefore, BP has tried several environmental impacts, which will help to resolve the pollution issues (US EPA, 2017). The Clean Air Act of Texas City has violated during the explosion, which make spent $161 million to resolve the pollution control, internal management practices and monitoring the pollution control. Different kinds of component has been effected the air polluted. Benzene is one of the volatile organic compound (VOC) and hazardous air pollutant, which causes due to the petroleum refining process. The chemical reaction from Benzene wastes and it helps to clean automatically the waste, which violates the environment. The explosion also causes several health impacts, which affect human body caused dizziness, headaches, anemia, chronic inhalation and many more diseases (US EPA, 2017).

3. Company Reputation 

Texas City Refinery explosion case is one of the serious and significant incidents in oil industry, which affect on the reputation of the organization. The British Petroleum was marked liable for the situation. Several cases has alleged against them due to the explosion. The company’s stock market failed which affect on the economy structures. Due to the explosion, it killed almost 15 workers and more than 180 people injured. The company also faced a huge amount of fine after the investigation which approximately $50m (£32.6m) (White, 2017).

The US department of Justice has ordered for other fine amount due to the polluted affect in the environment. The safety and secured issues also arises several questions about the workplace safety issues. The explosion also raises the question about the equipment and technical process, which caused that severe explosion. Not enough of protection at the workplace premises raises the issues of several legal obligations according to the oil refinery act. The U.S. Chemical Safety and Hazard Investigation Board investigate the whole issues and it operated the chemical hazardous by the Occupational Safety and Health Administration (OSHA). The actual reasons of technical failure and other breakdowns regarding such accident also investigated (Api.org, 2017).

Reference 

Anon, (2017). [online] Available at: https://abcnews.go.com/Business/bp-2005-texas-city-refinery-blast-victim-bp/story?id=11095640 https://www.rt.com/usa/oil-texas-refinery-bp-961/ [Accessed 29 Nov. 2017].

Api.org. (2017). Recommended Practice 754. [online] Available at: https://www.api.org/oil-and-natural-gas/health-and-safety/process-safety/process-safety-standards/rp-754 [Accessed 29 Nov. 2017].

Galveston Attorneys. (2017). Judge dismisses 20,000 cases against BP in benzene release lawsuit. [online] Available at: https://mapalaw.com/judge-dismisses-20000-cases-against-bp-in-benzene-release-lawsuit/ [Accessed 29 Nov. 2017].

US EPA. (2017). BP Texas City Clean Air Act Settlement | US EPA. [online] Available at: https://www.epa.gov/enforcement/bp-texas-city-clean-air-act-settlement [Accessed 29 Nov. 2017].

White, G. (2017). BP's reputation at risk after oil rig explosion. [online] Telegraph.co.uk. Available at: https://www.telegraph.co.uk/finance/newsbysector/energy/oilandgas/7625561/BPs-reputation-at-risk-after-oil-rig-explosion.html [Accessed 29 Nov. 2017].