Document KJ83YQd9qNYo5nMNwo2m6aEoo

UNITED STATES ENVIRONMENTAL PROTECTION AGENCY REGION 6 1445 ROSS AVENUE, SUITE 1200 DALLAS, TEXAS 752022733 EXPEDITED SETTLEMENT AGREEMENT (ESA) fiLED Pil I: L 7 DOCKET NO: 06-2014-3321 This complaint is issued to: Odfjell Terminals Inc. At: 12211 Port Road, Seabrook, Texas 77586 for violating Section 112(r)(7) of the Clean Air Act. This Expedited Settlement Agreement (ESA) is being entered into by the United States Environmental Protection Agency (EPA), Region 6, by its duly delegated official, the Director, Compliance ASsurance and Enforcement Division, and by Respondent pursuant to Section 113(a)(3) and (d) of the Clean Air Act (the Act), 42 U.S.C. 7413(a)(3) and (d), and by 40 C.F.R. 22.13(b): On August 13, 2003, EPA obtained the concurrence of the U.S. Department ofJustice, pursuant to Section 113(d)(l) of the Act, 42 U.S.C. 7413(d)(l), to pursue this administrative enforcement action. On December II, 2013, an authorized tepresentative of the EPA conducted .a compliance inspection of the subject facility (Respondent) to determine compliance with the Risk Management Plan (RMP) regulations promulgated at 40 C.F.R. Patt 68 under Section 112(r) of the Act. EPA found that the Respondent had violated regulations implementing Section112(r) of the Act by failing to comply with the regulations as noted on the Alleged Violations and Proposed Penalty Sheet ("FORM"), which is attached hereto and hereby incorporated by reference .. .SETrLEMENT In copsideration of the factors set forth in Section 113(e) of the Act, 42 V.S.C. 7413(e), including Respondent's size of business, its fun- compliance history, its good faith effort to comply, and other factors as justice may require, and upon consideration of the entire record the parties enter into the ESA in order to settle the violatrons, described in the attached FORM for the total penalty amonnt of $13,400. This settlement is subject to the following te~s and conditions: The Respondent by signing below waives any objections that it may have regarding jurisdiction, neither admits nor denies the specific factual allegations contained herein~ and consents to the assessment of the penalty as stated above. Respondent waives its rights to a hearing afforded by Section 113(d)(2)(A) of the Act, 42 U.S.C7413(d)(2)(A), and to appeal this ESA. Each party to this action shall bear its own costs and fees, if any. Respondent also certifies, subject to Civil and criminal penalties for making a false submission to the United States Government, that the Respondent has corrected .the violations listed in the attached FORM and has sent a cashier's check or certified check (payable to the "Treasurer, United States of America") in the amount of$13,400 in payment of the full penalty amount to the following address: U.S. Envir~nmental Protection Agency Pines and Penalties Cincinnati Finance Center P.O. Box 979077 St. Louis, MO 63197-9000 The DOCKET NUMBER OF THIS EXPEDITED SETTLEMENT AGREEMENT must be include_d on the. certified 9heck. (The DOCKET NUMBER is located at the top left corner of this Expedited Settlement Agreement.) This original Settlement Agreement and a copy of the certified check rpust be sent by..~ertiil~ mail JQ~ Dorothy Crawford Enforcement Officer Air Toxics Enforcement Section (6EN-AT) U.S. Environmental Protection Agency Region 6 1445 Ross Avenue, Suite 1200 ' Dallas, Texas 75202-2733 Docket No. 06-2014-3321 Certificate of Service I certify that the original and one copy of the following 'Expedited Settlement Agreement' issued pursuant to 40 CFR 22.13(b) was filed on 1/tS" , 2015, with the Regional Hearing Clerk, U.S. EPA Region 6, 1445 Ross Avenue, Dallas, TX 7~; and that on the same date a copy of the same was sent to the following, in the manner specified below: Name: Mr. John Heil Address: 1121 Port Road Seabrook, Texas 77586 _})!ztdhd Dorothy Crawfprd Enforcement Officer Inspection Findings and I>cnalty Calcnlation Facility Name: Odfjell Terminals (Honston) Inc. Seabrook, TX 8. Were liquids, other than gases liquefied by refrigeration only, considered to be released at the highest daily maximum temperature, based on data for the previous three years appropriate for a stationary source, or at process temperature, whichever is higher? [68.22(g)] Used 98 F for calculations. Hazard Assessment: Worst-case release scenario analysis [68.25) 9. Analyzed and reported in the RMP one worst-case release scenario estimated to create the greatest distance to an endpoint resulting from an accidental release of a regulated toxic substance from covered processes under worstcase conditions? [68.25(a)(2)(i)] 10. Analyzed and reported in the RMP one worst-case release scenario estimated to create the greatest distance to an endpoint resulting from an accidental release of a regulated flammable substance from covered processes under worst-case conditions? [68.25(a)(2)(ii)] 11. Analyzed and reported in the RMP additional worst-case release scenarios for a hazard class if the worst~case release from another covered process at the stationary source potentially affects public receptors different from those potentially affected by the worst-ease release scenario developed under 68.25(a)(2)(i) or 68.25(a)(2)(ii)? [68 .25(a)(2)(iii)] 12. Has the owner or operator determined the Worst-case release quantity to be the greater of the following: [68.25(b)] !SlY ON ON/A !SlY ON ON/A !SlY ON ON/A !SlY ON ON/A !SlY ON ON/A [8J If released from a vessel, the greatest amount held in a single vessel, taking into account administrative controls that limit the maximum quantity? [68.25(b)(l)] 0 If released from a pipe, the greatest amount held in the pipe, taking into account administrative controls that limit the maximum quantity? [68.25(b)(2)] l3.a. Has the owner or operator for toxic substances that are normally gases at ambient temperature and handled as a gas or liquid under pressure: l3.a.(l) Assumed the whole quantity in the vessel or pipe would be released as a gas over 10 minutes? [68.25(c)(l)] !SlY ON ON/A 13 .a.(2) Assumed the release rate to be the total quantity divided by 10, if there are no passive mitigation systems in place? [68.25(e)(l)] !SlY ON ON/A 13.b. Has the owner or operator for toxic gases handled as refrigerated liquids at ambient pressure: 13.b.(l) Assumed the substance would be released as a gas in 10 minutes, if riot contained by passive mitigation systems OY ON [2JN/A or if the contained pool would have a depth of I em or less? [68.25(c)(2)(i)] 13.b.(2) If released substance would be contained by passive mitigation systems in a pool with a depth> 1 em; 0 Assumed the quantity in the vessel or pipe (as determined per 68.25(b)) would be spilled instantaneously to form a liquid pool? [68.25(c)(2)(ii)] 0 Calculated the volatility rate at the boiling point of the substance and at the conditions specified in 68.25(d)? [68.25(c)(2)(ii)] OY ON [SJN/A 13.c. Has the owner or operator for toxic s~bstan"c~s that are !10rmally liquids at ambient temper~ture: 13.c.(l) Assumed the quantity in the vessel or pipe would be spilled instantaneously to form a liquid pool? [68.25(d)(l)] OY ON [SJN/A 13.c.(2) Determined the surface area of the pool by assuming that the liquid spreads to 1 em deep, if there is no passive mitigation system in place that would serve to contain the spill and limit the surface area, or if passive mitigation is in place, was the surface area of the contained liquid used to calculate the volatilization rate? [68.25(d)(! )(i)] OY ON ISJN/A Page 2 of 13 HcvOI/31/2011 Inspection Findings and J>enalty Calculation Facility Name: Odfjell Terminals (Houston) Inc. Seabrook, TX 20. Considered release scenarios which included, but are not limited to, the following: [68.28(b)(2)] [8] Transfer hose releases due to splits or sudden hose uncoupling'? [68.28(b)(2)(i)] [gl Process piping releases from failures at flanges, joints, welds, valves and valve seals, and drains or bleeds? [68.28(b)(2)(ii)] [8] Process vessel or pump releases due to cracks, seal failure, or drain, bleed, or plug failure? [68.28(b)(2)(iii)] [8JY ON ON/A [2] Vessel overfilling and spill, or overpressUrization and venting through relief valves or rupture disks? [68.28(b )(2)(iv)] [2J Shipping container mishandling and breakage or puncturing leading to a spill? [68.28(b)(2)(v)} 21. Used the parameters defined in 68.22 to determine distance to the endpoints? [68.28(c)] [8JY ON ON/A 22. Determined the rate of release to air by using the methodology in the RMP Offsite Consequence Analysis Guidance, [8JY ON ON/A any other publicly available techniques that account for the modeling conditions and are recognized by industry as applicable as part of current practices, or proprietary models that account for the modeling conditions may be used provided the owner or operator allows the implementing agency access to the model and describes model features and differences from publicly available models to local emergency planners upon request? [68.28(c)] What modeling technique did the owner or operator usc'? [68.25(g)] Other: CHARM 23. Ensured that the passive and active mitigation systems, if considered, are capable of withstanding the release event triggering the scenario and will be functional? [68.28(d)] used dikes [8JY ON ON/A 24. Considered the following factors in selecting the alternative release scenarios: [68.28(e)] [8] The five-year accident history provided in 68.42? [68.28(e)(l)] [8] Failure scenarios identified under 68.50'? [68.28(e)(2)] [8JY ON ON/A Hazard Assessment: Defining off-site impacts-Population 168.30) 25. Estimated population that would be included in the distance to the endpoint in the RMP based on a circle with the point of release at the center? [68.30(a)] used RMI)Submit, no calculations were available for verification. [8JY ON ON/A 26. Identified the presence of institutions, parks and recreational areas, major commercial, office, and industrial buildings in the RMP? [68.30(b)] used local maps [8JY ON ON/A 27. Used most recent Census data, or other updated information to estimate the population? [68.30(c)] 2009 census [8JY ON ON/A 28. Estimated the population to two significant digits? [68.30(d)] OY ON [8JN/A Hazard Assessment: Defining off-site impacts-Environment f68.33J 29. Identified environmental receptors that would be included in the distance to the endpoint based on a circle with the point of release at the center?j68.33(a)] used USGS data, RMI'Submit only 30. Relied on information provided on local U.S.G.S. maps, or on any data source containing U.S.G.S. data to identify environmental receptors? [Source may have used LandView to obtain information] [68.33(b)] [8JY ON ON/A [8JY ON ON/A Hazard Assessment: Review and update (68.361 31. Reviewed and updated the off-site consequence analyses at least once every five years? [68.36(a)] RMPSubmit only [8JY ON ON/A 32. Completed a revised analysis and submit a revised RMP within six months of a change in processes, quantities stored or handled, or any other aspect that might reasonably be expected to increase or decrease the distance to the endpoint by a factor of two or more? [68.36(b)] no major process change OY ON [8JN/A Page 4 or 13 RcvOI/31/2011 Inspection Findings and Penalty Calculation Facility Name: Odfjell Terminals (Houston) Inc. Seabrook, TX Prevention l)rogram- Safety information {68.65] 1. Has the owner or operator compiled written proCC$5 safety information, which includes information pertaining to the ~y ON ON/A hazards of the regulated substances used or produced by the process, information pertaining to the technology of the process, and information pCitaining to the equipment in the process, before conducting any process hazard analysis required by the rule? [68.65(a)] Does the process safety information contain the following for hazards of the substances: [68.65(b)] l2J Material Safety Data Sheets (MSDS) that meet the requirements of the OSHA Hazard Communication Standard (29 CFR 1910.1200(g)]? [68.48(a)(l)] [SJ Toxicity information? [68.65(b)(l)] rs:J Permissible exposure limits? [68.65(b)(2)] rs:J Physical data? [68.65(b)(3)] rs:J Reactivity data? [68.65(b)(4)] rs:J Corrosivity data? [68.65(b)(5)} rs:J Thermal and chemical stability data? [68.65(b)(6)} rs:J Hazardous effects of inadvertent mixing of materials that could foreseeably occur? (68.65(b)(7)] 2. Has the owner documented information pertaining to technology of the process? [SJY ON ONIA rs:J A block flow diagram or simplified process flow diagram? [68.65(c)(l)(i)} 0 Process chemistry? [68.65(c)(l)(ii)] NIA, storing chemicals only rs:J Maximum intended inventory? [68.65(c)(l)(iii)] [ZI Safe upper and lower limits for such items as temperatures, pressures, flows, or compositions? (68.65(c)(l)(iv)] [SJ An evaluation of the consequences of deviation? [68.65(c)(l)(iv)] 3. Does the process safety information contain the following for the equipment in the process: [68.65(d)(l)] [SJY rs:J Materials of construction? 68.65(d)(I)(i)J rs:J Piping and instrumentation diagrams [68.65(d)(l)(ii)] rs:J Electrical classification? [68.65(d)(l)(iii)] rs:J Relief system design and design basis? [68.65(d)(l)(iv)] 0 Ventilation system design? [68.65(d)(l)(v)] NIA, all processes in open air rs:J Design codes and standards employed? [68.65(d)(I)(vi)] 0 Material and energy balances for processes buill after June 21, 1999? [68.65(d)(l)(vii)] N/A rs:J Safety systems? [68.65(d)(l)(viii)] 4. Has the owner or operator documented that equipment complies with recognized and generally accepted good t2JY engineering practices? [68.65(d)(2)] 5. Has the owner or operator determil.1ed_and docllme_11ted tllat__existing_eq_u_ipm_ent, desigf}ed and _constru<;tcd_in _ __ [8JY accordance with codes, standards, or practices that are no longer in general use, is designed, maintained, inspected, tested, and operating in a safe manner? [68.65(d)(3)] Prevention Program- Process Hazard Analysis (68.67( 6. Has the owner or operator performed an initial process hazard analysis (PHA), and has this analysis identified, [SJY evaluated, and controlled the hazards involved in the process? [68.67(a)]2008/2009 only ON ON/A ON ON/A ON QN/A ON ONIA Pngc 6 of 13 Rev 01/31/2011 Inspection Findings and Penalty Calculation Facility Name: Odfjell Terminals (Houston) Inc. Seabrook, TX 15 Do the procedures address the following: [68.69(a)] Steps for each operating phase: r68.69Ca)Cl)'l [8:J Initial Startup? [68.69(a)(l )(i)] [8:J Normal operations? [68.69(a)(l)(ii)] 0 Temporary operations? [68.69((a)(l)(iii)] N/AN/A [81 Emergency shutdown including the conditions under which emergency shutdown is required, and the assignment of shutdown responsibility to qualified operators to ensure that emergency shutdown is executed in a safe and timely manner? [68.69(a)(l)(iv)] 0 Emergency operations? [68.69(a)(l)(v)] N/A [8:J Normal shutdown? [68.68(a)(l )(vi)] [8l Startup following a turnaround, or after emergency shutdown? [68.69(a)(l)(vii)] Operating limits: [68.69(a.l.I1Jl 0 Consequences of deviations [68.69(a)(2)(i)]no documentation 0 Steps required to correct or avoid deviation? [68.69(a)(2)(ii)]no documentation available Safk!y_and health considerations: [68.62.Gillll.l [8:J Properties of, and physical hazards presented by, the chemicals used in the process [68.69(a)(3)(i)] [g) Precautions necessary to prevent exposure, including engineering controls, administrative controls, and personal protective equipment? [68.69(a)(3)(ii)] [8:J Control measures to be taken if physical contact or airborne exposure occurs? [68.69(a)(3)(iii)] [8:J Quality control for raw materials and control of hazardous chemical inventory levels? [68.69(a)(3)(iv)] 0 y [8:JN ON/A $1,200 $1,200 0 Any special or unique hazards? (68.69(a)(3)(v)] N/A [8:J Safety systems and their funtions? [68.69(a)(4Jl 16. Are operating procedures readily accessible to employees who arc involved in a process? [68.69(b)J 17. Has the owner or operator certified annually that the operating procedures are current and accurate and that procedures have beenreviewed as often as necessary? [68.69(c)] no documentation available 18. Has the owner or operator developed and implemented safe work practices to provide for the control of hazards during specific operations, such as Jockoutltagout? [68.69(d)] P1cvention Program R Tl'aining !68.71) 19 Ilas each employee involved in operating a process, and each employee before being involved in operating a newly assigned process, been initially trained in an overview of the process and in the operating procedures? [68.7l(a)(J)] ON ON/A OY [8:JN ON/A $1,200 ON ON/A [8:JY ON ON/A 20. Did initial training include emphasis on safety and health hazards, emergency operations including shutdown, and safe work practices applicable to the employee's job tasks? [68.71 (a)(l )] 21. In lieu of initial training for those employees already involved in operating a process on June 21, 1999, an owner or operator may certify in writing that the employee has the required knowledge, skllls, and abilities to safely carry out the duties and responsibilities as specified in the operating procedures [68.7l(a)(2)] trained all 22. Has refresher training beef! provided at least every three years, or more often if necessary, to each employee involved in operating a process to assure that the employee understands and adheres to the current operating procedures of the process? [68.7I (b)] [8:JY ON ONIA OY ON lZJN/A ~y ON ON/A Page 8 of 13 RcvOI/31/2011 !nspcction Findings and J>cnalty Calculation Facility Name: Odfjcll Terminals (Houston) Inc. Seabrook, TX 38. If a change resulted in a change in the process safety information, was such information updated accordingly? [68.75(d)] 39. ffa change resulted in a change in the operating procedures or practices, had such procedures or practices been updated accordingly? [68.75(c)] Prevention Program~ Pre-startup Safety Review {68.77] 40. If the facility installed a new stationary source, or significantly modified an existing source, (as discussed at 68.77(a)) did it perform a pre-startup safety review prior to the introduction of a regulated substance to a process to confirm: [68.77(b)] [SJ Construction and equipment was in accordance with design specifications? [68.77(b)(l)] [8] Safety, operating, maintenance, and emergency procedures were in place and were adequate? [68.77(b)(2)] IZJY ON ON/A IZJY ON ON/A IZJY ON ON/A [8] For new stationary sources, a process hazard analysis had been performed and recommendations had been resolved or implemented before startup? [68.77(b)(3)] [8J Modified stationary sources meet the requirements contained in management of change? [68.77(b)(3)] 1ZJ Training of each employee involved in operating a process had been completed? [68.77(b)(4)] Prevention Program- Compliance audits (68.79] 41. Has the owner or operator certified that the stationary source has evaluated compliance with the provisions of the CSJY ON ON/A prevention program at least every three years to verify that the developed procedures and practices are adequate and being followed? [68.79(a)] 42. Has the audit been conducted by at least one person knowledgeable in the process? [68.79(b)] IZJY ON ON/A 43. Are the audit findings documented in a repmt? [68.79(c)] IZJY ON ON/A 44. l-ias the owner or operator promptly determined and documented an appropriate response to each of the findings of the audit and documented that deficiencies had been corrected? [68.79(d)] IZJY ON ON/A 45. Has the owner or operator retained the two most recent compliance reports? [68.79(e)] 2009 and 2011 on file IZJY ON ON/A Prevention Pl'ogram- Incident investigation [68.81) 46. Has the owner or operator investigated each incident that resulted in, or could reasonably have resulted in a catastrophic release of a regulated substance? [68.8l(a)]I0/14/2010 47. Were all incident investigations initiated not later than 48 hours following the incident? [68.81 (b)J IZJY ON ON/A IZJY ON ON/A . 48. Was an accident investigation team established and did it consist of at least one person knowledgeable in the process [Z]Y ON ON/A involved, including a contract employee if the incident involved work of a contractor, and other persons with appropriate knowledge and experience to thoroughly investigate and analyze the incident? [68.81 (c)] 49. Was a report prepared at the conclusion of every investigation? [68.81(d)] IZJY ON ON/A 50. Does every report include: j68.8l(d)] I2J Date of incident? [68.8l(d)(l)] IZJ Date investigation began? [68.81 (d)(2)] IZJ A description of the incident? [68.8l(d)(3)] IZJ The factors that contributed to the incident? [68.8l(d)(4)] (8J Any recommendations resulting from the investigation? [68.81(d)(5)] IZJY ON ON/A Page l0ofl3 Rev 01/31/201 I Inspection Findings and Penalty Calculation I<acility Name: Odfjcll Terminals (Houston) Inc. Seabrook, TX I.a.(!) For stationary sources with any regulated substances held in a process above threshold quantities) is the source included in the community emergency response plan developed under 42 U.S.C. 11003? [68.90(b)(l)] l.a.(2) For stationary sources with only regulated flammable substances held in a process above threshold quantities, has the owner or operator coordinated response actions with the local fire department? [68.90(b)(2)] l.a.(3) Are appropriate mechanisms in place to notify emergency responders when there is need for a response? [68.90(b)(3)] ca11911 2. An emergency response plan is maintained at the stationary source and contains the following? [68.95(a)(l)] [2] Procedures for informing the public and local emergency response agencies about accidental releases? [68.95(a)( I)(i)] [2] Documentation of proper first-aid and emergency medical treatment necessary to treat accidental human exposures? [68.95(a)(!)(ii)] [2] Procedures and measures for emergency response after an accidental release of a regulated substance? [68.95(a)(l )(iii)] 3. The emergency response plan contains procedures for the use of emergency response equipment and for its inspection, testing, and maintenance? [68.95(a)(2)] 4. The emergency response plan requires, and there is documentation of, training for all employees in relevant procedures? [68.95(a)(3)] 5. The owner or operator has developed and implemented procedures to review and update, as appropriate, the emergency response plan to ret-lect changes at the stationary source and ensure that employees are informed of changes? [68.95(a)( 4)] 6. Did the owner or operator use a written plan that complies with other Federal contingency plan regulations or is consistent with the approach in the National Response Team's Integrated Contingency Plan Guidance ("One Plan")? If so, does the plan include the elements provided in paragraph (a) of68.95, and also complies with paragraph (c) of68.95? [68.95(b)] 7. Has the emergency response plan been coordinated with the community emergency response plan developed under EPCRA? [68.95(c)] Seabrook Fire Department is practicing annually at the site. Section H- Risk Management Plan [40 CFR 68.190- 68.195] I. Does the single registration form include, for each covered process, the name and CAS number of each regulated substance held above the threshold quantity in the process, the maximum quantity of each regulated substance or mixture in the process (in pounds) to two significant digits, the five- or six~digit NAICS code that most closely corresponds to the process and the Program level of the process? [68.160(b)(7)] 2. Did the facility assign the correct program level(s) to its covered process(es)? [68.160(b)(7)] OY 0NI2JN/A OY ON [2JN/A OY ON (2JN/A [2JY ON ON/A [2JY ON ON/A [2JY ON ON/A [2JY ON ON/A [2JY ON ON/A [2JY ON ON/A [2JY ON ON/A [2JY ON ON/A Page 12 of 13 Rev 0!131/2011