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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Violations of Texas City Refinery OSHA Settlement

In October 2009, the U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) issued $87.4 million in proposed penalties to BP Products North America Inc. for the company’s failure to correct potential hazards faced by employees at BP’s Texas City, Texas, refinery. Safety violations at the refinery resulted in a massive explosion in March of 2005 that killed 15 and injured 170 (see BP P.L.C. instance “Texas City Refinery Explosion – Guilty Plea”). The penalties were a result of BP’s alleged violations of a settlement agreement it entered into with OSHA in September 2005, under which the company agreed to corrective actions to eliminate potential hazards. For noncompliance with the terms of the settlement agreement, the BP Texas City Refinery was issued 270 “notifications of failure to abate” with proposed fines totaling $56.7 million. OSHA also identified 439 new willful violations for failures to follow industry-accepted controls on the pressure relief safety systems and other process safety management violations with proposed penalties totaling $30.7 million. In August 2010, BP agreed to pay a $50.6 million penalty for the failure to abate violations. (The Department of Labor discovered it had assessed 29 duplicate violations and adjusted the penalty to $50.6 million.) In July 2012, BP paid $13 million to resolve 409 of the 439 willful violation citations issued in October 2009.

Misconduct Type
Labor
Enforcement Agency
Labor – OSHA
Contracting Party
None
Court Type
Administrative
Disposition
Fine
Date of Proposed Penalty Announcement
10/30/2009
Contractors Involved Penalty
Total
BP P.L.C. $63,627,000
Further Information Released
OSHA Press Release (July 2012) 7/18/2012
OSHA Press Release (Aug. 2010) 8/14/2010
Settlement Agreement 8/14/2010
Settlement Fact Sheet 8/14/2010
OSHA Fact Sheet 11/18/2009
OSHA Press Release (Oct. 2009) 11/18/2009

See also:

Federal Contractor Misconduct Database