Tank Explosion leads to £100,000 fine for an oil company

An incident that occurred in January 2015 has led to a fine for an oil company.

When contractors working for ESL Fuels Ltd cut into a sealed pipe using a grinder, there was an explosion. The pipe in question was attached to a tank and part of a waste oil recovery process at ESL fuels Ltd’s North Blend Tank Farm. Flammable gases within the pipe ignited, resulting in an explosion within the tank and the tank lid and vent pipe being partially detached and projected over a raised walkway.

An investigation by the Health and Safety Executive discovered that the company was having difficulty with the waste oil recovery process, which was foaming out of the vessel and filling its bund. The company’s tests were inadequate and failed to identify the cause of the problem, which was generating flammable carbon monoxide gas. A decision was taken to connect the vessel by pipework to an emergency relief dump tank to prevent a potential catastrophic overpressure in the tank but the safety implications of this modification and its design were not risk assessed. The HSE also found systemic failings with the company’s management of contractors and an inadequate Permit to Work system.

ESL Fuels Ltd appeared at Liverpool Crown Court and pleaded guilty to breaching Section 3(1) and Section 2(1) of the Health and Safety at Work Act 1974 and has been fined £100,000, with costs of £17,000.

Speaking after the hearing HSE inspector Matthew Lea said:

Even though nobody was injured this incident could have been prevented if the problems with the process and the subsequent design modification had been properly investigated, risk assessed and dealt with, and if the work of the contractors had been adequately controlled.

HSE has brought this prosecution because failures took place that could have resulted in death or serious injury and we believe every person should be healthy and safe at work.

Fine for an oil company s a result of poor control of contractors, poor control of the permit the work system, and failures in the assessment of risks.