Category Archives: fossil fuels

Gmanetwork.com:PHL Embassy in US mum on findings that unsafe welding caused Nov. 2012 oil platform fire

http://www.gmanetwork.com/news/story/323400/pinoyabroad/news/phl-embassy-in-us-mum-on-findings-that-unsafe-welding-caused-nov-2012-oil-platform-fire

By August 24, 2013 8:40am

The Philippine Embassy on Saturday (Philippine time) refused to comment the reported findings of a consultant that blamed contractors for an explosion at an oil platform off Louisiana that killed three Filipino workers last November.

In a statement, the embassy said it will not comment on the supposed findings of ABSG Consulting, the so-called independent consultant hired by Black Elk Energy.

“The Embassy of the Republic of the Philippines does not intend to comment on the thorough investigation that was supposed to have been conducted by (ABSG) Consulting, the so-called independent consultant hired by Black Elk Energy that also cleared the Houston-based company of responsibility over the accident,” it said.

According to the embassy, it will wait for the expected release in September of the results of an official investigation by the US interior department.

“The Embassy would like to wait for the release next month of the results of the official investigation conducted by the Bureau of Safety and Environmental Enforcement (BSEE) of the Department of the Interior in which the Filipino workers involved in the accident were given the opportunity to participate,” it said.

However, the embassy noted Black Elk President John Hoffman reiterated “his recognition of the reputation of Filipino offshore oil workers for competence and professionalism.”

Last Aug. 21 (US time), Black Elk Energy Offshore Operations LLC, released the report of its commissioned investigation into the November 2012 explosion and fire.

In the explosion at Black Elk’s West Delta 32 Platform, three Filipino offshore workers died while three other Filipino workers sustained serious burns in the incident.

For now, the embassy said it continues to “assist the affected workers and is prepared to take all actions to ensure that their rights are fully protected and their claims properly addressed.”

Report

A report on The Times-Picayne Greater New Orleans said the ABSG report was released on the same day two injured workers and their spouses filed a $180-million federal lawsuit over the accident.

The report quoted ABSG as saying Grand Isle Shipyard Inc., which was under contract for construction work when the blast happened, used a subcontractor despite having committed not to use subcontractors on Black Elk projects.

It said Grand Isle’s use of a subcontractor prevented Black Elk from “effectively auditing the employers of all personnel on their facilities.”

ABSG recommended that Black Elk provide additional oversight for construction activities on platforms and discourage the use of “hot work” on platforms.

Federal suit

The Times-Picayne also reported two workers injured in the accident, Antonio Tamayo and Wilberto Ilagan, together with their spouses filed a lawsuit before the US District Court in New Orleans.

Named defendants were Black Elk, Wood Group, and others.
The four claimed physical and mental injuries, numerous medical expenses and loss of future wages in seeking $20 million each in actual damages, and $100 million in punitive damages “if any of the defendants are found to have been grossly or intentionally negligent.” – VVP, GMA News

Special thanks to Richard Charter

Upstream Online: Black Elk blast: ‘Safety practices shunned’

http://www.upstreamonline.com/live/article1335150.ece

And, from the company leader in lobbying against stronger safety measures in the Gulf of Mexico, lobbying in favor of Rigs to Reefs, and implicated in human trafficking charges.….Richard Charter

Eoin O’Cinneide 21 August 2013 15:16 GMT

black elk fire
Fire: workers reported dead, missing as explosion on Black Elk Energy platform in Gulf of Mexico sends at least four to hospital
KLFY

Eoin O’Cinneide 21 August 2013 15:16 GMT

Three workers who died and others who were injured in an explosion on a Black Elk Energy platform in the Gulf of Mexico late last year were not following due safety practices at the time, the operator has said.

Subcontracted workers who were welding on the shallow-water production platform in West Delta Block 32 which led to the 16 November blast were not given proper safety training or appropriate supervision, the platform owner said, citing an independent report into the incident.

The explosion occurred as Louisiana-based contractor Grand Isle Shipyard was carrying out maintenance work on the platform about 32 kilometres offshore in about 21 metres of water. The platform had been shut in since about mid August.

There were 22 people aboard the platform when the fire broke out, one of whom was pronounced dead shortly after the blast with one more missing, later pronounced dead. Nine of them were injured and airlifted to hospitals in Louisiana with one later dying.

Another 11 were safely evacuated from the rig. Fourteen of those on board and all of the injured were employees or subcontractors of Grand Isle Shipyard.

However, following an independent report from ABSG Consulting, which was carried out in coordination with the US Bureau of Safety & Environmental Enforcement, Black Elk criticised Grand Isle for allegedly going against an agreement not to subcontract out any of the maintenance work.

“Although Grand Isle committed in its contract to not use subcontractors on Black Elk Energy projects, all of the workers performing the welding involved in the incident were employed by DNR Offshore and Crewing Services, a subcontractor of Grand Isle,” Black Elk said.

“ABSG determined that use of the DNR Offshore subcontractor without notifying Black Elk Energy was one of several causes of the incident.

“ABSG also determined other causes were that Grand Isle and DNR Offshore employees failed to adequately follow safe work practices for performing welding and failed to stop work when unsafe conditions existed.”

Black Elk also pointed out that the subcontractors were all Filipinos and that, while Filipino offshore workers “have a deserved reputation for competence and professionalism”, Grand Isle had shown an “apparent failure to provide proper safety training and appropriate supervision”.

ABSG’s report said Black Elk had “established procedures for safe work practices for equipment isolation, job safety analyses, and stop work authority” and confirmed that a contract was signed between Black Elk and Grand Isle agreeing to follow the former’s safety standards and provide adequate training.

“On the day of the incident, the safe isolation of equipment, hazardous waste programme, job safety analyses, and stop work authority procedures were not followed,” the report found.

“Workers cut, grinded, and welded on the open sump discharge pipe. Flammable vapors from the open sump discharge pipe ignited and subsequently reached the vapors and oil in the three tanks,” it continued.

Special thanks to Richard Charter

The Lens: Suing oil and gas interests to save the coast: author John Barry weighs in

Suing oil and gas interests to save the coast: author John Barry weighs in

OPINION By John Barry, Contributor August 22, 2013 11:36am 5 Comments

Dr. Terry McTigue / NOAA
Oil service canals in the Barataria Basin show the ravages of an industry that has given much and taken even more from Louisiana.
The Southeast Louisiana Flood Protection Authority-East has filed a controversial lawsuit seeking to extract a settlement from oil, gas and pipeline interests in compensation for the industry’s long-term damage to Louisiana’s fragile and rapidly collapsing coast. The administration of Gov. Bobby Jindal claims that the Flood Protection Authority lacked the authority to file the suit and wants it withdrawn on grounds that it is hostile to oil and gas interests and possibly inimical to other state efforts to secure funding for coastal restoration.

In recent days, author and Flood Protection Authority vice chairman John Barry has spoken in defense of the suit before a joint legislative committee and the Baton Rouge Press Club. His remarks have been edited and updated to include developments at a Wednesday meeting of the state’s Coastal Protection and Restoration Authority, of which Barry is a member:
What we’re doing is simple: We want to save Louisiana, at least part of it.

First, the background:
We are an independent board, created by a constitutional amendment, which passed after Katrina with 81 percent of the vote. The amendment envisioned a board of experts who would try to prevent another such catastrophe – a board of experts independent of political influence.

A special nominating committee was created, including deans of engineering schools in the state, representatives of engineering and scientific societies and good-government groups.
This committee sends nominees to the governor, who must appoint someone from the nominees, and the senate confirms.

To guarantee we see the big picture, that we are not parochial, the law requires us to have four members from outside our jurisdiction.

Our board has expertise in engineering, meteorology, coastal science, oceans and the history of the levees. From North Carolina we have the co-author of the most advanced storm-surge model in the world, from California the head of that state’s flood plain management, and another board member has written textbooks used in college courses. I have the least technical training of anyone on the board, but I routinely participate in working groups at the National Academies of Science. I am the only non-scientist ever to win an honor given by the National Academies for contributions to water-related knowledge. I also serve on advisory boards at MIT’s Center for Engineering Systems Fundamentals and Johns Hopkins’ School of Public Health Center for Refugees and Disaster Relief.

We all take our task very seriously and very personally. Two board members lost everything they owned in Katrina. Several of us know people killed in that storm.

Jindal can be a great governor for the coast – a great governor period – if he steps in, brings everyone together and solves this problem. It might make him the greatest governor in Louisiana’s history.

Flood protection has nothing to do with partisanship, I might add. We are a majority Republican board, including one vocal Tea Party member and at least one other member who leans that way.

With unanimous support, we filed the lawsuit seeking compensation from oil, gas and pipeline interests because we don’t want other people to die in a hurricane or have their homes and livelihoods destroyed.

Those who created the Southeast Louisiana Flood Protection Authority-East wanted to insulate us from political pressure – exactly the kind of pressure exerted on us by the governor and others in the past month.

We have gotten criticism from public figures but a lot of support from the public. We believe the public understands. The more people hear what we’re doing and why, the more support we have.
The first point I want to make is that no one has criticized the substance of our lawsuit. Let me repeat: No one has criticized the substance of our lawsuit.

PROBLEM UNIQUELY OUR OWN

Louisiana isn’t like any other state. Twelve thousand square miles of Louisiana – all the way north to the Arkansas border and our entire coast – was formed by sediment coming from the Mississippi River. We are not like Texas or Mississippi, and certainly not like Maine and Oregon. We have no rocky cliffs on the coast. We have mud held together by roots. And that mud is melting into the ocean.

Our board has never said oil, gas and pipeline companies are solely responsible for the loss of nearly 2,000 square miles of our state in the past 80 years or so. There are multiple causes.

It’s the industry which likes to blame one cause – the levees – as the source of all problems, but it isn’t just levees. If it was, the western part of the state wouldn’t have lost any land at all. The western part of the state is outside the river’s flood plain. Even if there were no levees, floodwater from the river would never reach that area. If levees were the only problem, out west they would have no land loss. Instead, they have plenty of it.

In fact, the multiple causes for land loss include levees, six dams in Montana and the Dakotas which retain almost a third of the sediment that used to flow down the river, benefits for the shipping industry, such as the Gulf Intracoastal Waterway and the lethal Mississippi River Gulf Outlet – and the oil and gas industry.

The fact that there are multiple causes does not mean, however, that an entity responsible for part of the destruction should not be accountable for what it has done.

Let me quote something: “Dredging canals for oil and gas pipelines Š took a toll on the landscape Š Canals and pipelines Š criss-crossed south Louisiana marshes Š The coastal marshes were lost when spoil banks were left randomly throughout the area, drastically altering the natural hydrology Š Saltwater intrusion increased and more land was lost Š Canal dredging has had one of the most dramatic effects on wetland growth and regeneration Š The marsh is unable to regenerate itself. [All of this amounts to] “industrial negligence.”

What I just quoted isn’t from our lawsuit. It’s from the state’s Master Plan for a sustainable coast.
The truth is the truth. Every scientist agrees that the oil and gas industry has done extraordinary damage to our coast. Even the industry concedes it. One U.S. Geological Survey study, a study that included input from industry scientists, concluded that 36 percent of the damage statewide comes from industry. Other estimates put it much higher.

It is also a truth that the industry operated under permits which required them to minimize damage and repair it when they finished. The industry has failed to obey these requirements.

Those are the two fundamental facts which drove us to consider taking legal action. There is a third truth. Everyone on the board has wondered how we can meet our responsibilities. Our job is not simply to operate and maintain a levee system handed to us by the U.S. Army Corps of Engineers. Our job is protecting people’s lives and property.

We just conducted a study of the land bridge extending into Lake Pontchartrain from New Orleans East. If that narrow spit of land disappears, the ocean will roar unchecked into the lake and threaten the lives and property of people who have never been threatened before. Reinforcing that alone would cost $1.2 billion.

We don’t have that money. As we look at the tremendous expenses necessary to maintain minimally adequate protection, we see nothing coming in.

One of our critics is quoted as saying: “We have a Master Plan. Let’s give it a chance.” I absolutely agree with that statement. Let’s give it a chance. Nothing we do is at variance with the state’s Master Plan. We want to carry out the Master Plan.

Let me repeat: Nothing we’re doing is inconsistent with the Master Plan. What we’re doing will let us carry out the Master Plan in our area.

Here’s the problem: The Master Plan has no funding.

OVERARCHING DUTY: PROTECTING THE PUBLIC

The Flood Authority board believes that for our jurisdiction we have an absolute duty to pursue this case. If we don’t do it, we see no way to get the money needed to protect the public.

Our case is based on the fact that we are forced to maintain and possibly build more elaborate flood protection defenses because of land loss. The industry’s failure to comply with permits – its failure to do what they voluntarily agreed to do and to obey the law in exchange for taking hundreds of billions of dollars out of the state – has destroyed land.

That land loss means there’s no buffer to block storm surge, and that sends more water pounding against our levees. As the saying goes, the levees protect the people, and the land protects the levees.
The land is disappearing so fast that by 2100, if nothing is done New Orleans will be basically an island. The levees will be beach-front property. Much of the rest of the Louisiana coast will simply cease to exist.

Louisiana law also embodies a concept going back to the Romans called “servitude of drain.” This prohibits one party from increasing the natural flow of water from its property onto another’s. The destruction of land is sending more storm surge pounding against our levees.

We believe the oil and gas industry violated the law, and these violations have endangered the people we are responsible to protect.

Our suit does not ask that the industry restore the entire coast. But they must restore the part of the coast they destroyed. They must fix the part of the problem which they created. That’s all we want: Fix the part they broke.

If some areas are impossible to fix, industry should compensate us so we can upgrade flood protection to take care of the increased risk they caused.

We decided unanimously to file the lawsuit, and we unanimously reaffirmed our decision last week.

We have been called a rogue board, but we first informed Garret Graves of our plans Dec. 4, 2012. Garret is head of the state’s Coastal Protection and Restoration Authority. He attended the Flood Authority’s executive session Jan. 17. We informed him several more times of our intent to proceed with a lawsuit. We’re an independent, non-political board. We want to work with everyone, but ultimately each of us is responsible to his own conscience, and we did not operate in stealth.

SUIT ATTACKED FROM MANY ANGLES

We have been told we don’t have the authority to sue. We welcome a court challenge to that. You notice for all the talk – and there has been a lot of it – no one has filed for a declaratory judgment against us. They know the court will uphold our authority.

We have been criticized for trying to collect from an industry which was complying with the law at the time it conducted its operations. We believe that they were never in compliance with the law.
We have been criticized on grounds that we are interfering with efforts to get a larger share of federal revenues from offshore drilling. We absolutely support that effort but don’t believe our lawsuit interferes with it. [Louisiana’s U.S.] Sen. Mary Landrieu, the sponsor of that legislation, has said Louisiana should pursue coastal restoration everywhere, including in the courts.

We have been told our suit may interfere with the BP trial. Our attorney checked with the attorney representing the state and was told our suit would not interfere. How could it? The BP trial will be over long before our trial starts. And at Garret’s request we waited until the first phase of the trial was over before filing suit.

We have been told the state has litigation plans of its own, which our lawsuit interferes with. Those plans have been described to us, and in our board’s unanimous opinion our suit does not interfere; in fact it could complement the state’s strategy.

We have been told that we’ll cost the state jobs, but the reality is the oil and gas industry will stay as long as there’s oil and gas here. Look at BP. The state is suing BP. Every parish is suing BP. Hundreds of lawsuits have been filed against BP. And BP just sued the federal government to be allowed to bid on offshore tracts.

And as far as jobs go, no one talks about the jobs a major coastal restoration effort would create. These are not just construction jobs or transitory jobs. We have the potential to be the world leader in the science and engineering of this kind of work. We are the point of the spear, but every coastal area in the world will be dealing with problems like ours soon. We have the potential to produce great jobs, important jobs. We can create a silicon valley of water-related expertise.

Every one of the criticisms comes down to one thing: politics. But we are currently an independent board, specifically designed to do what politicians will not or cannot do.

They used to say, “The flag of Texaco flies over the Louisiana capitol.” People have to ask themselves, is that still true?

Legally speaking, the Flood Authority’s action involves our jurisdiction only. We are not acting for the state or for any other parish or levee board. Ironically, our jurisdiction has lost much less land than others. Much less.

EVEN INDUSTRY’S FUTURE IS AT STAKE

What’s at stake is the future of Louisiana, the very existence of Louisiana as we know it. Everything is threatened. Our ports are threatened. Our way of life is threatened.

If you hunt anywhere near the coast, where will you hunt? What will you hunt? What happens to all the migratory birds that use our marsh? If you fish, where will you fish? Nearly every species in the gulf depends on the Louisiana marsh for some part of its life cycle. And if you live on the coast, where are you going to live? What will happen to your community? Because you won’t be able to live where you live now.

The U.S. Geological Survey is remapping the coast. They’ve finished only one parish, Plaquemines. They took 31 names off the map. These places no longer exist – 31 names in one parish, gone from the map. Many more names will come off the map as more parishes are mapped.

This lawsuit presents a choice:
Protect the industry from having to live up to its word and obey the law, or protect people’s lives and property from the crawling death of a vanishing shoreline and the violence of a hurricane storm surge. Protect the industry, or protect Louisiana’s way of life.

It’s really that simple.

Nearly everyone in Baton Rouge seems afraid of the oil and gas industry. They never talk about the elephant in the room, about the damage the industry has done to the coast. Our current status as an independent board allowed us to take the action we did. Because of it, the elephant isn’t in the room anymore. Right now it’s stampeding down the street. The issue cannot be ignored any longer.
Too many people in Louisiana, too many things, are threatened.

The industry itself is threatened. Chris John, head of Mid-Continent Oil and Gas Association, says the industry recognizes the need to “protect critical oil and gas infrastructure from storm surge,” adding that “our viability depends on” the coastal buffer.

The industry wants it fixed, but they want taxpayers to pay for the damage they did, either in taxes or flood insurance rates. If we succeed in getting a bigger share of offshore revenue, we’re getting it from the federal treasury. From taxpayers in Rhode Island and Oregon – and in Louisiana. The industry won’t be paying a penny more. If the money comes from state or parish funds, it comes only from Louisiana taxpayers.

The wealthiest industry in the world wants taxpayers to pay to fix what the industry broke. We say to the industry: Fix what you broke.

I am not against the industry. I recognize it’s enormously important to the state and in the country. I’m proud of our ability to produce gas and oil, to let Americans heat their homes and drive their cars with what we produce. Years ago, I worked for an oil company – one of our defendants. I also applied for and got a job at the American Petroleum Institute, though in the end I didn’t take it because I would have had to give up my writing. But I appreciate the industry for treating me well when I did work for it.

We’re not charging that the industry has done nothing to help. They have done things to help. But they haven’t done enough. The industry isn’t responsible for all the land loss, but it is responsible for some of the land loss. It has to fix the part of the problem it created.

Compared to the size of the industry, the wealthiest in the world, the burden will be small. To Louisiana, the benefit will be enormous.

The Master Plan has no funding.

BP money won’t be enough. Even if we win, our lawsuit won’t be enough either, not even for our area. But if you start putting different funding together, we may get enough – enough to save what can be saved. If we don’t, most of the coast, most of the people who live there, will be gone.
Our board is not the problem. Land loss is the problem, and getting the industry to fix the part of the problem it created will go a long way toward the solution.

TASK FORCE PROPOSED

The governor wants us to withdraw the lawsuit. Last Thursday our board unanimously passed two resolutions. The first affirmed the suit. The second said we’d consider a 45-day pause in the substantive part of the suit in return for a good faith effort to create a task force to address the problem.

A pause was Garret Graves’s idea. We had hoped the CPRA would look upon our proposal as what it was, an olive branch.

We proposed a process that would result in oil being at the table to discuss a resolution to save lives and property – including industry’s own property. Our lawyers had already agreed, in the event of a resolution in this working-group process, to have their fee determined in arbitration with industry – and paid by industry, not taxpayers – in accord with long-established principles of Louisiana law.
No lawyers hijacked this board. The idea came from us. With a task force in place, our lawyers would stand down in accordance with our resolution.

The Coastal Protection and Restoration Authority (CPRA) met Wednesday. But apart from my own comments offering this pause – again, a pause which Garret Graves had suggested – there was not a single mention of it in a three-hour meeting, not one. The meeting ended with CPRA voting to oppose the law suit. But they still did not authorize taking legal action against the law suit.
I still have hope for a resolution.

In return for a major contribution from the industry, there are many things the industry wants from the Legislature which I would personally support. This, of course, is not up to me. It’s up to the governor. He’s got tremendous abilities. Whether you agree with all his policies or not, there’s no question that when it comes to the coast he’s been a good governor.

He can be a great governor for the coast – a great governor period – if he steps in, brings everyone together and solves this problem. It might make him the greatest governor in Louisiana’s history.
That’s what I want. I want the governor to be great.

John Barry’s books include “Rising Tide” and, more recently, “Roger Williams and the Creation of the American Soul.” A member of the Southeast Louisiana Flood Protection Authority-East, he also serves on the state’s Coastal Protection and Restoration Authority.

Special thanks to Richard Charter

E&E: HYDRAULIC FRACTURING: Industry, conservationists split on BLM rule proposal at comment deadline

Scott Streater, E&E reporter
Published: Thursday, August 22, 2013

The oil and gas industry and national environmental groups continue to weigh in strongly for and against the Bureau of Land Management’s proposed rule on hydraulic fracturing and its potential impacts on domestic energy production and natural resources.

BLM’s proposed rule would require disclosure of the chemicals injected underground during hydraulic fracturing and set tougher standards for demonstrating well bore integrity and management of flowback water. Among other things, the proposed rule is designed to address concerns about potential water contamination from the fracturing process, which involves injecting water, sand and chemicals underground at high pressure to create fissures in tight rock formations, allowing oil and gas to flow to the surface.

The public comment period for the draft rule, first unveiled in May, ends tomorrow.
With that deadline looming, the Independent Petroleum Association of America (IPAA) and the Denver-based Western Energy Alliance submitted formal comments mirroring those of Republican congressional leaders who are opposed to the federal rule because they say states are better positioned to regulate fracturing.

“This rule undercuts states’ authority to regulate energy production, a realm in which they have been successful for decades,” said IPAA President and CEO Barry Russell in a statement. “Our federal system has vested the states with the authority to ensure that development of energy sources is safe and responsible. Together with state regulators and local environmental groups, the U.S. oil and natural gas industry has secured the great benefits of the shale revolution, while protecting the environment and strengthening local communities. DOI should not be in the business of undermining this progress.”

All that progress could be undermined because adding another layer of red tape to an already complicated permitting process could discourage energy development on public lands in the West, said Kathleen Sgamma, vice president of government and public affairs for the Western Energy Alliance.

The alliance last month commissioned a study that found BLM’s proposal to more tightly regulate fracturing on public lands would cost society $346 million annually, or greater than 15 times more than what the agency estimated the rule would cost when it released its draft rule (Greenwire, July 22).

“The Interior Department cannot point to a single instance of an environmental problem from hydraulic fracturing,” Sgamma said. “DOI cannot demonstrate that states are not adequately regulating or that federal regulation is more effective.”

Meanwhile, environmental groups are lobbying Interior and BLM to move forward with the proposed rule, and some are calling on the agency to make some significant changes to strengthen the regulations.

The Wilderness Society this week submitted formal comments urging the agency to take additional steps, such as “requiring pre- and post-fracturing water monitoring, pre-fracturing notice of chemical constituents, measures to reduce flaring, the use of enclosed tanks for storing fracturing fluids, and proper well abandonment and remediation.”

“The increase in the use of hydraulic fracturing means that there needs to be meaningful rules governing its use on federal lands,” Lois Epstein, the Wilderness Society’s Arctic program director, said today in a statement. “The current draft rules from the BLM are a good start, but should be strengthened in order to guarantee the highest possible protections for the public and nearby wildlands.”

Environment America, claiming to speak alongside more than half a million Americans, called on BLM to use the rules on fracturing to take steps to keep oil and gas drilling out of national forests and away from being sited near national parks.

“The ugly reality is that the oil and gas industry has gotten very used to operating on our public lands with few safeguards in place,” said Trip Van Noppen, president of Earthjustice.

Van Noppen called BLM’s proposal “weak rules” that won’t result in any meaningful protections.

One source of contention among the environmental groups appears to be BLM’s decision to alter rules first proposed last year in favor of a new draft rule released in May that would allow the agency to defer to state drilling rules if they are found to be as strong as or stronger than the federal rules.

“The Obama administration had the chance to lead,” said Jennifer Krill, the executive director of EarthWorks. “Instead, despite overwhelming public input urging stronger oversight or an outright ban on fracking, the Bureau of Land Management caved to industry lobbying and made the rules weaker. President Obama, listen to the public this time and protect our land, air and water.”

Special thanks to Richard Charter

NOLA.com: Consultant’s report says unsafe welding led to fatal accident in Black Elk Energy platform

http://www.nola.com/traffic/index.ssf/2013/08/consultantprivate_report_says.html#incart_river_default

blackelkrig
Black Elk platform fire
Three workers died after a November 2012 explosion in this oil platform owned by Houston-based Black Elk Energy. A report commissioned by the firm said unsafe welding led to the accident. (Photo by Michael DeMocker, NOLA.com | The Times-Picayune)

Manuel Torres, NOLA.com | The Times-Picayune.By Manuel Torres, NOLA.com | The Times-Picayune.
Email the author | Follow on Twitter
on August 21, 2013 at 1:33 PM, updated August 21, 2013 at 7:30 PM

A consultant’s report for a Texas-based company says a deadly 2012 explosionon its Gulf of Mexico oil platform off the Louisiana coast happened when workers for a subcontractor used unsafe welding practices.

The report was released Wednesday, the same day two injured workers and their spouses filed a $180 million federal lawsuit in connection with the accident.

ABSG Consulting did the study and report for Black Elk Energy Offshore Operations, which released the report and also made it available on its website. Three Filipino workers died in the Nov. 16 accident, which occurred at a time when production was shut down and a construction project was underway on the platform, according to the report.

ABSG says Grand Isle Shipyard Inc. was under contract for construction work when the blast happened. ABSG says Grand Isle had committed not to use subcontractors on Black Elk projects. However, the report says, workers doing the welding were employees of a subcontractor: DNR Offshore and Crewing Services.

A series of explosions occurred when workers were welding a pipe leading to a tank, known as a “wet oil tank,” according to the report.

“The WOT contained hydrocarbons, and the piping leading to it had not been isolated and made safe for welding,” the ABSG report said.

The report said Grand Isle and another contractor overseeing work on the platform, identified as Wood Group PSN, did not properly carry out welding processes, sometimes referred to as “hot work.” It said Grand Isle and DNR failed to stop work when “unexpected conditions” — including the smell of gas — arose.

Grand Isle’s use of a subcontractor was a factor in the accident because it prevented Black Elk from “effectively auditing the employers of all personnel on their facilities,” the report said.

The consultant also recommended that Black Elk provide additional oversight for construction activities on platforms and discourage the use of “hot work” on platforms.

Black Elk, Wood Group and others are named as defendants in a lawsuit filed Wednesday in U.S. District Court in New Orleans by two workers injured in the accident, Antonio Tamayo and Wilberto Ilagan, and their spouses.

Alleging physical and mental injuries, numerous medical expenses and loss of future wages, among other things, the four ask for $20 million each in actual damages, plus a total of $100 million in punitive damages “if any of the defendants are found to have been grossly or intentionally negligent.”

Black Elk did not return a call Wednesday seeking comment on the lawsuit. Grand Isle officials did not immediately return a call for comment. A Louisiana attorney who has done work for DNR did not return a call for comment.

Wood Group responded to a telephoned request for comment with an emailed statement. “We are committed to preventing injuries to our people and everyone we work with. We will continue to review our procedures regularly and to provide our people with the training, knowledge and tools they need to work safely and prevent future accidents,” the statement said.

The federal agency that oversees offshore oil and gas safety, the Bureau of Safety and Environmental Enforcement, is still investigating the accident, a spokeswoman, Eileen Angelico, said in response to an email query. The bureau received the consultant’s report and was reviewing it, Angelico said.

Special thanks to Richard Charter