On Thursday a new plan was unveiled to tighten drilling standards for public lands.

The measure is poised to be the first major federal rule governing the hydraulic fracturing process. It will set new standards to ensure that groundwater is isolated from fluids pumped underground. The rule will also prevent any hydrocarbons from flowing at the sites.

Under the new restrictions, companies are required to have water management plans for handling the fluids that flow back to the surface. This is in response to concerns that the material can be contaminated with naturally occurring radioactive substances found underground.

Neil Kornze, the Principal Deputy Director for the Bureau of Land Management, stressed that the measure was built to encompass the industry’s best management practices.

“We know from experience that hydraulic fracturing and horizontal drilling methods can be used safely and effectively, employing many of the best management practices reflected in this draft rule,” said Kornze. “Our thorough review of all the comments convinced us that we could maintain a strong level of protection of health, safety, and the environment while allowing for increased flexibility and reduced regulatory duplication.”

The first release of the measure was issued a year ago. This new proposal responds to many of biggest concerns that oil and gas companies shared in that first release.

SOURCE: http://fuelfix.com/blog/2013/05/16/feds-make-concessions-to-oil-industry-in-new-hydraulic-fracturing-rule/

Concessions to New Hydraulic Fracturing Rule is a post from: PICS - Contractor Screening & Contractor Management

Chevron Corporation has signed an agreement with the Argentine energy company YPF to invest up to $1.5 billion in Argentina’s vast Vaca Muerta shale field.

The two companies signed a letter of intent in December to partner on investments. Their joint project will include drilling more than 100 non-conventional wells over the next 12 months.

YPF issued a statement that “Chevron’s $1.5 billion investment is expected to go toward the massive development of non-conventional resources in Vaca Muerta specifically in the areas of Loma La Lata Norte and Loma Campana in Neuquen province.”

Shares for YPF increased 12.26 percent in Buenos Aires when the announcement was made.

Argentina has battled a long decline in natural gas and oil output. In fact, YPF was renationalized last year as part of the effort to reverse that decrease. The company now aims to drill 132 oil wells at the Vaca Muerta shale formation in Patagonia this year.

SOURCE: http://www.reuters.com/article/2013/05/15/ypf-chevron-idUSL2N0DW3B220130515

Chevron Invests in Argentinian Shale is a post from: PICS - Contractor Screening & Contractor Management

Sinton Dairy Foods Company, Inc. has been cited by the U.S. Occupational Safety and Health Administration (OSHA).

The Colorado Springs company was issued 10 serious, two repeat and two “other-than-serious violations” – for items which do not pose immediate harm.

Under its Site Specific Targeting Program and the National Emphasis Program, OSHA began to inspect the facility in November of 2012.The violations found include a lack of accurate process information, documentation and of adequate mechanical integrity in equipment – which could lead to the release of ammonia.

Sinton Dairy Foods was also cited for fall hazards, unguarded machinery and a failure to provide properly designed electrical equipment for wet locations.

The proposed penalties will cost the company $74,610.

David Nelson, OSHA’s area director in Greenwood Village, stated: “Abating OSHA violations is a sign that an employer wants to keep its workers safe, but in this case, the employer allowed these hazards to reoccur and continued to expose workers to possible fire and electrical hazards, among other dangers. OSHA will not tolerate such disregard for worker safety.”

The company has 15 business days to comply with the citations, request an informal conference with OSHA, or contest the findings before the independent Occupational Safety and Health Review Commission. For more information, visit http://www.osha.gov.

Dairy Company Cited by OHSA for Workplace Violations is a post from: PICS - Contractor Screening & Contractor Management

The Mine Safety and Health Administration (MSHA) has released a post by Joseph Main, the assistant secretary of labor for mine safety and health, to help miners exercise their rights.

Main’s comments are intended to reinforce the priority MSHA has placed on the anti-discrimination provisions found in the Federal Mine Safety and Health Act of 1977.

This act was created to protect miners, representatives and employment applicants from retaliation when they identify hazards or refuse to engage in an unsafe act.

Yet, unfortunately, many miners still fear retaliation for exercising their rights.

In 2010, that fear may have prevented change and lead to the untimely deaths in the Upper Big Branch Mine disaster. In fact, it is thought that a fear to share hazardous conditions may have ultimately led to the mine explosion that killed twenty-nine miners at the site.

The Mine Safety and Health Administration would like to reiterate to all miners, supervisors and contractors that they have the right to protect their safety and health. Last year alone, MSHA filed 46 temporary reinstatement requests and 34 discrimination − the most ever in one year.

For more information on the rights miners have in the workplace, please visit www.msha.gov.

SOURCE: http://www.natlawreview.com/article/ensuring-miners-can-exercise-their-rights-without-fear

MSHA: Helping Miners Exercise Their Rights is a post from: PICS - Contractor Screening & Contractor Management

The infamous Texas fertilizer plant explosion last month could reach $100 million in costs.

The West Fertilizer Company had not been inspected since 1985. In fact, the facility fell off the radar with the Occupational Health and Safety Administration (OSHA) – and six other regulatory agencies as well.

Now, the fertilizer explosion has sparked an increasing concern about the need for enhanced workplace safety regulations to prevent future disasters.

Currently, Texas ranks at the top of the country for the number of workplace fatalities. The state had more than 400 deaths each year, every year for the last decade. Texas also has a high rate of fires and explosions, with more than 1,300 chemical and industrial plants that have either caught fire or exploded.

Texas is not alone. Workplace accidents cost the U.S. economy billions of dollars a year.

According to a study conducted by the Department of Health and Human Services and the National Institute for Occupational Safety and Health (NIOSH): 64,333 workers died from workplace injuries between 1992 and 2002.

Their injuries cost society a total of $53 billion – or an average of $831,000 per death.

A report from the American Society of Safety Engineers (ASSE) also found that companies pay a high price for unsafe behavior. Firms were found to spend $170 billion a year on costs associated with injuries and illnesses sustained on the job. This includes more than $40 billion a year in worker’s compensation benefits.

As for the West Fertilizer Company, the plant only had $1 million in liability insurance. Texas does not require firms like this to have insurance for potential damages. Therefore the costs will likely be paid for by those whose property was damaged – not necessarily by the company.

SOURCE: http://thinkprogress.org/economy/2013/05/13/2000831/workplace-accidents-cost-the-economy-billions-of-dollars-each-year/?mobile=nc

Workplace Accidents Cost Us Billions Every Year is a post from: PICS - Contractor Screening & Contractor Management

Well known to the safety community, PPE was built to combat hazards and can be a powerful way to protect your team from a life threatening situation. However, it must be used correctly to achieve the desired effect.

Moderated by Dennis Truitt, with more than 25 years of safety expertise, the webcast will answer your questions about regulatory requirements and share how you can create a safer workplace for everyone.

The webinar will be held at no cost and offered as part of a monthly webinar series from PICS. To attend this webinar, please visit: www.picsauditing.com/webinar-a-registration

PICS is a global contractor management consortium committed to improving Health, Safety and Quality. PICS’ prequalification and auditing services have become the standard in many industries, including: Chemical, Construction, Energy, Food & Beverage, Oil & Gas, Mining, Manufacturing, Pulp & Paper and Pharmaceutical. Access to thousands of vendors’ prequalification information is housed online at www.PICSauditing.com.

Founded in 2003 as an organization dedicated to safety, PICS is the fastest-growing, full-service contractor prequalification company worldwide. PICS is headquartered in Irvine, California, with offices in Houston, Texas; Abu Dhabi, United Arab Emirates; Calgary, Canada; Hong Kong, China; Johannesburg, South Africa; Maidenhead, UK; Munich, Germany; Paris, France; Perth, Australia; Sao Paulo, Brazil; Singapore; Tokyo, Japan.

Personal Protective Equipment: Proper Coverage is a post from: PICS - Contractor Screening & Contractor Management

BHP Billiton has halted work at a few of its Eagle Ford shale construction sites.

According to a BHP statement released this week, a contractor was fatally injured on May 6 while working in the state of Texas at the Eagle Ford site. The company is now investigating the incident.

“Operations at the site were immediately stopped and a full investigation is under way,” said BHP in their statement this week.

At the moment, the company is unsure of how long they will need to keep their sites down. A BHP spokeswoman in Melbourne, where the company’s headquarters are located, has said it is too early to determine the duration of the investigation.

Eagle Ford is BHP’s single largest liquids-producing field. At Eagle Ford, 38 additional wells came into production in the March quarter. Oil production and drilling have not been affected.

SOURCE: http://www.reuters.com/article/2013/05/07/bhp-eagleford-idUSL3N0DO10Q20130507

Fatality Causes BHP to Halt Construction is a post from: PICS - Contractor Screening & Contractor Management

Federal regulators will issue $13,500 in fines to the operator of a Barbour County coal slurry dam.

Dominick LaRosa now has until June 3 to get the coal slurry dam certified by a professional engineer and to pay the U.S. Mine Safety and Health Administration (MSHA). The dam’s permit was revoked back in April for failing to certify the facility in more than two years.

For months, LaRosa has ignored a civil lawsuit issued by MSHA to correct the issues. As a result, the company will have to cease operating the potentially dangerous North Hollow dam.

“MSHA simply does not know with the required degree of professional certainty whether the impoundment is safe,” wrote the government in an issued statement. “MSHA is, therefore, hindered in carrying out its enforcement mission.”

LaRosa and his company have operated the impoundment twice, from August 31, 2005 through November 2, 2008, and again from January 2009 until now. They have never paid a fine for their violations or for any issued orders.

SOURCE: http://www.washingtonpost.com/national/judge-orders-md-man-to-pay-fines-have-engineer-certify-safety-of-wva-coal-slurry-dam/2013/05/06/232641f2-b65b-11e2-b568-6917f6ac6d9d_story.html

Update on Effort to Drain Dangerous Coal Slurry Dam is a post from: PICS - Contractor Screening & Contractor Management

The Ohio Bureau of Workers’ Compensation received A higher-than-expected return on investments and would like to return a $1 billion in dividend distribution.

If approved by the board, the dividend would be given back to Ohio businesses and used to bolster workplace safety initiatives, and modernize the way employers pay into the fund.

In announcing the proposal, Governor John R. Kasich said that all 210,000 customers — both public and private employers — would benefit from the returned dividend. The effort is part of the governor’s effort to promote job creation in the state.

“Our greatest moral purpose is job creation because it strengthens families, strengthens our communities and gives people the chance to reach their full potential,” Kasich said. “Our efforts to create a jobs-friendly climate are paying off and Ohio has gone from having lost 400,000 jobs to creating more than 115,000 jobs.

The dividend must be approved by the BWC’s board, which next meets at the end of May.

SOURCE: http://www.insurancejournal.com/news/midwest/2013/05/02/290717.htm

Workers’ Compensation to Return $1 Billion is a post from: PICS - Contractor Screening & Contractor Management

Three companies were recently dismissed by the Colorado Court of Appeals in a lawsuit stemming from the deaths of five power plant workers in 2007.

On October 2, 2007 a fire broke out inside a pipeline at Xcel Energy’s Cabin Creek hydroelectric plant. The men inside the plant were resealing the pipeline when a flammable solvent, used to clean an epoxy paint sprayer, ignited. The workers were trapped in the tunnel and died.

In the final hearing held this week, the judge and appeals court both agreed that no evidence existed that the companies violated duties or failed to provide adequate warnings of a fire hazard.

The families of the victims had sued KTA-Tator Inc., Structural Integrity Associates Inc. and Graco, Inc., claiming that the companies were negligent in protecting the workers from harm.

However, the court noted that the sprayer used by the workers carried a warning that “flammable fumes, such as solvent and paint fumes, in (a) work area can ignite or explode.” The sprayer was also found to offer safety options.

Under terms of a plea agreement, RPI Coating, Inc. of Santa Fe Springs, California, issued a guilty plea. The company agreed to pay $1.65 million in penalties and compensation, with most of that amount going to the victims’ families.

RPI Coating was also sentenced to five years of probation.

Xcel Energy was acquitted of all criminal charges in 2011. The company has paid millions of dollars in compensation to the families.

SOURCE: http://denver.cbslocal.com/2013/05/02/court-dismisses-lawsuits-in-power-plant-deaths/

Three Power Plant Death Lawsuits Dismissed in Court is a post from: PICS - Contractor Screening & Contractor Management