case study refinery - meagher & geer, pllp studies_energy.pdf · case study refinery energy...

CASE STUDY

Refinery

Energy

Louisiana

Environmental

STATEMENT OF INCIDENT:

This incident occurred at one of the largest refineries, a deep-conversion facility. In addition to

processing heavy crudes into high octane and unleaded gas, the facility produces turbine fuel,

heating oils, and petrochemicals such as benzene and propylene.

Heavy rains caused two waste oil tanks to overflow into an emergency containment area

surrounded by a dike. The contaminated water flowed from the containment area into

neighboring waterways. The release was greater than 100,000 barrels of waste oil, and

approximately 53,000 barrels of waste oil overflowed from the containment area. Greater than

Catastrophic Loss Group

Industrial & Commercial Property Loss Group * Transportation and Inland Marine Group

Life Sciences Group * Agribusiness & Food Borne Illness Group * Admiralty/Inland River & Lakes Group

Product Liability/Product Safety Group * Safety, Toxic Tort & Environmental Group

37,500 barrels were revered from the waterways. The oil spill resulted in the closure of a ship

channel, the waterway for transporting petroleum in and out of the regions for refineries.

SCOPE OF ASSIGNMENT:

The environmental insurer for the facility retained Meagher & Geer’s Catastrophic Loss Group

to conduct a forensic examination. An attorney/chemical engineer was assigned the field

operations. The scope of work included: liaison with regulators; retain expert witnesses;

identify the cause(s) of the oil spill; identify cause of the containment failure; and report all site

activities to appropriate decision makers.

Meagher & GeerCatastrophic Loss Group

612-371-1317877-635-8663

24-Hour Emergency [email protected]

www.meagher.com

CASE STUDY

Oil Company – Energy

Fire/Explosion

Washington

Casualty


An independent contractor’s employee sustained injuries as a result of a flash fire from an

explosion within an above-ground fuel storage tank.






The owner’s casualty insurer retained Meagher & Geer’s Catastrophic Loss Group to assist in

the defense of the death and personal injury claims made by the independent contract

employees. The scope of work included: to assist local counsel with all technical issues;

identify and retain expert witnesses; establish protocols and testing of artifacts relating to the

ignition of vapors; analyze industrial contractors/employee issues; analyze compliance with

OSHA regulations owner and independent contractor; analyze merits of defenses; and

monitor/report all site activities to appropriate decision makers.


612-371-1317877-635-8663


www.meagher.com

CASE STUDY

Ethanol Facility

Biofuel/EnergyMinnesota

Casualty


Independent contractors were working at an ethanol facility to increase the production

capability of the plant. One of the independent contractors, a welding company, cut into a

blank line. Moments later, an explosion occurred, resulting in personal injury to independent

contractors and employees, property damage to the facility, and business interruption.

CASE STUDY






Meagher & Geer’s Catastrophic Loss Group was retained by the casualty insurer for the ethanol

facility. An attorney/chemical engineer was assigned the onsite investigation. Scope of work

included: liaison to regulators (OSHA); liaison to facility’s worker’s compensation

representatives; identify cause of the release and ignition of the release; and report to the

critical decision makers.


612-371-1317877-635-8663


www.meagher.com

CASE STUDY

Fuel Gas

Fire/explosion flash fire

Iowa

Casualty


Three service station employees were severely burned while filling a 20-lb propane cylinder.


The casualty insurer retained Meagher & Geer’s Catastrophic Loss Group to defend the

interests of the fuel gas supplier and the cylinder fill station. The scope of work included:

identify and retain expert witnesses; determine the failure mode(s) that caused the release of

the fuel gas and ignition of the fuel gas; compliance with NFPA 58; and to report all activities to

appropriate decision makers.





The forensic investigation revealed that the fuel gas leak occurred when the one-inch line

between the propane bulk tank and the cylinder fill station ruptured, allowing liquid propane to

escape from the bulk tank. The bulk tank’s excess flow valve failed to close and prevent

additional propane from escaping.


612-371-1317877-635-8663


www.meagher.com

CASE STUDY

Refinery

Energy

Texas

Primary/Excess Casualty


The contractor manipulation of a check valve on a heat exchanger resulted in a component

failure and burn injuries to workers. The rotation of the check valve caused the failure of a

bleeder extending from the heat exchanger. The bleeder failure expelled hot vacuum tower

bottoms onto the workers. Claims were brought against the contractor.


The insurer for the consultant/contractor retained Meagher & Geer’s Catastrophic Loss Group

as co-counsel to the Texas-based law firm. An attorney/ chemical engineer was assigned the

onsite operations. The initial scope of work consisted of providing technical assistance and

support to local counsel. However, the augmented scope of work included: daily involvement;

selecting and managing experts; taking and defending depositions; additional technical issues;

and trial preparation.






612-371-1317877-635-8663


www.meagher.com

CASE STUDY

Petroleum Distribution

Bulk Transfer Station

Transportation/Energy

Iowa

Primary/Excess Casualty


Fuel truck was offloading at the bulk transfer station. Failure(s) within the offloading process

resulted in a flammable liquid release. A fire and explosion at the transfer station resulted in

evacuation of the town. Firefighters from four counties responded to the event. The driver of

the fuel truck sustained injuries as a result of the release, ignition, and fire. The transfer station

owner brought claims of property damage and business interruption against the national

petroleum distributor.






In-house counsel for the national petroleum distributor retained Meagher & Geer’s

Catastrophic Loss Group to determine the cause(s) of the flammable liquid release and to

defend claims against the national petroleum distributor. Meagher & Geer

attorney/mechanical engineer was assigned onsite forensic investigation. The scope of work

included: retain expert witnesses; analyze fuel truck; analyze process; analyze transfer station

and component parts; determine root cause and defend interests of petroleum distributor.


612-371-1317877-635-8663


www.meagher.com

CASE STUDY

Fuel Gas

Energy

Agribusiness

Missouri

Casualty


A residential boiler explosion in rural Missouri resulted in one fatality and one victim with

severe burns.


The largest manufacturer of ethyl mercaptan, the compound used to odorize propane gas,

retained Meagher & Geer’s Catastrophic Loss Group to defend claims against the manufacturer.

CASE STUDY





An attorney/chemical engineer was assigned the onsite field operations. The scope of work

included: retain expert witnesses; determine cause(s) of the fuel gas release; determine

concentration of odorant within fuel gas system; analyze components within the fuel gas

system; defend claims of failure to warn, including: odor fade due to oxidation of the odorant,

customer-diminished sense of smell, and olfactory fatigue.


612-371-1317877-635-8663


www.meagher.com

CASE STUDY

Agribusiness/Energy

Fuel Gas

Flash Fire

West Virginia

Casualty


Three defense contractor employees sustained serious burns while attempting to light a

propane-fueled kitchen range. The injured employees’ claims against the employer were

barred by the exclusive remedy of the WV Workers’ Compensation Act. A suit was brought

against the owner of the facility and the supplier of the fuel gas (propane).


The casualty insurer retained the Meagher & Geer’s Catastrophic Loss Group to defend the

interests of the fuel gas supplier. An attorney/mechanical engineer certified in fuel gas (CTEP)





was assigned field operations to conduct forensic investigation. The scope of work included:

identify and retain expert witnesses; determine the cause(s) of the release of the fuel gas and

ignition of the fuel gas; identify potentially responsible parties; and report all site activities to

appropriate decision makers.

The investigation revealed that workers inadvertently opened an uncapped line while

attempting to light the range.


612-371-1317877-635-8663


www.meagher.com

CASE STUDY

Biofuel Facility – Power & Energy

Class Action Odor

Missouri

Environmental


Several hundred tons of turkey byproduct waste are delivered daily to the biofuel facility.

Neighbors of the facility brought a several-thousand member class action complaint against the

biofuel facility, alleging that the odors produced by the facility resulted in diminution of the

property values and personal injury to the residents.






The environmental insurer for the facility tenant retained Meagher & Geer’s Catastrophic Loss

Group to advise, oversee, and monitor the law firm directly defending the class action incident.

The attorneys – a chemical engineer and a mechanical engineer -- were assigned field

operations for the forensic investigation into the characteristics of the odor. To assist with the

investigation, four attorneys within the Catastrophic Loss Group studied to become “Certified

Nasal Rangers” (sensitivity of the nose to odor versus the sensitivity of laboratory equipment to

air samples). The scope of assignment included: an analysis of the environmental controls at

the facility; the magnitude and frequency of the turkey byproduct waste delivered daily; the

intensity of characteristics of the odor at the facility; the intensity of characteristics of the odor

at the residences of the members of the class action; defense strategy; identify and retain

expert witnesses; and establish testing protocols. The advising and monitoring of the primary

class action attorneys continued throughout the case.


612-371-1317877-635-8663


www.meagher.com

case study refinery - meagher & geer, pllp studies_energy.pdf · case study refinery energy...

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