OSHA faces blowback from CSB over stalled oil/gas rule
After looking into a well blowout that killed four workers, the Chemical Safety and Hazard Investigation Board (CSB) urges OSHA to issue a comprehensive standard for the onshore oil/gas industry. The standard would be designed much like the Process Safety Management (PSM) and Lockout/Tagout (LOTO) standards. The board is also pushing the agency to remove an oil/gas industry exemption from the LOTO Standard.
The recommendations are part of a just-released final report. The latest CSB report follows several others in late 2023.
Background
In January 2020, at an oil well in Texas, workers were bolting up a wellhead. Attempted well-control barriers failed, and gas vented from the well. Then a large volume of oil/gas escaped. Within seconds, the substances found an ignition source. A flash fire broke out near the well.
One worker close to the release point suffered fatal burn injuries at the incident site. Three others suffered serious burn injuries, and two of them later died from their injuries.
CSB findings
CSB concludes that the blowout happened because of a loss of fluid overbalance and a change in the reservoir conditions. This situation allowed oil/gas to flow to the surface. However, the board’s final report identifies four key safety issues:
- Poor well planning — The well control policies at the site did not follow industry guidance. The operator also did not adequately review the history of the well, says CSB.
- Missing well control guidance/regulations — According to the board, industry guidance does not provide reliable methods for well control for “completed” wells in under-pressured reservoirs. Further, OSHA regulations don’t require the implementation and maintenance of well control for onshore operations.
- Poor ignition source management — CSB identified potential ignition sources in the vicinity of the open wellbore. Yet, the operator’s policies did not include hazard assessments and atmospheric monitors near potentially flammable atmospheres.
- LOTO and PSM exemptions — Oil/gas drilling and well servicing are exempt from the LOTO Standard at 1910.147 and the PSM Standard at 1910.119.
CSB recommendations
The board made safety recommendations for the operator, the American Petroleum Institute, and OSHA. Turn to the report to review them all. Suggestions for OSHA included:
- Removing the exemption for oil/gas drilling and well servicing from 1910.147;
- Expanding 1910.147 applicability to cover oil/gas production and workover operations; and
- Publishing a standard (similar to the LOTO and PSM standards) that applies to the drilling, production, and servicing/workover activities surrounding onshore oil/gas wells.
CSB argues that the General Duty Clause (Section 5(a)(1) of the Occupational Safety and Health Act) is not instructive regarding the control of hazardous energy for oil/gas drilling and well servicing activities.
LOTO for drilling and well servicing
CSB explains that well control prevents formation fluids from entering the wellbore or stops the well from flowing if fluids do enter the wellbore. Because formation fluids are under pressure, well control principles could prevent the release of stored energy, consistent with 1910.147, says CSB. Therefore, as stated earlier, the board presses OSHA to:
- Remove the LOTO exemption for oil/gas drilling and well servicing, and
- Expand 1910.147 applicability to cover oil/gas production and workover operations.
Comprehensive standard for oil/gas drilling and well servicing
Over 40 years ago, on December 28, 1983, OSHA proposed an Oil/Gas Well Drilling and Servicing rulemaking. Then in 1992, in OSHA’s preamble to the final PSM rule, the agency said that oil/gas well drilling and servicing operations were excluded from the PSM Standard because a rulemaking for these activities was already underway.
The PSM Standard exemption for oil/gas well drilling and servicing operations exists today, but OSHA has not finalized the Oil/Gas Well Drilling and Servicing rule. Moreover, the agency does not list that rulemaking on its agenda.
OSHA’s PSM Standard did not regulate the well activities involved in the incident. However, had the well operator implemented a “safety management system” per the PSM Standard, specifically for workovers, the incident might not have occurred, CSB contends.
Now CSB suggests a new OSHA standard like 1910.119 and 1910.147 that applies to the drilling, production, and servicing/workover activities surrounding onshore oil/gas wells. The board says this standard should cover:
- Primary/secondary barriers for well control;
- Drilling, production, and servicing procedures;
- Management of change;
- Risk assessment of hazards;
- Good engineering practices;
- A well construction interface document;
- Flow checks;
- Employee participation;
- Critical well information;
- Hazard analysis and assessment;
- Operating procedures; and
- Well control plans.
LOTO and PSM on the agenda
Coincidentally, OSHA has LOTO and PSM rulemakings on the current agenda. The LOTO rule makes no mention of the oil/gas industry. Yet, for PSM, OSHA is considering whether to expand the scope of 1910.119 to include oil/gas well drilling and servicing.
Key to remember
CSB urges OSHA to publish new requirements for oil/gas well drilling, production, servicing, and workover activities.