£9.5m bill for firms behind Britain's most costly industrial disaster

Date:

16 July 2010

Five companies have been ordered to pay £9.5 million for their part in the 2005 fire and explosion at the Buncefield Oil Storage Depot, in Hertfordshire.

The £1.3 million in fines for the pollution caused are a record in the UK.

Concluding a four-month trial at St Albans Crown Court, Mr Justice Calvert-Smith said the companies had shown "a slackness, inefficiency and a more or less complacent attitude to safety."

The prosecution of Total UK Ltd, British Pipeline Agency Ltd (BPA), Hertfordshire Oil Storage Ltd (HOSL), TAV Engineering Ltd (TAV) and Motherwell Control Systems 2003 Ltd, followed the most complex investigation ever conducted by the Health and Safety Executive and Environment Agency.

The painstaking investigation uncovered a series of serious failings that led to thousands of gallons of petrol being released in a large vapour cloud.

The resulting explosion registered at 2.4 on the Richter scale, injured 43 people, and destroyed nearby businesses. The environmental impacts of the disaster are still evident today.

The cost of dealing with the disaster has been estimated at more than £1billion, making it the most costly industrial incident in the UK.

Kevin Myers, HSE's Deputy Chief Executive, said:

"Incidents like the explosion at Buncefield are exceptionally rare. However, society rightly demands the highest of standards from the high hazard industries. Businesses in this sector must manage the risks they create effectively because when things go wrong, the consequences are severe and can destroy lives and shatter local communities.

"Major hazard industries must learn the lessons of events like this. From the Board room down companies must ask themselves these questions: do we understand what could go wrong; do we know what our systems are to prevent this happening; and are we getting the right information to assure us they are working effectively."

Howard Davidson, Thames Director at the Environment Agency, said:

"As a result of a successful investigation and prosecution, five companies have today been held to account for their failures.

"The Buncefield blast shattered the local community and left a long-term legacy of pollution. It has already involved a five-year clean up operation by the oil companies involved and the Environment Agency will be a presence around the site for many years to come.

"There should be no doubt that we will always seek to prosecute those who cause serious pollution and damage the environment for future generations"

The following sentences were handed down:

• Oil giant Total UK Limited pleaded guilty to three offences and was fined £3.6 million (£3million for safety; £600,000 for pollution) and ordered to pay costs of £2.6 million
• Supply company British Pipeline Agency Ltd pleaded guilty to two offences and was fined £300,000 for environmental offences and ordered to pay costs of £480,000
• Hertfordshire Oil Storage Ltd was found guilty of two offences and fined £1.4 million (£1million for safety; £450,000 for pollution) with costs of £1 million
• TAV Engineering Ltd, which designed a crucial safety switch that failed, was found guilty of one offence, fined £1,000 and ordered to pay £500 costs
• Installation and maintenance company Motherwell Control Systems 2003 Ltd fined £1,000 and ordered to pay costs of £500 after being found guilty of one offence

Notes to editors

Background

Around 5:30am on the 11 December 2005, an industrial petrol storage tank operated by HOSL started to overflow, in part due to a failure of two critical safety systems - an internal fuel levels gauge and the independent cut off switch.

By 6am, more than 250,000 litres of petrol spilled out of the tank and formed a highly flammable vapour cloud, which spread over 80,000m². When it ignited it caused the biggest explosion in peacetime Britain. The fire tore though 23 fuel tanks on site and burned for five days. The resulting plume of smoke could be seen from space.

Special barriers designed to prevent run off of fuel and fire-fighting chemicals also failed, leading to significant pollution to the surrounding area and the groundwater under the site.

1. The Health and Safety Executive (HSE) and Environment Agency are the 'Competent Authority' responsible for regulating non-nuclear major hazardous industrial sites in England and Wales under the Control of Major Accident Hazard Regulations 1999 (COMAH).
2. As the competent authority, the Health and Safety Executive and Environment Agency have a responsibility to investigate major incidents and ensure that lessons are learned.
3. The economic cost of the incident was estimated as close to £1billion by the Major Incident Investigation Board, which also ranked the economic impact of other global petrochemical incidents. http://www.buncefieldinvestigation.gov.uk/reports/index.htm Report - Volume 1 pages 68 - 80
4. To download audio and visual evidence heard during the trial visit http://www.hse.gov.uk/news/buncefield/index.htm
5. A full list of charges and pleas is below:
   • Total UK Ltd, of 40 Clarendon Road, Watford, Hertfordshire, pleaded guilty to three charges on 13 November 2009:
     • Breaching Section 2(1) of the Health and Safety at Work etc Act 1974, which states that: "It shall be the duty of every employer to ensure, so far as is reasonably practicable, the health, safety and welfare at work of all his employees."
     • Breaching Section 3 (1) of the Health and Safety at Work etc Act 1974, which states: "It shall be the duty of every employer to conduct his undertaking in such a way as to ensure, so far as is reasonably practicable, that persons not in his employment who may be affected thereby are not thereby exposed to risks to their health or safety."
     • Breaching Section 85(1) and (6) of the Water Resources Act 1991.
   • Hertfordshire Oil Storage Ltd, of 40 Clarendon Road, Watford, Hertfordshire, faced two charges. It:
     • Was found guilty of breaching Regulation 4 of the Control of Major Accident Hazards Regulations 1999, which requires that "Every operator shall take all measures necessary to prevent major accidents and limit their consequences to persons and the environment".
     • Pleaded guilty to breaching Section 85(1) and (6) of the Water Resources Act 1991.
   • British Pipeline Agency Ltd, of 5-7 Alexandra Road, Hemel Hempstead, Hertfordshire, pleaded guilty to two charges on 13 January 2009:
     • Breaching regulation 4 of the Control of Major Accident Hazards Regulations 1999.
     • Section 85(1) and (6) of the Water Resources Act 1991.
   • TAV Engineering Ltd, of The Oriel, Sydenham Road, Guildford, Surrey, was found guilty of breaching section 3(1) of the Health and Safety at Work etc Act 1974.
   • Motherwell Control Systems 2003 Ltd - c/o Rooney Associates 2nd Floor, 19 Castle Street, Liverpool - was found guilty of breaching section 3(1) of the Health and Safety at Work etc Act 1974.

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