Major Expansion of EPA Rules for Underground Storage Tanks

By Megan Baroni

 

July 16, 2015 

 

Posted in Environmental Compliance & Permitting

 

Thank you to my colleague Brian Freeman for his contributions to this post.  Brian is an attorney in the Environmental & Utilities Practice Group who has significant experience with underground storage tank issues for industrial and petroleum clients.
On July 15, 2015, the United States Environmental Protection Agency (EPA) published a final rule significantly expanding its program for underground storage tank (UST) systems that store petroleum or hazardous substances.
The final rule is lengthy and detailed but focuses on several areas in particular, such as:

• Expanded secondary containment requirements for new UST systems or existing system components being replaced;
• Expanded operation and maintenance requirements, including periodic inspections and testing of UST system components;
• Expanded requirements to confirm compatibility and notify EPA before switching a UST system to store newer fuels such as ethanol blends and biodiesel;
• Operator training requirements for site owners, managers, and employees; and
• Release detection requirements for previously-deferred UST systems storing fuel for emergency power generators.

The final rule becomes effective on October 13, 2015. In states without existing, EPA-approved UST regulations, UST system owners and operators must comply with the revised federal regulations as of this date.  Certain requirements must be met immediately. For example, if you store ethanol blends or biodiesel, you must immediately ensure that your UST system is compatible with such fuels. Secondary containment requirements for new UST systems or dispenser systems take effect within 180 days after the effective date. Other portions of the final rule, such as inspection, testing, and training requirements, will take effect three years from the effective date.

States that currently have EPA-approved UST regulations have three years to revise their regulations and have them approved by EPA as meeting the revised federal regulations.

EPA’s website contains a summary of the final rule and other materials that can be useful tools for understanding the new requirements and their applicability.

You lie, You lose: Akers v. Auto-Owners (Mutual) Insurance Co., No. 4:13-CV-00794, 2015 WL 3714595 (W.D. Mo. June 15, 2015).

Liar Liar, House on Fire, Results in $4 Million Judgment Against Homeowners

We've all heard that 'crime doesn't pay' but plaintiffs in Akers v. Auto-Owners¹ clearly forgot this adage, as they attempted to defraud the insurance company out of millions of dollars. As we always tell our clients, be honest, never lie or it will cost you dearly.

In this case, the insureds built a 20,000 square foot home and shortly after construction was completed, a fire occurred and damaged the house. The home was insured by Auto-Owners. It contained a "Concealment or Fraud" provision as follows:

This entire policy is void if, whether before, during or after a loss, any insured has:
a. intentionally concealed or misrepresented any material fact or circumstance;
b. engaged in fraudulent conduct; or
c. made false statements;
relating to this insurance.

Auto–Owners made several large payments under the policy to the homeowners. It paid the policy limit under the "dwelling" endorsement, paid for debris removal, damage to the pool house, personal property, and additional living expenses.

The homeowners sent a letter to the insurance company requesting payment for monies paid for landscaping, construction and electrical work relating to pool damage. It stated that they had paid more than the insured value of the home.
Fake invoices were attached to the letter bearing forged signatures, along with five cancelled checks from the insured’s construction company. The payees did not own the companies referenced in the invoices.

The insureds had them endorse blank checks and later filled out the front of the checks and deposited them into their own account as part of a scheme to defraud the insurance company. Also included were fifteen invoices for subcontract work allegedly completed on the house.

All invoices were marked "paid" and signed by the insured. There were three pages of photocopied cancelled checks showing the invoices were paid to a company that the insured's daughter formed after the fire.

In response to the invoices, the insurance company sought additional information. The insureds provided an estimate from their construction company and stated that they were serving as the general contractor on the home repair project.

Eventually, the insureds filed suit against the insurance company for breach of contract and vexatious refusal to pay. The insurance company hired a forensic accountant to analyze the information provided as well as deposition testimony. The accountant found that $4,318,000 plaintiffs claimed was used to repair their home was fictitious, that the 20% general contractor fee was never paid to the plaintiffs' construction company, that invoices did not represent actual services, that checks issued to workers on the house were actually deposited in plaintiffs' account and that the most spent on the reconstruction of the home was approximately $1,700,000. The court found the testimony of the accountant credible and adopted his findings.

The court weighed the credibility of all witnesses and considered all evidence. It found some witnesses to be very credible, some to be somewhat credible and the plaintiffs to be not credible. Their testimony was found to be inconsistent with other witnesses and records produced. Adverse inferences were drawn by the court from plaintiffs invoking their Fifth Amendment right not to testify in response to questions regarding false invoices.

The court found that plaintiffs violated the "Fraud and Concealment" provision of the policy. In Missouri, where a policy states that a misrepresentation voids coverage, that provision is enforceable.2 They were found to have violated the provision "in every way possible" by intentionally concealing, misrepresenting material facts and making false statements about the damage to the house, who performed the work, costs of repair and who received payments. Further, they created fraudulent invoices to hide who actually received payments for repair work.

As a result, plaintiffs were barred from all coverage under the insurance policy and the insurance company was entitled to recover all amounts previously paid: $3,929,887.40.3

In Missouri, if "special circumstances" exist a court may award attorneys’ fees in a declaratory judgment action.4 This includes where an insured commits fraud.

The court found that plaintiffs "blatant fraud and bad-faith prosecution of Auto-Owners for vexatious refusal to pay is a special circumstance that justified awarding Auto–Owners its reasonable attorneys’ fees and costs incurred in defending against the Akers’ claim and prosecuting its counterclaim."

Auto-Owners requested fees and costs in the amount of $146,919.21 and the court found them to be reasonable. The court awarded $4,076,806.61 to Auto-Owners representing the amounts previously paid to plaintiffs plus costs and attorney fees.

As you can see, no good can come from exaggerating or inventing facts in an attempt to help your claim. Be honest and put forth the facts and circumstances of your loss.

¹ Akers v. Auto-Owners (Mutual) Insurance Co., No. 4:13-CV-00794, 2015 WL 3714595 (W.D. Mo. June 15, 2015).
² Sentry Ins. v. Whitaker, No. 4:12-CV-241, 2013 WL 4548014, at *3 (E.D.Mo. Aug. 28, 2013).
³ See Gen. Cas. Ins. Cos. v. Holst Radiator Co., 88 F.3d 670, 670–71 (8th Cir.1996) (observing that under Missouri law the insurer may recover amounts paid to the insured that were paid before the insurer learned the Fraud and Concealment provision had been violated).
⁴ Allstate Ins. Co. v. Estes, 118 F.Supp.2d 968, 974 (E.D.Mo.2000).

DuPont, City of Newark, NJ agree to settle lawsuits over toxic former factory

The city has reached an agreement with Dupont to settle lawsuits claiming the chemical giant failed to clean up a former factory in the Ironbound District laden that it left laden with toxic materials.

Under the terms of the deal, DuPont will take steps to remediate environmental issues at the 14-acre site at 256 Vanderpool Avenue, and pay the city $108,000 to hire an expert that will track the cleanup’s progress.

The agreement will need to garner final approval from the city’s Municipal Council at a special meeting scheduled for Tuesday morning.

Newark officials announced their lawsuits in both federal and state court in March, claiming that DuPont and several other companies who operated at the former pigment factory ignored orders from the state Department of Environmental Protection to clean up the toxic chemicals, including Hexavalent Chromium, lead and arsenic.

Earlier this year, DuPont said it had already committed to cleaning up the site regardless of the litigation, with work scheduled to be complete in early 2016.
DuPont said the property now belongs to The Chemours Company, a newly-formed subsidiary.

Robin Ollis Stemple, communications manager for the company, said it expects “the vast majority” of soil remediation efforts to be completed within a year after the settlement is finalized. The remainder of the work will be completed by an unspecified developer set to begin construction at the former factory.

City spokeswoman Marjorie Harris referred all comment on the settlement to Corporation Counsel Willie Parker, who could not immediately be reached for comment on the settlement Monday morning.

DuPont purchased the Vanderpool Street facility in 1917, using it to manufacture large amounts of pigments for use in printing ink, plastics and paint, according to the city’s lawsuit.

The company remained there until 1984, when it sold the building to Heubach Inc. It was then taken over by Cookson Pigments Inc. in 1988, which remained there until abandoning the site in 1999.

Newark’s federal lawsuit claimed that the spread of pollutants including Hexavlent Chromium – made famous by the 2000 movie “Erin Brockovich” – posed a “significant risk” to residents and the environment, though DuPont contended the site posed no immediate harm.

In a suit filed in state court, the city was also seeking to recover millions of dollars to make up for the tax revenue it did not collect on the property.
It is unclear if there are any specific development plans for the site once the environmental cleanup has been completed.
Source: http://www.nj.com, July 20, 2015
By: Dan Ivers

2 New Jersey police vehicles hit by lightning; 1 trooper taken to hospital

A file photo of lightning is shown.

Tuesday, July 21, 2015 03:55PM

 

MIDDLE TWP., N.J. (WABC) -- 

 

Two New Jersey State Police vehicles were hit by lightning on Tuesday afternoon, and one trooper was taken to the hospital.

The incident happened around 2:13 p.m. on the Garden State Parkway in Middle Township, Cape May County.

State police officials say the vehicles were in a construction zone as a storm cell moved over the area.

Both troopers were inside their vehicles.

Neither trooper sustain serious injuries. One trooper was taken AC Medical Center in Pamona for observation.

The other trooper did not require any medical attention.

Driver fleeing police crashed into a vehicle on Hempstead Turnpike in East Meadow killing the other driver

Justin Daley, charged with manslaughter in fatal Hempstead Turnpike crash, ordered held without bail

Updated July 21, 2015 10:54 PM
By NICOLE FULLER  nicole.fuller@newsday.com

Nassau County police are investigating a fatal motor vehicle accident on Hempstead Turnpike in East Meadow on Tuesday, July 21, 2015. (Credit: Paul Mazza)

A driver who a source said was fleeing undercover Nassau police officers crashed into a vehicle on Hempstead Turnpike in East Meadow late Monday, killing the other driver, police said Tuesday.

The victim, a 58-year-old woman from East Meadow, was pronounced dead at Nassau University Medical Center at 12:05 a.m. Tuesday -- less than a half-hour after the crash, Nassau police said.

//---------------///

1 dead after man fleeing police crashes in East Meadow; Driver charged with manslaughter

Michelle Charlesworth has the story.

Tuesday, July 21, 2015 06:50PM

EAST MEADOW, N.Y. (WABC) --

One person is dead after authorities say a driver who refused to stop for Nassau County police crashed into two other vehicles in East Meadow late Monday night.

According to detectives, 28-year-old Justin Daley, of Hicksville, was operating a 2003 Nissan Sentra east on Hempstead Turnpike at a high rate of speed when he ran a red light and struck a 2013 Honda driven by a 58-year-old woman from East Meadow.

The Honda was redirected to the southeast corner of Hempstead Turnpike, while Daley's vehicle continued east on Hempstead Turnpike and eventually came to rest east of Conti Square Boulevard.

The woman was rushed to Nassau University Medical Center, where she was pronounced dead just after midnight.

"I'm blown away, I don't know what to say," the suspect's father, Michael Daley, said. "I'm fighting back the tears. It's rough."

Daley was arrested at scene and transported by ambulance to an area hospital, where he is being treated for a leg injury. The victim reportedly worked at the hospital where Daley is currently listed in stable condition.

"He was brought up believing that if you get in any problems with the police, you don't run away," Michael Daley said. "You stop. You stop and be a man."

Police say plainclothes officers in an undercover car were monitoring a parking lot known for illegal activities when they saw the suspect lead a woman out of his car. They say he sped away without being approached or pursued, but he was being followed.

"I am so sorry to hear this news, and I can't believe it," Michael Daley said. "It's not the actions of my son."

Both vehicles were impounded for brake and safety inspections.

The investigation is ongoing, and the victim's name is not being released at this time.

Daley is charged with second-degree manslaughter, second-degree reckless endangerment and reckless driving.

Hempstead Turnpike was shut down in both directions for hours while police investigated the incident, but all lanes were open lanes opened at about 7 a.m.

1 man dies, 4 injured in a high speed rollover on I-94 east of Boise, Idaho

(Photo: Zach Stotland/KTVB)

KTVB, KTVB.COM 7:22 p.m. MDT July 21, 2015

BOISE, IDAHO

Idaho State Police are investigating a single-vehicle rollover crash on westbound Interstate 84 about eight miles east of Boise killed a Washington man Tuesday afternoon.

The crash happened at around 1:15 p.m. near milepost 68.

ISP said a 16-year-old female from Yakima, Wash., was driving westbound in a 2001 GMC Yukon when the vehicle hit the left guardrail, went over the top, rolled into the median and went down an embankment.

One of the passengers, 64-year-old Kenneth Powers of Yakima, died at the scene.

Linda Brown, 59, of Yakima, and a juvenile were transported by air ambulance, and two juveniles were transported by ground ambulance to Saint Alphonsus Regional Medical Center in Boise, ISP said.

All of the vehicle's occupants were wearing seat belts.

It appears that spped may have played a role in this tragic accident.

Brownsville, Texas discovers a 600 gallon oil spill in a drainage ditch; no polluter has been identified yet

Miguel Roberts/The Brownsville Herald

Oil accumulates along an irrigation ditch on North Minnesota Avenue and South Padre Island Highway Tuesday in Brownsville. 

Officials are still trying to determine what caused about 600 gallons of oil to leak into a drainage ditch near the Brownsville Public Works Headquarters on Jaime J. Zapata Avenue late Monday night. 

Posted: Tuesday, July 21, 2015 8:54 pm

 

BY TY JOHNSON and DOMINIC HERNANDEZ | STAFF WRITERS

 

Officials are still trying to determine what caused about 600 gallons of oil to leak into a drainage ditch near the Brownsville Public Works Headquarters on Jaime J. Zapata Avenue late Monday night.

Officials said the source of the spill has been secured and no more oil is leaking.

AssistantCity Manager Ruth Osuna told reporters in a press conference Tuesday afternoon that the city uses the ditch solely for storm water transport and the system has no connection to the public’s water supply.

“There is no danger to the public,” she said.

City spokeswoman Roxanna G. Rosas said in a statement that city employees noticed the spill at about 6:30 a.m. Tuesday. Staff informed officials with the Texas Commission on Environmental Quality, the Port Authority, the Public Utilities Board and Cameron County Drainage District No. 1.

City officials said Tuesday afternoon that the slick had made it less than a mile downstream.

Crews deployed bales of hay beneath the bridge at the intersection of South Padre Island Highway and Minnesota Avenue to limit water flow, though downstream a rust-colored film stretched across the water’s surface like ice.

The city also brought in a contracted chemical response and remediation team led by David Hanawa, who explained that oil’s tendency to sit on top of water sometimes allows clean water to flow beneath it. Hanawa also reported that it didn’t seem likely that the spill would affect wildlife within the man-made ravines.

“We haven’t seen any impacts to aquatic life,” he said.

City of Columbia, SC faces $12K in penalties after employee death

 

 

Marvis Myers

 

 Posted: Jul 21, 2015

By LaDonna Beeke

COLUMBIA, SC (WIS) - 

 Two City of Columbia departments are facing $12,000 in fines for six serious violations after a public works employee died earlier this year.

City of Columbia worker dies in trench collapse on job site

Marvis Myers, 31, died Feb. 6 when he and another employee were working in a 7-foot wide, 22-foot long trench at the corner of Pulaski and College streets in Columbia to repair a sewer main line. Myers was using a shovel to spread out gravel stones under the sewer line, which was cracked and seeping sewage into the ground. When Myers was walking in the trench to a ladder, the side of the trench wall caved-in, pinning him against the other trench wall, according to an investigative summary from the Occupational Safety and Health Administration.
Myers was surrounded with the dirt from his chest to his feet, and a 4-inch thick piece of asphalt also fell on his back.

After being rescued, Myers was transported to Palmetto Health Richland, where he later died from his injuries. The OSHA report said Myers suffered traumatic asphyxia from being entrapped after the cave-in for 25 minutes; and blunt trauma to his trunk with multiple rib fractures with bleeding, lung contusions and multiple pelvic fractures.  

OSHA gave the Public Safety department two serious violations, totaling $2,000 in fines, for failing to furnish a place of employment that is free of hazards that may cause death or serious harm. 

These violations came as a result of the actions taken by the Columbia Fire Department during its rescue efforts, according to a spokeswoman with the state Department of Labor, Licensing, and Regulation. OSHA explained the trench should not have been entered without testing the atmosphere to make sure it was safe since the sewer line was exposed and there was no protection system in place to prevent cave-ins.

The Public Utilities department was given four serious violations, totaling $10,000. Three of the violations - $1,000 each - are also for not testing the atmosphere before employees entered the trench since there could be an oxygen deficiency; not protecting employees from materials that could pose a risk of falling; and failing to remove employees from a hazardous area until necessary precautions were taken to ensure safety.

The fourth violation comes with a $7,000 fine for not protecting each employee from cave-ins by using a protection system. Since the excavation was not on stable rock and greater than 5-feet deep, a protective system should have been in place, the report explained.

The City has requested an informal conference to discuss the violations and penalties. No date has been set for that conference as of this report. The City will have to pay the fines after the conference is held.

WIS reached out to city officials for a comment, but the request was denied.

“At this time, this process is still ongoing; therefore, the City of Columbia does not wish to provide a statement at this juncture,” said Pamela Benjamin, Human Resources director. 

///---------------////

City of Columbia worker dies in trench collapse on job site

Posted: Feb 06, 2015

 

 

 

COLUMBIA, SC (WIS) - 

 A City of Columbia employee died after being injured on a job site Friday.
Emergency crews were called to the scene on Pulaski Street near College Street in the Vista, near the construction site of a new student housing complex.

Richland County Corner Gary Watts said Marvis L. Myers, 31, was below ground level approximately 4 to 6 feet, working on pipe repairs when a cave-in occurred. 

Co-workers began digging him out and called 911, the victim was transported by EMS to Palmetto Richland Memorial Hospital where he was pronounced dead around noon, Watts said. 

“As a City of Columbia family, we deeply mourn the loss of one of our own. Today, we all worked together to support each other, while also handling all of the necessary steps required during this type of incident.

 Our thoughts and prayers are with the employee's family members and we ask that the community, as a whole, keep us in their thoughts during this period of bereavement,” City Manager Teresa Wilson said. 

At the City Manager's request, all City of Columbia flags will be lowered to half-staff at all City facilities/buildings.

The incident is being investigated by OSHA.

UPDATE: Conditions of Passengers in Midland Train Accident that Killed 1 and Injured 2 Released

 

 

 Posted: July 21, 2015

 

MIDLAND, TX - 

 The female passenger that was involved in a fatal accident that happened on Saturday, July 18 is in critical condition. 

The male passenger that was also involved in the accident remains in serious but stable condition. 

The identities of both passengers have not been released.

The accident killed Paul Thompson, 61. Midland city officials say the pickup that was traveling northbound on Carver Street failed to control speed causing the truck to slide through the crossing gate. 

The pickup came to a stop on the train tracks where the eastbound train struck the pickup. 

Alcohol is being investigated as a contributing factor in the accident. 

Runaway Train Car Crashes into Union Station in Utica, NY, Crashes Into Car

Photo Credit: Kristine Bellino

By Kristine Bellino
July 21, 2015
UTICA, NY

07/21/2015 10:08pm Utica Police have released the following statement regarding today’s “runaway train:”

“Tonight, around 5:25 p.m. UPD officers responded to the area of Schuyler St. for the report of a runaway train.

A minute later they received a call for an accident at Schuyler St. and Oriskany St, involving a train and car. The car sustained heavy damage, but the driver received only minor injuries.

The train was gone from the scene. Three minutes later officers were sent to Union station for a train that struck the building.

It is believed that a train car somehow came free of it’s brakes alongside route 12 near Lenox Ave. It rolled slowly north threw west Utica down Schuyler St, eventually striking an old out of service locomotive on display at Union station.

That locomotive and train car then struck the building, causing extensive damage. Several agencies responded, including UPD, UFD, Oneida County Emergency management, CSX railroad, Susquehanna Railroad, NYS DOT, Oneida County Sheriff’s Office, Oneida County Executive Anthony Picente, and several members of the staff at Union Station.

A coordinated effort was put forth to keep the trains running without endangering the safety of passengers or employees.

A command post has been established, and structural engineers will evaluate the building, and many of the agencies previously mentioned will decide what steps to take next.”

//-------------//

Original Story:

Emergency crews are on the scene of an accident involving a train and multiple cars near Union Station in Utica, New York.

The derailment of what is being called a “runaway train,” was operated by the New York, Susquehanna and Western Railway. There are no injuries reported. The area, however, is being scoured for any pedestrians who may have been


The derailment occurred at approximately 5:28pm on Tuesday, July 21, 2015.

Oneida County Executive Anthony Picente says that, at this point, it is too early to say whether or not the National Transportation Safety Board will be called in to investigate. At this point the investigation is being conducted by Utica Police and the Utica Fire Department.

Of concern to authorities is the structural integrity of Union Station. The train, which slammed into an antique train on static display at the site, caused the historic train to crash into Union Station. 

 Although the area of the one hundred-year-old structure is vacant, occupied only by an interior stairwell, its structural integrity may have been compromised. It is for this reason that a portion of Union Station has been closed indefinitely until engineers can adequately assess the potential damage and repairs can be made.

Rand Robinson KR-2 small plane crashes in Washington County, WI corn field, pilot not hurt

Posted July 21, 2015, 

 

by FOX6 News

WASHINGTON COUNTY, WI

The Washington County Sheriff’s Office is investigating the crash of a small plane in a corn field in the Town of Barton on Tuesday morning, July 21st.
Deputies were dispatched to the scene on Country Trunk D around 8:15 a.m.  When they arrived, they found the pilot was not hurt.

The investigation determined the pilot, a 58-year-old Harvest, Alabama man with 25 years of flying experience, had taken off from EAA AirVenture in Oshkosh and was traveling to DeKalb, Illinois. He was flying a home-built, experimental aircraft — and reached an altitude of approximately 7,500 feet.

Approximately 23 minutes into the flight, the engine suffered a mechanical failure which stalled the plane’s engine. The pilot then glided the aircraft for 15 miles attempting to reach a homemade air field in the Town of Barton which no longer exists. The pilot then landed the aircraft in a soy bean field, traveled several hundred feet and came to rest in a bordering corn field.

The Washington County Sheriff’s Office is being assisted by the FAA Milwaukee office. At this time it is believed that the engine suffered a mechanical failure while in flight.

Date:	21-JUL-2015
Time:	-08:15
Type:	Rand Robinson KR-2
Owner/operator:	Private
Registration:	N891JF
C/n / msn:	7219
Fatalities:	Fatalities: 0 / Occupants: 1
Other fatalities:	0
Airplane damage:	Unknown
Location:	NW of Barton, WI -   United States of America
Phase:	Landing
Nature:	Private
Departure airport:	Wittman Rgnl (KOSH)
Destination airport:	DeKalb Taylor Muni (KDKB)

 

Narrative:
Following a loss of engine power enroute from Oshkosh, the aircraft, an experimental Faughn built KR-2, force landed to farm field terrain east of Hahn Sky Ranch Airport (2T5), West Bend, Wisconsin. The airplane sustained unreported damage and the sole pilot onboard was not injured. Sources: http://fox11online.com/news/local/fox-cities/plane-crashes-after-leaving-airventure-in-washington-county
http://www.wkow.com/story/29599245/2015/07/21/small-plane-goes-down-in-washington-county-field
http://registry.faa.gov/aircraftinquiry/NNum_Results.aspx?NNumbertxt=891JF
http://jfaughn.com/other/kr/krgeneral/kr_2.html

 

Oil firms trying to sell ageing North Sea oilfields are considering shouldering hundreds of millions of dollars in future dismantling costs to help find buyers

Old North Sea Assets Causing Owners Pain

By Reuters 

  2015-07-21 18:08:03 

Oil firms trying to sell ageing North Sea oilfields are considering shouldering hundreds of millions of dollars in future dismantling costs to help find buyers, industry sources say.

One of the world's oldest and most important offshore oil and gas production basins, the U.K. North Sea faces dwindling output and a growing number of redundant platforms that require decommissioning in a scale and complexity never seen before.

The near halving of oil prices over the past year to below $60 a barrel has forced the industry to slash spending, increase efficiencies and sell or shut down assets that are least profitable or which do not fit their portfolios. 

But despite a large rise in the number of assets up for sale in the North Sea in recent months, only a few deals have been completed.

"There remains a very big gap between buyers and sellers and that hasn't been narrowing the way some expected," said Christopher Young, director of the Strategy Group at KPMG.
Decommissioning, which involves plugging wells with cement on the seabed and removing obsolete platforms and pipelines, has proved to be a major stumbling block for deals.

As companies come to grips with an extended period of low oil prices, the urgency to sell assets is growing. As a result, boards are weighing up new strategies.

"A lot of companies under stress are now starting to consider if retaining some or all of the decommissioning liability might be an option for selling," Young said.

"Our conversations with a number of North Sea operators suggest that others are now considering selling assets while retaining decommissioning liabilities."
BP and Total are among several field operators considering such a strategy, according to the sources.

"On the big old fields, which is what the majors are selling, decommissioning is a major issue. They have been trying to sell some of those fields for quite some time. It's unattractive to take on those decommissioning liabilities," Tony Durrant, Chief executive of Premier Oil, said.

"The others, including BP, are coming around to the view that the only way they can reduce their assets in the UK is by retaining those liabilities."

Decommissioning costs can reach hundreds of millions of dollars for the larger North Sea assets.

Total decommissioning costs in the UK continental shelf over the next 30 years are expected to reach around 50 billion pounds ($78 billion), according to a strategic industry review by Sir Ian Wood for the British government.
BP, which has been selling assets in the North Sea since 1996, said it is considering all options.

"Our preference is to sell assets with the decommissioning liability, however the agreements reached with buyers are deal specific," a spokesman said.
Total was not immediately available for comment.

DE-RISKING

The concept of shouldering the decommissioning costs was used at least once when BP sold to DNO in 2003 the Thistle field, today operated by Enquest.
The oil price drop also offers opportunity for buyers, particularly private equity funds such as Caryle Group, and Riverstone to invest in the North Sea.

Removing the decommissioning costs would make late-life assets more attractive and remove a lot of risk buyers might associate with them.
"The number of potential buyers for such assets will be far higher than is the case in a traditional sale," a KPMG report said.

At the same time, seller will receive a higher price for the asset which would boost balance sheets in the short-term.

But the risks for sellers are significant as they will have to earmark large sums of money for the future decommissioning. Legal pitfalls may also arise, KPMG said.

Dredging NZ sentenced after death of worker who was crushed between an excavator and the wall of a hopper, on a barge

Auckland, New Zealand 

 

By MarEx 

  2015-07-21 19:11:23 

Dredging NZ has been fined NZ$79,500 ($53,000) and ordered to pay NZ$42,000 ($29,000) in reparation after the death of a worker, crushed on a dredging barge in West Park Marina, Auckland, New Zealand, on November 19, 2013.

Peter Bateman died after being crushed between an excavator and the wall of a hopper, on a barge being skippered by Brent Darrach.

Dredging NZ was sentenced in Auckland District Court after pleading guilty to a charge laid by Maritime New Zealand under section 6 of the Health and Safety in Employment Act 1992, that as an employer it failed to take all practicable steps to ensure the safety of employees at work.

In May, Darrach was fined NZ$10,000 ($6,500) and ordered to pay reparation of NZ$18,000 ($12,000) after pleading guilty to a charge under section 19 of the Health and Safety in Employment Act 1992, that as an employee he failed to take all practicable steps to ensure no action or inaction of himself while at work harmed any other person.

The company operates barges fitted with an excavator and a hopper, or walled bin, in which to collect excavated material.

The accident happened when Bateman left the barge he was operating to board Darrach’s barge to travel as a passenger a short distance to the wharf.

The barges are moved by using the excavator arm to pull and push off the seabed. Bateman died when the excavator rotated, crushing him between the back of the excavator and the hopper wall.

Dredging NZ had no protocols for operation of the vessels, particularly where passengers were involved.  The danger zone within the turning area of excavator was not marked on the barge and Bateman was standing within this area when the accident occurred.

“There was no designated place on board where passengers were directed to sit, and no procedure for the operator to follow to ensure passengers, or nearby personnel, were well clear of any hazards,” Maritime NZ Director Keith Manch said.

“Alternatively, the company could have had in place a policy ensuring that passengers were not carried on barges while they were operating.

“This was a tragic event that could have been avoided if appropriate safety systems were in place.”

Cargo Ship Majed & Randy Damages Villa in Bosphorus Strait after Experiencing a Rudder Malfunction

July 21, 2015 by Mike Schuler

Turkey’s Bosphorus Strait was closed to ship traffic Tuesday after a cargo ship ran into a shoreside villa.

The accident occurred at 12:58 p.m. Tuesday when the 106-meter Sierra Leone-flagged Majed & Randy slammed into the villa near Istanbul’s Fatih Sultan Mehmet Bridge after experiencing a rudder malfunction.


GAC Shipping said that cargo ship had no pilot on board at the time of the allision.

Turkey’s General Directorate of Coast Safety dispatched two tugs and pilot for assistance. The cargo ship remains at anchor in the general vicinity of the accident.


There were no reports of pollution or injuries.

The Strait was due to re-open a few hours late at 15:30 local time, GAC shipping said.

//------------------------////

Cargo Ship Slams into Bosphorus Strait Villa

By MarEx 

2015-07-21

The cargo ship M/V Majed and Randy crashed into a fashionable villa on Turkey’s Bosphorus Strait on July 21st closing ships traffic on the major waterway. There was no marine pilot onboard the vessel when it suffered a propulsion malfunction.

The 6,476 ton vessel is owned by Farah-M Shipping and flagged in Sierra Leone. The Bosphorus Strait is the world’s narrowest waterway used for commercial marine traffic and it forms the boundary between Asia and Europe. It is the only maritime outlet for Russian oil and other commodities from the Black Sea. An estimated 10,000 oil tankers carry about 150 million tons of petroleum products through the strait each year.

The Coast Guard deployed tugboats and a pilot to assist the M/V Majed and Randy, which remained anchored in the area of the collision. There are no immediately plans to re-open the strait at this time. There were no injuries due to the allision incident.

During the Crimea – Russian conflict in July 2014, the M/V Majed and Randy was docked at a Sevastopol grain terminal. According to Russian authorities Crimea was exporting grain to Saudi Arabia and Northern Cyprus, which was against E.U. sanctions

IMO: 8000305
Name: Majed and Randy
MMSI: 667002231
Type: General Cargo
Gross Tonnage: 3905
Summer DWT: 6476 t
Build: 1980
Flag: Sierra Leone
Home port: Freetown

14 aftershocks reported after 4.0 earthquake hits Fremont, California

Many Bay Area residents had an early wake-up call Tuesday morning as a 4.0 earthquake hit two miles northeast of Fremont.

 

Bay City News 

 

Tuesday, July 21, 2015 01:53PM

 

FREMONT, Calif. -- 

 

Many Bay Area residents had an early wake-up call Tuesday morning as a 4.0 earthquake hit two miles northeast of Fremont.

The 2:41 a.m. earthquake on the border of Fremont and Union City occurred on the Hayward Fault at a depth of 5 miles. The epicenter was at a spot just north of the intersection of Niles Canyon Road and Mission Boulevard.

While damage from the quake was minimal, scientists warn that a much larger one is expected on the Hayward Fault, which extends from San Pablo Bay in the north to Fremont in the south and passes through heavily populated areas including Berkeley, Oakland, Hayward and Fremont.

The last big earthquake on the fault, estimated to have a 6.8-magnitude, occurred in 1868, according to the USGS.

It killed about 30 people and caused extensive property damage in the Bay Area, particularly in the city of Hayward, from which the fault derives its name. Until the larger 1906 earthquake, it was widely referred to as the "Great San Francisco Earthquake."

"The population is now 100 times bigger in the East Bay, so we have many more people that will be impacted," said Tom Brocher, a research geophysicist with the USGS.

"We keep a close eye on the Hayward Fault because it does sit in the heart of the Bay Area and when we do get a big earthquake on it, it's going to have a big impact on the entire Bay Area," Brocher said.

While a 2008 report put the probability of a 6.7-magnitude or larger earthquake on the Hayward-Rodgers Creek Fault system over the next 30 years at 31 percent, Brocher said the reality is a major quake is expected on the fault "any day now."

"The past five major earthquakes 1/8 on the fault 3/8 have been about 140 years apart, and now we're 147 years from that 1868 earthquake, so we definitely feel that could happen any time," Brocher said.

Brocher urged residents to take steps to prepare for a major earthquake.

The USGS shake map shows residents in the areas close to Fremont and Union City experienced light shaking in this morning's event, while weaker shaking might have been felt in areas as far south as Santa Cruz, up the Peninsula and as far east as Livermore.

Residents throughout the Bay Area reported feeling the quake, with responses concentrated in the East and South Bay, according to the USGS.

Brocher said this morning's 4.0 earthquake was not likely to have much of an impact one way or the other on the likelihood of a major earthquake occurring on the same fault.