The Nickel Report: Aftermath Of Hurricane Harvey Continues

Author:Mr Daniel J. Grucza
Profession:Andrews Kurth Kenyon LLP
 
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Each year, the National Oceanic and Atmospheric Administration's (NOAA) Climate Prediction Center puts out a forecast for the upcoming hurricane season, stressing the dangers posed by hurricanes and the need to prepare. About this time last year, Hurricane Harvey made landfall in South Texas as a Category 4 and resulted in historic flooding. The devastating aftermath of the hurricane still continues. Preparation for and responding to incidents, such as those caused by Hurricane Harvey, has become increasingly more complex and more important than ever.

Last month, a Harris County, Texas, grand jury indicted Arkema Inc., Arkema CEO Richard Rowe, and plant manager Leslie Comardelle based on allegations that, by failing to remove temperature sensitive organic peroxides from the Arkema facility in Crosby, Texas, before the arrival of rainfall and/or flooding associated with Hurricane Harvey, they recklessly caused the emission of air contaminants. The charge carries a penalty of up to five years in prison for the individuals and a fine of up to $1 million for the corporation.

Harvey's record-breaking rainfall resulted in a loss of power at the Arkema Crosby plant, disabling refrigeration units used to safely store organic peroxides. Staff at the facility attempted to transfer the chemicals using mobile refrigeration units but were forcibly evacuated due to flooding. The remaining peroxides were left to chemically decompose, resulting in the release of contaminants. According to an investigation by the US Chemical Safety Board (CSB) available here, at least 21 people were exposed to the release on an adjacent public highway that bisected the evacuation zone established by emergency response officials. The investigation also reports there have been no long-term medical issues or deaths as a result of the event.

Flooding from Hurricane Harvey extended above the 500-year flood plain elevation according to the CSB investigation. The agency noted that Arkema's insurer identified flood risks to the Crosby facility based on a 2007 floodplain map, which placed the facility in the 100-year and 500-year floodplain. The CSB observed that this information was not widely known at the facility and that current process safety management regulations do not...

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