National News Release    USDL 02-012
Thursday, January 3, 2002
Contact: Bill Wright
Phone: (202) 693-1999

WASHINGTON -- Phillips Petroleum Company has agreed to pay over $2 million in penalties for safety and health violations at its complex in Pasadena, Texas, as part of a settlement agreement announced today by U.S. Secretary of Labor Elaine L. Chao. Additionally, Chevron Phillips Chemical Company, which now owns and operates the facility, will hire dedicated safety and health consultants to ensure compliance with OSHA's process safety management standards.

"This settlement cannot replace the life that was lost nor make up for the pain suffered by those injured in a catastrophic accident nearly two years ago," Chao said. "But, it does mean that Phillips and Chevron employees will be working in safer environments and it signals this administration's commitment to crack down on workplace safety violations."

The agreement settles citations issued against Phillips' Houston Chemical Complex in Pasadena in September 2000, following an explosion six months earlier that killed one worker and injured 69 others. Under the settlement agreement, Phillips Petroleum will pay a penalty of $2,169,500. Chevron Phillips has agreed to retain the services of both a process safety management training and operating procedures consultant. Each consultant will conduct comprehensive reviews of the training program and standard operating procedures at the K-Resin facility. The company has agreed to implement all feasible recommendations of the consultants by July 31, 2002.