OSHA’s New Silica Rule and - PowerPoint Presentation

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OSHA’s New Silica Rule and Its Implications for the Oil & Gas Industry

Jeffrey Jackson and Chris Schlag

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ObjectivesDefining the silica exposureOverview of OSHA’s Current Regulatory FrameworkExamination of OSHA’s Proposed Silica RegulationsStatus Check: Where is the Proposed Rule now?Discussion on the Potential Impact of OSHA’s Proposed Standard on the Oil & Gas Industry

Questions and AnswersSlide3
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Silica (Quartz)Silica is a very common materialSilicon (SI) is the main elementSiO2 = Silicon combines with oxygen to form silicon dioxide, which is essentially silica or quartzSilica exposures are regulated by the Occupational Health and Safety Administration (“OSHA”)Slide5
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Silica Exposures“Silica exposure” refers specifically to respirable crystalline silicaInhalation of respirable crystalline silica has been linked tosilicosis, lung cancer, autoimmune disorders, kidney disease, and

an increased risk of tuberculosis.Silica exposures are primarily regulated to minimize an individual’s risk of silicosis or lung cancer

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Silica ExposuresSilica is found in:Cement dustSandblasting operationsCeramics

Resin-coated sandProppantsAluminum PelletsSintered BauxiteSlide10

Silica ExposuresHydraulic fracturing operations have silica in 7 main areas:Thief HatchesSand MoversVehicle TrafficTransfer Belts

Bender HoppersSand DropsSand Transfer Belt (Dragon’s Tail)Slide11

Silica ExposuresSlide12

Silica ExposuresSlide13

Silica ExposuresSlide14

Silica ExposuresSlide15

OSHA’s Current Regulatory FrameworkOSHA regulates silica exposure using a permissible exposure limit (“PEL”)A PEL is the maximum amount of airborne dust that an employee can be exposed to during a full work shift (usually a time weighted average for 8 hours)The PEL for silica is dependent on the amount of crystalline silica that is present in the dust

The current PEL is 100 ųg/m3 as an 8-hour time weighted average (“TWA”)Slide16

OSHA’s Current Regulatory FrameworkSilica exposures are calculated by analyzing:The percentage (%) of crystalline silica in the air samples (also look at percentage quartz, cristobalite, tridymite)The total weight of the dust collected in the air samplesThe total volume of air sampled for each sample in cubic meters (1000 liters = 1 cubic meter)

Total sampling time for each air sample in minutesPEL (Respirable Fraction) = 10 ÷[% quartz + (% cristobalite x 2) + (% tridymite x 2) + 2]PEL (total dust) = 30 ÷ [% quartz + (% cristobalite x 2) + (% tridymite x 2) + 2]Slide17

OSHA’s Current Regulatory FrameworkOSHA’s current silica PEL was established in 1971To ensure compliance with the PEL, OSHA also requires:Hierarchy of Hazard Controls Medical MonitoringHazard Assessment Training

Posted Warning SignsCompliance with Hazard CommunicationSlide18

OSHA’s Current Regulatory FrameworkOSHA currently has a National Emphasis Program aimed at ensuring compliance with silica exposure limitations, which consists of Programmed inspections for companies and industries known to have silica exposuresEnhanced current enforcement efforts aimed at ensuring awareness and compliance with the silica PELSlide19

OSHA’s Current Regulatory FrameworkA programmed inspection under OSHA’s National Emphasis Program consists of:Air Sampling and Monitoring Respiratory Protection Program ReviewPPE Spot CheckSlide20

OSHA’s Current Regulatory FrameworkWork Site InspectionsOSHA typically conducts between 85,000 and 100,000 work site programmed and targeted inspections during the fiscal yearThough the total number of inspections has remained steady since 2000, OSHA has increased the percentage of inspections at Oil and Gas sitesSlide21

OSHA’s Current Regulatory FrameworkSlide22

OSHA’s Current Regulatory FrameworkSlide23

OSHA’s Current Regulatory FrameworkSlide24

Silica in the Oil and Gas IndustryIn 2013, the National Institute for Occupational Safety and Health (“NIOSH”) released a report concluding that Oil and Gas workers had significant silica exposures, well over the OSHA established PEL.The basis of the report:NIOSH performed exposure assessments at 11 well sites in 5 states (CO, TX, DA, AK, and PA) from August 2010- September 2011Personal breathing zone samples were collected from various employees during 8 and 10 hour shiftsSlide25

Silica in the Oil and Gas IndustryAssessed health risks to oil & gas workersSilica air sampling47% greater than OSHA limit9% of all samples more than 10x the OSHA limit

79% greater than NIOSH limit31% of all samples more than 10x the NIOSH limitSlide26

Silica in the Oil and Gas IndustryThe NIOSH report concluded that Oil and Gas workers engaged in sand moving operations and “hot loading” faced significant silica exposures, which often exceeded OSHA’s PEL for quartz silica exposures.NIOSH’s report also recommended that OSHA’s PEL for silica exposures be reducedIn response to the NIOSH report, OSHA proposed a reduction in the silica PEL, action PEL, and comprehensive medical monitoring program requirementSlide27

Proposed ChangesOSHA issued a Proposed Rule on Occupational Exposure to Respirable Crystalline Silica on September 12, 2013The Proposed Rule would:Restate and reduce the PEL from 100 ųg/m3 to 50

ųg/m3Require Employers to employ the hierarchal approach to silica management Require m

edical monitoring programs

Require consistent and frequent air

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onitoring Slide28

Opposition to the Proposed PELThe Business Community and the Oil and Gas Industry have actively opposed OSHA’s proposed standard and argued thatThe need for an enhanced PEL (i.e. NIOSH study was based on outdated processes and used inadequate testing) is unclear;Oil and Gas companies may be economically or physically unable to comply with the proposed PEL;OSHA’s stated cost analysis for the benefits and costs if the new regulation are inaccurate; and

Alternative Approaches are available which would be just as effective.Slide29

Status CheckSlide30

Status CheckOSHA has not officially released any new information regarding the proposed rule since July 2014OSHA has indicated however, that OSHA will finalize the proposed silica rule during 2016 Covered employers, including those in the Oil and Gas Industry, could be expected to comply with the new silica PEL towards the end of 2016 or beginning of 2017Slide31

Impact on the Oil and Gas IndustryOSHA’s proposed Rule claims that implementation would result inAverage annual costs of $1,242 per workplace to implementWhile preventing the development of 1,600 new cases of silicosis per year in the Oil and Gas and Construction industriesOSHA claims that the new rule is more than feasible because

Costs would equal or be less than $637 Million annually over the first 10 years of implementation andThe new rule will result in $4.6 billion annually.Slide32

Impact on the Oil and Gas IndustryOSHA’s proposed rule would require Oil and Gas companies to ensure complete compliance with the PEL of 50 ųg/m3 In effect, Oil and Gas companies will have to ensure the following:

Documented air monitoring and surveillance programsMedical monitoring and exams for employees working near sand blasting or fracking operations

Implementation of all feasible engineering controls or product substitutions (largest expense)

Implementation of Respiratory Protection Program with consistent assessments, testing, and training

All Oil and Gas Contractors on a site are in compliance with silica PEL exposure limitationsSlide33

Impact on the Oil and Gas IndustrySlide34

Impact on the Oil and Gas IndustrySpecific work practices in the Oil and Gas Industry that could be impacted:Fill ports and lock caps may need to be employed on sand movers in sand operations

A reduction in heights between the sand transfer belt and T-belts and blender hoppers may need to be engineered or installed to reduce the amount of distance that sand falls through the air

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dministrative controls may need to be implemented to limit the number of workers and the time workers spend in areas where dust and silica levels may be elevated

Routine applications of fresh water may need to be incorporated into sand use operations to reduce dust around the well siteSlide35

Impact on the Oil and Gas IndustrySpecific changes in the equipment process:Belt operations where dust is released may need to be enclosed under OSHA’s engineering control requirement

Operator cabs and booths may need to be enclosed and equipped with HEPA filtration systemsModify sand moving from belt transfer systems to auger systems which have less movement and produce less dustSlide36

Impact on the Oil and Gas IndustryNew Legal Challenges:Increased Claims by Employees Alleging InjuriesNegligence Per SeSlide37

ConclusionOSHA is moving forward with implementing a reduced silica PELUnder the new standard, Oil and Gas Companies will face new air monitoring requirements, administrative tasks, and expenses related to minimizing silica exposures.Slide38

Questions?