AB Specialty Silicones must pay $1.3M fine for fatal 2019 accident

WAUKEGAN, Ill.—AB Specialty Silicones L.L.C. has been ordered to pay a $1.3 million federal fine following an explosion in May 2019 that killed four people and injured three others.

The chemical products manufacturer and distributor also must implement "comprehensive safety procedures" as a result of an administrative law judge's Oct. 1 acceptance of a settlement between the Occupational Safety and Health Administration and AB Specialty Silicones.

"This agreement will never replace the four workers lost in this preventable tragedy, but it's a step in the right direction," said Chicago-based OSHA Regional Administrator Bill Donovan. "OSHA will continue to hold AB Specialty Silicones accountable for improving their safety culture by working with industry experts, and both management and employees to develop and continually test safety measures, emergency response procedures and training employees in hazard recognition."

AB Specialty Silicones said in an Oct. 3 statement to Rubber News that “it will never forget the tragic event that occurred” and said it was disappointed in the “misleading” press release issued by OSHA on the settlement.

“While ABSS will forever remember the loss of our colleagues and friends, we are extraordinarily proud of our ability to rebuild and grow after this horrific accident,” the company said. “Today, five years later, ABSS is a bigger, better, stronger and safer company than ever before. Our commitment to safety is unwavering and our tremendous efforts in that regard were what led to the settlement agreement reached with OSHA. 

“We are greatly disappointed, however, by the recent press release issued by OSHA. It is misleading and fails to recognize the extraordinary actions taken by ABSS immediately following the accident and prior to any agreement between the parties.”

The May 3, 2019, explosion occurred at approximately 9:30 p.m. during third shift and killed company co-owners Byron Biehn, 53, and Allen Stevens, 29, along with third-shift production supervisor Jeff Cummings, 57, and quality control chemist Daniel Nicklas, 24.

Damage to the Waukegan plant was estimated at $1 million by fire investigators.

A resulting investigation of the accident by private investigators, the U.S. Chemical Safety and Hazard Investigation Board and Region 5 of the U.S. Occupational Safety and Health Administration found that non-conformative electrical wiring (to OSHA standards) caused the explosion and subsequent fire.

OSHA initially proposed $1.6 million in fines for 12 willful safety violations related to the accident.

While no criminal liability was found, AB Specialty Silicones chose a formal path for reconciliation and settlement following OSHA's investigation, and the fine ultimately was set at $1.3 million.

"They chose a formal path for settlement," Scott Allen, media representative for OSHA's Region 5, told Rubber News Oct. 3. "If circumstances or the course of an investigation demonstrate new evidence, the fine often can be reduced."

AB Specialty Silicones said the citations issued by OSHA in October 2019 “were unrelated to the cause of the accident.”

“It is important to clarify that the citations issued by OSHA were unrelated to the cause of the accident,” ABSS said. “The unfortunate event was the result of operator error and failure to adhere to existing ABSS safety protocols. 

“In response, we immediately contested the citations, and while the case was ongoing, we voluntarily implemented significant safety enhancements.”

According to the initial October 2019 OSHA report, electrical wiring and related items “were not intrinsically safe, approved for the hazardous (classified) location, or safe for the hazardous (classified) location.”

The same was true of an electrical control panel in use at the plant at the same time, according to OSHA’s original report, filed Oct. 29, 2019.

ABSS also was cited at the time (as part of the $1.6 million in proposed fines) for handling and processing flammable liquids in areas where electrical wiring and fixtures were improperly installed; for not properly classifying areas where flammable vapor-air mixtures were present; and for using unapproved, propane-powered forklift trucks in areas where flammable liquids were used.

According the Oct. 1 settlement agreement, ABSS has been ordered to develop a safety and health management system and an emergency evacuation plan; implement safety training (in all languages applicable); implement specialty training for management for handling flammable materials; purchase industrial trucks rated for handling flammable materials; audit its OSHA management system certifications annually; bring in consultants for any renovations, retrofits or ground-up expansions involving electrical work; and allow OSHA “to periodically inspect facilities without requiring a warrant.”

ABSS said it has made these improvements and more, including achieving ISO 45001 certification in April 2021; employing multiple trucks drivers with CDLs; and rebuilding its Waukegan facilities, “including its production and laboratories using state-of-the-art standards and engaged outside engineering and design firms to confirm all aspects of the installations are above and beyond regulatory standards,” according to ABSS.

ABSS also halted production of silicon-hydride emulsions at all facilities following the accident until these redesigns could be made.

“ABSS immediately discontinued the sale and production of SiH-containing emulsions,” ABSS confirmed.

“While this list is not exhaustive, it reflects ABSS’s steadfast commitment to safety and played an important role in reaching a settlement with OSHA,” the company said Oct. 3. “It’s worth emphasizing that the majority of these safety improvements were implemented years before any settlement agreement was reached, though they were later formalized by both parties. 

"We are, however, disappointed that OSHA’s recent communication did not fully recognize or highlight these efforts and the proactive steps taken by ABSS."

Regardless, the settlement agreement concludes a more than five-year process since the accident occurred.

“The settlement agreement with OSHA helps bring closure to the tragic event which occurred on May 3, 2019,” ABSS said. “We will continue to strive to be a leader and at the forefront of safety programs for the betterment of our employees, community and industry.”

AB Specialty Silicones must pay the $1.3 million fine in quarterly installments through Sept. 1, 2027, according to Allen. If any payment is missed, the entirety of the balance becomes due.

AB Specialty Silicones’ core product is Andisil, used in the personal care, roof coatings, chemical manufacturing and medical spaces, among many other end-use applications.