GRAND CAYMAN, CAYMAN ISLANDS; 9 APRIL 2018

OfReg, the regulator of the fuels sector in the Cayman Islands, has released the findings of its investigation into to the fire at the SOL Jackson Point Bulk Oil Storage Terminal Facility on 23 July 2017.

The investigation concluded that given their expertise and resources, SOL did not take reasonable precaution to prevent the incident. These precautions are detailed in the relevant codes, standards and best practices adopted under the Dangerous Substances Law.

OfReg via its Fuels Team focused on public safety as its first priority: as one of the first responders to the incident and throughout its four-month investigation. Under its broader remit, the regulator has been engaging with industry and other relevant agencies such as the Hazard Management Cayman Islands (HMCI) and the Cayman Islands Fire Service to determine and implement a number of immediate measures to prevent such an incident from happening again, while at the same time ensuring the public is better informed and protected in the unlikely event of a recurrence.

OfReg recently launched a discussion paper on a new Emergency Notification System (ENS) that addresses how at-risk residents could be alerted in the future.

Duke Munroe, Head of Fuels at OfReg noted that a number of lessons had definitely been learned: “First and foremost, mitigation measures to minimise or eliminate risks associated with events such as these are being comprehensively reassessed. This has, and continues to be our mandate, and is paramount. Additionally, from this incident, it was apparent that a better system of issuing evacuation notices and identifying evacuation routes was needed, as well as more appropriate communications to first responders. From our inter-agency co-operation and communications with the HMCI, RCIPS and the Fire Service following this incident, we are able to make solid recommendations to increase the level of public safety awareness during events like these in the Cayman Islands,” he said.

OfReg will be exercising its regulatory powers following this investigation and is currently examining appropriate measures of a regulatory and compliance nature to impose on SOL

Related:

OfReg publishes SOL Diesel Fuel Tank Incident Investigation report

Date Investigation Commenced: 24 July 2017
Date Investigation Completed: 11 January 2018

Date of Report: 25 March 2018

The Report is 63 pages. Below is the Executive Summary only.

1.0 EXECUTIVE SUMMARY
On 22 and 23 July 2017, SOL Petroleum Cayman Limited (“SOL”) commissioned their 3rd party
contractor – J&R Industrial Services (“J&R”) to carry out repairs to the roof of Tank No. 8 at its
Jackson Point Ocean Terminal. The work undertaken entailed patching pre-identified areas on
the roof where the extent of metal loss resulted in severe thinning and/or perforations of the
roof plates. The patches were made of mild steel plates which were welded in place by a
certified welder and the work scheduled for Saturday 22 July was completed without any
reported incident.

On Sunday 23 July 2017 at approximately 16:40 hrs, it was reported to Public Safety and
Communication Department – Emergency Services (911) that there was a potential fire inside
Tank No. 8 at the SOL Jackson Point Terminal. The only positive indication of the fire was the
evident scorching on the external surface and paint on the outside of the tank upper shell. This
was subsequently confirmed as a persistent heat source along a localised area of the inner
shell (wall) of the tank. At the time of the incident Tank No.8 contained approximately 15,000
barrels or 524,550 imperial gallons (IG) of Ultra Low Sulphur Diesel (ULSD).

At or around the time Emergency Services were notified, SOL’s personnel activated the
Terminal’s internal fire suppression system (“FSS”) which operated for a short period before
the fire monitor in the area of Tank No. 8 failed at its base causing the entire Fire Mains (piping)
system to lose pressure, and remained inoperable throughout the incident response.

The relevant emergency services were dispatched by 911 and the Cayman Islands Fire
Services (“CIFS”) were on scene within twelve minutes of notification. The relevant first
responders promptly attended the incident, however OfReg Fuels Response Team, which was
not included in the initial rounds of notifications, responded at approximately 18:10 hrs.
immediately after becoming aware of the situation. The incident was at the time under the
command of Chief Fire Officer D. Hails. A command center was activated at which senior
emergency responders held an initial meeting to discuss progress and further response
strategies at approximately 19:15 hrs. The command center was subsequently moved to
Sunset House and all the key emergency services personnel were represented at the briefing
which was coordinated by Hazard Management Cayman Islands (“HMCI”) Director and Team.
In addition to the standard notification protocols observed, media personnel on site were also
briefed.

During the first 3 – 4 hours of the response efforts, the situation was assessed as “moderately
stable but not contained.” The Fire Service with support from SOL and J&R representatives
continued relentlessly to contain the heat source while monitoring same and applying boundary
cooling to the tank until the situation was brought under control. While it was subsequently
confirmed that SOL’s foam injection system was deployed upon activation of their FSS (which
ideally would have significantly limited the development of a full engulfment within the tank), no
substantial evidence was obtained by the investigation team at the time to confirm this.

Throughout the response efforts, the tank was being monitored primarily by Fire Services’
thermal imaging device, occasionally supplemented by Royal Cayman Islands Police Service
(“RCIPS”) Air Support Unit, and there was no indication of an incipient conflagration.

Periodically however, elevated temperatures were observed in the primary areas of interest
along the tank shell, but were confirmed to be relatively lower than the flash point of diesel. It
is relevant to the investigation to highlight that the images which were being circulated on social
media on the date of the incident were misleading as the tank was never engulfed in flames.

The incident was brought under control at approximately 02:40 hrs. on (Monday) 24 July 2017,
after a combination of approaches which included continuous boundary cooling with water and
the application of fire suppressant powder and foam by the CIFS rescue and firefighting teams.
The latter was accomplished through a hatch on the tank roof which was strategically located
to enable this intervention by the team. Having conducted a review of the first stage response
efforts and status of the Terminal, access (approval) was granted for the rest of the operations
to resume at approximately 03:00 hrs. 24 July 17 by OfReg, except for the subject tank, its
auxiliaries and appurtenances. This was granted to facilitate the second phase clean-up efforts
prior to full resumption of SOL’s commercial operation as an important service provider in the
Cayman Islands. Tank No. 8 was officially taken out of service by OfReg and remains out of
operation until approval is granted by OfReg to reintroduce this equipment into service, subject
to the findings in this report.

As a result of the intervention approaches used to contain the incident, the quality of diesel
product in the tank would have necessarily been affected. An analysis was carried out on the
product, and SOL took the decision to re-export the fuel to avoid any (perceived) fuel quality
issues for consumers.

There were no direct or indirect injuries to personnel arising from the incident, and further, no
consequential damage to third party property or equipment were noted during the investigation.
Importantly also, no product was released to the environment. The Terminal is currently
operating, albeit with significantly reduced storage capacity, however OfReg continues to
monitor the availability of fuel inventory across all terminals on Island to ensure supply (versus
demand) remains adequate.

The primary investigation was conducted over a period of four (4) months and concludes that
SOL, through its employees and contractors did not take all reasonable precaution as required
by relevant code, standards and best practices to which it subscribes or mandated under the
Dangerous Substances Law (“DS Law”) for the prevention of the incident which occurred at
their facility on 23 July 2017.

The incident location is a regulated premise which is under the full operational control of SOL.

To view the whole report go to: http://www.ofreg.ky/fuel/upimages/publication/SOLInvestigationReport-OfRegMarch2018_1522997859.pdf

NOTE:
OfReg (the Utility Regulation and Competition Office) is the independent regulator for the electricity, information and communications technology, water, wastewater and fuels sectors in the Cayman Islands. OfReg also regulates the use of electromagnetic spectrum and manages the .ky internet domain.

The Department of Hazard Management Cayman Islands (HMCI) oversees detailed hazard management plans dealing with natural disasters such as hurricanes, tsunamis, earthquakes and man-made disasters such as large-scale accidents and fires.