Incidents That Transformed Process Safety Management

In July 1990, the Occupational Safety and Health Administration (OSHA) published the proposed standard “Process Safety Management of Highly Hazardous Chemicals.” The standard aimed to protect workers in high-hazard industries, such as oil and gas, chemical, and petrochemical, from catastrophic incidents caused by toxic, flammable, or explosive substances.

Following its 1990 proposal, this effort led to the creation of the Process Safety Management (PSM) standard (29 CFR 1910.119). Over time, operators have adopted this standard to manage hazardous chemicals and implement practices that reduce the likelihood of accidental releases. A series of catastrophic incidents worldwide, along with the need to meet the Clean Air Act Amendments of 1990, drove the creation of the standard. Today, the standard serves as the benchmark for companies that handle, store, and transport hazardous chemicals.

Below is an overview of four major disasters that inspired the implementation of OSHA’s PSM standard:

Watershed Events

• 1984 Bhopal Disaster: In the early hours of December 3, 1984, 40 tons of methyl isocyanate gas, a colorless, highly-flammable liquid, leaked from a Union Carbide Corporation (UCC) pesticide plant, resulting in at least 3,800 fatalities. What followed the devastating event included the establishment of the Bhopal Gas Leak Disaster Act by the Indian Government, along with a settlement paid by UCC in the amount of $470 million ($1.5 billion in 2026). The Bhopal incident prompted the creation of the Responsible Care initiative, which was started in Canada in 1984, adopted by the U.S. Chemical Industry in 1988, and is practiced globally today. The incident also prompted the American Institute of Chemical Engineers (AIChE) to form the Center for Chemical Process Safety (CCPS) in 1985.

• 1989 Phillips Explosion: On the afternoon of October 23, 1989, a series of explosions deriving from the release of highly flammable chemicals (isobutane, ethylene, hexene, and hydrogen) at a Phillips 66 chemical facility in Pasadena, Texas, resulted in 23 fatalities, 314 individuals injured, and $750 million in property damage. Those who lost their lives were within 250 feet of the initial release.

• 1990 BASF Plant Explosion: On July 19, 1990, an ignition source triggered by the release of highly flammable chemicals, resulted in an impactful explosion at a BASF chemical facility in Cincinnati, Ohio. The incident resulted in 2 deaths and 41 injuries. The blast impacted nearby communities and affected more than 300 homes.

• 1991 IMC Fertilizer, Inc. Explosion: On May 1, 1991, a series of explosions caused by a fire near a waste gas vent compressor at a fertilizer chemical plant in Sterlington, Louisiana, resulted in 8 fatalities and 42 individuals injured. Around 70 residents near the plant’s vicinity were also directly impacted by this incident. A $180 million payment was ultimately delivered by IMC Fertilizer.

Conclusion

The incidents discussed have transformed our industry and professionals for the better, delivering painful but valuable lessons that help us better support companies running high-risk operations. By implementing comprehensive technical risk management solutions, including the development of OSHA-compliant process safety management programs, we work each day to protect companies from incidents that could impact so many lives and the communities they serve. Our mission is simple–provide life-saving approaches to ensure personnel go home at the end of the day.

To learn more, contact our process safety management experts today.