Fuel sector regulator OfReg has fined Rubis $225,000 for operational failures that led to a fuel tank leak at the Jackson Point Terminal in November 2019.
An investigation into the leak from a corroded tank at the terminal on South Church Street had led to charges being brought against Rubis in March this year.
Following those initial court proceedings, Rubis has “agreed to settle the matter and accept an administrative fine, including investigative and related costs,” OfReg said in a press release issued Friday afternoon.
The amount of fuel that had leaked from the tank was not disclosed; however, the regulator stated that its investigation, and an assessment carried out by Water Authority Cayman, had found “no significant impact on the surrounding environment despite the quantity of diesel released from the tank”.
In the release, OfReg CEO Peter Gough, said, “As the regulator for the fuel sector, OfReg has a legal duty to ensure all operators operate and maintain critical national infrastructure to the highest standard, in order to deliver the required benefits to consumers and the jurisdiction.
“This particular incident, thankfully, has not had a significant impact on our environment but as our investigation has determined, had the operator adhered to the codes, standards and their own operational procedures, the leak could have been prevented.”
According to a report from OfReg which had been included in the court files in March, Rubis had been operating one of its tanks “without an effective cathodic protection system and tank maintenance programme in place, while being knowledgeable and aware of the critical requirements”.
A cathodic protection system “minimises corrosion in areas of the tank which are difficult to visually inspect or access”, OfReg had said in a statement following the 22 March hearing.
In its press release on Friday, the regulator said the decision to prosecute and the amount that Rubis had been fined, reflected the seriousness of the offence and “OfReg’s commitment to holding licensed operators accountable for their actions”.
It said the matter is now closed, and added, “We are clear in our mandate to ensure that this should not happen again and that there will be severe consequences for those that fail to meet the requirements and terms of their permits and licenses.”
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