Oil storage tank fire burns for three days in Houston

For three days, thick smoke from a petrochemical fire spread over Houston’s suburbs, creating a potential setback for a dozen crude-export terminals proposed for the U.S. Gulf Coast amid subsequent calls tougher safety regulations.

The burn from eleven tanks, holding fuels used to make gasoline and plastics that sat along the nation’s busiest petrochemical port and among nine oil refineries, released toxic benzene, which led five school systems and more than 108,000 students to close for two days and prompted two cities to tell residents to stay indoors. On Friday, a leak from a containment dike at the facility prompted new travel restrictions in the immediate vicinity of the plant.

Federal, state, and local officials have begun investigating whether Mitsui & Co’s Intercontinental Terminals Co (ITC) met safety and environmental regulations after the fire in Deer Park, Texas, spread quickly among rows of giant tanks that hold up to 3.3 million gallons of fuel each. Harris County, which oversees the ITC tank farm, plans to review the investigations and may propose changes to state regulations, said the county’s chief executive, Lina Hidalgo.

Results from those reviews could affect proposed terminals that would add millions of barrels of oil storage capacity, to cater to a shale boom that has made the United States the world’s top oil producer with more than 12 million barrels pumped each day.

There are already approximately 90 million barrels of oil storage capacity in above-ground tanks near Houston, estimates data provider Genscape. New storage regulations would face opposition in Texas. A state lawmaker recently filed a bill that would speed air-quality permit reviews for energy projects before environmental regulator Texas Commission on Environment Quality, one of the groups now investigating ITC. Ryan Sitton, Commissioner of Texas energy regulator, the Railroad Commission, said more fire-suppression equipment on ITC tanks could have led to greater releases of benzene, not less.

ITC, which had 242 storage tanks holding about 13 million barrels of fuels, is not required to comply with county fire codes because it was built before the county adopted codes in late 2014, said Rachel Moreno, a spokeswoman for the county Fire Marshal. ITC adheres to fire-prevention guidelines set by industry group the National Fire Prevention Association and the American Petroleum Institute, said ITC spokeswoman Alice Richardson. A temporary loss of water pressure on the first day of the blaze contributed to its spread.

Critics say the NFPA guidelines set minimum standards and the use of advanced fire-protection systems could have more quickly extinguished the fire before it spread and released millions of tons of carbon monoxide, and thousands of pounds of nitrogen oxides, sulfur dioxide and other pollutants. The fire prevention group expects the investigations into the ITC fire could prompt changes to its guidelines, said Guy Colonna, NFPA’s senior director of engineering. Its existing recommendation for petrochemical tanks, called NFPA 30, does not require fixed fire suppressants, Mr. Colonna said.