Tentative deal shaves $35K off fines proposed for C6-Zero

DES MOINES — The company that runs a Marengo shingle recycling plant whose explosion and fire last December injured nine employees, at least two seriously, will be fined nearly $35,000 less than originally proposed by worker safety regulators, according to a tentative settlement agreement posted with federal records online.

C6-Zero would be fined $95,711 under the informal settlement deal. The original fines recommended by the Iowa Occupational Safety and Health Administration totaled $130,515.

On Dec. 8, 2022, an unknown mechanical failure ignited flammable air vapor at C6-Zero’s facility in Marengo, causing an explosion and fire that took Eastern Iowa firefighters 18 hours to extinguish and led to evacuations of nearby homes. At least one worker has sued the company over injuries from the explosion.

Under the informal settlement, four fines at $8,701 apiece have been removed from the 15 citations originally levied by Iowa OSHA. An Iowa Division of Labor representative said the division cannot comment on the settlement because the case still is open. The Iowa OSHA investigation was launched Dec. 9, the day after the explosion.

The remaining 11 citations include improper emergency action plans, improper handling of flammable liquids, insufficient respiratory protection, insufficient control of hazardous energy, and insufficient hazard communication, according to federal worker safety records.

Plant faces environmental issues also

C6-Zero also faces potential fines related to environmental issues caused by the explosion and fire, and over its failure to properly notify state government and local first responders about hazardous chemicals kept at the Marengo site before the fire.

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Howard Brand III, owner of C6-Zero, has a pending U.S. patent application for a process to use a proprietary chemical solution to dissolve spent asphalt shingles into base ingredients, including oil, sand and fiberglass.

The Marengo plant did not yet have a state permit to operate, but was processing shingles Dec. 8 when a mechanical failure ignited air vapors and caused the explosion.

The state already agreed to pay up to $834,000 to hire contractors to remove perfluoroalkyl and polyfluoroalkyl substances — PFAS, commonly known as “forever chemicals” — that likely came from firefighting foam used to fight the blaze.

Federal environmental regulators have been overseeing cleanup of diesel fuel, lead and other chemicals in and around the site.

The U.S. Environmental Protection Agency assumed oversight of cleanup at the site in April, and has been investigating C6-Zero and considering enforcement options.

The agency has authority to pursue civil penalties of up to $67,500 per day for failing to submit safety data sheets and $27,000 per violation for failing to submit an emergency notice after an incident, a spokeswoman said.

Comments: (515) 355-1300, erin.murphy@thegazette.com