Testimony - Marathon Petroleum Corporation, Opposition to HB 235, House Commerce and Labor Committee

Summary

Testimony from David Blatnik, manager of state government relations for Marathon Petroleum Corporation (MPC), to Chairman Stein, Vice Chair Johnson, Ranking Member Lepore-Hagan and members of the House Commerce and Labor Committee, in opposition to HB 235. The testimony states that HB 235 mandates that refineries in Ohio hire contractors and subcontractors that are class A skilled journeypersons, apprentices, or both, at levels of 45%, 65% and 85%. It states that MPC's main objection is being mandated to hire a specific class of workers without assurance of safer work. It also states that the Canton refinery's OSHA recordable incident rate is less than half of the overall U.S. refining industry's rate.

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David E. Blatnik
Manager, State Government Affairs-East

539 South Main Street
Findlay OH 45840-3229
O: 419-421-3831
C: 651-303-2870
deblatnik@marathonpetroleum.com

Chairman Stein, Vice Chair Johnson, Ranking Member Lepore-Hagan and members of the House
Commerce and Labor Committee. My name is David Blatnik, and I am manager of state
government relations for Marathon Petroleum Corporation, MPC for short. I appear today in
opposition to HB 235, legislation that supporters suggest will “improve” safety at Ohio-based
refineries. The bill’s proponents testified before this committee and made many statements and
suggestions about the state of safety protocols at Ohio refineries – but without any data or facts to
substantiate their claims.

At Marathon Petroleum safety is at the heart of everything we do, and it is engrained in our
culture. We are proud of our safety record and can point to actual data from the Occupational
Safety and Health Administration (OSHA) that demonstrate the refining industry is among the
safest of any in the manufacturing sector. Our refinery in Canton is one of four refineries located in
the state. On any given day at Canton, we have a combination of full-time Marathon Petroleum
employees and contractors working in our facility to provide the fuels that power our state
economy. The Marathon Petroleum team – employees and contractors – are experienced,
knowledgeable, and rigorously trained in safety protocols and processes.

Before being allowed inside one of our facilities every contractor must:
1. Pass a vetting process that includes a thorough review of their safety record.
2. Complete Marathon Petroleum’s mandatory safety training – which we provide.
3. Pass a security background check and commit to the drug and alcohol testing program.
In short, we do not allow untrained workers to perform tasks within our facilities.

HB 235 mandates that refineries in Ohio hire contractors and subcontractors that are class A
skilled journeypersons, apprentices, or both, at the following levels:

- Beginning January 1, 2022, 45%.
- After January 1, 2023 65%, and.
- Starting January 1, 2024 85%.

Our main objection to the bill is we would be mandated to hire specific class of workers without
any assurance they will work any more safely than the workers we currently hire. The legislation
also calls for contractors and subcontractors to prepare and file quarterly workforce reports with
the Ohio Department of Commerce to demonstrate compliance with this law. These mandatory
reports will only serve to drive up the cost of construction services for owners and operators of
refineries in Ohio with no real impact or improvement on safety.
By mandating quotas for select classes, HB 235 significantly weakens MPC’s robust contractor
vetting and training program that we have been using for years. HB 235 would require MPC to
hire contractors that may or may not meet our safety requirements. HB 235 implies the specific
classes of workers can work safely by virtue of their own training. HB 235 could also prevent MPC
from excluding contractors with a poor or even substandard safety record from working in our
facility so long as they supply a union journeyperson A, apprentice, or journeyperson B workers.
Let me be clear - the bottom line is that Marathon Petroleum believes it is critical that it retain the
ability to hire contractors that meets the company’s rigorous safety standards. At our Canton
refinery, our Total OSHA Recordable Incident Rate is 0.24 – more than 50% better than the overall
U.S. petroleum refining industry rate of 0.5, according to the Bureau of Labor Statistics (source:
https://www.bls.gov/web/osh/summ1_00.htm#soii_n17_as_t1.f.1).

MPC’s Canton refinery is one of the Best-of-the-Best, as it is the only refinery in Ohio to be
designated an OSHA Voluntary Protection Program (VPP) Star facility. This designation isn’t easy
to achieve. The process started in 2010 and thanks to the hard work of all employees and
contractors we were awarded star status in 2017. The Canton refinery was recertified as a VPP
Star facility in 2021.

 As an OSHA VPP Star Facility, the Canton refinery demonstrates excellence in hazard
prevention and control.
 The only refinery in Ohio to receive VPP and 1 of 103 VPP Star Facilities in Ohio
 In 2021 OSHA conducted their VPP Recertification Audit and had the following remarks
about the Canton’s Safety Programs and Employees:
– World Class, A+, Top Notch Facility
– Well Trained and Knowledgeable Employees and Contractors
– Team Atmosphere with the Inclusion of the Workforce & Contractors

Based on this, I think I can definitively say our safety protocols are effective. And despite this, we
are always looking for ways to work with our employees and contractors to improve them further.
At this time, I would like to recognize Darin Barber, head of Health, Environment and Safety at the
Canton Refinery who will provide details over our contractor hiring and safety practices. Darin
will also provide an overview of the type of maintenance necessary to keep a refinery running at
optimal operations. Mr. Chairman, following his comments we will jointly field any questions from
the committee. Darin.

Hello, Chairman Stein, Vice Chair Johnson, Ranking Member Lepore-Hagan and members of the
House Commerce and Labor Committee, my name is Darin Barber and I manage Health,
Environment and Safety for Marathon Petroleum’s Canton refinery. Marathon Petroleum has a
well-defined process to ensure outside contractors are properly screened and there are several
steps that must be taken prior to even arriving on-site for one of our three maintenance tracks,
routine, project, or turn-around. All contractors must enroll in ISNetworld. This is an online
contractor management system and serves as a pre-qualification process to help ensure safety on
the job site. Other contractor requirements include participation in an MPC-approved drug and
alcohol testing program, completion of a background check and successful completion of
appropriate orientation. I will run through the contractor vetting process now:
Step One: Pre-work Requirements – Contractor and its employees

 There are significant processes, vetting and procedures undertaken prior to a contactor
starting work. Site contract companies shall:
– Have an approved service agreement and purchase order
– Be enrolled and have a status of “Safety Status Met” in ISNetworld
rd
 ISNetworld is a 3 Party Contractor Safety Vetting Program that allows us to
review company safety statistics, safety programs, and other company
information.
 To obtain the “Safety Status Met” level, contract companies must meet MPC’s
Common Evaluation Criteria, which are:
 Three Year OSHA Total Recordable Incident Rate (TRIR) less than
2.00. For reference, Canton’s own TRIR- 0.24.
 Most recent years’ Experience Modification Rate must be less than or
equal to 1.15,
 Zero Willful OSHA Citations over the past three years,
 A written safety program test score of 85% and a score of 100% on
MPC Life Critical Programs (lockout-tagout, Fall Protection, Hot Work,
Unit personal protective equipment, etc.),
 Zero work related fatalities over the past three years, and Good
standing with OSHA; contractors on OSHA’s Severe Violators List
disqualified
 Prior to contract employees obtaining Access Badges they shall:
– Be enrolled & “Green Lighted” in an MPC approved Drug and Alcohol Test Program.
– Pass an MPC and DHS approved security background check
– Successfully complete Caton Refinery’s Site-Specific Orientation & Unit Orientation
Training Courses.

 These courses can be taken on-site at Canton’s administration office site or
remotely at any of the 58 Association of Reciprocal Safety Council locations
across the country.
 This training consists of interactive computer-based courses that cover topics
such as emergency procedures, personal protective equipment requirements,
general safety rules, and MPC Life Critical rules.
 Each course has knowledge assessments throughout the training and a final test
to ensure comprehension of the course material.

Step 2: Site Access Requirements

MPC employees must complete a contractor entry form that ensures security personnel are aware
that contractors will be on site.

 MPC Requestor submits the Canton Contractor Entry Form to the Supervisor for Approval.
 The purpose of the Contractor Entry Form is to notify Security of personnel coming on-site,
personnel needing training, and ensure employees are set up in Track for timekeeping
purposes.

Step 3: Entering Site

Security will issue an access badge to each worker that must always be kept with them while on
refinery grounds.

 Contract Employees must report to Canton’s Security Building to obtain their Access Badge.
 At this time Canton’s Security Officer will verify that each contract employee:
– Has a Valid Picture ID that matches their Training and Background Records,
– Has Successfully Completed Site & Unit Orientation Courses,
– Is Currently “green-lighted” in the Drug and Alcohol Testing, and
– Has Passed an MPC Approved Security Background Check.
 Once all these items have been verified contract employees will receive an access badge
that must be kept in their possession while on Refinery Property.

Our focus on safety never ends.

We have put in place several programs and initiatives in the safety area including ongoing auditing
and review of existing practices to help identify areas of improvement and potential risks for
workers.

 Contractor Safety Management is an integral program for the safety of Canton’s workforce
and members of the community.
 Elements of the Canton refinery’s Contractor Safety Management Program include but are
not limited to:
– Weekly contractor safety meetings with participation by MPC safety professionals
and refinery leadership team & weekly auditing requirements
– Monthly craft training & auditing data review to identify areas for improvement
– Annual contractor safety field verification audits
– Three-year deep dive audit that reviews training records of contract employees,
equipment inspection records, evidence of safety programs, and recordkeeping.
– Behavior Based Safety- Peer to peer observations to help identify potential at risk
behaviors and help eliminate barriers to promote safe behaviors.
– Inclusion of contractor leadership on Audit Teams & Responsible Care committees
– Mentoring program for new contractor safety reps when arriving on-site.

There is additional training available to contractors working at our facility.

 Union Trades Training
– Craftsperson starts as an apprentice and through the apprenticeship program gain
the required skills & knowledge of the trade to be a qualified employee known as a
Journeyperson.
 Non-Union Skills Training
– Craftsperson is required to complete an initial skills assessment and receive craft
specific training from their employer for the work they are to perform. Continual
skills training is provided through the National Center for Construction Education
and Research (NCCER) and ongoing training by their companies.
 All contractors must meet all applicable state and federal training requirements ((29 CFR
§1910.119(h)) and (40 CFR §68.87)
 All contractors complete the same safety training orientation courses regardless of work
affiliation. Once on-site all training is conducted by contractor leadership to cover company
and refinery-specific safety procedures.
 Certifications are required regardless of work affiliation such as NFPA 70E for electricians,
NCCCO for crane operators, regulatory licenses for lead & asbestos abatement workers, and
applicable codes for welders.

Refineries have three typical types of maintenance - Routine, Project, and Turn-arounds. For all
this maintenance work MPC is laser focused on bringing in the most qualified and safe workers

On the routine and project side, this is done through:

 Utilizing contractors with experience in the industry and at this facility
 Embedded contractors with years of experience that live in the community
 Mix of union and non-union contractors
 Balance the workload between routine and project work to level the manpower
 Outstanding safety and high productivity due to their experience and knowledge of the facility
 Several contract companies have agreements negotiated on a company wide basis and work in
multiple MPC refineries

Because a refinery operates 24/7 365 day a year, it needs a major maintenance overhaul – called a
turn-around – every 7 to 10 years and the refinery is typically shut down for several weeks. We
bring in contractors who have specialized training, skills, and experience in these major
maintenance initiatives. The contractors we use perform turnaround work at multiple MPC locations
on a continuous basis and have deep experience with the work being completed. To provide a bit
more contexts regarding MPC turn-arounds:

Because of our contractor safety program and numerous other safety initiatives, Canton has an
excellent safety record – again, I would point out that our OSHA recordable incident rate is less
than half of the overall U.S. refining industry’s rate. But we never take these records for granted -
we continuously work to enhance all facet of our policies, programs, and procedures.

We are extremely proud of the safety record at the Canton refinery as evidenced by the graphs we
will show you. MPC feels that with all our safety measures in place we have shown you here today
that this legislation is not needed for refining safety protocols.

The below graphs show MPC’s Canton refinery safety statics and a continued emphasis on safety.

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