State, company reach settlement in deadly blast

THE ASSOCIATED PRESS

CARSON CITY, Nev. - A company has reached a settlement with the state government over 38 alleged violations stemming from a 1998 blast that killed four workers at its explosives plant near Reno, state officials said.

Sierra Chemical Co.'s agreement to pay $228,500 to the state averts five days of hearings before the Nevada Occupational Safety and Health Review Board that were set for this week.

John Wiles, counsel for the state Industrial Relations Division, said the settlement was "fair and equitable," even though the state originally sought $997,500 in total fines.

"This is beneficial to the state. We didn't have to try the case before the board," Wiles said, adding the company continues to deny responsibility for the blast.

Sierra Chemical officials referred all questions to their lawyer, Bruce Laxalt, who did not return calls to his Reno office.

Two nearly simultaneous explosions rocked the explosives manufacturing plant east of Reno on Jan. 7, 1998.

Among other things, state and federal investigators found a lack of proper training for workers, many of whom were Hispanic and did not speak English.

Sierra Chemical has disputed the conclusions, saying the blasts were acts of sabotage.

The state originally fined the company on two grounds: $66,500 for 19 serious violations and $931,000 for 19 willful violations of the state Occupational Safety and Health Act.

Under the settlement, the state will downgrade the violations from willful to serious and combine them into a single serious violation.

A special state commission recommended dozens of law changes to prevent a similar blast.

Earlier this year, Gov. Kenny Guinn signed measures requiring workers to get safety training in their language and abolishing a pay system based on the number of explosives assembled.

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