INSPECTION REPORT

Worker and Employer Services Division

6951 Westminster Highway, Richmond, BC Mailing Address: PO Box 5350, Vancouver BC, V6B 5L5 Telephone 604 276-3100 Toll Free 1-888-621-7233 Fax 604 276-3247

The Workers Compensation Act requires that the employer must post a copy of this report in a conspicuous place at or near the workplace inspected for at least seven days, or until compliance has been achieved, whichever is the longer period. A copy of this report must also be given to the joint committee or worker health and safety representative, as applicable.

Inspection Report #201412868001A

Employer Name BABINE FOREST PRODUCTS LIMITED Jobsite Inspected BABINE FOREST PRODUCTS 19479 Highway 16 east Burns Lake BC Scope of Inspection Not Applicable

Date of Initiating Inspection Apr 02, 2014

Date of This Inspection Apr 02, 2014

Delivery Date of This Report Apr 02, 2014

Delivery Method In Person

THERE ARE TWO (2) ORDERS OUTSTANDING

ACTION REQUIRED

Summary of Orders
See Orders Full Details section of this Inspection Report for orders cited Order No.1 Order No.2

o o

Status: Outstanding Status: Outstanding

Cited: WCA196(1) Cited: WCA73(1)

ORDER STATUS LEGEND Order Status Outstanding Complied Closed Rescinded Description Order Outstanding - Action Required to Achieve Compliance Compliance Achieved - No Further Action Required Order Could Not be Followed Up No Further Action Required Order has been cancelled No Further Action Required

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INSPECTION REPORT
Worker and Employer Services Division

201412868001A
6951 Westminster Highway, Richmond, BC Mailing Address: PO Box 5350, Vancouver BC, V6B 5L5 Telephone 604 276-3100 Toll Free 1-888-621-7233 Fax 604 276-3247

INSPECTION NOTES
ORDER FOR ADMINISTRATIVE PENALTY (RFS-201400188) AND CLAIMS COST LEVY During the afternoon shift on January 20, 2012, there was an explosion at the Babine Forest Products Limited sawmill at approximately 20:07. A large fireball burst through the roof at the northeast side of the mill, the explosion traveled east to west through the operating and basement levels of the sawmill. Fire spread throughout the premises, completely destroying the mill. Two workers were killed in the explosion and more than 20 others were injured. It is my finding that, Babine Forest Products Limited (the Employer), was not in compliance with the Regulation and the Workers Compensation Act by failing to implement and adopt reasonable precautions to prevent injury and death to their workers. These violations are set out in the Inspection Report #2014128680252 and these are summarized here: Babine Forest Products Limited was aware that their wood dust collection system was inadequate. Babine management was aware of the additional problems with milling beetle-killed pine timber. Babine was aware that their waste conveyor system was inadequate. Babine continued to increase production creating more wood dust and debris. Babine was knowledgeable regarding the increase in wood dust and debris from the beetle-killed wood. Babine was aware that this dry wood dust could migrate into their electrical cabinets and that it could explode in these cabinets if ignited. Babine had previously experienced a dust explosion in the sawmill with significant property damage. Babine had reduced the effectiveness of the already inadequate dust controls by moving dust control systems away from one side of the sawmill to the other, failing to complete modifications to make the system effective, failing to provide effective alternatives while the existing system was in transition, turned off exhaust fans, blocked sources of natural ventilation by closing windows. Failing to adequately control dust levels and keep the mill adequately clean. Failing to effectively inspect all areas of the workplace to prevent dust accumulations and potential ignition situations. Upon consideration of all available evidence, and in accordance with section 196 of the Act and applicable Prevention Policy, WorkSafeBC is imposing an administrative penalty because the Employer: 1. has failed to take sufficient precautions for the prevention of work related injuries or illnesses; 2. has not complied with Sections 115(1), 115(2)(a) of the Act, or Sections 3.5, 4.41, and 5.81 of the Regulation; 3. has not maintained a safe workplace or safe working conditions; and 4. did not exercise due diligence to prevent these circumstances. The amount of the penalty is $97,500.00 and was determined in accordance with Prevention Policy D12-196-6 based on the following: 1. the Employer's payroll; and 2. the nature of the violations (determined to be a Category A penalty); and 3. other circumstances supporting a variation of the penalty amount upward by 30%. WorkSafeBC has also determined that a claims cost levy will be imposed on Babine Forest Products Limited for the following reasons: 1. failure of this Employer to adopt reasonable means for the prevention of injuries, deaths or occupational disease, and 2. failure of this Employer to comply with orders or directions of the Board, or with the Regulations. Pursuant to section 73(1) of the Workers Compensation Act, WorkSafeBC is imposing a claims cost levy in the amount of $914,139.62. The Employer, a worker, a union, or other person identified under section 96.3 of the Act who is directly affected by this decision may request a review of the decision by the Review Division of WorkSafeBC. If you wish to request a review you must notify the Review Division in writing within 90 days of the date on this report. A Request
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INSPECTION REPORT
Worker and Employer Services Division

201412868001A
6951 Westminster Highway, Richmond, BC Mailing Address: PO Box 5350, Vancouver BC, V6B 5L5 Telephone 604 276-3100 Toll Free 1-888-621-7233 Fax 604 276-3247

for Review does not act as a stay or suspend the operation of this Order. Further information about the Review Division and a Request for Review Form can be found online at: http://www.worksafebc.com/claims/review_and_appeals/health_and_safety_enforcement/default.asp or by calling the Review Division at 604-214-5411 or 1-888-922-8804. A copy of the Review Divisions decision, with reasons, will be provided to all parties who participate in the review. NOTE: The Employers Advisers Office of the Ministry of Labour is available to provide advice or assistance to employers. Their telephone number is toll free at 1-800-925-2233. The Workers Advisers Office of the Ministry of Labour is available to provide advice or assistance to workers. Their telephone number is toll free at 1-800-663-4261.

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INSPECTION REPORT
Worker and Employer Services Division

201412868001A
6951 Westminster Highway, Richmond, BC Mailing Address: PO Box 5350, Vancouver BC, V6B 5L5 Telephone 604 276-3100 Toll Free 1-888-621-7233 Fax 604 276-3247

REFERENCES
In addition to any orders and the information provided in the Inspection Notes in this Inspection Report, the officer may discuss other health and safety issues with the employer arising out of the inspection. The information below sets out the health and safety requirements discussed with the employer, and unless otherwise noted, violations of these requirements were not observed.
Reference WCA115(1) Details Discussed

Every employer must ensure the health and safety of: (i) all workers working for that employer, and (ii) any other workers present at a workplace at which that employer's work is being carried out, and (b) comply with this Part, the regulations and any applicable orders.
WCA115(2)(a)

This provision is being referenced because a violation of this section was used in support of the penalty order contained in this report.

An employer must remedy any workplace conditions that are hazardous to the health or safety of the employer's workers.
OHS3.5

This provision is being referenced because a violation of this section was used in support of the penalty order contained in this report.

This provision is being referenced because a violation of this section was used in support of the penalty order contained in Every employer must ensure that regular inspections are made this report. of all workplaces, including buildings, structures, grounds, excavations, tools, equipment, machinery and work methods and practices, at intervals that will prevent the development of unsafe working conditions.
OHS4.41

Refuse, spills and waste material must not be allowed to accumulate so as to constitute a hazard.
OHS5.81

This provision is being referenced because a violation of this section was used in support of the penalty order contained in this report. This provision is being referenced because a violation of this section was used in support of the penalty order contained in this report.

If combustible dust collects in a building or structure or on machinery or equipment, it must be safely removed before accumulation of the dust could cause a fire or explosion.

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INSPECTION REPORT
Worker and Employer Services Division

201412868001A
6951 Westminster Highway, Richmond, BC Mailing Address: PO Box 5350, Vancouver BC, V6B 5L5 Telephone 604 276-3100 Toll Free 1-888-621-7233 Fax 604 276-3247

ORDERS
An employer who fails to comply with Part 3 of the Workers Compensation Act, the Occupational Health & Safety Regulation, or WorkSafeBC orders may be subject to monetary or other sanctions as prescribed by the Workers Compensation Act.

Orders - Full Details

Order No.1

Status: Outstanding

Cited: WCA196(1)

A copy of this inspection report must be posted in the workplace, in a conspicuous location for 30 days or until the penalty is paid, whichever is later. Pursuant to Section 196(1) of the Workers Compensation Act, Babine Forest Products Limited is ordered to pay $97,500.00 to the Workers' Compensation Board Accident Fund.
Order No.2

Status: Outstanding

Cited: WCA73(1)

A copy of this inspection report must be posted in the workplace, in a conspicuous location, for 30 days or until the claims cost levy is paid, whichever is later. Pursuant to s. 73(1) of the Workers Compensation Act, Babine Forest Products Limited is ordered to pay a claims cost levy of $914,139.62 to the Workers' Compensation Board Accident Fund.

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INSPECTION REPORT
Worker and Employer Services Division

201412868001A
6951 Westminster Highway, Richmond, BC Mailing Address: PO Box 5350, Vancouver BC, V6B 5L5 Telephone 604 276-3100 Toll Free 1-888-621-7233 Fax 604 276-3247

Employer # 328321

Mailing Address C/O KAREN GLANVILLE CONFIDENTIAL SECRETARY PO BOX 4000 BURNS LAKE BC V0J1E0

Classification Unit # 714022

Operating Location 001

Lab Samples Taken N

Direct Readings N

Results Presented N

Sampling Inspection(s)

Workers onsite during Inspection 0

Notice of Project Number

Inspection Report Delivered To Bruce Mallory

Employer Representative Present During Inspection not applicable

Worker Representative Present During Inspection not applicable

Labour Organization & Local

WorkSafeBC Officer Conducting Inspection Paul Orr

*Inspection Time 3.00 hrs

*Travel Time 0.50 hrs

*The time recorded above reflects the cumulative inspection time and travel time associated to the inspection activity cycle. Additional time may be added for subsequent activity.

Right to a Review of Orders Any employer, worker, owner, supplier, union, or a member of a deceased worker's family directly affected may, within 90 calendar days of the delivery date of this report, in writing, request the Review Division of WorkSafeBC to conduct a review of an order, or the non-issuance of an order, in this report by contacting the Review Division. Employers requiring assistance may contact the Employers' Advisers at 1-800-925-2233. Workers may contact the Workers' Advisers at 1-800-663-4261.

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