MADISON, WIS. — Didion Milling Inc. will pay $1.8 million in penalties and make extensive safety and health improvements after five workers were killed in a 2017 corn dust explosion at its Cambria, Wis., mill as part of an agreement reached with the US Department of Labor (DOL).

Didion Milling agreed to the penalties and a long list of safety improvements to settle an Occupational Safety and Health Administration (OSHA) investigation of the May 31, 2017, explosion. The settlement comes in addition to a plea deal the company accepted in September in federal court that requires it to pay $10.25 million to the families of victims as well as a $1 million fine.

The parties filed their Joint Notification of Full Settlement with the Occupational Safety and Health Review Commission (OSHRC) and entered the agreement as a final order on Dec. 13. An independent federal agency, OSHRC decides contested citations or penalties that OSHA issues to employers after workplace inspections.

“In the spirit of closure and looking forward, Didion Milling has agreed to a settlement with the Occupational Safety and Health Administration concerning the citations issued in 2017,” Didion said. “While we disagree with the agency’s assertions about our safety and preparedness protocols, we are focused on moving forward. Didion continues to hold those lost and injured in the accident in our hearts and joins with their loved ones and our communities in the spirit of healing. We commit every day to serve our customers, communities, and ag producers who, along with our growing team, drive the Didion mission.”

A federal grand jury indicted Didion last year on nine counts, including falsifying records, fraud and conspiracy. According to court documents, Didion shift employees and supervisors knowingly falsified logbooks inspectors use to determine whether the plant was handling corn dust safely and complying with dust-cleaning rules from 2015 until May 2017.

Two senior employees were convicted last month of falsifying records and obstructing an investigation into the explosion, and five employees have pleaded guilty and are awaiting sentencing, according to the DOL.

Grain dust is explosive, and a high concentration in a confined space is dangerous. Federal regulations require grain mill operators to perform regular cleanings to reduce dust accumulations that could fuel a blast.

“Didion Milling’s agreement to make extensive safety improvements and work with OSHA and industry experts to protect the mill’s workers will protect the safety and lives of their current and future employees,” said Bill Donovan, OSHA regional administrator based in Chicago. “OSHA will hold Didion leadership accountable for changing the corporate culture to focus on safety and health by working with experts, and with management and workers. Together, they can develop and continually test safety measures and emergency response procedures and train employees in hazard recognition. The five workers who lost their lives and those injured in this preventable tragedy must never be forgotten.”

As part of the final settlement, Didion Milling has agreed to make extensive safety improvements including the following:

• Develop a corporate-wide safety and health management system within six months with input from management and workers and create a safety committee.
• Meet with OSHA at least yearly to discuss safety and health issues.
• Work with third-party experts to ensure mechanical integrity of key pieces of equipment.
• Conduct hazards analyses on grain dust and the need for flame-resistant personal protective garments.
• Provide time, equipment, staffing and training related to combustible dust housekeeping and mechanical integrity equipment inspections, tests and preventative maintenance.
• Develop a management of change program and procedure overseen by a qualified person knowledgeable in the fire and deflagration hazards of agricultural or food dust.
• Review changes to grain processing equipment, including mills, dryers, dust collector filters and bucket elevators for safety compliance.
• Create an incident-reporting and investigation system to identify incidents such as severe near misses, severe injuries, combustible dust fire, deflagration and explosion events, and material releases.
• Conduct emergency planning and response training with the local fire department annually, if practical.
• Train employees on the updated safety and health management system within 30 days of implementation.
• Conduct training in languages understood by employees.

Didion Milling operates a corn milling and biofuels facility in Cambria and production facilities in Markesan and Johnson Creek, Wis.