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Refining Crude Oil

Industry Code: 36500

Compulsory
Industry Custom Pricing - ER

This industry includes businesses that produce oil, gasoline products and lubricants through the refining of crude oil.

Operation Details:

Crude oil refining is the process of separating the hydrocarbon streams. As a process, refining begins by boiling the crude oil past its evaporation point. Fractional distillation progressively separates the crude oil into the various streams, i.e., different hydrocarbons have different boiling points thus each hydrocarbon can be 'drawn off' as the gas cools to a liquid state while rising in cooling towers. Refining may incorporate other chemical processes such as cracking and reforming to assist in separating the hydrocarbons.

Some of the hydrocarbons - gasoline, lubricants - must be blended or improved with chemical additives to produce marketable products.

As with chemical manufacturing, this is a continuous automated process using a vast series of pressure vessels and connecting piping, along with cooling towers. Employers engage a variety of personnel - engineers, plant operators (must have steam tickets), control room operators, maintenance staff (ticketed tradesman such as welders, pipefitters, electricians, etc.) and material handling personnel. If unionized workers are employed, they generally belong to the Energy & Chemical Workers Union.

Regenerating refining catalyst is also in this industry. Refineries use catalysts in the refining process to remove sulphur and carbon from raw crude oil. These catalysts can be used more than once if regenerated. The catalyst is a small pellet the size of the tip of a pencil. Regeneration of the catalyst begins with the screening of fine and oversize materials and trash. A conveyor belt then carries the catalyst through a Process Air Heat Exchanger which subjects the catalysts to a series of separate and distinct heating zones. High pressure air is induced by a blower to control temperature and remove contaminants such as steam. A maximum temperature of between 900 and 1,000 degrees F. is usually reached. The catalyst is then cooled, rescreened, loaded into drums and made ready for storage.

All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.

Underwriting Considerations:

Crude oil refining for the most part is conducted by major integrated oil companies. However, this is considered to be a 'downstream' activity of the petroleum industry, separate and distinct from field production activities. In Western Canada, refineries have been built primarily to manufacture gasoline, diesel fuel and asphalt and are classified separately from other upstream oil and gas companies.

Refiners may conduct trucking operations, delivering their own product to bulk oil agents and retail marketing outlets.

These types of businesses may contract out the plant maintenance or day to day maintenance. The subcontractor is classified in the industry they are conducting: industry 40400, for shut down plant maintenance or industry 42129, for the ongoing or the day to day maintenance of the plant.

Industry Custom Pricing: Modified Experience Rating

This industry has chosen to participate in Industry Custom Pricing effective January 1, 2011. For employers participating in the Experience Rating Plan for Large Employers, the following experience rating features will be used in determining their premium rate:

-Maximum discount or surcharge of 60%
-Participation rate of 1% for every $4000 in premiums
-Maximum participation of 100%
-Maximum experience used of 100%

Premium Rate History:

Activities:

Crude Oil Refineries
Refining Catalysts, Off-Site Regeneration of

Rate Group History:

In 1992, a number of refining and chemical manufacturing industry classifications were consolidated into this rate group, to bring the industries that perform a molecular restructuring process using hydrocarbon feedstock together.

In 1995, a number of industry classifications were consolidated with existing industry classifications within this rate group.

This industry includes businesses that produce oil, gasoline products and lubricants through the refining of crude oil.

Premium Rate History:

Activities:

Crude Oil Refineries
Refining Catalysts, Off-Site Regeneration of

Operation Details:

Crude oil refining is the process of separating the hydrocarbon streams. As a process, refining begins by boiling the crude oil past its evaporation point. Fractional distillation progressively separates the crude oil into the various streams, i.e., different hydrocarbons have different boiling points thus each hydrocarbon can be 'drawn off' as the gas cools to a liquid state while rising in cooling towers. Refining may incorporate other chemical processes such as cracking and reforming to assist in separating the hydrocarbons.

Some of the hydrocarbons - gasoline, lubricants - must be blended or improved with chemical additives to produce marketable products.

As with chemical manufacturing, this is a continuous automated process using a vast series of pressure vessels and connecting piping, along with cooling towers. Employers engage a variety of personnel - engineers, plant operators (must have steam tickets), control room operators, maintenance staff (ticketed tradesman such as welders, pipefitters, electricians, etc.) and material handling personnel. If unionized workers are employed, they generally belong to the Energy & Chemical Workers Union.

Regenerating refining catalyst is also in this industry. Refineries use catalysts in the refining process to remove sulphur and carbon from raw crude oil. These catalysts can be used more than once if regenerated. The catalyst is a small pellet the size of the tip of a pencil. Regeneration of the catalyst begins with the screening of fine and oversize materials and trash. A conveyor belt then carries the catalyst through a Process Air Heat Exchanger which subjects the catalysts to a series of separate and distinct heating zones. High pressure air is induced by a blower to control temperature and remove contaminants such as steam. A maximum temperature of between 900 and 1,000 degrees F. is usually reached. The catalyst is then cooled, rescreened, loaded into drums and made ready for storage.

All employers in this industry are members of Energy Safety Canada (ESC). Safety associations represent the interests of employers and promote workplace safety through education and other initiatives. Improved workplace safety can result in fewer claims and help lower premiums. A portion of premiums collected is allocated to the association to support these initiatives.

Underwriting Considerations:

Crude oil refining for the most part is conducted by major integrated oil companies. However, this is considered to be a 'downstream' activity of the petroleum industry, separate and distinct from field production activities. In Western Canada, refineries have been built primarily to manufacture gasoline, diesel fuel and asphalt and are classified separately from other upstream oil and gas companies.

Refiners may conduct trucking operations, delivering their own product to bulk oil agents and retail marketing outlets.

These types of businesses may contract out the plant maintenance or day to day maintenance. The subcontractor is classified in the industry they are conducting: industry 40400, for shut down plant maintenance or industry 42129, for the ongoing or the day to day maintenance of the plant.

Industry Custom Pricing: Modified Experience Rating

This industry has chosen to participate in Industry Custom Pricing effective January 1, 2011. For employers participating in the Experience Rating Plan for Large Employers, the following experience rating features will be used in determining their premium rate:

-Maximum discount or surcharge of 60%
-Participation rate of 1% for every $4000 in premiums
-Maximum participation of 100%
-Maximum experience used of 100%

Rate Group History:

In 1992, a number of refining and chemical manufacturing industry classifications were consolidated into this rate group, to bring the industries that perform a molecular restructuring process using hydrocarbon feedstock together.

In 1995, a number of industry classifications were consolidated with existing industry classifications within this rate group.