Mizushima B, which has a base oil plant with 4,000 barrel per day API Group I capacity and 400 b/d of Group III capacity, had just reopened Nov. 28 after it was forced to close down its refinery for three months to accommodate the METI inspections. At that time, an internal investigation revealed that false inspection records had been filed for some liquefied petroleum gas (LPG) tanks at the refinery, which represents 15 percent of the company’s total refining capacity.

The new sanctions will include a two-year revocation of METIs safety accreditation for the plant, which will create further administrative hurdles for the companys production at Mizushima. JX will also be responsible for an enhanced schedule of inspections by the local government in Okayama.

But perhaps most damaging is the promise from METI to check the companys other refineries in Japan for similar deficiencies. While there was no timetable attached for the other inspections, it indicated that the countrys most important regulatory body would keep a close eye on JX.

The plant also was forced to shut down its Mizushima A refinery for four months as a result of a destructive fire in August 2012. JX president and CEO Seiichi Isshiki released a statement last week apologizing and promised stronger adherence to safety inspections required by the gas safety law.

Isshiki also announced that he and other senior officials at JX will take a 30 percent salary cut in March 2013 to demonstrate accountability of the companys leaders. Officials in charge of the Mizushima plant may also face disciplinary measures. When contacted, JX did not elaborate further.