Civil construction company Whittens Group has been convicted and fined $425,000 over the death of a worker at the Inpex Onshore LNG Facility in 2017.
While working for subcontractor Whittens, Carl Delaney, 56, was conducting repair works on an LNG tank on November 29, 2017, when he became submerged in perlite, a powdery insulation material likened to quicksand, and could not be revived.
He was working alone at the time of his death, and a post-mortem exam report found evidence "that all persons working in the tanks were from time to time found unconnected" to a safety system comprising a harness and two lanyards that connected to a scaffold buggy.
It is not known how Mr Delaney became submerged in the insulation material.
His employer, Whittens Group, pleaded guilty to failing to comply with a health and safety duty and was sentenced in the Darwin Local Court today.
In her sentencing remarks, Judge Tanya Fong Lim told the court that Whittens Group had not done enough to mitigate non-compliance by workers.
"What the defendant did not do after gaining knowledge that workers were not complying with safety procedures … was adjust the procedures to ensure further non-compliance," Judge Fong Lim said.
"Turning a blind eye to non-compliance makes deterrence a major factor in my consideration sentence.
"Dire consequences may happen should the companies not comply with their duties and keep their workers safe. There's a real possibility of other companies paying lip service to safety standards.
"A breach of this kind warrants conviction."
Judge Fong Lim noted that Whittens Group had "since reviewed its procedures and adjusted accordingly, and there have been no other breaches".
NT WorkSafe executive director Peggy Cheong said the case was an example of how documented plans, policies and procedures were useless if they were not adequately implemented and followed.
"The Inpex Onshore LNG Facility construction was an international joint venture partnership and significant major project for Northern Territory," she said.
"Fitting for such a high-profile project and in line with the hazardous work being performed at the time of the incident, six separate plans and procedures were in place to ensure the safety of the workers working in the LNG tanks.
"It's not enough to just produce safe work method statements, job hazard assessments, and other plans or procedures if your workers do not follow them.
"Proper implementation and adequate supervision of workers, especially those performing high risk work is required by employers."