Hi robertmee,
The reset button is sort of mis-labelled by my steam engineer. The reset button actually never resets anything unless you place the HOA in OFF first, like a 2-hand operation. The code has changed significantly since I posted, and we worked out all possible failure situations.
The reset button acts like a START permissive, if all other permissives are met and the HOA is in Auto, then 'reset' allows the timers to start and the valve to open etc. If failure occurs, an operator MUST turn the HOA OFF, then AUTO then 'reset'.
I asked the latch question because even if timer rung conditions remained true, my TON never 'showed' it's DN bit long enough for other rungs to sense there was a problem, so I latched it, now everything works perfectly.
I figured if my timer elapsed the time setpoint, regardless if the rung was still true or not, the DN bit would be on (1) until the timer was reset. Perhaps this is true for other processors, I am using a MicroLogix 1500.
Thanks to all for your help!