# Outer Continental Shelf (OCS) Civil/Criminal Penalties
**AGENCY:**
Minerals Management Service (MMS), Interior.
**ACTION:**
Notice summarizing OCS civil penalties paid, January 1, 2003 through December 31, 2003.
**SUMMARY:**
This notice provides a listing of civil penalties paid January 1, 2002 through December 31, 2002, for violations of the OCS Lands Act. The purpose of publishing the penalties summary is to provide information to the public on violations of special concern in OCS operations and to provide an additional incentive for safe and environmentally sound operations.
**FOR FURTHER INFORMATION CONTACT:**
Doug Slitor (Program Coordinator), Safety and Enforcement Branch, Engineering and Operations Division, (703) 787-1030.
**SUPPLEMENTARY INFORMATION:**
The Oil Pollution Act of 1990 (OPA 90) strengthened section 24 of the OCS Lands Act Amendments of 1978. Subtitle B of OPA 90, titled “Penalties,” increased the amount of the civil penalty from a maximum of $10,000 to a maximum of $25,000 per violation for each day of noncompliance. More importantly, in cases where a failure to comply with applicable regulations constitutes or constituted a threat of serious, irreparable, or immediate harm or damage to life (including fish and other aquatic life); property; any mineral deposit; or the marine, coastal, or human environment; OPA 90 provided the Secretary of the Interior (Secretary) with the authority to assess a civil penalty without regard to the requirement of expiration of a period of time allowed for corrective action.
On August 8, 1997 (62 FR 42668), MMS published new regulations implementing the civil penalty provisions of the OCS Lands Act. Written in “plain English,” the new question-and-answer format provides a better understanding of the OCS civil penalty process. In addition, the provisions of the OPA 90 require the Secretary to adjust the maximum civil penalty to reflect any increases in the Consumer Price Index. The new rule increased the maximum civil penalty to $25,000 per day, per violation. Please note, subsequent to publishing the new regulations, MMS made several corrections and amendments, including the appeals procedures. These were published at 63 FR 42711, 8/11/98; 64 FR 9066, 2/24/99; 62 FR 9065, 2/24/99, and 64 FR 26257, 5/13/99.
Between August 18, 1990, and January 2003, MMS initiated 450 civil penalty reviews. Operators have paid 341 civil penalties for a total of $9,353,342 in fines. Sixty-two cases were dismissed, 5 cases were merged, and 44 are under review.
On September 1, 1997, the Associate Director of Offshore Minerals Management issued a notice informing lessees and operators of Federal oil, gas, and sulphur leases on the OCS that MMS will annually publish a summary of OCS civil penalties paid. The annual summary will highlight the identity of the party, the regulation violated, and the amount paid. The following table provides a listing of the penalties paid between January 1, 2002, and December 31, 2002. Please note that the MMS published a direct final rule (5/29/98, 63 FR 29477) that renumbers each section in 30 CFR part 250. A quarterly update of the list, along with additional information related to the renumbering of the regulations, is posted on the MMS worldwide web home page, *http://www.mms.gov.*
**OCS Civil/Criminal Penalties Program**
The goal of the MMS OCS Civil/Criminal Penalties Program is to assure safe and clean operations on the OCS. Through the pursuit, assessment, and collection of civil penalties and referrals for the consideration of criminal penalties, the program is designed to encourage compliance with OCS statutes and regulations.
The following acronyms are used in this table:
ESD (emergency shutdown device);
INC (incident of noncompliance);
LACT (liquid automatic custody transfer);
LSH (level safety high);
LSL (level safety low);
MAWP (maximum allowable working pressure);
NON (notice of noncompliance);
PSH (pressure safety high);
PSHL (pressure safety high/low);
PSL (pressure safety low);
PSV (pressure safety valve);
SDV (shutdown valve);
SSSV (surface-controlled subsurface safety valve);
SSV (surface safety valve).
| Operator name and Case No. | Violation and date(s) | Penalty paid and date paid | Regulation(s) violated (30 CFR) |
| --- | --- | --- | --- |
| The Louisiana Land and Exploration Company—G-2000-047 | The master shutdown devices for bad oil pump number 1, bad oil pump number 2 and for 7 wells were bypassed; as well as the pressure safety low on the fuel gas scrubber. | $85,000 | 250.803(c)(1) |
| Fairways Specialty Sales & Service, Inc.—G-2001-004 | Operator did not conduct an annual crane inspection and the Low Pressure Oil Separator was operating above the MAWP. | $83,000 | 250.107(a) |
| El Paso Production Oil & Gas Company—G-2001-005 | The level safety high on the sump tank was bypassed. | $13,000 | 250.803(c)(1) |
| Matrix Oil & Gas, Inc.—G-2001-006 | INC issued for a hole was in piping caused by corrosion approximately 1 foot down stream of the PSV on the test separator. | $17,000 | 250.107 |
| Fairways Specialty Sales & Service, Inc.—G-2001-009 | Facility was not identified as required and the operator did not correct the violation until 209 days after being cited. Civil Penalty is being pursued as a failure to correct. Facility had corrosion problems including rusty handrails, nuts, bolts, nipples, and valves and the operator did not correct the violation until 213 days after being cited. Civil Penalty is being pursued as a failure to correct. | $84,800 | 250.154 |
| Fairways Specialty Sales & Service, Inc.—G-2001-010 | Facility was not identified as required and the operator did not correct the violation until 90 days after being cited. Civil Penalty is being pursued as a failure to correct. Facility had corrosion problems including rusty piping, handrails, nuts, bolts, nipples, and valves, and the operator did not correct. | $26,200 | 250.107 |
| EEX Corporation—G-2001-013 | Pressure safety low on condensate pump bypassed. | $7,500 | 250.803(c)(1) |
| El Paso Production Oil & Gas Company—G-2001-015 | There were 5 wells where the downhole tubing plug was not tested within the required timeframe. | $7,000 | 250.804(a)(1)(iii) |
| Texaco Exploration and Production Inc.—G-2001-017 | Inoperable Gas Detection system in the drilling mud returns. | $12,500 | 250.410(c)(2)(iv) |
| Amerada Hess Corporation—G-2001-018 | ESD (emergency shutdown) station on boat landing was bypassed; the PSHL (pressure safety high/low) on the departing oil pipeline was found bypassed; and the PSV (pressure safety valve) on the bulk oil dual separator was bypassed. | $36,000 | 250.803(c)(1) |
| The Louisiana Land and Exploration Company—G-2001-020 | The SSSV for Wells Nos. B-1 and B-3 was bypassed. | $20,000 | 250.803(c)(1) |
| Texaco Exploration and Production Inc.—G-2001-021 | Bypassed manual reset relay for the test separator. | $10,000 | 250.803(c)(1) |
| Chevron U.S.A. Inc.—G-2001-024 | The surface safety value (SSV) for Well C-7 was bypassed. | $20,000 | 250.803(c)(1) |
| BP Corporation North America Inc.—G-2001-025 | Level safety low (LSL) for glycol/hydrocarbon separator was found bypassed. | $20,000 | 250.803(c)(1) |
| El Paso Production GOM Inc.—G-2001-026 | Burner safety low on glycol reboiler was found bypassed. It was not flagged or being monitored at the time. | $12,000 | 250.803(c)(1) |
| El Paso Production Oil & Gas Company—G-2001-027 | ESD station blocked out of service by a closed manual isolation block valve located on the sub-cellar deck exit stairway to the boating landing. | $17,000 | 250.803(c)(1) |
| Chevron U.S.A. Inc.—G-2001-028 | Pollution occurred when both the wet oil tank and sump tank carried over. The level safety high (LSH) on the wet oil tank did not shut in the platform as indicated on SAFE chart. | $36,000 | 250.300(a) |
| Denbury Resources Inc.—G-2001-029 | A major component of the approved dry chemical firefighting system was inoperable. | $15,000 | 250.803(b)(8) |
| Panaco, Inc.—G-2001-030 | The ultraviolet (UV) fire detection system for turbine generators was bypassed plus no record of testing the fire detection system from 5/2/99 to 5/2/01. | $151,000 | 250.804(a)(8) |
| NCX Company, Inc.—G-2001-031 | The 2″ ball valve for the bypass line, near the fuel gas scrubber shutdown valve (SDV), was in the half-open position rendering the SDV inoperative. | $12,000 | 250.803(c)(1) |
| Stone Energy Corporation—G-2001-034 | Five barrels of oil polluted the Gulf of Mexico. The pressure safety high/low and independent pressure safety high were bypassed. | $35,000 | 250.803(c)(1) |
| Energy Partners, Ltd.—G-2001-035 | The surface safety valve on Well C-1A was bypassed. | $10,000 | 250.803(c)(1) |
| Devon Energy Production Company, L.P.—G-2001-036 | Operating with an inoperable inlet SDV on the compressor suction scrubber while the compressor remained in service and on production for 76 days. | $15,200 | 250.803(b)(7)(iii) |
| Amoco Production Company—G-2001-037 | Fuel Gas Scrubber SDV bypassed and PSH nonfunctional. | $15,000 | 250.803(c)(1) |
| Energy Resource Technology, Inc.—G-2001-038 | The high-pressure freewater knockout separator panel was pinned out of service. | $15,000 | 250.803(c)(1) |
| NCX Company, Inc.—G-2001-039 | The manual emergency shutdown (ESD) station located on the east production deck stairway exit to the cellar deck was found disconnected from the facility ESD system, and the platform's monitoring gas detection system (ASH) was found bypassed. | $24,500 | 250.803(c)(1) |
| BP Exploration & Oil Inc.—G-2001-040 | Rig floor hand injured after receiving a shock from an improperly grounded skid mounted electrical pressure washer. | $23,000 | 250.114(c) |
| Apache Corporation—G-2001-041 | Surface safety valve (SSV) on Well No. A-5 was found pinned out of service. | $13,000 | 250.803(c)(1) |
| GOM Shelf LLC—G-2001-042 | The emergency shutdown stations (ESD's) at the southeast and northwest stairways at the +10 deck were discovered inoperable. The ESD's at the southwest and northeast boat landings were also discovered inoperable. | $60,000 | 250.803(b)(4) |
| Devon Energy Production Company, L.P.—G-2001-044 | The “total system bypass” was found in the bypass position on a slave panel. This bypassed the pressure safety high/low and level safety high on the fuel gas scrubber. | $3,000 | 250.803(c)(1) |
| Union Oil Company of California—G-2001-045 | The level safety high on the sump tank was bypassed. | $10,000 | 250.803(c)(1) |
| Union Oil Company of California—G-2001-047 | The emergency shutdown (ESD) station at the boat landing was found blocked out of service. | $5,000 | 250.803(c)(1) |
| Union Oil Company of California—G-2002-001 | The emergency shutdown (ESD) stations on the northwest, southwest, east, and west boat landings were all bypassed. | $20,000 | 250.803(c)(1) |
| Nuevo Energy Company—P-2002-001 | Failure to test fire and gas detection systems on required basis (every 3 months); 1 testing period missed. Failure to conduct required monthly testing for flow safety valves on water injection wells for 2 months; 2 testing periods missed. | $6,000 | 250.804(a)(8) |
| Union Oil Company of California—G-2002-003 | Pressure safety high/low and level safety high on fuel gas scrubber were found bypassed. | $17,500 | 250.803(c)(1) |
| Fairways Specialty Sales & Service, Inc.—G-2002-004 | Oil was observed entering the Gulf of Mexico from two different sources associated with the water clarifier: from the open end of an unapproved 4″ PVC line installed on the water overboard discharge line and extending approximately 20′ into the air, and directly from the water overboard discharge line due to a malfunctioning dump valve. | $42,500 | 250.802(e) |
| J.M. Huber Corporation—G-2002-005 | The sump pump was not operational resulting in pollution of crude oil into Gulf waters. | $35,000 | 250.300(b)(4) |
| Fairways Specialty Sales & Service, Inc.—G-2002-006 | Emergency shutdown stations at two boat landings and the shutdown valve to the test separator were bypassed. | $28,000 | 250.803(c)(1) |
| Linder Oil Company, A Partnership—G-2002-008 | The walkway to the sump tank, handrails on a stairway and +12 walkway, and grating at the wellbay area on the +12 level were not maintained in a safe condition. The walkway and handrails had corroded to the point of separation and the grating had missing sections. | $25,000 | 250.107 |
| Union Oil Company of California—G-2002-010 | Three emergency shutdown stations were bypassed at the +10 deck level. 10/29/01-11/06/01 | $15,000 | 250.803(c)(1) |
| Kerr-McGee Corporation—G-2002-011 | The surface-controlled subsurface safety valves in Wells A-6 & A-6D were bypassed for 11 days. | $66,000 | 250.803(c)(1) |
| Vastar Resources, Inc.—G-2002-012 | Two emergency shutdown stations were inoperable; one at the boat landing on the F structure and one at the boat landing on the I structure. | $37,000 | 250.803(b)(4) |
| Kerr-McGee Oil & Gas Corporation—G-2002-013 | Rusty vessel, walkways, stairways, and grating preventing safe operations. | $20,000 | 250.107 |
| Shell Offshore Inc.—G-2002-014 | Flowline pressure-activated relay had a pin inserted in it thereby bypassing the pressure safety high/low for flowline segment FA-2. | $12,000 | 250.803(c)(1) |
| Exxon Mobil Corporation—G-2002-015 | Secondary sump pump, approved in lieu of level safety high on sump tank, found out of service. | $15,000 | 250.802(e) |
| Seneca Resources Corporation—G-2002-016 | Surface-controlled subsurface safety valve (SSSV) for Well No. 15 was bypassed and out of service. | $32,000 | 250.803(c)(1) |
| J. M. Huber Corporation—G-2002-017 | Relay for Well Number 81 Surface Safety Valve pinned out of service. | $7,000 | 250.803(c)(1) |
| BP Exploration & Production Inc.—G-2002-018 | The oil low level sensor on the heater treater was not tested within the required timeframe (missed 13 monthly tests). | $39,000 | 250.804(a)(3) |
| Chevron U.S.A. Inc.—G-2002-019 | The gas sales pipeline (KAH 827) did not have secondary over-pressure protection. | $23,000 | 250.1002(d) |
| Burlington Resources Offshore Inc.—G-2002-020 | The firewater pump was in the manual mode instead of the automatic mode, as required by the approved SAFE chart. The float cell oil pump's shutdown valve was bypassed. | $47,500 | 250.802(e) |
| Remington Oil and Gas Corporation—G-2002-024 | Remote BOP control station was found inoperable. | $12,500 | 250.406(d)(3) |
| Vastar Resources, Inc.—G-2002-030 | Leaking valves causing gas blow by and incorrectly operated Flotation Cell causing gas accumulation resulting in a fire which required an emergency evacuation of personnel and a shut in of the facility. | $20,000 | 250.107 |
| Conoco Inc.—G-2002-032 | Surface-controlled subsurface safety valve for Well A-6 was blocked out of service. | $10,000 | 250.803(c)(1) |
| Conoco Inc.—G-2002-035 | Surface-controlled subsurface safety valve for Well A-5 was blocked out of service. | $5,000 | 250.803(c)(1) |
Dated: May 6, 2003.
E.P. Danenberger,
Chief, Engineering and Operations Division.