1997 OCS Civil/Criminal Penalties Summary

Operator Name and Case No.	Violation and Date(s)	Penalty Paid and Date Paid	Regulation(s) Violated (30 CFR)
Panaco Inc GOM-96-04	Drilling operations were conducted with an inoperable mud return indicator. 06/13/95	$10,000 10/29/97	250.60.c.2.iii
Energy Development Corporation GOM-96-26	Failure to install Gas Detection System/vent; hydraulic control line for surface controlled subsurface safety valve (SCSSV) on Well A-5 leaked oil into the Gulf of Mexico 01/27/95 - 02/09/95	$10,000 10/09/97	250.123.b.9 250.40.a
Vastar Resources Inc GOM-96-33	Pressure safety high level (PSHL) bypassed for Well G-8; Well D-35 continued to produce after safety valve (SSV) was found to be leaking; Well A-9D continued to produce after flow safety valve (FSV) failed a leakage test; Well A-25A continued to produce after SCSSV failed to test; Well A-28A continued to produce after FSV failed a leakage test. 09/07/95	$40,500 10/16/97	250.123.c.1 250.124.a.4 250.124.a.5 250.123.c.1.i
Shell Offshore Inc GOM-96-35	Unsafe trap door on pig launcher (missing bolts). 10/18/95	$8,000 09/30/97	250.20.a
Mobil Oil Exploration & Production GOM-97-12	Seven SCSSV's not tested within the required timeframe; Pressure Safety Valve (PSV) blocked out of service on the water polisher. 09/05/96 - 12/04/96	$45,000 12/01/97	250.123.a.c.1.i 250.123.c.1
Kerr-McGee Corporation GOM-97-14	Level sensor low (LSL) on wet and dry oil tanks was blocked out of service. 11/07/96	$8,000 10/30/97	250.123.c
Norcen Explorer Inc GOM-97-16	The fuel supply valve for both sump pumps was bypassed. 02/06/97	$5,000 11/14/97	250.123.c.1
Total Penalties Paid: 9/1/97 - 12/31/97 7 Cases: $126,500

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.

The Oil Pollution Act (OPA 90) strengthened section 24 of the OCS Lands Act Amendments of 11038. Subtitle B of OPA 90, entitled "Penalties," increased the amount of the civil penalty from a maximum of $10,000 to a maximum of $20,000 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 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, the 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 OPA 90 require the Secretary of the Interior 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.

On September 1, 1997, the Associate Director for Offshore Minerals Management issued a notice informing lessees and operators of Federal oil, gas, and sulphur leases on the outer continental shelf that the Minerals Management Service (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.