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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.
1997 Civil/Criminal Penalties Summary
Penalties Paid in the 4th Quarter of 1997
(10/1/97 12/31/97)
|
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
(22 KB PDF)
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 Energy and 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.
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