[Federal Register Volume 63, Number 21 (Monday, February 2, 1998)]
[Notices]
[Pages 5401-5403]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2193]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf (OCS) Civil Penalties

AGENCY: Minerals Management Service, Interior.

ACTION: Notice Summarizing OCS Civil Penalties Paid, September 1, 1997 
through December 31, 1997.

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SUMMARY: This notice provides a listing of civil penalties paid 
September 1, 1997 through December 31, 1997, for violations of the 
Outer Continental Self Lands Act (OCSLA). The goal of the MMS OCS Civil 
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

[[Page 5402]]

criminal penalties, the program is designed to encourage compliance 
with OCS statutes and regulations. 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: Greg Gould, Program Coordinator at 
(703) 787-1591.

SUPPLEMENTARY INFORMATION: The Oil Pollution Act (OPA 90) strengthened 
section 24 of the OCSLA. 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 (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, MMS published new regulations implementing the 
civil penalty provisions of the OCSLA. 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 to adjust the maximum civil penalty to reflect 
any increases in the Consumer Price Index. The new rule increases the 
maximum civil penalty to $25,000 per day per violation.
    Between August 18, 1990 and December 31, 1997, MMS initiated 170 
compliance reviews resulting in 170 civil penalty cases. MMS assessed 
102 civil penalties and collected $1,398,820 in fines. Eighteen cases 
were dismissed and 50 are under review.
    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 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 September 1, 1997 through December 31, 1997. A quarterly update of 
this list will be posted on the MMS worldwide web home page, http://
www.mms.gov.

           Summary of OCS Civil Penalties Paid 9/1/97-12/31/97          
------------------------------------------------------------------------
                                  Regulation(s) violated   Penalty paid 
    Company name (case No.)        (violation date(s))      (date paid) 
------------------------------------------------------------------------
Panaco Inc. (GOM-96-04)........  30 CFR                          $10,000
                                  250.60(c)(2)(iii).          (10/29/97)
                                 (06/13/95).............                
                                                                        
Violation Summary: Drilling operations were conducted with an inoperable
 mud return indicator.                                                  
                                                                        
Energy Development Corp. (GOM-   30 CFR 250.123(b)(9)...  $10,000 (10/09/
 96-26).                         30 CFR 250.40(a).......             97)
                                 (01/27/95-02/09/95)....                
                                                                        
Violation Summary: Failure to install Gas Detection System/vent;        
 hydraulic control line for surface controlled substance safety valve   
 (SCSSV) on Well A-5 leaked oil into Gulf of Mexico.                    
                                                                        
Vastar Resources, Inc. (GOM-96-  30 CFR 250.123(c)(1)...         440,500
 33).                            30 CFR 250.124(a)(4)...      (10/16/97)
                                 30 CFR 250.124(a)(5)...                
                                 30 CFR 250.124(a)(1)(i)                
                                 (09/07/95).............                
                                                                        
Violation Summary: Pressure safety high level (PSHL) bypassed for Well G-
 8; Well D-35 continued to produce after surface 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 to leakage test.                                                
                                                                        
Shell Offshore, Inc. (GOM-96-    30 CFR 250.20(a).......          $8,000
 35).                            (10/18/95..............      (09/30/97)
                                                                        
Violation Summary: Unsafe trap door on pig launcher (missing bolts).    
                                                                        
Mobil Oil Exploration &          30 CFR 250.124(a)(1)(i)         $45,000
 Production (GOM-97-12).         30 CFR 250.123(c)(1)...      (12/01/97)
                                 (09/05/96-12/04-96)....                
                                                                        
Violation Summary: 7 SCSSV's not tested within the required timeframe;  
 Pressure Safety Valve (PSV) blocked out of service on the water        
 polisher.                                                              
                                                                        
Kerr-McGee Corporation (GOM-97-  30 CFR 250.123(c)(1)...          $8,000
 14).                            (11/07/96).............       (10/30/97
                                                                        
Violation Summary: Level sensor low (LSL) on wet and dry oil tanks was  
 blocked out of service.                                                
                                                                        
Norcen Explorer, Inc. (GOM-97-   30 CFR 250.123(c)(1)...                
 16)                             (02/06/97).............                
                                                                  $5,000
                                                                        
Violation Summary: The fuel supply valve for both sump pumps bypassed.  
                                                                        
      Total Penalties Paid, 9/1/ .......................        $126,500
       97-12/31/97, 7 Cases.                                            
------------------------------------------------------------------------


[[Page 5403]]

    Dated: January 26, 1998.
Thomas R. Kitsos,
Associate Director for Offshore Minerals Management.
[FR Doc. 98-2193 Filed 1-30-98; 8:45 am]
BILLING CODE 4310-MR-M