[Federal Register Volume 64, Number 54 (Monday, March 22, 1999)]
[Notices]
[Pages 13811-13814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-6868]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf (OCS) Civil Penalties

AGENCY: Minerals Management Service (MMS).

ACTION: Notice Summarizing OCS Civil Penalties Paid, January 1, 1998--
December 31, 1998.

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SUMMARY: This notice provides a listing of civil penalties paid January 
1, 1998, through December 31, 1998, for violations of the OCS Lands 
Act. The goal of the MMS OCS Civil Penalties Program is to ensure safe 
and clean operations on the OCS. Through the pursuit, assessment, and 
collection of civil penalties and referrals for the consideration of 
criminal penalties, we designed the program 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 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 $20,000 per violation for 
each day of noncompliance. More important, 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, we published new regulations implementing the 
civil penalty provisions of the OCS Lands Act. Written in ``plain 
language,'' 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 increased the maximum civil penalty to $25,000 per day, per 
violation.
    Between August 18, 1990, and December 31, 1998, we initiated 250 
civil penalty reviews, assessed 151 civil penalties, and collected 
$2,678,020 in fines. We dismissed 24 cases, and 75 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 we will publish an annual 
summary of OCS civil penalties paid. The annual

[[Page 13812]]

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, 1998, and December 31, 1998. 
Please note, we published a direct final rule (5/29/98, 63 FR 29477) 
that renumbers each section in 30
    CFR part 250. The regulations cited in the table are the citation 
numbers that were current at the time of the violation and do not 
reflect the redesignation.
    A quarterly update of this 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 Penalties Paid--Calendar Year 1998
----------------------------------------------------------------------------------------------------------------
                                                                       Penalty
    Operator name and case No.      Violation summary and violation    paid and    Regulation(s) violated 30 CFR
                                                date(s)               date paid
----------------------------------------------------------------------------------------------------------------
Exxon Corp, PAC-96-01............  The failure to close pig              $25,000  250.40(a)
                                    launcher drain valves allowed        3/24/98
                                    oil to flow into the Pacific
                                    Ocean. 5/1/96.
Union Pacific Resource, GOM-96-37  Sump Pump found to be                  $9,000  250.123(c)(1), 250.40(b)(4)
                                    inoperable; pressure safety          1/14/98
                                    high level (PSHL) for the sump
                                    pump bypassed; PSHL for the
                                    platform fuel gas filter
                                    bypassed. 5/7/95.
Shell Offshore Inc, GOM-97-05....  The gas and fire detection            $18,000  250.124(a)(8)
                                    systems for three platforms          2/12/98
                                    were not tested within the
                                    required timeframes. 02/26/96-
                                    02/27/96.
Shell Offshore Inc, GOM-97-06A...  A breaker used to conduct an         $75,0000  250.20(a)
                                    emergency shut down (ESD) test       5/07/98
                                    had a bad transformer. On
                                    numerous occasions when the ESD
                                    test was performed, the
                                    operator would have to excite
                                    the transformer by pulling a
                                    480 volt cable out of the
                                    breaker and then be repowered
                                    with the 480 volt cable
                                    removed. The operator would
                                    then stab the 480 volt cable
                                    back into the breaker causing
                                    an arc. 05/27/96-07/10/96.
SOCO Offshore Inc, GOM-97-07.....  Burner safety low for heater          $40,000  250.122(b)
                                    treater inoperable. 07/30/96-11/    04/16/98
                                    12/96.
CNG Producing Company, GOM-97-08.  Wells A-2, A-4, A-9, A-10, and A-     $40,000  250.123(c)(1)
                                    14 surface controlled               05/19/98
                                    subsurface safety valves
                                    (SCSSV) were bypassed with the
                                    wells hydraulic control lines
                                    isolation vales closed. The
                                    wells were not attended or
                                    flagged. 11/03/96-11/04/96.
Conoco Inc, GOM-97-13............  ESD was bypassed on Subsea Well        $5,000  250.20(a) 250.53(c)
                                    No. 5. 09/20/95.                    01/26/98
Union Pacific Resource, GOM-97-15  The level safety high (LSH) and        $5,000  250.123(c)(1)
                                    level safety low (LSL) were         02/18/98
                                    bypassed on the fuel gas
                                    scrubber. 12/10/96.
Phillips Petroleum Company, GOM-   Multiple safety devices were not      $72,500  250.124(a)(3)(i), 250.124
 97-17.                             tested within the required time     03/26/98   (a)(3)(ii), 250.124(a) (4),
                                    frame. 11/20/96.                               250.124(a) (5), 250.124(a)
                                                                                   (10)
Century Offshore Management, GOM-  The total safety system               $66,000  250.123(c)(1)
 97-18.                             shutdown, the performax, and        01/15/98
                                    the LSH on the skimmer sump
                                    tank were bypassed. 01/16/97-01/
                                    19/97.
Walter Oil & Gas Corp, GOM-97-19.  Well A-1 hydraulic control line        $5,000  250.123(c)(1)
                                    to SCSSV closed and not flagged     02/18/98
                                    or monitored. 02/12/97.
Walter Oil & Gas Corp, GOM-97-25.  Multiple safety devices were          $17,000  250.123(c)(1)
                                    bypassed on the pipeline pumps,     06/23/98
                                    oil surge tank, and sump tank.
                                    03/22/97.
Shell Offshore Inc, GOM-97-28....  A flash fire occurred when using      $12,000  250.123(b)(10)
                                    a standard electric drill to        06/04/98
                                    drill holes in the floatation
                                    cell. 06/08/97.
Chevron USA Inc, GOM-97-29.......  There was not an operable            $162,000  250.123(b)(8)(i)
                                    firewater system or approved        02/23/98
                                    chemical firefighting system on
                                    the platform. 07/3/96-07/29/96.
Conoco Inc, GOM-97-31............  There were 2 openings on the           $5,000  250.20(a)
                                    production deck where grating       05/27/98
                                    had been removed. There were no
                                    barricades or flagging
                                    indicating the holes; there was
                                    no one monitoring the hole. 05/
                                    08/97.
Chevron USA Inc, GOM-97-32.......  During the positioning of a lift      $10,000  250.20(a)
                                    barge, the legs of the barge        06/04/98
                                    ruptured a high pressure gas
                                    pipeline. The pipelines were
                                    not marked nor was the captain
                                    of the vessel made aware of the
                                    pipelines location. 02/02/97.
Chevron USA Inc, GOM-97-33.......  ESD stations were bypassed at         $10,000  250.123(c)(1)
                                    the supply control panel. ESD       04/02/98
                                    station switches in the
                                    wellbay, compressor, blowcase,
                                    and +10-foot deck level areas
                                    did not activate the ESD. 09/06/
                                    96.
Taylor Energy Company, GOM-97-34.  SCSSV was blocked out of service       $6,500  250.123(c)(1),
                                    on Well E-17; tubing plug was       05/15/98  250.124(a)(1)(iii)
                                    not tested within the required
                                    time period for Well E-5. 07/03/
                                    96.
Chevron USA Inc, GOM-97-36.......  An employee was injured when he       $15,000  250.20(a)
                                    fell through open grating with       03/4/98
                                    no barrier. 03/13/97.
Chevron USA Inc, GOM-97-38.......  Two workers did not have fall         $10,000  250.20(a)
                                    protection secured while            05/06/98
                                    working near an open hole. 02/
                                    05/97.
Coastal Oil & Gas Corp, GOM-97-41  Numerous safety devices blocked      $135,000  250.123(c)(1)
                                    out of service at the main           08/3/98
                                    control panel. 04/2/97.
Shell Offshore Inc, GOM-97-42....  The gas and fire detection            $10,000  250.124(a)(8)
                                    systems were not tested within      06/15/98
                                    the required timeframes. 06/24/
                                    97.
Walter Oil & Gas Corp, GOM-97-44.  The LSL sensor for the                $10,000  250.123(b)(7)(i)
                                    Compressor Suction Scrubber         06/11/98
                                    failed to operate. The
                                    adjustment screw was set in
                                    such a manner that the sensor
                                    would not activate (bypassed).
                                    06/01/97.
Ocean Energy Inc, GOM-97-45......  A pollution incident occurred         $15,000  250.40(a), 250.123(c)(1)
                                    because the shutdown relay on        10/9/98
                                    floatation cell was blocked out
                                    of service (bypassed). 03/4/97.

[[Page 13813]]

 
Norcen Explorer Inc, GOM-97-46...  Safety devices on 7 vessels were    $103,200,  250.40(a), 250.121(e)(3),
                                    found bypassed. Pollution           12/29/98   250.123(c)(1)
                                    occurred when the LSH on the
                                    bad oil tank was bypassed. Well
                                    A-10 produced for 32 days
                                    without a subsurface safety
                                    valve. 01/14/97--06/29/97.
Ocean Energy Inc, GOM-97-48......  Three open holes were not             $15,000  250.20(a)
                                    properly barricaded or flagged.     07/09/98
                                    06/19/97.
Burlington Resources, GOM-97-49..  LSH on Vent Scrubber was               $5,000  250.123(c)(1)
                                    inoperable. 07/09/97.               05/05/98
Panaco Inc, GOM-97-50............  Platform sump system was              $64,000  250.40(b)(4), 250.122(b)
                                    inoperable; sump tank LSH was        08/6/98
                                    not tested within the required
                                    time period. 04/25/96.
Apache Corporation, GOM-97-51....  The safety system for the              $8,000  250.123(c)(1)
                                    compressor was bypassed at the      08/19/98
                                    master panel. 03/12/96.
Conoco Inc, GOM-97-52............  LSH for the platform sump tank         $8,000  250.123(c)(1)
                                    was bypassed. 02/22/97.             05/18/98
Callon Petroleum Oper, GOM-97-54.  SCSSV for Well A-1 was bypassed       $10,000  250.123(c)(1)
                                    at the wellhead; isolation          05/06/98
                                    valve was closed during testing
                                    and remained closed for 2 days
                                    until discovered during
                                    inspection. 07/10/97-07/11/97.
Seneca Resources Corp, GOM-97-58.  The SCSSV was detected in the by-      $6,000  250.123(c)(1)
                                    pass mode for Well E016. 02/03/     06/22/98
                                    97.
Marathon Oil Company, GOM-97-59..  The air supply valves to the air      $26,000  250.56(d)(2)
                                    pumps that operate the blowout      06/04/98
                                    preventer accumulator charging
                                    system were detected in the by-
                                    passed position during the
                                    inspection. 07/18/97-07/25/97.
Norcen Explorer Inc, GOM-97-60...  PSHL bypassed on Well 16 A;           $12,000  250.123(c)(1), 250.123(c)(4)
                                    SCSSV bypassed on Well 32. 09/      04/17/98
                                    07/97.
Nuevo Energy Company, PAC-98-01..  Failure to have a qualified           $35,000  250.20(a), 250.20(c),
                                    crane operator, exceeding           07/30/98   250.40(a)
                                    dynamic rating for crane, and
                                    failure to prevent pollution.
                                    01/15/98.
Conoco Inc, GOM-98-02............  When Plug and Abandon operations       $9,000  250.20(a)&(b)
                                    were being conducted, a small       05/18/98
                                    fire flashed from a pneumatic
                                    saw that was being powered by
                                    instrument gas to cut casing.
                                    The fire burned an employee
                                    standing next to the operator
                                    of the saw. 08/06/97.
Nuevo Energy Company, PAC-98-02..  Failure to perform pre-use            $18,000  250.20(c)
                                    inspection on a crane. 04/4/98.     09/10/98
Taylor Energy Company, GOM-98-03.  Taylor did not test the safety         $7,000  250.124(a)(3), 250.124(a)(5),
                                    devices within the required 6-      03/19/98   250.124(a)(6), 250.20 (a)&(b)
                                    week interval. 08/20/97.
Panaco Inc, GOM-98-05............  The fire watch did not have a         $15,000  250.52(a)(4), 250.52(d)(2),
                                    portable gas detector while         06/05/98   250.123(c)(1)
                                    conducting welding operations.
                                    Production equipment within 35
                                    feet of the welding did not
                                    have flame-proof covers. The
                                    platform sump's LSH was pinned
                                    out of service. 08/18/97--09/02/
                                    97.
Ocean Energy Inc, GOM-98-06......  The hydraulic line for Well 9          $6,000  250.123(c)(1)
                                    was found isolated in the           06/12/98
                                    hydraulic panel (manual
                                    override) in a closed position.
                                    The valve was not flagged or
                                    being monitored. 07/21/97.
Shell Deepwater Development, GOM-  An employee was observed working      $15,000  250.20(a)(b)
 98-07.                             near an unflagged open hole          09/1/98
                                    that did not have a barrier
                                    around it. The employee was not
                                    wearing full protection gear.
                                    09/19/97.
Samedan Oil Corporation, GOM-98-   The PSHL was locked in open           $24,000  250.123(b)(1)(i),
 08.                                position, no fire detection          07/8/98   250.123(b)(9), 250.123(c),
                                    system, pressure safety element                250.123(c)(1)
                                    set higher than allowed, and
                                    the LSH was bypassed. 08/10/96--
                                    10/8/96.
Gulfstar Energy Inc, GOM-98-09...  Failure to test pressure safety       $15,000  250.124(a)(2)
                                    valves. 03/15/96--01/15/97.         07/17/98
Aviva America Inc, GOM-98-16.....  The SCSSV was found bypassed for      $42,000  250.123(c)(1)
                                    6 wells. 12/18/97.                  09/10/98
OXY USA Inc, GOM-98-18...........  Rig personnel were working in a          5,00  250.20(a)
                                    hazardous area without wearing      06/22/98
                                    full protection gear. 09/18/97.
Ocean Energy Inc, GOM-98-24......  The hydraulic line for well 11-D       $6,000  250.123(c)(1)
                                    ball valve (SCSSV) found            12/21/98
                                    isolated at the tree. Valve was
                                    not flagged or being monitored.
                                    07/21/97.
Chevron USA Inc, GOM-98-25.......  ESD system remote on the boat         $15,000  250.123(c)(1)
                                    landing was bypassed. 11/24/97.     06/09/98
Chevron USA Inc, GOM-98-32.......  An injury occurred when the           $23,000  250.20(a)
                                    break-out tong was rigged up        06/17/98
                                    and used without hanging the
                                    tong off from an air hoist line
                                    and without securing the tong
                                    with a snub line. 11/11/97.
Unocal Exploration Corp, GOM-98-   The LSH on the sump was                $3,000  250.40(a), 250.123(c)(1)
 33.                                bypassed. 09/27/97.                 09/15/98
Flextrend Development, GOM-98-34.  The SCSSV was bypassed for Wells      $24,000  250.123(c)(1)
                                    A-2, A-4, and A-5. 11/16/97--11/    08/12/98
                                    17/97.
                           Total Penalties Paid 1/1/98-12/31/98; 50 Cases: $1,297,200
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[[Page 13814]]

    Dated: March 16, 1999.
Carolita U. Kallaur,
Associate Director for Offshore Minerals Management.
[FR Doc. 99-6868 Filed 3-19-99; 8:45 am]
BILLING CODE 4310-MR-P