[Federal Register Volume 65, Number 47 (Thursday, March 9, 2000)]
[Notices]
[Pages 12571-12573]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-5712]


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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, 1999, 
through December 31, 1999.

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SUMMARY: This notice provides a listing of civil penalties paid January 
1, 1999, through December 31, 1999, for violations of the OCS Lands 
Act. 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 
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), 
(703) 787-1591.

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 $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 (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 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; 64 FR 9065, 2/24/99 and 64 FR 26257, 5/13/99.
    Between August 18, 1990, and January 31, 2000, MMS initiated 297 
civil penalty reviews. The MMS assessed 186 civil penalties and 
collected $3,539,520 in fines. Thirty-six cases were dismissed, 2 cases 
were merged, and 73 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 between January 1, 1999, and December

[[Page 12572]]

31, 1999. Please note that 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 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.
    In the following chart for regulations violated before the 
renumbering took effect, we show the regulation number at the time of 
violation and the redesignated section number.

                                            OCS Civil Penalties Paid
                                               Calendar Year 1999
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                                            Violation summary and    Penalty paid and    Regulation(s) violated
       Operator name and case No.             violation date(s)          date paid              (30 CFR)
----------------------------------------------------------------------------------------------------------------
W&T Offshore, Inc. G-1995-006..........  The subsurface safety         $15,000 6/8/99  250.121(h)(3)
                                          devices (SSSD's) for 3                        Redesignated
                                          wells were removed and                        250.801(h)(3)
                                          the wells were left
                                          unattended. 1/1/91-1/6/
                                          91, 10/11/91-10/23/91, 8/
                                          18/90-8/21/90, 10/27/90-
                                          11/2/90.
W&T Offshore, Inc. G-1995-007..........  The SSSD was removed from     $34,000 6/8/99  250.121(h)(3)
                                          Well No. 34 and left                          Redesignated
                                          unattended. 8/20/90-10/26/                    250.801(h)(3).
                                          90.
Shell Offshore, Inc. G-1997-035........  The pressure safety high/    $10,000 6/10/99  250.123(c)(1)
                                          low (PSHL) sensors for                        Redesignated
                                          the departing 6-inch                          250.803(c)(1).
                                          pipeline were found
                                          bypassed. 7/11/97.
ORYX Energy Company G-1997-039.........  A 5-by-7 foot open hole in     $5,000 2/1/99  250.20(a) Redesignated
                                          grating not flagged or                        250.120(a)
                                          barricaded. 5/14/97-5/14/
                                          97.
Amoco Production Company G-1997-047....  The emergency shut down       $25,000 1/4/99  250.73 Redesignated
                                          (ESD) station located                         250.503
                                          near the driller's
                                          console was not connected
                                          to the MI 622D ESD system
                                          from 9/12/97 (workover
                                          start date) through 9/16/
                                          97. 9/12/97-9/16/97.
Energy Development Corporation G-1998-   The surface controlled      $34,000 11/17/99  250.123(b)(9)
 004.                                     subsurface safety valve                       250.123(c)(1) 250.40(a)
                                          (SCSSV) was bypassed on                       Redesignated
                                          Wells A-1 and A-2. The                        250.803(b)(9)
                                          level safety high (LSH)                       250.803(c)(1) 250.300(a)
                                          was bypassed on the
                                          corrugated plate
                                          interceptor (CPI). There
                                          was no fire detection
                                          system in the bunkhouse/
                                          quarters. A sheen
                                          measuring \3/8\ mile long
                                          by 10 yards wide occurred
                                          when the sump pump was
                                          inoperable. 4/29/97.
Apache Corporation G-1998-010..........  The pressure safety high     $6,000 10/28/99  250.123(c)(1)
                                          (PSH) and pressure safety                     Redesignated
                                          low (PSL) for the first                       250.803(c)(1)
                                          stage compressor
                                          discharge were
                                          disconnected. 5/2/96.
Aviva America, Inc. G-1998-011.........  Not testing gas-detection     $3,000 3/25/99  250.124(a)(8)
                                          system (1 period) and not                     Redesignated
                                          testing fire-detection                        250.804(a)(8)
                                          system (2 periods). 6/23/
                                          97-6/30/97.
Vastar Resources, Inc G-1998-013.......  Condensate accumulator,       $20,000 7/8/99  250.122(b)
                                          condensate pump, skimmer                      250.123(b)(1)(i)
                                          pump and flotation pump                       250.123(b)(1)(iii)
                                          not equipped with fusible                     Redesignated 250.802(b)
                                          material. Pressure safety                     250.803(b)(1)(i)
                                          valve (PSV) on compressor                     250.803(b)(1)(iii)
                                          1st stage discharge and
                                          PSH on compressor 1st and
                                          2nd stage discharges set
                                          above the working
                                          pressure. 7/14/97-1/21/98.
Chieftain International (U.S.) Inc. G-   Pollution coming from the    $20,000 2/10/99  250.123(c)(1)
 1998-019.                                CPI Unit water overboard                      Redesignated
                                          line, the CPI Unit LSH                        250.803(c)(1)
                                          failed to activate and
                                          shut-in all wells. Well B-
                                          15 flows into low
                                          pressure system but
                                          serviced through high
                                          pressure system. The
                                          total select group on the
                                          panel was in bypass.
                                          Therefore, Well B-15
                                          would not shut-in. 10/10/
                                          97.
Callon Petroleum Operating Company G-    The level safety low (LSL)    $5,000 3/11/99  250.20(a) Redesignated
 1998-022.                                for the High Pressure                         250.120(a)
                                          Separator was leaking gas
                                          and water. 2/7/97.
Vintage Petroleum, Inc. G-1998-026.....  The manual block valve       $50,000 2/16/99  250.123(c)(1)
                                          below the pressure safety                     Redesignated 803(c)(1)
                                          valve on the compressor
                                          discharge was detected in
                                          the closed position. 1/19/
                                          98-1/28/98.
Shell Frontier Oil & Gas, Inc. G-1998-   No record of testing PSV's   $36,000 7/22/99  250.124(a)(2)
 029.                                     on 1st stage and 2nd                          Redesignated 804(a)(2)
                                          stage compressor
                                          discharge units located
                                          on South Pass 62 A, B,
                                          and C/D platforms. 9/29/
                                          97.
Stone Energy Corporation G-1998-038....  Operator failed to render    $12,000 1/22/99  250.52(d)(4) Redesignated
                                          a slop oil tank inert                         402(d)(4)
                                          prior to conducting
                                          burning operations on the
                                          tank. This action also
                                          was a failure to comply
                                          with the Welding,
                                          Burning, and Hot-Tapping
                                          Plan. 4/11/97.
Shell Offshore, Inc. G-1998-039........  The subsurface safety         $45,000 4/6/99  250.121(h)(3)
                                          valve (SSSV) was removed                      Redesignated 801(h)(3)
                                          on Well JA-1 for routine
                                          operations and was left
                                          unattended. 1/26/98-1/28/
                                          98.
Norcen Explorer, Inc. G-1998-040.......  The drilling unit was not   $165,000 2/17/99  250.51(b)(1) Redesignated
                                          equipped with an operable                     401(b)(1)
                                          traveling block safety
                                          device. 1/31/98-2/10/98.
Basin Exploration, Inc. G-1998-044.....  Rig personnel were            $15,000 6/3/99  250.20(a) Redesignated
                                          observed working very                         120(a)
                                          close to an open hole on
                                          the rig drill floor
                                          without utilizing fall
                                          protection gear. 1/28/98.

[[Page 12573]]

 
Chevron U.S.A., Inc. G-1998-047........  The 10-inch bulk oil         $10,000 4/26/99  250.154(b)(3)
                                          departing pipeline did                        Redesignated 1004(b)(3)
                                          not have a PSL installed.
                                          6/1/97.
Chevron U.S.A., Inc. G-1998-050........  The SCSSV was bypassed in    $25,000 3/29/99  250.123(c)(1)
                                          Well No. 3. 5/30/98-6/3/                      Redesignated 803(c)(1)
                                          98.
Pennzoil Exploration and Production      The SCSSV for Well A-3 was   $12,000 5/12/99  250.123(c)(1)
 Company G-1998-054.                      blocked out of service. 6/                    Redesignated 803(c)(1)
                                          24/98.
Texaco Exploration and Production, Inc.  The SSV relay for Well B-6   $16,000 5/12/99  250.803(c)(1)
 G-1998-056.                              was bypassed and blocked
                                          out of service. 8/5/98-8/
                                          6/98.
Basin Exploration, Inc. G-1998-057.....  The SCSSV for Well A-2 was    $12,000 7/6/99  250.123(c)(1)
                                          bypassed and blocked out                      Redesignated 803(c)(1)
                                          of service. 4/19/98-4/20/
                                          98.
Conoco, Inc. G-1998-061................  During testing, the PSH #1  $64,000 12/13/99  250.1004(b)(3)
                                          on the departing KAH-400                      250.1004(b)(4)
                                          pipeline did not shut-in                      250.1004(c)
                                          the associated shutdown                       250.124(a)(1)(iii) The
                                          valve of the KAA-500                          last regulation was
                                          pipeline. PSH #2 on the                       redesignated
                                          KAH-400 pipeline was                          250.804(a)(1)(iii)
                                          pinned out of service
                                          thus bypassing the
                                          associated shutdown valve
                                          on the KAH-400 pipeline.
                                          Well N-009 tubing plug
                                          tested 4/29/98; found
                                          leaking; attempted repair
                                          on 5/8/98. 7/20/98 5/8/98-
                                          7/20/98.
Stone Energy Corporation G-1998-063....  An injury occurred when      $35,000 7/30/99  250.52(a) Redesignated
                                          welding and burning                           402(a)
                                          operations were conducted
                                          within 35 feet of master
                                          safety system, high
                                          pressure separator and
                                          high pressure oil
                                          separator. 3/11/98.
Forcenergy, Inc. G-1998-064............  The flow safety valves for   $28,000 11/3/99  250.124(a)(5)
                                          Wells Nos. 11 and 13 were                     Redesignated 804(a)(5)
                                          not tested within the
                                          required timeframe. 9/17/
                                          97-8/28/98.
Seneca Resources Corporation G-1998-066  Compressor #3 pressure       $18,000 7/29/99  250.123(c)(1)
                                          safety lows (PSL's) were                      Redesignated 803(c)(1)
                                          in a bypass mode on 11/25/
                                          97 (i.e., Class C lockout
                                          for Compressor #3 was in
                                          bypass). They were
                                          unattended and were not
                                          in bypass due to testing,
                                          start-up, or maintenance.
                                          11/25/97.
Texaco Exploration and Production, Inc.  The LSL #2 for glycol       $17,000 12/17/99  250.803(c)(1)
 G-1999-003.                              reboiler, BBC-9042, and
                                          the PSHL for the
                                          downtherm pumps, PBA-
                                          9100A and PBA-9100B, were
                                          bypassed (had tie-wraps
                                          around relay pins on
                                          control panel holding
                                          them in); the one PSHL
                                          protects both pumps. 8/18/
                                          98-8/19/98 8/19/98.
Texaco Exploration and Production, Inc.  The PSHL and ESD for Well   $12,000 11/15/99  250.804(a)(1)(iii)
 G-1999-014.                              No. 46-D were bypassed. 9/                    250.803(c)(1)
                                          21/98 9/25/98.
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    Dated: February 17, 2000.
Carolita U. Kallaur,
Associate Director for Offshore Minerals Management.
[FR Doc. 00-5712 Filed 3-8-00; 8:45 am]
BILLING CODE 4310-MR-U