[Federal Register Volume 67, Number 71 (Friday, April 12, 2002)]
[Notices]
[Pages 18030-18033]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-8846]


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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf (OCS) Civil/Criminal Penalties

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice summarizing OCS civil penalties paid, January 1, 2001, 
through December 31, 2001.

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SUMMARY: This notice provides a listing of civil penalties paid January 
1, 2001, through December 31, 2001, for violations of the OCS Lands 
Act. 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: Doug Slitor (Program Coordinator), 
Performance and Safety Branch, Engineering and Operations Division, 
(703) 787-1030.

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.
    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. Current regulations at 30 CFR 250.1403 specify 
the maximum civil penalty of $25,000 per day, per violation.
    Between August 18, 1990, and January 2002, MMS initiated 396 civil 
penalty reviews. MMS assessed 291 civil penalties and collected 
$8,218,542 in fines. During this time period, 56 cases were dismissed, 
4 cases were merged, and 46 are under review.
    On September 1, 1997, the Associate Director of 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, 2001, and December 31, 2001. A quarterly update 
of the list is posted on the MMS worldwide web home page, http://www.mms.gov.

OCS Civil/Criminal Penalties Program

    The goal of the MMS OCS Civil/Criminal Penalties Program is to 
ensure safe and clean operations on the OCS. Through the pursuit, 
assessment, and collection of civil penalties and referrals

[[Page 18031]]

for the consideration of criminal penalties, the program is designed to 
encourage compliance with OCS statutes and regulations.
    The following acronyms are used in this table.

ESD (emergency shutdown device);
INC (incident of non-compliance);
LACT (liquid automatic custody transfer);
LSH (level safety high);
LSL (level safety low);
NON (notice of non-compliance);
PSL (pressure safety low);
PSHL (pressure safety high/low);
PSV (pressure safety valve);
SCSSV (surface controlled subsurface safety valve);
SSV (subsurface valve).

    Cited regulations are accurate as of the date of the infraction. 
Where applicable, subsequent renumbered regulatory citations are also 
shown in brackets.

                        2001 Civil/Criminal Penalties Summary Paid in Calendar Year 2001
----------------------------------------------------------------------------------------------------------------
                                                                    Penalty
     Operator name and Case No.         Violation and date(s)       paid and   Regulation(s)  violated  (30 CFR)
                                                                   date paid
----------------------------------------------------------------------------------------------------------------
BP Exploration & Oil Inc., G-2000-   Unsafe operations were           $20,000  250.107(a)
 029.                                 conducted during the slip       2/14/01
                                      and cut of the drill line,
                                      and an employee was
                                      seriously injured.
                                     3/16/00-3/16/00............
Santa Fe Snyder Corporation; G-2000- A derrickhand who was            $24,000  250.107
 031.                                 allowed to remain in the        1/30/01
                                      derrick during a pressure
                                      test of a Kelly hose was
                                      seriously injured when the
                                      hose burst.
                                     3/4/00-3/4/00..............
Millennium Offshore Group, Inc.; G-  Seven violations involving       $54,000  250.803(c)(1)
 2000-035.                            the bypass of the               8/15/01  250.803(c)(1)
                                      following: (1) SCSSV on
                                      Well A-3, (2) PSL LACT
                                      Charge Pump #1, (3) PSL
                                      LACT Charge Pump #2, (4)
                                      PSL on the Pipeline Pump
                                      #1, (5) PSL on the
                                      Pipeline Pump #2, (6) LSL
                                      on the Dry Oil Tank, and
                                      (7) LSL on the Wet Oil
                                      Tank.
                                     5/17/00-5/22/00............
                                     5/21/00-5/22/00............
Amoco Production Company; G-2000-    The lift capacity for the        $23,000  250.120(c)
 036.                                 platform crane was              1/13/01
                                      exceeded causing personnel
                                      injury and property damage.
                                     1/26/00-1/26/00............
PANACO, INC.; G-2000-037...........  No annual crane inspection      $525,200  250.20(c)
                                      for 1998 and 1999. Gas           6/7/01  {250.120(c)}
                                      detection system not                     250.124(a)(1)(ii)
                                      tested within required                   {250.804(a)(1)(ii)}
                                      timeframe. SCSSV in Well                 250.87(c)
                                      No. A-5L exceeded 12-month-              {250.517(c)}
                                      test requirement. Records                250.804(a)(4)
                                      indicate that SSV's for                   250.120(a)
                                      Wells Nos. A-4L and A-4U                 {250.800}
                                      were leaking since 10/29/                250.804(a)(8)
                                      99; valves not immediately
                                      repaired or replaced.
                                      Since 8/95, unable to test
                                      SCSSV in Well No. A-4L due
                                      to communication between
                                      tubing and production
                                      casing above and below
                                      valve. Failure to correct
                                      missing skirting on
                                      heliport; originally cited
                                      on 10/14/98.
                                     01/01/96-03/17/00..........
                                     06/02/98-07/09/98..........
                                     11/11/94-03/14/00..........
                                     12/12/99-03/16/00..........
                                     10/14/98-03/14/00..........
                                     02/26/00-03/16/00..........
Energy Resource Technology, Inc.; G- The Gas Detection System         $12,000  250.804(a)(8)
 2000-039.                            was not tested for one         10/30/01
                                      required quarterly test
                                      and one sensor failed when
                                      inspected.
                                     1/11/00-2/3/00.............
Forcenergy Inc.; G-2000-041........  PSHL on flowline for Well        $18,000  250.803(c)(1)
                                      No. A-5 was bypassed.           4/30/01
                                     3/23/00-3/23/00............
Equitable Production Company; G-     Tubing plugs in Wells Nos.      $283,200  250.804(a)(1)(iii)
 2000-042.                            C-5D and C-6 found leaking       5/1/01
                                      on January 31, 1999. Not
                                      repaired until May 16,
                                      2000.
                                     1/31/99-5/16/00............
ATP Oil & Gas Corporation; G-2000-   Heater treater fire tube         $15,000  250.803(b)(5)(i)
 043.                                 stack not insulated. Fire       2/13/01
                                      occurred on platform from
                                      sprayed condensate onto
                                      the heater treater fire
                                      tube stack.
                                     5/2/00-5/2/00..............
Apache Corporation; G-2000-046.....  PSV on the compressor fuel       $20,000  250.803(c)(1)
                                      gas filter was blocked out      1/12/01
                                      of service.
                                     7/16/00-7/25/00............
Shell Offshore Inc.; G-2000-048....  SCSSV for well JN-1U was         $10,000  250.803(c)(1)
                                      bypassed.                       5/25/01
                                     2/21/00-2/21/00............
Energy Resource Technology, Inc.; G- Tubing plugs for 15 wells        $45,000  250.804(a)(1)(iii)
 2000-049.                            last tested for leakage         5/17/01  250.804(a)(1)(iii)
                                      Sept 1999. Should be
                                      checked every 6 months;
                                      missed one leakage test
                                      per well.
                                     3/2/00-5/09/00.............
                                     3/2/00-5/10/00.............
Union Oil Company of California; G-  Did not conduct an annual        $10,000  250.120(c)
 2000-051.                            crane inspection.              11/29/01  {250.800}
                                     10/19/99-8/25/00...........
Energy Resource Technology, Inc.; G- Pollution resulted from an       $20,000  250.300(b)(4)
 2000-052.                            improperly maintained skim      4/26/01
                                      pile.
                                     4/11/00-4/11/00............

[[Page 18032]]

 
W & T Offshore, Inc.; G-2000-053...  Glycol safety system relay       $36,000  250.803(c)(1)
                                      pinned out of service; PSL      3/26/01  250.803(c)(1)
                                      bypassed on the pipeline;
                                      LSH inoperable on sump
                                      pile.
                                     8/09/00-8/09/00............
                                     7/27/00-7/27/00............
Barrett Resources Corporation; G-    13 well's SCSSV's not being      $67,000  250.804(a)(1)(iii)
 2000-054.                            tested in the required 6        9/18/01  250.804(a)(1)(iii)
                                      month interval.                          250.804(a)(1)(i)
                                     2/11/00-7/26/00............               250.804(a)(1)(iii)
                                     2/11/00-7/26/00............               250.804(a)(1)(i)
                                     2/13/00-7/26/00............               250.804(a)(1)(i)
                                     2/13/00-7/26/00............
                                     2/13/00-7/26/00............
                                     2/20/00-7/26/00............
Freeport-McMoRan Sulphur LLC; G-     A sulphur fire occurred          $17,500  250.107(a)
 2000-055.                            from welding operations.         5/5/01
                                     6/8/00-6/8/00..............
Chevron U.S.A. Inc.; G-2000-057....  The firewater system was        $810,000  250.803(b)(8)
                                      inoperable for 81 days.         6/28/01
                                     7/10/00-9/28/00............
Elf Exploration, Inc.; G-2000-058..  PSV on the glycol filter         $33,000  250.803(c)(1)
                                      was improperly maintained      10/19/01  250.804(a)(1)(i)
                                      including a broken valve                 250.803(c)(1)
                                      stem on the isolation                    250.107
                                      valve. The glycol master
                                      panel was bypassed on 8/2/
                                      2000. The PSV on the
                                      glycol contractor was
                                      bypassed on 8/7 & 8/2000.
                                      The SCSSV for Well A-1 was
                                      not tested within the
                                      required timeframe (two 6-
                                      month tests were missed).
                                     8/2/00-8/2/00..............
                                     6/3/99-8/2/00..............
                                     8/7/00-8/8/00..............
                                     8/8/00-8/8/00..............
Apache Corporation; G-2000-060.....  The SCSSV in Well A-6 was        $21,000  250.804(a)(1)(i)
                                      tested on April 9, 2000,        8/16/01
                                      and found to be leaking
                                      greater than the allowable
                                      leakage rate. For 3 days
                                      the SCSSV was not removed,
                                      repaired and reinstalled,
                                      or replaced; it was not
                                      monitored during this time
                                      either.
                                     4/9/00-4/11/00.............
Coastal Oil & Gas Corporation; G-    Two fires occurred on the        $37,000  250.107(a)
 2001-001.                            same day and unsafe and         8/16/01  250.107(a)
                                      unworkmanlike operations
                                      were conducted in both
                                      instances. For both fires,
                                      hot work operations were
                                      conducted in close
                                      proximity of the dry oil
                                      tank even though there was
                                      prior knowledge of gas
                                      escaping from valves on
                                      top of the tank.
                                     8/16/00-8/16/00............
                                     8/16/00-8/16/00............
Apache Corporation; G-2001-002.....  A flash fire occurred when       $15,000  250.113(a)
                                      the operator did not            11/6/01
                                      properly protect equipment
                                      containing hydrocarbons
                                      (that was within 35 feet
                                      horizontally from the
                                      welding area) from slag
                                      and sparks.
                                     10/24/00-10/24/00..........
Elf Exploration, Inc.; G-2001-003..  Overflow of oil from the         $45,000  250.300(a)
                                      bad oil tank and               10/19/01  250.107(a)
                                      containment system
                                      resulted in a flash fire
                                      causing serious damage to
                                      equipment on platform and
                                      the release of oil into
                                      the Gulf of Mexico.
                                     8/9/00-8/9/00..............
                                     8/9/00-8/9/00..............
Pogo Producing Company; G-2001-007.  Bypassed ESD at boat              $5,000  250.803(c)(1)
                                      landing.                        7/24/01
                                     5/26/00-5/26/00............
Coastal Oil & Gas Corporation; G-    Fuel gas scrubber PSHL was        $7.500  250.803(c)(1)
 2001-008.                            in bypass position on           8/17/01
                                      production main panel; not
                                      flagged nor monitored.
                                     1/14/01-1/14/01............
Burlington Resources Offshore Inc.;  PSV for 2nd stage                $27,000  250.804(a)(2)
 G-2001-011.                          compressor discharge set        8/15/01
                                      out of range.
                                     11/13/00-1/5/01............
Apache Corporation; G-2001-012.....  Drilling operations              $14,000  250.410(c)(2)(iv)
                                      continued as the air           10/31/01
                                      supply line to gas
                                      detector used to monitor
                                      drilling mud returns was
                                      turned off rendering the
                                      detector inoperable.
                                     2/9/01-2/9/01..............
El Paso Production GOM Inc.; G-2001- One semi-annual test period      $15,000  250.804(a)(1)(i)
 014.                                 missed on an SCSSV.            12/11/01
                                     12/1/00-1/5/01.............
Shell Offshore, Inc.; G-2001-023...  A pollution event occurred       $20,000  250.300(a)
                                      as a result of pumps and       12/20/01
                                      LSHs on the Dry Oil Tank
                                      and Emergency Sump not
                                      operating correctly.
                                     3/20/01-3/20/01............
RME Petroleum Company; G-2001-033..  The gas detection system in      $52,500  250.410(e)(3)
                                      the mud pit room was           12/28/01
                                      inoperable for 3 days.
                                     4/21/01-4/23/01............
Aera Energy LLC; P-1999-001........  Failure to properly              $25,000  250.300(a)
                                      maintain pipeline,               5/4/01
                                      resulting in a pollution
                                      event.
                                     6/7/99.....................

[[Page 18033]]

 
Chevron U.S.A. Inc.; P-1999-002....  Failure to replace              $350,000  250.120(a)
                                      compromised piping in a        06/29/01  {250.800}
                                      timely manner or remove it
                                      from service resulted in
                                      piping failure and release
                                      of 32,000 cf gas with
                                      18,000 ppm H2S, causing
                                      damage to facility and
                                      placing platform and lives
                                      of all personnel on
                                      platform in substantial
                                      danger.
                                     7/21/99-8/3/99; 8/3/99.....
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                                     Total Penalties Paid: 1/1/01-12/31/01
                                              32 Cases: $2,724,900
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    Dated: March 27, 2002.
Paul E. Martin,
Acting Chief, Engineering and Operations Division.
[FR Doc. 02-8846 Filed 4-11-02; 8:45 am]
BILLING CODE 4310-MR-P