[Federal Register Volume 68, Number 107 (Wednesday, June 4, 2003)]
[Notices]
[Pages 33532-33536]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-13958]


-----------------------------------------------------------------------

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, 2003 
through December 31, 2003.

-----------------------------------------------------------------------

SUMMARY: This notice provides a listing of civil penalties paid January 
1, 2002 through December 31, 2002, 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), 
Safety and Enforcement 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 $25,000 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 the 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; 62 FR 9065, 2/24/99, and 64 FR 26257, 5/13/99.
    Between August 18, 1990, and January 2003, MMS initiated 450 civil 
penalty reviews. Operators have paid 341 civil penalties for a total of 
$9,353,342 in fines. Sixty-two cases were dismissed, 5 cases were 
merged, and 44 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, 2002, and December 31, 2002. Please note that 
the 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 the 
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/Criminal Penalties Program

    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.
    The following acronyms are used in this table:


[[Page 33533]]


ESD (emergency shutdown device);
INC (incident of noncompliance);
LACT (liquid automatic custody transfer);
LSH (level safety high);
LSL (level safety low);
MAWP (maximum allowable working pressure);
NON (notice of noncompliance);
PSH (pressure safety high);
PSHL (pressure safety high/low);
PSL (pressure safety low);
PSV (pressure safety valve);
SDV (shutdown valve);
SSSV (surface-controlled subsurface safety valve);
SSV (surface safety valve).

                                                          2002 Civil/Criminal Penalties Summary
                                                              [Paid in Calendar Year 2002]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                Penalty
    Operator name and Case No.                                Violation and date(s)                             paid and     Regulation(s) violated (30
                                                                                                               date paid                CFR)
--------------------------------------------------------------------------------------------------------------------------------------------------------
The Louisiana Land and Exploration  The master shutdown devices for bad oil pump number 1, bad oil pump           $85,000  250.803(c)(1)
 Company--G-2000-047.                number 2 and for 7 wells were bypassed; as well as the pressure safety      01/11/02
                                     low on the fuel gas scrubber.
                                    06/14/00-06/14/00
Fairways Specialty Sales &          Operator did not conduct an annual crane inspection and the Low Pressure      $83,000  250.107(a)
 Service, Inc.--G-2001-004.          Oil Separator was operating above the MAWP.                                 04/12/02  250.108
                                    06/03/00-10/26/00
                                    09/23/00-10/30/00
El Paso Production Oil & Gas        The level safety high on the sump tank was bypassed.                          $13,000  250.803(c)(1)
 Company--G-2001-005.               10/13/00-10/13/00                                                            02/13/02
Matrix Oil & Gas, Inc.--G-2001-006  INC issued for a hole was in piping caused by corrosion approximately 1       $17,000  250.107
                                     foot down stream of the PSV on the test separator.                          11/19/02
                                    09/14/00-09/29/00
Fairways Specialty Sales &          Facility was not identified as required and the operator did not correct      $84,800  250.154
 Service, Inc.--G-2001-009.          the violation until 209 days after being cited. Civil Penalty is being      04/12/02  250.107
                                     pursued as a failure to correct. Facility had corrosion problems
                                     including rusty handrails, nuts, bolts, nipples, and valves and the
                                     operator did not correct the violation until 213 days after being
                                     cited. Civil Penalty is being pursued as a failure to correct.
                                    07/11/00-02/04/01
                                    07/11/00-02/08/01
Fairways Specialty Sales &          Facility was not identified as required and the operator did not correct      $26,200  250.107
 Service, Inc.--G-2001-010.          the violation until 90 days after being cited. Civil Penalty is being       04/12/02  250.154
                                     pursued as a failure to correct. Facility had corrosion problems
                                     including rusty piping, handrails, nuts, bolts, nipples, and valves,
                                     and the operator did not correct.
                                    11/06/00-02/01/01
                                    11/06/00-02/05/01
EEX Corporation--G-2001-013.......  Pressure safety low on condensate pump bypassed.                               $7,500  250.803(c)(1)
                                    12/01/00-12/01/00                                                            03/19/02
El Paso Production Oil & Gas        There were 5 wells where the downhole tubing plug was not tested within        $7,000  250.804(a)(1)(iii)
 Company--G-2001-015.                the required timeframe.                                                     02/01/02
                                    06/04/00-02/20/01
Texaco Exploration and Production   Inoperable Gas Detection system in the drilling mud returns.                  $12,500  250.410(c)(2)(iv)
 Inc.--G-2001-017.                  04/17/01-04/17/01                                                            01/29/02
Amerada Hess Corporation--G-2001-   ESD (emergency shutdown) station on boat landing was bypassed; the PSHL       $36,000  250.803(c)(1)
 018.                                (pressure safety high/low) on the departing oil pipeline was found          04/18/02  250.803(c)(1)
                                     bypassed; and the PSV (pressure safety valve) on the bulk oil dual                    250.1004(b)(3)
                                     separator was bypassed.
                                    04/11/01-04/11/01
                                    03/31/01-03/31/01
                                    03/31/01-03/31/01
The Louisiana Land and Exploration  The SSSV for Wells Nos. B-1 and B-3 was bypassed.                             $20,000  250.803(c)(1)
 Company--G-2001-020.               03/07/01-03/07/01                                                            01/11/02
Texaco Exploration and Production   Bypassed manual reset relay for the test separator.                           $10,000  250.803(c)(1)
 Inc.--G-2001-021.                   05/21/00-05/21/00                                                           01/23/02
Chevron U.S.A. Inc.--G-2001-024...  The surface safety value (SSV) for Well C-7 was bypassed.                     $20,000  250.803(c)(1)
                                    06/15/01-06/16/01                                                            01/23/02
BP Corporation North America Inc.-- Level safety low (LSL) for glycol/hydrocarbon separator was found             $20,000  250.803(c)(1)
 G-2001-025.                         bypassed.                                                                   01/10/02
                                    06/12/01-06/13/01
El Paso Production GOM Inc.--G-     Burner safety low on glycol reboiler was found bypassed. It was not           $12,000  250.803(c)(1)
 2001-026.                           flagged or being monitored at the time.                                     06/05/02
                                    05/24/01-05/24/01
El Paso Production Oil & Gas        ESD station blocked out of service by a closed manual isolation block         $17,000  250.803(c)(1)
 Company--G-2001-027.                valve located on the sub-cellar deck exit stairway to the boating           04/15/02
                                     landing.
                                    06/19/01-06/19/01

[[Page 33534]]

 
Chevron U.S.A. Inc.--G-2001-028...  Pollution occurred when both the wet oil tank and sump tank carried           $36,000  250.300(a)
                                     over. The level safety high (LSH) on the wet oil tank did not shut in       01/29/02  250.802(e)
                                     the platform as indicated on SAFE chart.
                                    05/25/01-05/25/01
                                    05/25/01-05/25/01
Denbury Resources Inc.--G-2001-029  A major component of the approved dry chemical firefighting system was        $15,000  250.803(b)(8)
                                     inoperable.                                                                 03/07/02
                                    05/08/01-05/08/01
Panaco, Inc.--G-2001-030..........  The ultraviolet (UV) fire detection system for turbine generators was        $151,000  250.804(a)(8)
                                     bypassed plus no record of testing the fire detection system from 5/2/      02/12/02  250.803(c)(1)
                                     99 to 5/2/01.
                                    05/02/99-05/02/01
                                    05/02/01-05/02/01
NCX Company, Inc.--G-2001-031.....  The 2'' ball valve for the bypass line, near the fuel gas scrubber            $12,000  250.803(c)(1)
                                     shutdown valve (SDV), was in the half-open position rendering the SDV       04/24/02
                                     inoperative.
                                    07/11/01-07/11/01
Stone Energy Corporation--G-2001-   Five barrels of oil polluted the Gulf of Mexico. The pressure safety          $35,000  250.803(c)(1)
 034.                                high/low and independent pressure safety high were bypassed.                05/03/02  250.300(a)
                                    07/05/01-07/05/01
                                    07/05/01-07/05/01
Energy Partners, Ltd.--G-2001-035.  The surface safety valve on Well C-1A was bypassed.                           $10,000  250.803(c)(1)
                                    07/22/01-07/22/01                                                            06/10/02
Devon Energy Production Company,    Operating with an inoperable inlet SDV on the compressor suction              $15,200  250.803(b)(7)(iii)
 L.P.--G-2001-036.                   scrubber while the compressor remained in service and on production for     08/12/02
                                     76 days.
                                    04/25/01-07/09/01
Amoco Production Company--G-2001-   Fuel Gas Scrubber SDV bypassed and PSH nonfunctional.                         $15,000  250.803(c)(1)
 037.                               07/17/01-07/17/01                                                            04/02/02
Energy Resource Technology, Inc.--  The high-pressure freewater knockout separator panel was pinned out of        $15,000  250.803(c)(1)
 G-2001-038.                         service.                                                                    06/11/02
                                    11/30/00-11/30/00
NCX Company, Inc.--G-2001-039.....  The manual emergency shutdown (ESD) station located on the east               $24,500  250.803(c)(1)
                                     production deck stairway exit to the cellar deck was found disconnected     03/22/02  250.803(b)(4)
                                     from the facility ESD system, and the platform's monitoring gas
                                     detection system (ASH) was found bypassed.
                                    07/17/01-07/17/01
                                    07/17/01-07/17/01
BP Exploration & Oil Inc.--G-2001-  Rig floor hand injured after receiving a shock from an improperly             $23,000  250.114(c)
 040.                                grounded skid mounted electrical pressure washer.                           05/09/02
                                    03/15/01-03/15/01
Apache Corporation--G-2001-041....  Surface safety valve (SSV) on Well No. A-5 was found pinned out of            $13,000  250.803(c)(1)
                                     service.                                                                    05/10/02
                                    07/16/01-07/16/01
GOM Shelf LLC--G-2001-042.........  The emergency shutdown stations (ESD's) at the southeast and northwest        $60,000  250.803(b)(4)
                                     stairways at the +10 deck were discovered inoperable. The ESD's at the      09/24/02
                                     southwest and northeast boat landings were also discovered inoperable.
                                    07/24/01-07/24/01
Devon Energy Production Company,    The ``total system bypass'' was found in the bypass position on a slave        $3,000  250.803(c)(1)
 L.P.--G-2001-044.                   panel. This bypassed the pressure safety high/low and level safety high     06/20/02
                                     on the fuel gas scrubber.
                                    06/27/01-06/27/01
Union Oil Company of California--G- The level safety high on the sump tank was bypassed.                          $10,000  250.803(c)(1)
 2001-045.                          07/23/01-07/23/01                                                            04/16/02
Union Oil Company of California--G- The emergency shutdown (ESD) station at the boat landing was found             $5,000  250.803(c)(1)
 2001-047.                           blocked out of service.                                                     09/11/02
                                    08/12/01-08/12/01
Union Oil Company of California--G- The emergency shutdown (ESD) stations on the northwest, southwest, east,      $20,000  250.803(c)(1)
 2002-001.                           and west boat landings were all bypassed.                                   09/11/02
                                    09/18/01-09/18/01
Nuevo Energy Company--P-2002-001..  Failure to test fire and gas detection systems on required basis (every        $6,000  250.804(a)(8)
                                     3 months); 1 testing period missed. Failure to conduct required monthly     08/08/02  250.804(a)(8)
                                     testing for flow safety valves on water injection wells for 2 months; 2
                                     testing periods missed.
                                    06/22/01-07/23/01
                                    06/23/01-07/13/01

[[Page 33535]]

 
Union Oil Company of California--G- Pressure safety high/low and level safety high on fuel gas scrubber were      $17,500  250.803(c)(1)
 2002-003.                           found bypassed.                                                             09/11/02  250.803(c)(1)
                                    09/25/01-09/25/01
                                    09/25/01-09/25/01
Fairways Specialty Sales &          Oil was observed entering the Gulf of Mexico from two different sources       $42,500  250.802(e)
 Service, Inc.--G-2002-004.          associated with the water clarifier: from the open end of an unapproved     08/20/02  250.300(a)
                                     4'' PVC line installed on the water overboard discharge line and
                                     extending approximately 20' into the air, and directly from the water
                                     overboard discharge line due to a malfunctioning dump valve.
                                    09/28/01-09/28/01
                                    09/28/01-09/28/01
J.M. Huber Corporation--G-2002-005  The sump pump was not operational resulting in pollution of crude oil         $35,000  250.300(b)(4)
                                     into Gulf waters.                                                           08/16/02  250.300(a)
                                    10/30/01-10/30/01
                                    10/30/01-10/30/01
Fairways Specialty Sales &          Emergency shutdown stations at two boat landings and the shutdown valve       $28,000  250.803(c)(1)
 Service, Inc.--G-2002-006.          to the test separator were bypassed.                                        08/20/02  250.803(c)(1)
                                    11/07/01-11/07/01
                                    11/08/01-11/08/01
Linder Oil Company, A Partnership-- The walkway to the sump tank, handrails on a stairway and +12 walkway,        $25,000  250.107
 G-2002-008.                         and grating at the wellbay area on the +12 level were not maintained in     09/10/02
                                     a safe condition. The walkway and handrails had corroded to the point
                                     of separation and the grating had missing sections.
                                    08/28/01-09/20/01
Union Oil Company of California--G- Three emergency shutdown stations were bypassed at the +10 deck level.        $15,000  250.803(c)(1)
 2002-010.                           10/29/01-11/06/01                                                           09/11/02
Kerr-McGee Corporation--G-2002-011  The surface-controlled subsurface safety valves in Wells A-6 & A-6D were      $66,000  250.803(c)(1)
                                     bypassed for 11 days.                                                       10/22/02
                                    09/14/01-09/24/01
Vastar Resources, Inc.--G-2002-012  Two emergency shutdown stations were inoperable; one at the boat landing      $37,000  250.803(b)(4)
                                     on the F structure and one at the boat landing on the I structure.          08/13/02
                                    12/03/01-12/03/01
Kerr-McGee Oil & Gas Corporation--  Rusty vessel, walkways, stairways, and grating preventing safe                $20,000  250.107
 G-2002-013.                         operations.                                                                 10/22/02
                                    12/21/01-12/21/01
Shell Offshore Inc.--G-2002-014...  Flowline pressure-activated relay had a pin inserted in it thereby            $12,000  250.803(c)(1)
                                     bypassing the pressure safety high/low for flowline segment FA-2.           12/09/02
                                    10/01/01-10/01/01
Exxon Mobil Corporation--G-2002-    Secondary sump pump, approved in lieu of level safety high on sump tank,      $15,000  250.802(e)
 015.                                found out of service.                                                       09/09/02
                                    01/10/02-01/11/02
Seneca Resources Corporation--G-    Surface-controlled subsurface safety valve (SSSV) for Well No. 15 was         $32,000  250.803(c)(1)
 2002-016.                           bypassed and out of service.                                                08/28/02
                                    12/11/01-12/14/01
J. M. Huber Corporation--G-2002-    Relay for Well Number 81 Surface Safety Valve pinned out of service.           $7,000  250.803(c)(1)
 017.                               01/08/02-01/08/02                                                            08/27/02
BP Exploration & Production Inc.--  The oil low level sensor on the heater treater was not tested within the      $39,000  250.804(a)(3)
 G-2002-018.                         required timeframe (missed 13 monthly tests).                               09/16/02
                                    12/13/00-12/03/01
Chevron U.S.A. Inc.--G-2002-019...  The gas sales pipeline (KAH 827) did not have secondary over-pressure         $23,000  250.1002(d)
                                     protection.                                                                 09/30/02
                                    11/13/01-11/13/01
Burlington Resources Offshore       The firewater pump was in the manual mode instead of the automatic mode,      $47,500  250.802(e)
 Inc.--G-2002-020.                   as required by the approved SAFE chart. The float cell oil pump's           12/05/02  250.803(c)(1)
                                     shutdown valve was bypassed.
                                    04/20/01-04/20/01
                                    04/20/01-04/20/01
Remington Oil and Gas Corporation-- Remote BOP control station was found inoperable.                              $12,500  250.406(d)(3)
 G-2002-024.                        04/18/02-04/18/02                                                            12/04/02
Vastar Resources, Inc.--G-2002-030  Leaking valves causing gas blow by and incorrectly operated Flotation         $20,000  250.107
                                     Cell causing gas accumulation resulting in a fire which required an         12/10/02
                                     emergency evacuation of personnel and a shut in of the facility.
                                    02/12/02-02/12/02
Conoco Inc.--G-2002-032...........  Surface-controlled subsurface safety valve for Well A-6 was blocked out       $10,000  250.803(c)(1)
                                     of service.                                                                 11/27/02
                                    05/08/02-05/08/02

[[Page 33536]]

 
Conoco Inc.--G-2002-035...........  Surface-controlled subsurface safety valve for Well A-5 was blocked out        $5,000  250.803(c)(1)
                                     of service.                                                                 11/27/02
                                    05/09/02-05/09/02
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total Penalties Paid: 1/1/02-12/31/02. 54 Cases: $1,448,700.


    Dated: May 6, 2003.
E.P. Danenberger,
Chief, Engineering and Operations Division.
[FR Doc. 03-13958 Filed 6-3-03; 8:45 am]
BILLING CODE 4310-MR-P