[Federal Register Volume 71, Number 57 (Friday, March 24, 2006)]
[Notices]
[Pages 14945-14948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4303]


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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, 2005, 
through December 31, 2005.

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SUMMARY: This notice provides a listing of civil penalties paid January 
1, 2005, through December 31, 2005, for violations of the OCS 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 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: Joanne McCammon (Program Coordinator), 
703-787-1292.

SUPPLEMENTARY INFORMATION: The Oil Pollution Act of 1990 (OPA 90) 
strengthened section 24 of the OCSLA 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 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 increased the maximum civil penalty to $25,000 per violation, per 
day. 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.
    On November 28, 2003, (68 FR 61622), MMS published a new regulation 
adjusting the civil penalty assessment to comply with the Department of 
Labor's Consumer Price Index. The amount is now $30,000 per violation 
per day.
    Between August 18, 1990, and January 2006, MMS initiated 531 civil 
penalty reviews. Operators have paid 418 civil penalties for a total of 
$13,780,792 in fines. Seventy eight cases were dismissed; 5 cases were 
merged; and 30 cases 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, 2005, and December 31, 2005. 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.

       2005 Civil/Criminal Penalties Summary, All Penalties Paid in Calendar 2005 (01/01/2005-12/31/2005)
   [The following acronyms are used in this table: PSL (pressure safety low); IP (intermediate pressure); ESD
  (emergency shutdown device); SCSSV (surface controlled subsurface safety valve); LSH (level safety high); HP
  (high pressure); BOP (blow out preventer); SSV (surface safety valve); PSHL (pressure safety high/low); AFFF
     (aqueous film forming foam); PSV (pressure safety valve); LSL (level safety low); INC (incident of non-
                                      compliance); H2S (Hydrogen Sulfide).]
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  Operator name  (contractor)  and                             Penalty paid and    Regulation(s)  violated  (30
              case No.                Violation and date(s)       date paid                    CFR)
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W & T Offshore, Inc., G-1997-026...  A burning operation                 $40,000
                                      was conducted without             01/18/05
                                      the issuance of a
                                      written authorization
                                      for the work and the
                                      site was not being
                                      monitored with a
                                      portable gas detector.
                                     12/07/96-12/07/96.....  ...................  250.52(b)
                                     12/07/96-12/07/96.....  ...................  250.52(d)(2)
Seneca Resources Corporation, G-     The SSCSV (in a                     $85,000
 1997-030.                            landing nipple) was               10/12/05
                                      not tested for one
                                      testing period
                                      (tested on 11/3/94
                                      and then on 1/23/96.)
                                      Also, the pipeline
                                      shut down valve from
                                      West Delta 32C to
                                      West Delta 32A was
                                      found defective and
                                      left in service for
                                      17 days.
                                     05/23/96-05/23/96.....  ...................  250.124(a)(1)(ii)
                                     05/23/96-05/23/96.....  ...................  250.154(b)(2)

[[Page 14946]]

 
Blue Dolphin Exploration Company,    Tubing plugs on 8                   $24,000
 (Petroleum Offshore Professional     wells not inspected               09/22/05
 Services), G-2000-059.               for leakage within
                                      required timeframe.
                                      Electrical
                                      installations not
                                      maintained in
                                      accordance with API
                                      RP 500 & RP 14F.
                                      Crane inspection of 6/
                                      00 indicated that
                                      emergency shut down
                                      cable and boom angle
                                      indicator needed to
                                      be replaced; crane
                                      not taken out of
                                      service.
                                     04/02/99-10/03/00.....  ...................  250.804(a)(1)
                                     10/02/99-10/03/00.....  ...................  250.804(a)(1)
                                     10/04/00-10/04/00.....  ...................  250.114(c)
                                     06/14/00-10/04/00.....  ...................  250.108
Maritech, (Petroleum Offshore        Approval was granted               $140,000
 Professional Services), G-2003-016.  to install an SSCSV               12/16/05
                                      in lieu of an SSCSV
                                      in Satellite Well No.
                                      1 with the condition
                                      that at the first
                                      sign of sand
                                      production the well
                                      would be shut-in
                                      immediately and the
                                      approval rescinded.
                                      Numerous occurrences
                                      of produced sand were
                                      not reported to the
                                      district and the well
                                      remained on
                                      production. The SSCSV
                                      was removed from the
                                      well and found to be
                                      damaged. It was
                                      reinstalled in the
                                      well which was not
                                      plugged or attended
                                      overnight.
                                     2/3/03-2/4/03.........  ...................  250.804(a)(1)(ii)
                                     11/5/02-2/4/03........  ...................  250.801(h)(3)
Murphy Exploration & Production      The PSL for the                     $14,000
 Company--USA, G-2004-011.            intermediate pressure             02/01/05
                                      IP Separator was
                                      found in bypass.
                                     04/05/04-04/06/04.....  ...................  250.803(c)(1)
Devon Louisiana Corporation, G-2004- The isolation valves                $10,000
 012.                                 for two ESD Stations              03/15/05
                                      were found in the
                                      bypassed position,
                                      rendering the two ESD
                                      stations inoperable.
                                     04/16/04-04/16/04.....  ...................  250.803(c)(1)
Shell Offshore Inc., G-2004-013....  The surface controlled              $27,000
                                      SCSSV was found                   03/02/05
                                      blocked out service
                                      by the hydraulic
                                      control line closed
                                      at the isolation
                                      valve on the tree.
                                     06/16/04-06/24/04.....  ...................  250.803
Forest Oil Corporation, G-2004-014.  The LSH on sump tank                $10,000
                                      was found bypassed at             06/29/05
                                      the safety system
                                      panel. The blocked
                                      out safety device was
                                      not flagged nor being
                                      monitored by
                                      personnel. Safety
                                      Device bypassed for 1
                                      day.
                                     06/03/04-06/03/04.....  ...................  250.803(c)
ExxonMobil Corporation, G-2004-016.  A 4[min] x 8[min]                   $10,000
                                      section of top deck               04/19/05
                                      grating had been
                                      removed in order to
                                      facilitate a wireline
                                      unit removal
                                      operation. The area
                                      was not flagged or
                                      barricaded to warn
                                      personnel of the open
                                      area; and personnel
                                      working in the direct
                                      vicinity of the open
                                      hole were not wearing
                                      fall protection gear.
                                     04/26/04-04/26/04.....  ...................  33 CFR 142.42
Anadarko E&P Company LP, (Island     The main group device               $13,500
 Operators Co. Inc.), G-2004-019.     selector switches for             04/12/05
                                      both the HP separator
                                      (MBD 1050) and the IP
                                      separator (MBD 1100)
                                      were bypassed. The
                                      end devices were not
                                      flagged, nor were
                                      they being monitored.
                                     05/04/04-05/04/04.....  ...................  250.803
                                     05/04/04-05/04/04.....  ...................  250.803
Forest Oil Corporation, (Ensco       An accident involving               $30,000
 Offshore Co.), G-2004-020.           an injury occurred on             01/21/05
                                      04/19/04 while the
                                      crew was changing the
                                      annular rubber. The
                                      operation was not
                                      performed in a safe
                                      manner, and an
                                      employee lowered
                                      through the rotary
                                      was injured when the
                                      BOP stack shifted.
                                     04/19/04-04/19/04.....  ...................  250.107(a)
Energy Partners, Ltd., G-2004-021..  SCSSV for Well F-3 was               $9,000
                                      blocked out of                    04/12/05
                                      service; not flagged
                                      nor being monitored.
                                      Safety Device blocked
                                      out of service for 9
                                      days.
                                     12/07/03-12/15/03.....  ...................  250.803(c)
Forest Oil Corporation, G-2004-022.  Required safety                     $64,000
                                      equipment (smoke and/             04/22/05
                                      or thermal rate of
                                      rise detectors) for
                                      both the Company
                                      Man's Office/
                                      Bunkhouse and the
                                      Galley were
                                      inoperable.
                                     05/29/04-06/01/04.....  ...................  250.803(b)(9)
Apache Corporation, (Island          Pipeline Pump PSL                   $82,000
 Operators Co. Inc.), G-2004-024.     bypassed and a                    03/02/05
                                      failure to report
                                      casing pressure
                                      caused by a hole in
                                      the tubing.
                                     03/09/04-03/09/04.....  ...................  250.803
                                     09/23/03-02/13/04.....  ...................  250.517(c)

[[Page 14947]]

 
Kerr-McGee Oil & Gas Corporation, G- The manual relay for                 $7,500
 2004-025.                            the SSV was pinned                04/18/05
                                      and tie-wrapped out
                                      of service.
                                     07/16/03-07/16/03.....  ...................  250.803
Stone Energy Corporation, (Rowan     Failure to initiate                 $20,000
 Drilling), G-2004-028.               prompt well control               05/25/05
                                      measures to control
                                      the influx of well
                                      formation fluids
                                      which entered the
                                      wellbore.
                                     08/08/04-08/08/04.....  ...................  250.107
Century Exploration New Orleans,     The AFFF had not been               $10,000
 Inc., (Island Operators Co.,         replaced after                    04/28/05
 Inc.), G-2004-029.                   failing an analysis
                                      test.
                                     09/28/04-09/28/04.....  ...................  33 CFR 146.15
Forest Oil Corporation, (Baker       The 150 gal AFFF Fire               $20,000
 Energy, Inc.), G-2004-030.           Boss Unit was not                 04/22/05
                                      being maintained in
                                      an operable condition
                                      since the
                                      effectiveness of the
                                      foam was not being
                                      monitored.
                                     10/13/04-10/13/04.....  ...................  250.803(b)(8)
Bois d'Arc Offshore Ltd., (Eagle     The Platform was                    $20,000
 Consultants), G-2004-031.            producing without an              05/24/05
                                      operable firewater
                                      system for 2 days.
                                     07/20/04-07/21/04.....  ...................  250.803(b)(8)
Newfield Exploration Company, G-     The PSVs on Compressor              $40,000
 2004-032.                            Nos. 1 & 2 were                   07/22/05
                                      isolated, rendering
                                      them inoperable; and
                                      there were no fusible
                                      loop material (TSE)
                                      over the engine for
                                      Compressor No. 1.
                                     08/18/04-08/21/04.....  ...................  250.803(c)
                                     08/18/04-08/21/04.....  ...................  250.802(b)
                                     08/21/04-08/21/04.....  ...................  250.803(c)
Apache Corporation, G-2005-004.....  Open holes in cellar                $15,000
                                      deck and +10 levels               07/01/05
                                      without appropriate
                                      barricade to prevent
                                      personnel from
                                      falling into the
                                      holes.
                                     11/09/04-11/09/04.....  ...................  33 CFR 142.87
Pogo Producing Company, G-2005-005.  Bypassed LSL on the                 $10,000
                                      test separator with               09/27/05
                                      the upper and lower
                                      isolation valves in
                                      the closed position.
                                     08/05/04-08/05/04.....  ...................  250.803
Newfield Exploration Company,        Personnel were                      $10,000
 (Rowan Drilling), G-2005-006.        observed working                  07/22/05
                                      without fall
                                      protection gear while
                                      engaged in an
                                      activity where there
                                      was a hazard of
                                      falling 10 or more
                                      feet.
                                     11/23/04-11/23/04.....  ...................  250.107
Apache Corporation, (Dolphin         An employee fell 45                 $25,000
 Service Inc.), G-2005-009.           feet into the Gulf                07/01/05
                                      when he stepped
                                      through the open hole
                                      created by the
                                      removal of wooden
                                      boards which had been
                                      placed over the open
                                      hole to protect it.
                                     12/20/04-12/20/04.....  ...................  250.107(a)
The Houston Exploration Company,     The Gas Detector Head               $10,000
 (Grasso Production Management), G-   (ASH-10) for gas                  11/28/05
 2005-010.                            compressor 802 was
                                      found inoperable due
                                      to the sensor being
                                      disconnected from the
                                      main circuit board
                                      panel. The blocked
                                      out safety device was
                                      not flagged nor being
                                      monitored by
                                      personnel. Safety
                                      Device bypassed for 1
                                      day.
                                     01/03/05-01/03/05.....  ...................  250.803(c)
Bois d'Arc Offshore Ltd., (Eagle     The Burner Safety Low               $10,000
 Consultants), G-2005-011.            for the fuel to the               09/15/05
                                      Glycol Reboiler, EAW-
                                      921, and the
                                      Temperature safety
                                      High for the media
                                      and the stack were in
                                      by-pass. The blocked
                                      out safety devices
                                      were not flagged nor
                                      being monitored by
                                      personnel. Safety
                                      Devices bypassed for
                                      1 day.
                                     03/02/05-03/02/05.....  ...................  250.803(c)
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                                   Total Penalties Paid: 01/01/2005-12/31/2005
                                              26 Cases: ($756,000)
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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.



[[Page 14948]]

    Dated: February 24, 2006.
Thomas A. Readinger,
Associate Director for Offshore Minerals Management.
[FR Doc. E6-4303 Filed 3-23-06; 8:45 am]
BILLING CODE 4310-MR-P