[Federal Register Volume 73, Number 63 (Tuesday, April 1, 2008)]
[Notices]
[Pages 17378-17382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-6687]



[[Page 17378]]

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DEPARTMENT OF THE INTERIOR

Minerals Management Service


Outer Continental Shelf Civil Penalties

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice summarizing Outer Continental Shelf Civil Penalties paid 
from January 1, 2007, through December 31, 2007.

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SUMMARY: This notice provides a listing of civil penalties paid from 
January 1, 2007, through December 31, 2007, for violations of the Outer 
Continental Shelf Lands Act. The goal of the MMS Outer Continental 
Shelf Civil Penalties Program is to assure safe and clean operations on 
the Outer Continental Shelf. 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 applicable statutes and regulations. The purpose of publishing the 
penalties summary is to provide information to the public on violations 
of special concern in Outer Continental Shelf operations and to provide 
an additional incentive for safe and environmentally sound operations.

FOR FURTHER INFORMATION CONTACT: Joanne McCammon, Program Coordinator, 
at 703-787-1292.

SUPPLEMENTARY INFORMATION: The Oil Pollution Act of 1990 (OPA 90) 
strengthened section 24 of the Outer Continental Shelf Lands Act 
(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.
    The provisions of OPA 90 also require the Secretary to adjust the 
maximum civil penalty to reflect any increases in the Consumer Price 
Index (CPI). Every 3 years, MMS analyzes the civil penalty maximum 
amount in conjunction with the CPI prepared by the U.S. Department of 
Labor. If an adjustment is necessary, MMS informs the public through 
the Federal Register of the new maximum amount. The MMS has published 
regulations adjusting the civil penalty assessment to $25,000 in August 
8, 1997 (62 FR 42668), to $30,000 in November 28, 2003 (68 FR 61622), 
and to $35,000 in February 28, 2007 (72 FR 8897).
    Between August 18, 1990, and January 2008, MMS initiated 623 civil 
penalty reviews. Operators have paid 498 civil penalties for a total of 
$18,591,792 in fines.
    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 violation and date, the amount 
and date paid, and the regulation violated. The following table 
provides a listing of the 36 penalties paid between January 1, 2007, 
and December 31, 2007. The total amount collected is $3,106,000. The 
list is posted on the MMS's Web page at http://www.mms.gov/civilpenalties/.

                 2007 Civil/Criminal Penalties Summary--All Penalties Paid in Calendar Year 2007
                                              [1/1/2007-12/31/2007]
----------------------------------------------------------------------------------------------------------------
                                                                   Penalty paid and date  Regulation(s) violated
    Operator name  and case No.         Violation and date(s)              paid                   (30 CFR)
----------------------------------------------------------------------------------------------------------------
Petro Ventures, Inc., G-2002-042...  The boat landing Emergency   $60,000, 3/14/2007....  Sec.   250.803(c),
                                      Shut-down (ESD) station by-                          Sec.   250.803(c).
                                      passed, and the ESD
                                      station at the top of the
                                      stairs leading to the boat
                                      landing was also by-
                                      passed--both by a manual
                                      isolation valve.
                                     03-JUL-2002--12-JUL-2002...
                                     03-JUL-2002--12-JUL-2002...
BP Exploration & Production Inc.,    Operator failed to verify    $41,000, 10/25/2007...  Sec.   250.1503(a),
 (Diamond Offshore Drilling, Inc.),   employees were trained to                            Sec.   250.409(c).
 G-2004-003.                          competently perform the
                                      assigned well control
                                      duties. Additionally, they
                                      failed to have a remote-
                                      controlled station that
                                      could operate the valves
                                      in the flow and vent lines
                                      of the diverter. These
                                      violations contributed to
                                      a loss of well control
                                      event on November 14,
                                      2002. There was no
                                      pollution or injuries.
                                     04-NOV-2002--14-NOV-2002...
                                     13-NOV-2002--13-NOV-2002...
The Houston Exploration Company, G-  Two ESD stations at the      $317,500, 2/27/2007...  Sec.   250.803(b)(4),
 2006-016.                            boat landing were taken                              Sec.   250.107.
                                      out-of-service and the two
                                      primary means of escape
                                      were unsafe.
                                     18-NOV-2005--18-JAN-2006...
                                     28-OCT-2005--18-JAN-2006...
Maritech Resources Inc., G-2006-021  A major component of the     $30,000, 3/22/2007....  Sec.   250.803(b)(8).
                                      approved dry chemical
                                      firefighting system was
                                      inoperable. Four 350-pound
                                      wheel unit fire
                                      extinguishers were not
                                      ready-for-use since the
                                      nitrogen cylinders were
                                      not connected.
                                     10-MAR-2005--10-MAR-2005...

[[Page 17379]]

 
Maritech Resources Inc., G-2006-024  The platform was producing   $162,500, 5/10/2007...  Sec.   250.803(c),
                                      without operable ESD                                 Sec.   250.803(c).
                                      stations on the east &
                                      west boat landings, and
                                      once the ESD stations were
                                      repaired, the block valves
                                      were left in the closed
                                      position. Additionally,
                                      surface-controlled
                                      subsurface safety valves
                                      (SCSSV's) for Wells B-1, B-
                                      4, B-10, B-20, B-22, and B-
                                      24 were blocked out-of-
                                      service since the manual
                                      override valve was closed
                                      at the main panel.
                                     01-OCT-2005--14-NOV-2005...
                                     06-NOV-2005--15-NOV-2005...
Energy Partners, Ltd., G-2006-025..  A rig floor hand was         $30,000, 4/23/2007....  Sec.   250.107.
                                      injured while using a
                                      spinner wrench.
                                     06-APR-2006--06-APR-2006...
Merit Energy Company (Island         Pressure vessel had a hole   $220,000, 4/25/2007...  Sec.   250.107.
 Operators Co., Inc.), G-2006-027.    where an inappropriate
                                      patch was used to repair
                                      it.
                                     19-DEC-2005-31--JAN-2006...
Mariner Energy, Inc., G-2006-028...  Employee injured when he     $30,000, 8/8/2007.....  Sec.   250.107.
                                      fell 11 feet while working
                                      on an electrical tray 11
                                      feet above the deck.
                                     01-JUN-2006--01-JUN-2006...
Pogo Producing Company (Wood Group   The isolation valve was      $15,000, 2/14/2007....  Sec.   250.300(b)(4).
 Production Services), G-2006-030.    closed on the fuel gas
                                      supply line for the sump
                                      pump, placing the sump
                                      pump in an out-of-service
                                      mode. The condition of the
                                      sump tank was not being
                                      monitored by platform
                                      personnel.
                                     01-APR-2006--03-APR-2006...
Noble Energy, Inc., G-2006-031.....  The Level Safety High (LSH)  $35,000, 1/25/2007....  Sec.   250.803, Sec.
                                      on the bulk oil separator                            205.113.
                                      MBD 1000 was found in the
                                      closed position rendering
                                      it inoperable (by-passed).
                                     Welding operations within
                                      35 feet horizontally of
                                      equipment containing
                                      hydrocarbons from the
                                      point of impact of slag,
                                      sparks, or burning
                                      material at lower
                                      elevations and was not
                                      otherwise protected..
                                     21-JUL-2005--21-JUL-2005...
                                     21-JUL-2005--21-JUL-2005...
Nexen Petroleum U.S.A. Inc., G-2006- An open hole was found on    $10,000, 4/26/2007....  Sec.   250.107(a).
 033.                                 the plus 10' deck leading
                                      to the boat landing and
                                      there was no barricade to
                                      prevent personnel from
                                      entering the unsafe area.
                                     03-MAY-2006--03-MAY-2006...
Merit Energy Company, G-2006-035...  Repairs were conducted on    $10,000, 3/14/2007....  Sec.   250.108.
                                      the damaged crane boom not
                                      in accordance with API RP
                                      2D, Section 4.3.3(e) and
                                      the crane was placed back
                                      in-service without
                                      conducting a load test.
                                     09-AUG-2006--09-AUG-2006...
Apache Corporation, G-2006-036.....  Records verified there was   $446,000, 8/3/2007....  Sec.   250.615(c),
                                      not a low or high pressure                           Sec.   250.616(a),
                                      test conducted on the                                Sec.   250.614(c),
                                      following Blow Out                                   Sec.   250.615(c),
                                      Preventor (BOP) related                              Sec.   250.616(a).
                                      equipment: HCR choke
                                      valve, manual choke valve,
                                      HCR kill valve, manual
                                      kill valve, kill line
                                      check valve, Inside BOP
                                      valve and choke manifold.
                                      These violations were for
                                      2 BOP test periods, 7/19/
                                      2006 and 7/26/2006. A mud-
                                      pit-level indicator with
                                      both visual and audible
                                      warning devices had not
                                      been installed. There was
                                      not a BOP station
                                      installed in the work
                                      basket of the snubbing
                                      unit. The secondary power
                                      source (air supply) was
                                      isolated with a closed
                                      manual block valve located
                                      on the inlet piping to the
                                      accumulator.
                                     02-AUG-2006--02-AUG-2006...
                                     19-JUL-2006--02-AUG-2006...
                                     21-JUL-2006--02-AUG-2006...
                                     21-JUL-2006--02-AUG-2006...
                                     26-JUL-2006--02-AUG-2006...

[[Page 17380]]

 
NCX Company, L.L.C., G-2006-037....  Records verify that the      $170,000, 6/27/2007...  Sec.   250.804(a)(5),
                                      Flow Safety Valves (FSV)                             Sec.   250.804(a)(6),
                                      for Wells B3 and B9 were                             Sec.   250.804(a)(3),
                                      not tested during the                                Sec.   250.804(a)(5),
                                      months of April, May,                                Sec.   250.804(a)(6),
                                      June, and July of 2006,                              Sec.   250.804(a)(3),
                                      and the FSV for Well B13                             Sec.   250.804(a)(5),
                                      was not tested during the                            Sec.   250.804(a)(6),
                                      months of March and April                            Sec.   250.804(a)(5),
                                      of 2006. The Surface                                 Sec.   250.804(a)(6),
                                      Safety Valves (SSV) for                              Sec.   250.804(a)(3),
                                      Wells B3 and B9 were not                             Sec.   250.804(a)(5),
                                      tested during the months                             Sec.   250.804(a)(6).
                                      of April, May, June, and
                                      July of 2006, and the SSV
                                      for Well B13 was not
                                      tested during the months
                                      of March and April of
                                      2006. The Pressure Safety
                                      High and Low (PSHL) for
                                      Wells B3 and B9 were not
                                      tested during the months
                                      of May, June, and July of
                                      2006. The LSH for the new
                                      sump pump (ABJ-B801) was
                                      not tested since the
                                      installation during the
                                      months of June and July of
                                      2006.
                                     01-APR-2006--01-MAY-2006,
                                      01-APR-2006--01-MAY-2006,
                                      01-JUL-2006--01-AUG-2006,
                                      01-JUL-2006--01-AUG-2006,
                                      01-JUL-2006--01-AUG-2006,
                                      01-JUN-2006--01-JUL-2006,
                                      01-JUN-2006--01-JUL-2006,
                                      01-JUN-2006--01-JUL-2006,
                                      01-MAR-2006--01-APR-2006,
                                      01-MAR-2006--01-APR-2006,
                                      01-MAY-2006--01-JUN-2006,
                                      01-MAY-2006--01-JUN-2006,
                                      01-MAY-2006--01-JUN-2006.
Forest Oil Corporation, G-2006-038.  On WD 34 3          $30,000, 7/23/2007....  Sec.   250.107.
                                      caisson, an open hole was
                                      found on the plus 10' deck
                                      leading to the boat
                                      landing with no barricade
                                      to prevent personnel from
                                      entering the unsafe area.
                                      On WD 34 1
                                      caisson, there were 2 open
                                      holes found: one open hole
                                      at the boat landing with
                                      no barricade and one
                                      opening in the deck on the
                                      top deck below the
                                      heliport, which was not
                                      covered, guarded, or
                                      otherwise made
                                      inaccessible.
                                     18-MAY-2006--18-MAY-2006...
SPN Resources, G-2006-040..........  Well A-16 Flowline PSHL      $20,000, 6/15/2007....  Sec.   250.803(c).
                                      were bypassed while not
                                      being flagged or
                                      monitored. Also, the
                                      isolation valve directly
                                      upstream of the PSV on the
                                      compressor first stage
                                      suction scrubber was
                                      closed thus rendering the
                                      PSV inoperable.
                                     14-MAY-2006--15-MAY-2006...
Chevron U.S.A. Inc., G-2006-041....  The LSH on Run Tank, MAJ     $15,000, 4/10/2007....  Sec.   250.803(c).
                                      1027, was bypassed while
                                      changing a leaking site
                                      glass. There was no way to
                                      monitor the level inside
                                      the vessel which was a
                                      contributing factor to the
                                      2 bbl oil spill on August
                                      1, 2006.
                                     01-AUG-2006--01-AUG-2006...
Freeport-McMoRan Energy LLC, G-2007- While changing the orifice   $50,000, 9/10/2007....  Sec.   250.107, Sec.
 001.                                 plate on the test                                    250.490(f)(1-13).
                                      separator meter run, the
                                      lead operator was overcome
                                      by H2S gas. The bottom
                                      gate of the orifice
                                      fitting did not seal
                                      completely, allowing gas
                                      to leak into the
                                      atmosphere; and proper H2S
                                      safety measures had not
                                      been taken.
                                     22-SEP-2006--22-SEP-2006...
                                     22-SEP-2006--22-SEP-2006...
Stone Energy Corporation, G-2007-    The SCSSV for a well was     $10,000, 4/26/2007....  Sec.   250.803.
 002.                                 found open and the manual
                                      block valve on the control
                                      line located at the well
                                      was closed rendering the
                                      SCSSV inoperable (by-
                                      passed), the valve would
                                      not close as designed with
                                      the loss of hydraulic
                                      pressure.
                                     19-AUG-2006--19-AUG-2006...
Remington Oil and Gas Corporation,   The mechanical ventilation   $17,500, 8/7/2007.....  Sec.   250.459(d).
 G-2007-004.                          safety system protecting
                                      the Mud Engineer's
                                      portable building was
                                      found manually by-passed.
                                     26-SEP-2006--26-SEP-2006...

[[Page 17381]]

 
TDC Energy LLC.....................  A pollution event occurred   $72,000, 7/10/2007....  Sec.   250.300(a),
G-2007-005.........................   with approximately 28                                Sec.   250.300(b),
                                      gallons spilled into Gulf                            Sec.   250.300(b).
                                      waters; the skimmer tank
                                      skid, sump tank skid, and
                                      condensate pump
                                      containment skid were all
                                      full of oil; and the sump
                                      pump was inoperable.
                                     13-SEP-2006--14-SEP-2006...
                                     14-SEP-2006--14-SEP-2006...
                                     14-SEP-2006--14-SEP-2006...
Linder Oil Company, A Partnership,   Four violations in this      $65,000, 7/11/2007....  Sec.   250.107, Sec.
 G-2007-006.                          case: Oil and Grease on                              250.107, Sec.
                                      Stairway (primary means of                           250.107, Sec.
                                      escape); Boat landing                                250.803.
                                      blocked off; Gas detection
                                      alarm system disabled; and
                                      access to two 350
                                      wheeled fire extinguishers
                                      were blocked off.
                                     13-SEP-2006--13-SEP-2006...
                                     13-SEP-2006--13-SEP-2006...
                                     13-SEP-2006--13-SEP-2006...
                                     13-SEP-2006--13-SEP-2006...
Forest Oil Corporation, G-2007-007.  During an inspection on May  $80,000, 10/5/2007....  Sec.   250.300(b)(4),
                                      18, 2006, the LSH on the                             Sec.   250.803(c)(1),
                                      vent scrubber was found by-                          Sec.   250.803(c)(1),
                                      passed, as well as the gas                           Sec.   250.300(b)(4).
                                      lift line to the sump pile
                                      was disconnected rendering
                                      the sump pile inoperable.
                                      During this initial
                                      inspection, there were 2
                                      violations written-up for
                                      oil accumulations, one
                                      being in the compressor
                                      skid and the second around
                                      the deck of the crane.
                                      During a follow-up
                                      inspection on June 9,
                                      2006, a closed block valve
                                      was found on the supply
                                      line to the gas lift for
                                      the sump pile rendering
                                      the sump pile inoperable.
                                      On a third follow-up
                                      inspection on June 13,
                                      2006, the entire gas
                                      detector relay panel was
                                      found in by-pass, there
                                      were also 2 violations
                                      documented for oil
                                      accumulations, both in the
                                      same areas as documented
                                      on the May 18th inspection
                                      (compressor skid and deck
                                      area around the crane).
                                     09-JUN-2006--09-JUN-2006...
                                     13-JUN-2006--13-JUN-2006...
                                     18-MAY-2006--18-MAY-2006...
                                     18-MAY-2006--18-MAY-2006...
Forest Oil Corporation, G-2007-008.  The MMS inspector found an   $80,000, 6/26/2007....  Sec.   250.107.
                                      open hole around the BOP
                                      riser on the top deck, as
                                      well as an open hole
                                      around the BOP riser in
                                      the well bay area that was
                                      not properly barricaded to
                                      prevent a person's foot or
                                      body from inadvertently
                                      falling through the hole.
                                     14-NOV-2006--18-NOV-2006...
Pogo Producing Company, G-2007-010.  The departing sales gas      $120,000, 6/7/2007....  Sec.   250.107.
                                      pipeline shut down valve
                                      spool connector between
                                      the ball valve and the
                                      mechanical robot device,
                                      used to open and close the
                                      valve, was cracked and
                                      allowing gas to escape
                                      into the atmosphere.
                                     08-JAN-2007--13-JAN-2007...
Nippon Oil Exploration U.S.A.        The upper and lower          $10,000, 10/23/2007...  Sec.   250.803(c).
 Limited, G-2007-013.                 isolation valves on the
                                      LSH on the Vent Scrubber
                                      were found in the closed
                                      position, by-passed.
                                     26-FEB-2007--26-FEB-2007...
GOM Shelf LLC (Rowan Drilling), G-   Stairs and handrail on the   $40,000, 8/3/2007.....  Sec.   250.401(e).
 2007-014.                            cantilever pipe rack deck
                                      had been removed in order
                                      to install the diverter
                                      housing under the decking.
                                      With the stairs removed,
                                      there was no other access
                                      to the pipe rack deck.
                                      Instead of replacing the
                                      stairs, the employees were
                                      observed climbing over
                                      railing and stretching
                                      from the top of the shaker
                                      house to the pipe deck.
                                      They were not wearing fall
                                      protection (estimated fall
                                      of 25' to the deck below).
                                      Additionally, the two
                                      areas where the handrail
                                      and stairs had been
                                      removed were not
                                      barricaded or properly
                                      guarded.
                                     11-JAN-2007--11-JAN-2007...
Energy Partners, Ltd, G-2007-015...  The fuel gas scrubber PSV    $80,000, 7/17/2007....  Sec.   250.803(c).
                                      was found blocked off and
                                      not flagged or monitored
                                      by personnel.
                                     08-MAR-2007--15-MAR-2007...

[[Page 17382]]

 
Devon Energy Production Company,     An employee's unsafe and un- $20,000, 12/11/2007...  Sec.   250.107.
 L.P., G-2007-017.                    workmanlike action
                                      resulted in him falling
                                      15' to the deck below.
                                     16-MAR-2007--16-MAR-2007...
PetroQuest Energy LLC, G-2007-018..  The SCSSV had been rendered  $10,000, 9/5/2007.....  Sec.   250.803(c).
                                      inoperable since the
                                      isolation valve located at
                                      the wellhead was closed.
                                     15-MAR-2007--25-MAR-2007...
Apache Corporation, G-2007-019.....  There was a failure to       $20,000, 9/26/2007....  Sec.   250.406.
                                      maintain an operable drill
                                      floor Emergency Shut-Down
                                      station with simultaneous
                                      well production.
                                     16-APR-2007--16-APR-2007...
Petrobras America Inc., G-2007-020.  During completion            $30,000, 11/6/2007....  Sec.   250.107(a).
                                      operations on the
                                      Transocean Offshore F100
                                      drilling rig, two contract
                                      workers were seriously
                                      injured when a lifting sub
                                      that was being used to
                                      lift production tubing
                                      backed out of its
                                      connection and fell 65' to
                                      the rig floor striking the
                                      2 workers.
                                     19-FEB-2007--19-FEB-2007...
Dominion Exploration & Production,   After being denied a         $697,500, 12/13/2007..  Sec.   250.107(a).
 Inc., G-2007-024.                    departure request to
                                      produce the H2 well with
                                      casing pressure, Dominion
                                      pulled the DX plug and
                                      produced the well for 279
                                      days.
                                     15-JUN-2006--20-MAR-2007...
W&T Offshore, Inc., G-2007-026.....  The MMS Inspector found the  $35,000, 12/19/2007...  Sec.   250.803(b)(8).
                                      starter gas for the fire
                                      water pump was blocked
                                      closed rendering the pump
                                      inoperable.
                                     13-MAY-2007--13-MAY-2007...
Apache Corporation, G-2007-028.....  The MMS Inspector            $12,000, 11/15/2007...  CFR 250.107.
                                      discovered that an
                                      additional section of
                                      metal plating had been
                                      removed from the ladder
                                      access opening for the mud
                                      pit tank. The removed
                                      section extended the
                                      opening beyond the three
                                      barricaded sides of the
                                      ladder access, creating a
                                      hazard for personnel.
                                     13-APR -2007 -13-APR-2007..
Devon Energy Production Co., L.P.,   The LSH on the 1st stage     $15,000, 12/19/2007...  Sec.   250.803(c),
 G-2007-032.                          suction scrubber; and the                            Sec.   250.803(c).
                                      LSH on the 3rd stage
                                      suction scrubber were both
                                      found in by-pass.
                                     22-JUN-2007--22-JUN-2007...
                                     22-JUN-2007--22-JUN-2007...
----------------------------------------------------------------------------------------------------------------
                                      Total Penalties Paid: 1/1/07-12/31/07
                                              36 Cases: $3,106,000
----------------------------------------------------------------------------------------------------------------

    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.

    Authority: 31 U.S.C. 9701, 43 U.S.C. 1334.

    Dated: February 26, 2008.
Chris Oynes,
Associate Director for Offshore Minerals Management.
[FR Doc. E8-6687 Filed 3-31-08; 8:45 am]
BILLING CODE 4310-MR-P