[Federal Register Volume 74, Number 59 (Monday, March 30, 2009)]
[Notices]
[Pages 14151-14155]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-7061]


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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, 2008, through December 31, 2008.

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SUMMARY: This notice provides a listing of civil penalties paid from 
January 1, 2008, through December 31, 2008, 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 oil, gas, 
sulphur, or other minerals 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 the Outer 
Continental Shelf Lands Act 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 (OCS) Lands Act 
Amendments of 1978. Section 8201 of OPA 90 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, OPA 90 
provided the Secretary of the Interior (Secretary) with the authority 
to assess a civil penalty without first providing a period of time for 
corrective action 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.
    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 maximum civil penalty 
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

[[Page 14152]]

maximum amount. The MMS has published regulations adjusting the civil 
penalty assessment to $25,000 on August 8, 1997 (62 FR 42667); to 
$30,000 on October 29, 2003 (68 FR 61622); and to $35,000 on February 
28, 2007 (72 FR 8897).
    Between August 18, 1990, when OPA 90 was enacted, and December 31, 
2008, MMS initiated 648 civil penalty reviews. Operators have paid 529 
civil penalties for a total of $20,752,042 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 purpose of publishing the 
penalties summary is to provide information to the public on violations 
of the OCS Lands Act and to provide an additional incentive for safe 
and environmentally sound operations. The annual summary will highlight 
the identity of the party, a description of the violation, the amount 
of the penalty and date paid, and the regulation violated. The 
following table provides a listing of the 31 penalties paid between 
January 1, 2008, and December 31, 2008. The total amount collected is 
$2,210,250. The list is posted on the MMS's Web page at http://www.mms.gov/civilpenalties/.

                                       2008 Civil/Criminal Penalties Summary Penalties Paid in Calendar Year 2008
                                                                  [1/1/2008-12/31/2008]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Regulation(s) violated 30
      Operator name and case No.                     Violation and date(s)                   Penalty paid and date paid                  CFR
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Pogo Producing Co., G-2007-009.......  During the investigation of a 3/4 mile by 16 mile  $505,000, 2/8/2008.
                                        oil slick on November 29, 2006, the MMS
                                        Inspector discovered operators had bypassed
                                        basically the entire platform safety system
                                        including the emergency shut down to keep
                                        production online. Further investigation
                                        revealed a second pollution incident on November
                                        21, 2006, in which oil was blown out of the
                                        flare boom leaving the platform covered with oil
                                        and causing pollution.
                                       29-NOV-2006--29-NOV-2006.........................  ................................  Sec.   250.803(c).
                                       29-NOV-2006--29-NOV-2006.........................  ................................  Sec.   250.803(c).
                                       29-NOV-2006--29-NOV-2006.........................  ................................  Sec.   250.803(c).
                                       29-NOV-2006--29-NOV-2006.........................  ................................  Sec.   250.803(c).
                                       29-NOV-2006--29-NOV-2006.........................  ................................  Sec.   250.803(c).
                                       21-NOV-2006--21-NOV-2006.........................  ................................  Sec.   250.300(a).
                                       21-NOV-2006--21-NOV-2006.........................  ................................  Sec.   250.300(a).
                                       29-NOV-2006--29-NOV-2006.........................  ................................  Sec.   250.1004.
                                       29-NOV-2006--29-NOV-2006.........................  ................................  Sec.   250.1004.
                                       29-NOV-2006--29-NOV-2006.........................  ................................  Sec.   250.1004.
                                       21-NOV-2006--29-NOV-2006.........................  ................................  Sec.   250.107.
SPN Resources, LLC, G-2007-012.......  MMS Inspectors found the accumulator with no air   $100,000, 1/18/08.
                                        supply connected to it. The remote blowout
                                        preventer (BOP) control station was also found
                                        with no operating pressure on it. The Inspection
                                        also revealed that there was not a full opening
                                        work-string safety valve or TIW wrench located
                                        on the rig floor. Personnel were witnessed
                                        working greater than 6 feet above the deck with
                                        no fall protection. The Inspector also found
                                        stairs to the BOP and pipe rack to be in an
                                        unsafe location which required personnel to
                                        climb over the handrails.
                                       01-SEP-2006--01-SEP-2006.........................  ................................  Sec.   250.107(a).
                                       01-SEP-2006--01-SEP-2006.........................  ................................  Sec.   250.515(d).
                                       01-SEP-2006--01-SEP-2006.........................  ................................  Sec.   250.515(d).
                                       01-SEP-2006--01-SEP-2006.........................  ................................  Sec.   250.515(c).
                                       01-SEP-2006--01-SEP-2006.........................  ................................  Sec.   250.515(c).
                                       01-SEP-2006--01-SEP-2006.........................  ................................  Sec.   250.401.
W&T Offshore, Inc., G-2007-016.......  Operator failed to properly barricade the 4' X 4'  $130,000, 3/12/2008.
                                        opening and a 7'10'' X 16'' opening during work
                                        over operations.
                                       04-APR-2007--16-APR-2007.........................  ................................  Sec.   250.107.
Helis Oil & Gas Company, LLC           The operator failed to supply sufficient           $40,000, 1/17/2008.
 (Hercules Offshore Drilling) G-2007-   accumulator fluid capacity required to close and
 021.                                   hold closed the 30-inch annular installed on the
                                        diverter system.
                                       06-MAY-2007--07-MAY-2007.........................  ................................  Sec.   250.430.
W&T Offshore, G-2007-022.............  Firewater Pump low discharge pressure with two     $145,000, 10/2/08.
                                        hoses opened and Aqueous Film Forming Foam
                                        Concentrate (AFFF) light water unit had lost the
                                        required pressure for the system.
                                       31-MAR-2007--28-APR-2007.........................  ................................  Sec.   250.803(b)(8).
Remington Oil and Gas Corp., G-2007-   Failure to properly secure grating led to an       $45,000, 1/09/2008.
 025.                                   accident with injury.
                                       26-APR-2007--27-APR-2007.........................  ................................  Sec.   250.107.
Exxon Mobil Corp., G-2007-027........  Well bypassed at the panel.......................   $30,000, 2/29/08.
                                       12-APR-2007--17 APR-2007.........................  ................................  Sec.   250.803.

[[Page 14153]]

 
Pogo Producing Co., G-2007-029.......  There was an excessive number of safety devices    $80,000, 2/08/2008.
                                        bypassed while bringing the platform online.
                                        With only one person watching the computer, it
                                        was impossible to safely monitor all of the
                                        bypassed devices. During these start-up
                                        operations, operators overflowed the float cell,
                                        pouring a hydrocarbon/water mixture onto the
                                        deck. Once the platform was shut-in, the
                                        operators received an alarm on the pressure
                                        safety high (PSH) for the fuel gas scrubber and
                                        there was no action taken in response to the
                                        alarm. The AFFF unit, which was protecting the
                                        wet/dry oil tanks, was found to be empty.
                                       03-APR-2007--03-APR-2007.........................  ................................  Sec.   250.107(a).
                                       03-APR-2007--03-APR-2007.........................  ................................  Sec.   250.803(c).
                                       29-MAR-2007--08-MAY-2007.........................  ................................  Sec.   250.107.
Exxon Mobil Corp., G-2007-030........  The actuator for the compressor suction shut down  $35,000, 1/14/2008.
                                        valve (SDV) had been removed.
                                       13-MAY-2007--21-MAY-2007.........................  ................................  Sec.   250.803.
Pogo Producing Co., G-2007-031.......  The Inspectors noticed that the block valve for    $150,250, 2/08/2008.
                                        the pressure safety valve (PSV) located on the
                                        test separator had been left in the closed
                                        position. The Inspectors witnessed personnel
                                        working with no fall protection at a height
                                        greater than 6 feet above the deck. The
                                        Inspectors found that the AFFF unit which was
                                        protecting the wet/dry oil tanks contained an
                                        empty bottle; and additionally, that the valve
                                        handles had been removed from the fire monitors,
                                        which were the secondary form of protection for
                                        the wet/dry oil tanks. It was also discovered
                                        that the operator had ``failed to correct'' the
                                        location of the level safety high (LSH) for the
                                        sump.
                                       29-MAR-2007--30-MAR-2007.........................  ................................  Sec.   250.803(c).
                                       30-MAR-2007--30-MAR-2007.........................  ................................  Sec.   250.107(a).
                                       30-MAR-2007--30-MAR-2007.........................  ................................  Sec.   250.107.
                                       30-MAR-2007--30-MAR-2007.........................  ................................  Sec.   250.107.
                                       30-MAR-2007--30-MAR-2007.........................  ................................  Sec.   250.107.
Pogo Producing Co., G-2007-033.......  Temperature safety element (TSE) on the rental     $25,000, 2/11/2008.
                                        generator was found with the block valve closed
                                        on the supply line, rendering the TSE inoperable.
                                       17-MAY-2007--17-MAY-2007.........................  ................................  Sec.   250.803.
Pogo Producing Co., G-2007-034.......  Gas-lift line was open ended with 1,000 psi on     $40,000, 2/11/2008.
                                        the down stream side of the check valve and the
                                        gas-lift header was found with 700 psi on it and
                                        all flanges associated with the header had
                                        missing bolts.
                                       17-MAY-2007--17-MAY-2007.........................  ................................  Sec.   250.107.
                                       17-MAY-2007--17-MAY-2007.........................  ................................  Sec.   250.107.
Forest Oil Corp., G-2007-035.........  During welding/cutting operations to remove a      $35,000, 3/31/08.
                                        cantilever deck, a fire/explosion occurred when
                                        hot slag fell between 10 and 15 feet into an
                                        open ended connection on top of the out of
                                        service oil storage tank.
                                       26-JUN-2007--26-JUN-2007.........................  ................................  Sec.   250.401.
Palm Energy Offshore, LLC, G-2007-037  The top block valve on the LSH fluid chamber was   $15,000, 2/11/2008.
                                        found closed.
                                       10-JUL-2007--10-JUL-2007.........................  ................................  Sec.   250.803
Energy XXI GOM, LLC, G-2007-039......  There was a closed block valve upstream of the     $15,000, 1/17/2008.
                                        PSV on the First Stage Suction Scrubber which
                                        rendered the PSV inoperable. Also, the Surface
                                        Controlled Subsurface Safety Valve (SCSSV) was
                                        found with pressure trapped on the control line
                                        which locked open the SCSSV.
                                       11-JUL-2007--11-JUL-2007.........................  ................................  Sec.   250.803(c).
                                       11-JUL-2007--11-JUL-2007.........................  ................................  Sec.   250.803(c).
Energy Resource Technology, Inc., G-   A pollution event of less than 200 bbls,           $135,000, 9/26/08.
 2007-041.                              seventeen safety devices not tested prior to
                                        initiating production, leaking gas from 2''
                                        line, and four safety devices bypassed.
                                       14-MAY-2007--17 MAY 2007.........................  ................................  Sec.   250.101.
                                       15-MAY-2007--17 MAY 2007.........................  ................................  Sec.   250.107.
                                       17-MAY-2007--17 MAY 2007.........................  ................................  Sec.   250.300(a).
Apache Corp. (Island Operators, Inc.)  A flash fire that resulted in an injury, occurred  $85,000, 4/29/08.
 G-2007-043.                            since a flowline had not been properly isolated
                                        or blind flanged from the process header. The
                                        welder was injured when his torch came in
                                        contact with hydrocarbons that were released
                                        through the open ended flowline.
                                       05-SEP-2007--07-SEP-2007.........................  ................................  Sec.   250.803(c).

[[Page 14154]]

 
W&T Offshore, Inc., G-2007-044.......  Lead sump pump inoperable........................  $35,000, 4/11/08.
                                       21-JUN-2007--21-JUN-2007.........................  ................................  Sec.   250.300(b).
Nexen Petroleum U.S.A., Inc., G-2008-  The pneumatic fire detection system installed      $15,000, 5/9/08.
 001.                                   over the gas generator was found inoperable
                                        since the TSE was not connected to the supply
                                        line.
                                       02-NOV-2007--02-NOV-2007.........................  ................................  Sec.   250.803(c).
Linder Oil Company, A Partnership, G-  MMS Inspectors found the Surface Safety Valve      $180,000, 8/7/08.
 2008-003.                              (SSV) and Wing SDV on Well 4 bypassed
                                        with fusible caps. There was also a 1 inch open
                                        ended line on the fuel gas header where a PSV
                                        had been removed.
                                       03-DEC-2007--07-DEC-2007.........................  ................................  Sec.   250.803(c).
                                       03-DEC-2007--10-DEC-2007.........................  ................................  Sec.   250.803(c).
Forest Oil Corporation, G-2008-004...  The SCSSV for the B-1 well was bypassed at the     $60,000, 12/30/08.
                                        panel for a total of 6 days.
                                       01-DEC-2007--06-DEC-2007.........................  ................................  Sec.   250.803(c)(1).
Dauphin Island Gathering Partners, G-  The handrails on the north end of the well bay     $25,000, 8/5/08.
 2008-005.                              had not been maintained in a safe condition. The
                                        handrails were corroded and deteriorated to a
                                        point that they were no longer a suitable guard
                                        and they could not adequately hold a person's
                                        weight.
                                       08-NOV-2007--08-NOV-2007.........................  ................................  Sec.   250.107.
Apache Corporation, G-2008-006.......  Repairs were made to the damaged crane boom that   $50,000, 7/25/08.
                                        was 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.
                                       14-JAN-2008--15-JAN-2008.........................  ................................  Sec.   250.108.
Dominion Exploration & Production,     The PSV for the Glycol Contactor was bypassed      $5,000, 8/29/08.
 Inc., g-2008-008.                      with a closed manual block valve.
                                       28-NOV-2006--28-NOV-2006.........................  ................................  Sec.   250.803(c).
Marathon Oil Co., G-2008-009.........  The MMS Inspector found that the SCSSV and the     $30,000, 7/14/08.
                                        vertical run SSV had been rendered inoperable.
                                        The SCSSV was blocked at the supply line; and
                                        the SSV was locked in the open position with a
                                        nonfusible cap.
                                       18-DEC-2007--18-DEC-2007.........................  ................................  Sec.   250.803(c).
McMoRan Oil & Gas LLC, G-2008-011....  The cantilever deck was not properly guard railed  $15,000, 9/25/08.
                                        or barricaded.
                                       14-APR-2008--14-APR-2008.........................  ................................  Sec.   250.107
Medco Energi U.S. LLC, G-2008-012....  Unsafe situations were discovered by the MMS       $75,000, 11/21/08.
                                        Inspector on four Caissons. Equipment had not
                                        been maintained in a safe manner and precautions
                                        had not been made to provide for the safety of
                                        personnel.
                                       06-MAY-2008--06-MAY-2008.........................  ................................  Sec.   250.107(a)(2).
                                       06-MAY-2008--06-MAY-2008.........................  ................................  Sec.   250.107(a)(2).
                                       06-MAY-2008--06-MAY-2008.........................  ................................  Sec.   250.107(a)(2).
                                       06-MAY-2008--06-MAY-2008.........................  ................................  Sec.   250.107(a)(2).
                                       06-MAY-2008--06-MAY-2008.........................  ................................  Sec.   250.107(b).
                                       06-MAY-2008--06-MAY-2008.........................  ................................  Sec.   250.107(b).
                                       29-APR-2008--29-APR-2008.........................  ................................  Sec.   250.107(b).
SPN Resources, LLC, G-2008-017.......  A section of grating on the boat landing was       $15,000, 12/30/08.
                                        severely corroded and damaged, creating a large
                                        opening that was unsafe for personnel. There was
                                        no barricade or guard to restrict the area and
                                        alert personnel of the hazard.
                                       10-JUL-2008--10-JUL-2008.........................  ................................  Sec.   250.107.
Plains Exploration & Production        A flash fire involving a flare scrubber vessel     $40,000, 4/8/08.
 Company, P-2006-002.                   resulted in minor burns to an employee. Work
                                        involving a glycol skid did not follow
                                        operator's safety manual.
                                       18-JUL-2006--18-JUL-2006.........................  ................................  Sec.   250.803(b)(1).
                                       18-JUL-2006--18-JUL-2006.........................  ................................  Sec.   250.803(b)(1).
DCOR LLC, P-2006-003.................  Five Incidents of Non-Compliance were issued       $35,000, 1/30/2008.
                                        following a 7/27/06 incident that resulted in
                                        significant damage to the unit crane during an
                                        operation to remove stuck progressive cavity
                                        pump rods.
                                       27-JUL-2006--27-JUL-2006.........................  ................................  Sec.   250.107(a).
                                       27-JUL-2006--27-JUL-2006.........................  ................................  Sec.   250.108.
                                       27-JUL-2006--27-JUL-2006.........................  ................................  Sec.   250.108.
                                       27-JUL-2006--27-JUL-2006.........................  ................................  Sec.   250.108.
                                       27-JUL-2006--27-JUL-2006.........................  ................................  Sec.   250.606.
Arguello Inc., P-2006-004............  During rerouting of gas flow (in connection with   $20,000, 4/8/08.
                                        drilling rig demobilization and work on the
                                        condensate stabilizer vessel) a valve was
                                        erroneously opened resulting in H2S exposure.
                                       12-AUG-2006--12-AUG-2006.........................  ................................  Sec.   250.107(a).
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[[Page 14155]]

 
                                                          Total Penalties Paid: 1/1/08-12/31/08
                                                                  31 Cases: $2,210,250
--------------------------------------------------------------------------------------------------------------------------------------------------------


    Authority: 43 U.S.C. 1331 et seq.

    Dated: March 12, 2009.
Chris C. Oynes,
Associate Director for Offshore Energy and Minerals Management.
 [FR Doc. E9-7061 Filed 3-27-09; 8:45 am]
BILLING CODE 4310-MR-P