[Federal Register: April 1, 2008 (Volume 73, Number 63)]
[Notices]
[Page 17378-17382]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr01ap08-77]
[[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...
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Total Penalties Paid: 1/1/07-12/31/07
36 Cases: $3,106,000
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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.
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