nforcement Measures
Inspections
The MMS inspection program in the Gulf of Mexico is directed by the Regional Office in
New Orleans, Louisiana, and four district offices and two subdistrict offices that provide
day-to-day review and inspection of oil and gas operations. There are 68 inspectors that
go offshore every day, weather permitting. During FY 94, the Gulf of Mexico Region
conducted 1,519 drilling inspections, 4,540 production inspections, 559 workover and
completion inspections, 1,455 meter inspections, 54 abandonment inspections, and 1,056
pipeline inspections. The MMS also inspects the stockpiles of industry's equipment for the
containment and cleanup of oil spills. Stockpiles are located at nine strategic sites
along the Gulf Coast. The MMS also has a program to conduct unannounced drills to test
spill response preparedness of operators in the Gulf of Mexico.
The OCSLA (43 U.S.C. 1348(c)) requires MMS to conduct onsite inspections to assure
compliance with lease terms, NTL's, and approved plans, and to assure that safety and
pollution-prevention requirements of regulations are met. These inspections involve items
of safety and environmental concern. Further information on the baseline for the
inspection of lessee operations and facilities can be found in the National Potential
Incident of Noncompliance (PINC) List (USDOI, MMS, 1990a). Noncompliance with checklisted
requirements for specific installations or procedures is followed by prescribed
enforcement actions consisting of written warnings or shut-ins of platforms, zones
(wells), equipment, or pipelines. In the event a noncompliance is detected, the inspector
takes the appropriate enforcement action as dictated by the National PINC List.
If an operator is found in violation of a safety or environmental requirement, a
citation is issued requiring that it be fixed within 7 days. The violation may call for
the particular well component, production component, or the entire complex to be shut in.
The primary objective of initial inspections is to assure proper
installation of mobile units or structures and associated equipment. After operations
begin, additional announced and unannounced inspections are conducted. Surprise
unannounced inspections are conducted to foster a climate of safe operations, to maintain
an MMS presence, and to focus on operators with a poor performance record. They are also
conducted after a critical safety feature has previously been found defective. Depending
on the distance from shore and other factors such as weather and proximity to other
inspections, each MMS district inspector will inspect from one to three different drilling
rigs or platforms per day. Aerial surveillance of additional offshore structures is
conducted enroute. Annual inspections are conducted on all platforms, but more frequent
inspections may be conducted on rigs and platforms. On-board inspections involve the
inspection of all safety systems of a production platform. In the interest of efficient
and effective utilization of inspection resources, random sampling techniques are being
evaluated for the selection of specific items for inspection from the national PINC list
and a production platform's component list.
Suspension of Operations The OCSLA, as amended (43 U.S.C. 1334(a)(1)), and
regulations appearing at 30 CFR 250.10 provide for the suspension or temporary prohibition
of an operation or activity when the suspension is in the national interest and when the
suspension is necessary based on any of the conditions given at 30 CFR 250.10(a) through
(c).
Cancellation of Leases The OCSLA (43 U.S.C. 1334(a)(2)) and regulations at 30
CFR 250.12 authorize the Secretary to cancel a lease or permit if, after opportunity and
notice for a hearing, he determines (1) continued activity would probably cause serious
harm or damage to life, property, the environment, or national security or defense; (2)
the threat of harm or damage will not disappear or decrease to an acceptable extent within
a reasonable time; (3) the advantages of cancellation outweigh the advantages of continued
activity; and (4) the suspension has been in effect for at least 5 years or the
termination of suspension and lease cancellation are at the request of the lessee.
Remedies and Penalties
Under 43 U.S.C. 1350(b) of the OCSLA, as amended, and regulations appearing at 30 CFR
250.200-250.206, civil penalties can be assessed for failure to comply with
responsibilities under the law, a license, a permit, or any regulation or order issued
pursuant to the Act. The Oil Pollution Act of 1990 changed the way MMS will address civil
penalties and remedies. Civil penalties are now issued for serious violations. If the
violation is serious enough and is found to be a knowing and willful violation, MMS may
recommend that the matter be referred to the Department of Justice for criminal
prosecution (43 U.S.C. 1350(c)). The issuance and continuance in effect of any lease or of
any assignment or other transfer of any lease shall be conditioned upon compliance with
regulations issued under the OCSLA.