2004
Civil/Criminal Penalties
The goal of the OCS
Civil/Criminal 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.
2004 Civil/Criminal Penalties Summary
All Penalties Paid in
Calendar 2004
(01/01/2004 -
12/31/2004)
Operator Name
and Case No. |
Violation
and Date(s) |
Penalty
Paid and
Date Paid |
Regulation(s) Violated
(30 CFR) |
Dominion
Exploration & Production, Inc.
G-2002-049 |
A fire resulted
during a welding operation when operator failed to properly protect
equipment containing hydrocarbons. Equipment was located on deck
below immediately beneath welding site.
08/14/02 – 08/14/02
08/15/02 – 08/15/02 |
$28,000
02/11/04 |
30 CFR 250.107
30 CFR 250.113 |
TDC Energy LLC
(Island Operators Co. Inc.)
G-2003-005 |
The operating
company was conducting operations without an H2S Contingency Plan
with a confirmed presence of H2S in concentrations and volumes that
could potentially result in atmospheric concentrations of 20 ppm or
more of H2S.
10/29/02 – 10/29/02 |
$25,000
05/07/04 |
30 CFR 250.417(f) |
Pogo Producing
Company
G-2003-007 |
The sump pump
ABH-1460 was isolated from the sump tank by a closed valve,
rendering the pump inoperable.
01/29/03 – 01/29/03 |
$10,000
03/12/04 |
30 CFR 250.300(b) |
Murphy Exploration
& Production Company
G-2003-009 |
Relay for the
departing gas pipeline (KAH-0056) PSHL pilots was found pinned out
of service
3/17/03 – 3/17/03 |
$10,000
6/29/04 |
30 CFR 250.1004 |
BP America
Production Company
(Diamond Offshore Drilling, Inc.)
G-2003-010 |
The Rig's Gas
Detection System was bypassed with ongoing drilling operations being
conducted.
03/01/03 – 03/18/03 |
$25,000
02/03/04 |
30 CFR
250.410(e)(3) |
Chevron U.S.A. Inc.
G-2003-011 |
Gas detector
protecting the generator building was found in the bypass position.
03/07/03 – 03/10/03 |
$20,000
01/15/04 |
30 CFR 250.803(c) |
Devon Louisiana
Corporation
G-2003-012 |
The production
process group by-pass selector valve was found in the by-pass mode.
09/13/02 – 09/13/02 |
$30,000
04/01/04 |
30 CFR 250.803(c) |
Helis Oil & Gas
Company, L.L.C.
G-2003-014 |
Surface-controlled
subsurface safety valve for Well B-1 was blocked out of service.
05/29/03 – 05/30/03 |
$10,000
02/04/04 |
30 CFR 250.803(c) |
El
Paso Production GOM Inc.
G-2003-015 |
The LSH on the 3rd
stage suction scrubber was bypassed and was not flagged or
monitored.
06/12/03 – 06/13/03 |
$12,000
01/09/04 |
30 CFR 250.803(c) |
GOM Shelf LLC
(Production Systems, Inc.)
G-2003-017 |
Pollution resulted
due to an inoperable drain sump system.
06/19/03 – 06/24/03
06/24/03 – 06/24/03 |
$35,000
03/04/04 |
30 CFR 250.300(b)
30 CFR 250.300(a) |
BP Exploration &
Production Inc.
G-2003-018 |
A fire occurred
involving the as-built diverter system leading to damage to property
and the environment. The diverter system was not installed as in
the approved plan, had inadequate supports, added right angle turns
at the ends, and did not provide for downwind diversions.
08/06/02 – 08/09/02
08/06/02 – 08/09/02 |
$190,000
07/06/04 |
30 CFR
250.409(d)(1)
30 CFR 250.415 |
Chevron U.S.A. Inc.
(Production Management Industries, L.L.C.)
G-2004-001 |
While cleaning a
low pressure separator, the Confined Space Entry policy was not
completely followed which resulted in an explosion and flash fire
that injured four employees.
06/14/02 – 06/15/02 |
$50,000
08/02/04 |
30 CFR 250.107(a) |
Union Oil Company
of California
(Coastal Production Services, Inc.)
G-2004-002 |
Rusted out hole in
grating and missing toe (kick) plates in two locations.
05/09/03 – 05/09/03 |
$35,000
07/26/04 |
30 CFR 250.107 |
Comstock Offshore,
LLC
G-2004-004 |
Tubing plugs for
Well 01 and Well 01D were found leaking on March 31, 2002. Not
repaired until September 18, 2002.
03/31/02 – 09/18/02 |
$172,000
07/09/04 |
30 CFR
250.804(a)(1) |
Anadarko E&P
Company LP
(Island Operators Co. Inc.)
G-2004-006 |
Subsurface safety
valve in Well C-21 was found leaking and left in service without
being repaired or replaced for 129 days.
07/29/02 – 12/04/02 |
$96,750
08/20/04 |
30 CFR
250.804(a)(1) |
Walter Oil & Gas
Corporation
G-2004-007 |
The Operator failed
to implement the H2S Contingency Plan while performing operations on
a well with a confirmed presence of H2S in concentrations and
volumes that could potentially result in atmospheric concentration
of 20 ppm or more of H2S.
12/03/03 – 12/04/03 |
$40,000
09/01/04 |
30 CFR
250.490(f)(1-13) |
Murphy Exploration
& Production Company – USA
G-2004-008 |
The SCSSV, which
was being used as a tubing plug, was found in the open position with
the hydraulic control line pressured up.
03/30/04 – 03/31/04 |
$15,000
10/22/04 |
30 CFR 250.801(f) |
Newfield
Exploration Company
G-2004-009 |
The LSH on the 2nd
stage scrubber was found in the bypassed mode rendering it
inoperable. It was not flagged nor being monitored.
03/29/04 – 04/01/04 |
$12,000
11/08/04 |
30 CFR 250.803(c) |
Murphy Exploration
& Production Company - USA
G-2004-010 |
The required
surface safety valve (SSV-2) for Well CA-7 was found capped in the
open position and inadvertently left bypassed for 8 days.
03/25/04 – 04/01/04 |
$40,000
10/21/04 |
30 CFR 250.803(c) |
Apache Corporation
(Island Operators Co. Inc.)
G-2004-015 |
The main safety
panel for the Water Bath Heater, the Fired Component, and the Water
Bath Pumps was found in the bypassed position and it was not flagged
or being monitored by personnel
06/21/04 – 06/21/04 |
$5,000
12/22/04 |
30 CFR 250.803(c) |
Aera Energy LLC
P-2004-001 |
Aera appealed this
INC to IBLA (see description below). Through DOI solicitor (Conforti),
Aera proposed to settle this INC with a payment of $25,000. MMS
accepted Aera's offer via letter from DOI Solicitor to Aera's legal
firm (Bingham McCutchen, LLP of Walnut Creek, CA) on January 22,
2004. The INC was not withdrawn and Aear paid $25,000 on 02/04/04.
07/07/02 |
$25,000
02/04/04 |
30 CFR
250.107(a)(1) |
Total Penalties Paid:
01/01/2004 - 12/31/2004
21
Cases:
($885,750) |
The following acronyms
are used in this table:
ESD |
Emergency
Shutdown Device |
H2S |
Hydrogen
Sulfide |
INC |
Incident of
Non-Compliance |
LACT |
Liquid
Automatic Custody Transfer |
LSH |
Level Safety
High |
LSL |
Level Safety
Low |
MAWP |
Maximum
Allowable Working Pressure |
NON |
Notice of
Non-Compliance |
PSHL |
Pressure Safety
High/Low |
PSL
|
Pressure Safety
Low |
PSV |
Pressure Safety
Valve |
SCSSV |
Surface
Controlled Subsurface Safety Valve |
SDV |
Shut Down Valve |
SSV |
Subsurface
Valve |
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.
The Oil Pollution Act (OPA
90) strengthened section 24 of the OCS Lands Act Amendments of 11038.
Subtitle B of OPA 90, entitled "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 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, the MMS published
new regulations
(22 KB PDF)
implementing the
civil penalty provisions of the OCS Lands Act. 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 of the Interior 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 day.
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