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2011 Civil/Criminal Penalties

The goal of the BOEMRE 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.

2011 Civil/Criminal Penalties Summary
Penalties Paid through the 2nd Quarter of 2011
(1/1/2011 - 6/30/2011)

Operator Name
and Case No.

Violation
and
Date(s)

Penalty Paid and
Date Paid

Regulation(s) Violated
30 CFR)

Merit Energy Company, LLC

(Gulf Coast Operator, LLC)

G-2010-010

During a BOEMRE inspection, it was discovered that a tubing plug was set above the mud line. There were also several severely corroded critical areas on the equipment and platform.

22-FEB-2010 - 22-FEB-2010

22-FEB-2010 - 22-FEB-2010

$70,000

2/25/11

250.801(e)

250.107

Fairways Offshore Exploration, Inc.

G-2010-015

A leak occurred on the main hoist winch check valve plug due to corrosion. In accordance with API RP 2D, critical components were corroded and numerous hydraulic hoses and fittings were not replaced as soon as practical.

18-MAY-2009–19-DEC-2009

$40,000

1/21/11

250.108

W&T Offshore, INC.

 

G-2010-019

During the course of a BOEMRE investigation into a gas release and platform shut-in incident, it was discovered that a plumber's plug was installed for isolation of process piping. Lessee failed to comply with company Lock Out/Tag Out Procedures.

27-JAN-2010 - 06-FEB-2010

$180,000

1/19/11

250.107

Gryphon Exploration Corporation

(Wood Group Production Services)

G-2010-021

During an onsite inspection, BOEMRE inspectors discovered that a crane was in operation without an operational boom angle indicator to off load and load wireline equipment.

27-MAY-2011-27-MAY-2011

$5,000

5/13/11

250.108

Mariner Energy, Inc.

G-2010-023

During the course of the BOEMRE inspection, the inspectors discovered that the casing pressure had increased greater than 4900 pisg for 46 days which invalidated the departure approval for sustained casing pressure of 4700 psig.

12-AUG-2009-18-JUL-2010

$460,000

3/30/11

 

GOM Shelf, LLC

(Island Operators Co, Inc.)

G-2010-024

During the course of a BOEMRE inspection, violations were discovered throughout the facility. Violations included missing grating on the boat landing (creating a open-hole hazard in the path of an egress route); a ladder cage to the (+10') elevation was discovered with angle iron which had broken loose (this also creates a potential fall hazard in the event of emergency egress to the boat landing), and several casing valves on a gas well (which had a casing pressure of 1700 psi) had severely corroded grease fittings.

26-NOV-2009-01-AUG-2010

$35,000

2/24/11

250.107

Arena Offshore, LP

(Quality Production Management)

G-2010-025

During the course of a BOEMRE inspection, inspectors discovered that two bridle isolation valves for the level safety low (LSL) sensor on the oil storage tank were manually closed, which placed the LSL in a bypassed out-of-service mode.

10-SEP-2010-10-SEP-2010

$15,000

4/4/11

250. 803(c)

Merit Energy Company, LLC

G-2011-002

During the course of an inspection, it was discovered that the purge mechanical ventilation system for the Mud Logging Unit (MLU) building, placed in a Class 1 Division 1 Hazardous Area, was found switched to manual bypass. It was also discovered that the fresh air intake for the MLU building was located within the Class 1 Division 1 hazardous area.

26-AUG-2010-26-AUG-2010

24-AUG-2010-26-AUG-2010

$100,000

5/26/11

250.459

250.459

JX Nippon Oil Exploration (U.S.A.) Limited

G-2011-015

During the course of a BOEMRE investigation, it was determined that Nippon did not perform the decommissioning operations in a safe and workmanlike manner. The operation involved the cutting of the tack welds that attach the skid base of the wood and fiberglass constructed office building to the platform deck structure. Hot slag from the cutting operation ignited the construction materials inside the walls of the building.

28-SEP-2010-28-SEP-2010

$25,000

5/19/11

250.107

Total Penalties Paid: 1/1/11 - 6/30/11

9 Cases: $930,000

The following acronyms are used in this table:

LSL Level Safety Low
MLU Mud Logging Unit

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.