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1999 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.

1999 Civil/Criminal Penalties Summary
All Penalties Paid in Calendar 1999

(1/1/99 - 12/31/99)

Operator Name
and Case No.

Violation and Date(s) Penalty Paid and
Date Paid
Regulation(s) Violated
(30 CFR)
W & T Offshore, Inc.

G-1995-006

The subsurface safety devices (SSSD’s) for 3 wells were removed and the wells were left unattended.

1/1/91-1/6/91, 10/11/91-10/23/91, 8/18/90-8/21/90, 10/27/90-11/2/90

$15,000

6/8/99

250.121(h)(3)
Redesignated 250.801(h)(3)
W & T Offshore, Inc.

G-1995-007

The SSSD was removed from Well No. 34 and left unattended.

8/20/90-10/26/90

$34,000

6/8/99

250.121(h)(3)
Redesignated
250.801(h)(3)
Shell Offshore, Inc.

G-1997-035

The pressure safety high/low (PSHL) sensors for the departing 6-inch pipeline were found bypassed.

7/11/97

$10,000

6/10/99

250.123(c)(1)
Redesignated
250.803(c)(1)
ORYX Energy Company

G-1997-039

A 5-by-7 foot open hole in grating not flagged or barricaded.

5/14/97-5/14/97

$5,000

2/1/99

250.20(a)
Redesignated
250.120(a)
Amoco Production Company

G-1997-047

The emergency shut down (ESD) station located near the driller’s console was not connected to the MI 622D ESD system from 9/12/97 (workover start date) through 9/16/97.

9/12/97-9/16/97

$25,000

1/4/99

250.73
Redesignated
250.503
Energy Development Corporation

G-1998-004

The surface controlled subsurface safety valve (SCSSV) was bypassed on Wells A-1 and A-2. The level safety high (LSH) was bypassed on the corrugated plate interceptor (CPI). There was no fire detection system in the bunkhouse/quarters. A sheen measuring 3/8 mile long by 10 yards wide occurred when the sump pump was inoperable.

4/29/97

$34,000

11/17/99

250.123(b)(9)
250.123(c)(1)
250.40(a)
Redesignated
250.803(b)(9)
250.803(c)(1)
250.300(a)
Apache Corporation

G-1998-010

The pressure safety high (PSH) and pressure safety low (PSL) for the first stage compressor discharge were disconnected.

5/2/96

$6,000

10/28/99

250.123(c)(1)
Redesignated
250.803(c)(1)
Aviva America, Inc.

G-1998-011

Not testing gas-detection system (1 period) and not testing fire-detection system (2 periods).

6/23/97-6/30/97

$3,000

3/25/99

250.124(a)(8)
Redesignated
250.804(a)(8)
Vastar Resources, Inc

G-1998-013

Condensate accumulator, condensate pump, skimmer pump and flotation pump not equipped with fusible material. Pressure safety valve (PSV) on compressor 1st stage discharge and PSH on compressor 1st and 2nd stage discharges set above the working pressure.

7/14/97-1/21/98

$20,000

7/8/99

250.122(b)
250.123(b)(1)(i)
250.123(b)(1)(iii)
Redesignated
250.802(b)
250.803(b)(1)(i)
250.803(b)(1)(iii)
Chieftain International (U.S.) Inc.

G-1998-019

Pollution coming from the CPI Unit water overboard line, the CPI Unit LSH failed to activate and shut-in all wells.

Well B-15 flows into low pressure system but serviced through high pressure system. The total select group on the panel was in bypass. Therefore, Well B-15 would not shut-in.

10/10/97

$20,000

2/10/99

250.123(c)(1)
Redesignated
250.803(c)(1)
Callon Petroleum Operating Company

G-1998-022

The level safety low (LSL) for the High Pressure Separator was leaking gas and water.

2/7/97

$5,000

3/11/99

250.20(a)
Redesignated
250.120(a)
Vintage Petroleum, Inc.

G-1998-026

The manual block valve below the pressure safety valve on the compressor discharge was detected in the closed position.

1/19/98-1/28/98

$50,000

2/16/99

250.123(c)(1)
Redesignated
803(c)(1)
Shell Frontier Oil & Gas, Inc.

G-1998-029

No record of testing PSV’s on 1st stage and 2nd stage compressor discharge units located on South Pass 62 A, B, and C/D platforms.

9/29/97

$36,000

7/22/99

250.124(a)(2)
Redesignated
804(a)(2)
Stone Energy Corporation

G-1998-038

Operator failed to render a slop oil tank inert prior to conducting burning operations on the tank. This action also was a failure to comply with the Welding, Burning, and Hot-Tapping Plan.

4/11/97

$12,000

1/22/99

250.52(d)(4)
Redesignated
402(d)(4)
Shell Offshore, Inc.

G-1998-039

The subsurface safety valve (SSSV) was removed on Well JA-1 for routine operations and was left unattended.

1/26/98-1/28/98

$45,000

4/6/99

250.121(h)(3)
Redesignated
801(h)(3)
Norcen Explorer, Inc.

G-1998-040

The drilling unit was not equipped with an operable traveling block safety device.

1/31/98-2/10/98

$165,000

2/17/99

250.51(b)(1)
Redesignated
401(b)(1)
Basin Exploration, Inc.

G-1998-044

Rig personnel were observed working very close to an open hole on the rig drill floor without utilizing fall protection gear.

1/28/98

$15,000

6/3/99

250.20(a)
Redesignated
120(a)
Chevron U.S.A., Inc.

G-1998-047

The 10-inch bulk oil departing pipeline did not have a PSL installed.

6/1/97

$10,000

4/26/99

250.154(b)(3)
Redesignated
1004(b)(3)
Chevron U.S.A., Inc.

G-1998-050

The SCSSV was bypassed in Well No. 3.

5/30/98-6/3/98

$25,000

3/29/99

250.123(c)(1)
Redesignated
803(c)(1)
Pennzoil Exploration and Production Company

G-1998-054

The SCSSV for Well A-3 was blocked out of service.

6/24/98

$12,000

5/12/99

250.123(c)(1)
Redesignated
803(c)(1)
Texaco Exploration and Production, Inc.

G-1998-056

The SSV relay for Well B-6 was bypassed and blocked out of service.

8/5/98-8/6/98

$16,000

5/12/99

250.803(c)(1)
Basin Exploration, Inc.

G-1998-057

The SCSSV for Well A-2 was bypassed and blocked out of service.

4/19/98-4/20/98

$12,000

7/6/99

250.123(c)(1)
Redesignated
803(c)(1)
Conoco, Inc.

G-1998-061

During testing, the PSH #1 on the departing KAH-400 pipeline did not shut-in the associated shutdown valve of the KAA-500 pipeline.

PSH #2 on the KAH-400 pipeline was pinned out of service thus bypassing the associated shutdown valve on the KAH-400 pipeline.

Well N-009 tubing plug tested 4/29/98; found leaking; attempted repair on 5/8/98.

7/20/98
5/8/98-7/20/98

$64,000

12/13/99

250.1004(b)(3)
250.1004(b)(4)
250.1004(c)
250.124(a)(1)(iii)

The last regulation was redesignated 250.804(a)(1)(iii)

Stone Energy Corporation

G-1998-063

An injury occurred when welding and burning operations were conducted within 35 feet of master safety system, high pressure separator and high pressure oil separator.

3/11/98

$35,000

7/30/99

250.52(a)
Redesignated
402(a)
Forcenergy, Inc.

G-1998-064

The flow safety valves for Wells Nos. 11 and 13 were not tested within the required timeframe.

9/17/97-8/28/98

$28,000

11/3/99

250.124(a)(5)
Redesignated
804(a)(5)
Seneca Resources Corporation

G-1998-066

Compressor # 3 pressure safety lows (PSL’s) were in a bypass mode on 11/25/97 (i.e., Class C lockout for Compressor # 3 was in bypass). They were unattended and were not in bypass due to testing, start-up, or maintenance.

11/25/97

$18,000

7/29/99

250.123(c)(1)
Redesignated
803(c)(1)
Texaco Exploration and Production, Inc.

G-1999-003

The LSL # 2 for glycol reboiler, BBC-9042, and the PSHL for the downtherm pumps, PBA-9100A and PBA-9100B, were bypassed (had tie-wraps around relay pins on control panel holding them in); the one PSHL protects both pumps.

8/18/98-8/19/98
8/19/98

$17,000

12/17/99

250.803(c)(1)
Texaco Exploration and Production, Inc.

G-1999-014

The PSHL and ESD for Well No. 46-D were bypassed.

9/21/98
9/25/98

$12,000

11/15/99

250.804(a)(1)(iii)
250.803(c)(1)

Total Penalties Paid: 1/1/99-12/31/99

28 Cases: $749,000

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 1978. 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 increases the maximum civil penalty to $25,000 per day per violation.

Last Updated: 03/31/2011, 07:25 AM Central Time