24 March 2006
-----------------------------------------------------------------------
[Federal Register: March 24, 2006 (Volume 71, Number 57)]
[Notices]
[Page 14945-14948]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24mr06-107]
-----------------------------------------------------------------------
DEPARTMENT OF THE INTERIOR
Minerals Management Service
Outer Continental Shelf (OCS) Civil Penalties
AGENCY: Minerals Management Service (MMS).
ACTION: Notice summarizing OCS Civil Penalties Paid, January 1, 2005,
through December 31, 2005.
-----------------------------------------------------------------------
SUMMARY: This notice provides a listing of civil penalties paid January
1, 2005, through December 31, 2005, for violations of the OCS Lands Act
(OCSLA). The goal of the MMS OCS Civil 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. 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.
FOR FURTHER INFORMATION CONTACT: Joanne McCammon (Program Coordinator),
703-787-1292.
SUPPLEMENTARY INFORMATION: The Oil Pollution Act of 1990 (OPA 90)
strengthened section 24 of the 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.
On August 8, 1997, (62 FR 42668), MMS published new regulations
implementing the civil penalty provisions of the OCSLA. 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 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 violation, per
day. Please note, subsequent to publishing the new regulations, MMS
made several corrections and amendments, including the appeals
procedures. These were published at 63 FR 42711, 8/11/98; 64 FR 9066,
2/24/99; 62 FR 9065, 2/24/99, and 64 FR 26257, 5/13/99.
On November 28, 2003, (68 FR 61622), MMS published a new regulation
adjusting the civil penalty assessment to comply with the Department of
Labor's Consumer Price Index. The amount is now $30,000 per violation
per day.
Between August 18, 1990, and January 2006, MMS initiated 531 civil
penalty reviews. Operators have paid 418 civil penalties for a total of
$13,780,792 in fines. Seventy eight cases were dismissed; 5 cases were
merged; and 30 cases are under review.
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 regulation violated, and the
amount paid. The following table provides a listing of the penalties
paid between January 1, 2005, and December 31, 2005. Please note that
the MMS published a direct final rule ((5/29/98), 63 FR 29477) that
renumbers each section in 30 CFR part 250. A quarterly update of the
list, along with additional information related to the renumbering of
the regulations, is posted on the MMS Worldwide Web Home page, http://www.mms.gov
.
2005 Civil/Criminal Penalties Summary, All Penalties Paid in Calendar 2005 (01/01/2005-12/31/2005)
[The following acronyms are used in this table: PSL (pressure safety low); IP (intermediate pressure); ESD
(emergency shutdown device); SCSSV (surface controlled subsurface safety valve); LSH (level safety high); HP
(high pressure); BOP (blow out preventer); SSV (surface safety valve); PSHL (pressure safety high/low); AFFF
(aqueous film forming foam); PSV (pressure safety valve); LSL (level safety low); INC (incident of non-
compliance); H2S (Hydrogen Sulfide).]
----------------------------------------------------------------------------------------------------------------
Operator name (contractor) and Penalty paid and Regulation(s) violated (30
case No. Violation and date(s) date paid CFR)
----------------------------------------------------------------------------------------------------------------
W & T Offshore, Inc., G-1997-026... A burning operation $40,000
was conducted without 01/18/05
the issuance of a
written authorization
for the work and the
site was not being
monitored with a
portable gas detector.
12/07/96-12/07/96..... ................... 250.52(b)
12/07/96-12/07/96..... ................... 250.52(d)(2)
Seneca Resources Corporation, G- The SSCSV (in a $85,000
1997-030. landing nipple) was 10/12/05
not tested for one
testing period
(tested on 11/3/94
and then on 1/23/96.)
Also, the pipeline
shut down valve from
West Delta 32C to
West Delta 32A was
found defective and
left in service for
17 days.
05/23/96-05/23/96..... ................... 250.124(a)(1)(ii)
05/23/96-05/23/96..... ................... 250.154(b)(2)
[[Page 14946]]
Blue Dolphin Exploration Company, Tubing plugs on 8 $24,000
(Petroleum Offshore Professional wells not inspected 09/22/05
Services), G-2000-059. for leakage within
required timeframe.
Electrical
installations not
maintained in
accordance with API
RP 500 & RP 14F.
Crane inspection of 6/
00 indicated that
emergency shut down
cable and boom angle
indicator needed to
be replaced; crane
not taken out of
service.
04/02/99-10/03/00..... ................... 250.804(a)(1)
10/02/99-10/03/00..... ................... 250.804(a)(1)
10/04/00-10/04/00..... ................... 250.114(c)
06/14/00-10/04/00..... ................... 250.108
Maritech, (Petroleum Offshore Approval was granted $140,000
Professional Services), G-2003-016. to install an SSCSV 12/16/05
in lieu of an SSCSV
in Satellite Well No.
1 with the condition
that at the first
sign of sand
production the well
would be shut-in
immediately and the
approval rescinded.
Numerous occurrences
of produced sand were
not reported to the
district and the well
remained on
production. The SSCSV
was removed from the
well and found to be
damaged. It was
reinstalled in the
well which was not
plugged or attended
overnight.
2/3/03-2/4/03......... ................... 250.804(a)(1)(ii)
11/5/02-2/4/03........ ................... 250.801(h)(3)
Murphy Exploration & Production The PSL for the $14,000
Company--USA, G-2004-011. intermediate pressure 02/01/05
IP Separator was
found in bypass.
04/05/04-04/06/04..... ................... 250.803(c)(1)
Devon Louisiana Corporation, G-2004- The isolation valves $10,000
012. for two ESD Stations 03/15/05
were found in the
bypassed position,
rendering the two ESD
stations inoperable.
04/16/04-04/16/04..... ................... 250.803(c)(1)
Shell Offshore Inc., G-2004-013.... The surface controlled $27,000
SCSSV was found 03/02/05
blocked out service
by the hydraulic
control line closed
at the isolation
valve on the tree.
06/16/04-06/24/04..... ................... 250.803
Forest Oil Corporation, G-2004-014. The LSH on sump tank $10,000
was found bypassed at 06/29/05
the safety system
panel. The blocked
out safety device was
not flagged nor being
monitored by
personnel. Safety
Device bypassed for 1
day.
06/03/04-06/03/04..... ................... 250.803(c)
ExxonMobil Corporation, G-2004-016. A 4[min] x 8[min] $10,000
section of top deck 04/19/05
grating had been
removed in order to
facilitate a wireline
unit removal
operation. The area
was not flagged or
barricaded to warn
personnel of the open
area; and personnel
working in the direct
vicinity of the open
hole were not wearing
fall protection gear.
04/26/04-04/26/04..... ................... 33 CFR 142.42
Anadarko E&P Company LP, (Island The main group device $13,500
Operators Co. Inc.), G-2004-019. selector switches for 04/12/05
both the HP separator
(MBD 1050) and the IP
separator (MBD 1100)
were bypassed. The
end devices were not
flagged, nor were
they being monitored.
05/04/04-05/04/04..... ................... 250.803
05/04/04-05/04/04..... ................... 250.803
Forest Oil Corporation, (Ensco An accident involving $30,000
Offshore Co.), G-2004-020. an injury occurred on 01/21/05
04/19/04 while the
crew was changing the
annular rubber. The
operation was not
performed in a safe
manner, and an
employee lowered
through the rotary
was injured when the
BOP stack shifted.
04/19/04-04/19/04..... ................... 250.107(a)
Energy Partners, Ltd., G-2004-021.. SCSSV for Well F-3 was $9,000
blocked out of 04/12/05
service; not flagged
nor being monitored.
Safety Device blocked
out of service for 9
days.
12/07/03-12/15/03..... ................... 250.803(c)
Forest Oil Corporation, G-2004-022. Required safety $64,000
equipment (smoke and/ 04/22/05
or thermal rate of
rise detectors) for
both the Company
Man's Office/
Bunkhouse and the
Galley were
inoperable.
05/29/04-06/01/04..... ................... 250.803(b)(9)
Apache Corporation, (Island Pipeline Pump PSL $82,000
Operators Co. Inc.), G-2004-024. bypassed and a 03/02/05
failure to report
casing pressure
caused by a hole in
the tubing.
03/09/04-03/09/04..... ................... 250.803
09/23/03-02/13/04..... ................... 250.517(c)
[[Page 14947]]
Kerr-McGee Oil & Gas Corporation, G- The manual relay for $7,500
2004-025. the SSV was pinned 04/18/05
and tie-wrapped out
of service.
07/16/03-07/16/03..... ................... 250.803
Stone Energy Corporation, (Rowan Failure to initiate $20,000
Drilling), G-2004-028. prompt well control 05/25/05
measures to control
the influx of well
formation fluids
which entered the
wellbore.
08/08/04-08/08/04..... ................... 250.107
Century Exploration New Orleans, The AFFF had not been $10,000
Inc., (Island Operators Co., replaced after 04/28/05
Inc.), G-2004-029. failing an analysis
test.
09/28/04-09/28/04..... ................... 33 CFR 146.15
Forest Oil Corporation, (Baker The 150 gal AFFF Fire $20,000
Energy, Inc.), G-2004-030. Boss Unit was not 04/22/05
being maintained in
an operable condition
since the
effectiveness of the
foam was not being
monitored.
10/13/04-10/13/04..... ................... 250.803(b)(8)
Bois d'Arc Offshore Ltd., (Eagle The Platform was $20,000
Consultants), G-2004-031. producing without an 05/24/05
operable firewater
system for 2 days.
07/20/04-07/21/04..... ................... 250.803(b)(8)
Newfield Exploration Company, G- The PSVs on Compressor $40,000
2004-032. Nos. 1 & 2 were 07/22/05
isolated, rendering
them inoperable; and
there were no fusible
loop material (TSE)
over the engine for
Compressor No. 1.
08/18/04-08/21/04..... ................... 250.803(c)
08/18/04-08/21/04..... ................... 250.802(b)
08/21/04-08/21/04..... ................... 250.803(c)
Apache Corporation, G-2005-004..... Open holes in cellar $15,000
deck and +10 levels 07/01/05
without appropriate
barricade to prevent
personnel from
falling into the
holes.
11/09/04-11/09/04..... ................... 33 CFR 142.87
Pogo Producing Company, G-2005-005. Bypassed LSL on the $10,000
test separator with 09/27/05
the upper and lower
isolation valves in
the closed position.
08/05/04-08/05/04..... ................... 250.803
Newfield Exploration Company, Personnel were $10,000
(Rowan Drilling), G-2005-006. observed working 07/22/05
without fall
protection gear while
engaged in an
activity where there
was a hazard of
falling 10 or more
feet.
11/23/04-11/23/04..... ................... 250.107
Apache Corporation, (Dolphin An employee fell 45 $25,000
Service Inc.), G-2005-009. feet into the Gulf 07/01/05
when he stepped
through the open hole
created by the
removal of wooden
boards which had been
placed over the open
hole to protect it.
12/20/04-12/20/04..... ................... 250.107(a)
The Houston Exploration Company, The Gas Detector Head $10,000
(Grasso Production Management), G- (ASH-10) for gas 11/28/05
2005-010. compressor 802 was
found inoperable due
to the sensor being
disconnected from the
main circuit board
panel. The blocked
out safety device was
not flagged nor being
monitored by
personnel. Safety
Device bypassed for 1
day.
01/03/05-01/03/05..... ................... 250.803(c)
Bois d'Arc Offshore Ltd., (Eagle The Burner Safety Low $10,000
Consultants), G-2005-011. for the fuel to the 09/15/05
Glycol Reboiler, EAW-
921, and the
Temperature safety
High for the media
and the stack were in
by-pass. The blocked
out safety devices
were not flagged nor
being monitored by
personnel. Safety
Devices bypassed for
1 day.
03/02/05-03/02/05..... ................... 250.803(c)
----------------------------------------------------------------------------------------------------------------
Total Penalties Paid: 01/01/2005-12/31/2005
26 Cases: ($756,000)
----------------------------------------------------------------------------------------------------------------
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.
[[Page 14948]]
Dated: February 24, 2006.
Thomas A. Readinger,
Associate Director for Offshore Minerals Management.
[FR Doc. E6-4303 Filed 3-23-06; 8:45 am]
BILLING CODE 4310-MR-P