FR Doc E9-7061

[Federal Register: March 30, 2009 (Volume 74, Number 59)]
[Notices]
[Page 14151-14155]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr30mr09-79]

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DEPARTMENT OF THE INTERIOR

Minerals Management Service

Outer Continental Shelf Civil Penalties

AGENCY: Minerals Management Service (MMS), Interior.

ACTION: Notice summarizing Outer Continental Shelf Civil Penalties paid
from January 1, 2008, through December 31, 2008.

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SUMMARY: This notice provides a listing of civil penalties paid from
January 1, 2008, through December 31, 2008, for violations of the Outer
Continental Shelf Lands Act. The goal of the MMS Outer Continental
Shelf Civil Penalties Program is to assure safe and clean oil, gas,
sulphur, or other minerals operations on the Outer Continental Shelf.
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 applicable statutes and
regulations. The purpose of publishing the penalties summary is to
provide information to the public on violations of the Outer
Continental Shelf Lands Act and to provide an additional incentive for
safe and environmentally sound operations.

FOR FURTHER INFORMATION CONTACT: Joanne McCammon, Program Coordinator,
at 703-787-1292.

SUPPLEMENTARY INFORMATION: The Oil Pollution Act of 1990 (OPA 90)
strengthened section 24 of the Outer Continental Shelf (OCS) Lands Act
Amendments of 1978. Section 8201 of OPA 90 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, OPA 90
provided the Secretary of the Interior (Secretary) with the authority
to assess a civil penalty without first providing a period of time for
corrective action 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.
The provisions of OPA 90 also require the Secretary to adjust the
maximum civil penalty to reflect any increases in the Consumer Price
Index (CPI). Every 3 years, MMS analyzes the maximum civil penalty
amount in conjunction with the CPI prepared by the U.S. Department of
Labor. If an adjustment is necessary, MMS informs the public through
the Federal Register of the new

[[Page 14152]]

maximum amount. The MMS has published regulations adjusting the civil
penalty assessment to $25,000 on August 8, 1997 (62 FR 42667); to
$30,000 on October 29, 2003 (68 FR 61622); and to $35,000 on February
28, 2007 (72 FR 8897).
Between August 18, 1990, when OPA 90 was enacted, and December 31,
2008, MMS initiated 648 civil penalty reviews. Operators have paid 529
civil penalties for a total of $20,752,042 in fines.
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 purpose of publishing the
penalties summary is to provide information to the public on violations
of the OCS Lands Act and to provide an additional incentive for safe
and environmentally sound operations. The annual summary will highlight
the identity of the party, a description of the violation, the amount
of the penalty and date paid, and the regulation violated. The
following table provides a listing of the 31 penalties paid between
January 1, 2008, and December 31, 2008. The total amount collected is
$2,210,250. The list is posted on the MMS's Web page at http://
www.mms.gov/civilpenalties/.

2008 Civil/Criminal Penalties Summary Penalties Paid in Calendar Year 2008
[1/1/2008-12/31/2008]
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Regulation(s) violated 30
Operator name and case No. Violation and date(s) Penalty paid and date paid CFR
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Pogo Producing Co., G-2007-009....... During the investigation of a 3/4 mile by 16 mile $505,000, 2/8/2008.
oil slick on November 29, 2006, the MMS
Inspector discovered operators had bypassed
basically the entire platform safety system
including the emergency shut down to keep
production online. Further investigation
revealed a second pollution incident on November
21, 2006, in which oil was blown out of the
flare boom leaving the platform covered with oil
and causing pollution.
29-NOV-2006--29-NOV-2006......................... ................................ Sec. 250.803(c).
29-NOV-2006--29-NOV-2006......................... ................................ Sec. 250.803(c).
29-NOV-2006--29-NOV-2006......................... ................................ Sec. 250.803(c).
29-NOV-2006--29-NOV-2006......................... ................................ Sec. 250.803(c).
29-NOV-2006--29-NOV-2006......................... ................................ Sec. 250.803(c).
21-NOV-2006--21-NOV-2006......................... ................................ Sec. 250.300(a).
21-NOV-2006--21-NOV-2006......................... ................................ Sec. 250.300(a).
29-NOV-2006--29-NOV-2006......................... ................................ Sec. 250.1004.
29-NOV-2006--29-NOV-2006......................... ................................ Sec. 250.1004.
29-NOV-2006--29-NOV-2006......................... ................................ Sec. 250.1004.
21-NOV-2006--29-NOV-2006......................... ................................ Sec. 250.107.
SPN Resources, LLC, G-2007-012....... MMS Inspectors found the accumulator with no air $100,000, 1/18/08.
supply connected to it. The remote blowout
preventer (BOP) control station was also found
with no operating pressure on it. The Inspection
also revealed that there was not a full opening
work-string safety valve or TIW wrench located
on the rig floor. Personnel were witnessed
working greater than 6 feet above the deck with
no fall protection. The Inspector also found
stairs to the BOP and pipe rack to be in an
unsafe location which required personnel to
climb over the handrails.
01-SEP-2006--01-SEP-2006......................... ................................ Sec. 250.107(a).
01-SEP-2006--01-SEP-2006......................... ................................ Sec. 250.515(d).
01-SEP-2006--01-SEP-2006......................... ................................ Sec. 250.515(d).
01-SEP-2006--01-SEP-2006......................... ................................ Sec. 250.515(c).
01-SEP-2006--01-SEP-2006......................... ................................ Sec. 250.515(c).
01-SEP-2006--01-SEP-2006......................... ................................ Sec. 250.401.
W&T Offshore, Inc., G-2007-016....... Operator failed to properly barricade the 4' X 4' $130,000, 3/12/2008.
opening and a 7'10'' X 16'' opening during work
over operations.
04-APR-2007--16-APR-2007......................... ................................ Sec. 250.107.
Helis Oil & Gas Company, LLC The operator failed to supply sufficient $40,000, 1/17/2008.
(Hercules Offshore Drilling) G-2007- accumulator fluid capacity required to close and
021. hold closed the 30-inch annular installed on the
diverter system.
06-MAY-2007--07-MAY-2007......................... ................................ Sec. 250.430.
W&T Offshore, G-2007-022............. Firewater Pump low discharge pressure with two $145,000, 10/2/08.
hoses opened and Aqueous Film Forming Foam
Concentrate (AFFF) light water unit had lost the
required pressure for the system.
31-MAR-2007--28-APR-2007......................... ................................ Sec. 250.803(b)(8).
Remington Oil and Gas Corp., G-2007- Failure to properly secure grating led to an $45,000, 1/09/2008.
025. accident with injury.
26-APR-2007--27-APR-2007......................... ................................ Sec. 250.107.
Exxon Mobil Corp., G-2007-027........ Well bypassed at the panel....................... $30,000, 2/29/08.
12-APR-2007--17 APR-2007......................... ................................ Sec. 250.803.

[[Page 14153]]

Pogo Producing Co., G-2007-029....... There was an excessive number of safety devices $80,000, 2/08/2008.
bypassed while bringing the platform online.
With only one person watching the computer, it
was impossible to safely monitor all of the
bypassed devices. During these start-up
operations, operators overflowed the float cell,
pouring a hydrocarbon/water mixture onto the
deck. Once the platform was shut-in, the
operators received an alarm on the pressure
safety high (PSH) for the fuel gas scrubber and
there was no action taken in response to the
alarm. The AFFF unit, which was protecting the
wet/dry oil tanks, was found to be empty.
03-APR-2007--03-APR-2007......................... ................................ Sec. 250.107(a).
03-APR-2007--03-APR-2007......................... ................................ Sec. 250.803(c).
29-MAR-2007--08-MAY-2007......................... ................................ Sec. 250.107.
Exxon Mobil Corp., G-2007-030........ The actuator for the compressor suction shut down $35,000, 1/14/2008.
valve (SDV) had been removed.
13-MAY-2007--21-MAY-2007......................... ................................ Sec. 250.803.
Pogo Producing Co., G-2007-031....... The Inspectors noticed that the block valve for $150,250, 2/08/2008.
the pressure safety valve (PSV) located on the
test separator had been left in the closed
position. The Inspectors witnessed personnel
working with no fall protection at a height
greater than 6 feet above the deck. The
Inspectors found that the AFFF unit which was
protecting the wet/dry oil tanks contained an
empty bottle; and additionally, that the valve
handles had been removed from the fire monitors,
which were the secondary form of protection for
the wet/dry oil tanks. It was also discovered
that the operator had ``failed to correct'' the
location of the level safety high (LSH) for the
sump.
29-MAR-2007--30-MAR-2007......................... ................................ Sec. 250.803(c).
30-MAR-2007--30-MAR-2007......................... ................................ Sec. 250.107(a).
30-MAR-2007--30-MAR-2007......................... ................................ Sec. 250.107.
30-MAR-2007--30-MAR-2007......................... ................................ Sec. 250.107.
30-MAR-2007--30-MAR-2007......................... ................................ Sec. 250.107.
Pogo Producing Co., G-2007-033....... Temperature safety element (TSE) on the rental $25,000, 2/11/2008.
generator was found with the block valve closed
on the supply line, rendering the TSE inoperable.
17-MAY-2007--17-MAY-2007......................... ................................ Sec. 250.803.
Pogo Producing Co., G-2007-034....... Gas-lift line was open ended with 1,000 psi on $40,000, 2/11/2008.
the down stream side of the check valve and the
gas-lift header was found with 700 psi on it and
all flanges associated with the header had
missing bolts.
17-MAY-2007--17-MAY-2007......................... ................................ Sec. 250.107.
17-MAY-2007--17-MAY-2007......................... ................................ Sec. 250.107.
Forest Oil Corp., G-2007-035......... During welding/cutting operations to remove a $35,000, 3/31/08.
cantilever deck, a fire/explosion occurred when
hot slag fell between 10 and 15 feet into an
open ended connection on top of the out of
service oil storage tank.
26-JUN-2007--26-JUN-2007......................... ................................ Sec. 250.401.
Palm Energy Offshore, LLC, G-2007-037 The top block valve on the LSH fluid chamber was $15,000, 2/11/2008.
found closed.
10-JUL-2007--10-JUL-2007......................... ................................ Sec. 250.803
Energy XXI GOM, LLC, G-2007-039...... There was a closed block valve upstream of the $15,000, 1/17/2008.
PSV on the First Stage Suction Scrubber which
rendered the PSV inoperable. Also, the Surface
Controlled Subsurface Safety Valve (SCSSV) was
found with pressure trapped on the control line
which locked open the SCSSV.
11-JUL-2007--11-JUL-2007......................... ................................ Sec. 250.803(c).
11-JUL-2007--11-JUL-2007......................... ................................ Sec. 250.803(c).
Energy Resource Technology, Inc., G- A pollution event of less than 200 bbls, $135,000, 9/26/08.
2007-041. seventeen safety devices not tested prior to
initiating production, leaking gas from 2''
line, and four safety devices bypassed.
14-MAY-2007--17 MAY 2007......................... ................................ Sec. 250.101.
15-MAY-2007--17 MAY 2007......................... ................................ Sec. 250.107.
17-MAY-2007--17 MAY 2007......................... ................................ Sec. 250.300(a).
Apache Corp. (Island Operators, Inc.) A flash fire that resulted in an injury, occurred $85,000, 4/29/08.
G-2007-043. since a flowline had not been properly isolated
or blind flanged from the process header. The
welder was injured when his torch came in
contact with hydrocarbons that were released
through the open ended flowline.
05-SEP-2007--07-SEP-2007......................... ................................ Sec. 250.803(c).

[[Page 14154]]

W&T Offshore, Inc., G-2007-044....... Lead sump pump inoperable........................ $35,000, 4/11/08.
21-JUN-2007--21-JUN-2007......................... ................................ Sec. 250.300(b).
Nexen Petroleum U.S.A., Inc., G-2008- The pneumatic fire detection system installed $15,000, 5/9/08.
001. over the gas generator was found inoperable
since the TSE was not connected to the supply
line.
02-NOV-2007--02-NOV-2007......................... ................................ Sec. 250.803(c).
Linder Oil Company, A Partnership, G- MMS Inspectors found the Surface Safety Valve $180,000, 8/7/08.
2008-003. (SSV) and Wing SDV on Well 4 bypassed
with fusible caps. There was also a 1 inch open
ended line on the fuel gas header where a PSV
had been removed.
03-DEC-2007--07-DEC-2007......................... ................................ Sec. 250.803(c).
03-DEC-2007--10-DEC-2007......................... ................................ Sec. 250.803(c).
Forest Oil Corporation, G-2008-004... The SCSSV for the B-1 well was bypassed at the $60,000, 12/30/08.
panel for a total of 6 days.
01-DEC-2007--06-DEC-2007......................... ................................ Sec. 250.803(c)(1).
Dauphin Island Gathering Partners, G- The handrails on the north end of the well bay $25,000, 8/5/08.
2008-005. had not been maintained in a safe condition. The
handrails were corroded and deteriorated to a
point that they were no longer a suitable guard
and they could not adequately hold a person's
weight.
08-NOV-2007--08-NOV-2007......................... ................................ Sec. 250.107.
Apache Corporation, G-2008-006....... Repairs were made to the damaged crane boom that $50,000, 7/25/08.
was not in accordance with API RP 2D, Section
4.3.3(e) and the crane was placed back in
service without conducting a load test.
14-JAN-2008--15-JAN-2008......................... ................................ Sec. 250.108.
Dominion Exploration & Production, The PSV for the Glycol Contactor was bypassed $5,000, 8/29/08.
Inc., g-2008-008. with a closed manual block valve.
28-NOV-2006--28-NOV-2006......................... ................................ Sec. 250.803(c).
Marathon Oil Co., G-2008-009......... The MMS Inspector found that the SCSSV and the $30,000, 7/14/08.
vertical run SSV had been rendered inoperable.
The SCSSV was blocked at the supply line; and
the SSV was locked in the open position with a
nonfusible cap.
18-DEC-2007--18-DEC-2007......................... ................................ Sec. 250.803(c).
McMoRan Oil & Gas LLC, G-2008-011.... The cantilever deck was not properly guard railed $15,000, 9/25/08.
or barricaded.
14-APR-2008--14-APR-2008......................... ................................ Sec. 250.107
Medco Energi U.S. LLC, G-2008-012.... Unsafe situations were discovered by the MMS $75,000, 11/21/08.
Inspector on four Caissons. Equipment had not
been maintained in a safe manner and precautions
had not been made to provide for the safety of
personnel.
06-MAY-2008--06-MAY-2008......................... ................................ Sec. 250.107(a)(2).
06-MAY-2008--06-MAY-2008......................... ................................ Sec. 250.107(a)(2).
06-MAY-2008--06-MAY-2008......................... ................................ Sec. 250.107(a)(2).
06-MAY-2008--06-MAY-2008......................... ................................ Sec. 250.107(a)(2).
06-MAY-2008--06-MAY-2008......................... ................................ Sec. 250.107(b).
06-MAY-2008--06-MAY-2008......................... ................................ Sec. 250.107(b).
29-APR-2008--29-APR-2008......................... ................................ Sec. 250.107(b).
SPN Resources, LLC, G-2008-017....... A section of grating on the boat landing was $15,000, 12/30/08.
severely corroded and damaged, creating a large
opening that was unsafe for personnel. There was
no barricade or guard to restrict the area and
alert personnel of the hazard.
10-JUL-2008--10-JUL-2008......................... ................................ Sec. 250.107.
Plains Exploration & Production A flash fire involving a flare scrubber vessel $40,000, 4/8/08.
Company, P-2006-002. resulted in minor burns to an employee. Work
involving a glycol skid did not follow
operator's safety manual.
18-JUL-2006--18-JUL-2006......................... ................................ Sec. 250.803(b)(1).
18-JUL-2006--18-JUL-2006......................... ................................ Sec. 250.803(b)(1).
DCOR LLC, P-2006-003................. Five Incidents of Non-Compliance were issued $35,000, 1/30/2008.
following a 7/27/06 incident that resulted in
significant damage to the unit crane during an
operation to remove stuck progressive cavity
pump rods.
27-JUL-2006--27-JUL-2006......................... ................................ Sec. 250.107(a).
27-JUL-2006--27-JUL-2006......................... ................................ Sec. 250.108.
27-JUL-2006--27-JUL-2006......................... ................................ Sec. 250.108.
27-JUL-2006--27-JUL-2006......................... ................................ Sec. 250.108.
27-JUL-2006--27-JUL-2006......................... ................................ Sec. 250.606.
Arguello Inc., P-2006-004............ During rerouting of gas flow (in connection with $20,000, 4/8/08.
drilling rig demobilization and work on the
condensate stabilizer vessel) a valve was
erroneously opened resulting in H2S exposure.
12-AUG-2006--12-AUG-2006......................... ................................ Sec. 250.107(a).
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Total Penalties Paid: 1/1/08-12/31/08
31 Cases: $2,210,250
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Authority: 43 U.S.C. 1331 et seq.

Dated: March 12, 2009.
Chris C. Oynes,
Associate Director for Offshore Energy and Minerals Management.
[FR Doc. E9-7061 Filed 3-27-09; 8:45 am]

BILLING CODE 4310-MR-P