1998 Civil 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.
1998 Civil Penalties Summary
All Penalties Paid in Calendar 1998
(1/1/1998 - 12/31/1998)
|
Operator Name |
Violation and Date(s) |
Penalty Paid and |
Regulation(s) Violated (30 CFR) |
| Exxon Corp
PAC 96-01 |
The failure to close pig launcher drain valves allowed oil to flow in the Pacific Ocean
5/1/96 |
$25,000
3/24/1998 |
250.40.a |
| Union Pacific Resource
GOM 96-37 |
Sump Pump found to be inoperable; PSHL for he sump pump were bypassed; PSHL for the platform fuel gas filter were bypassed.
5/7/95 |
$9,000
1/14/1998 |
250.123.c.1 250.40.b.4 |
| Shell Offshore Inc
GOM 97-05 |
The gas and fire detection systems for three platforms were not tested within the required time frames.
02/26/96 - 02/27/96 |
$18,000
02/12/1998 |
250.124.a.8 |
| Shell Offshore Inc
GOM-97-06 |
A breaker used to conduct an ESD test had a bad transformer. On numerous occasions when the ESD test was performed, the operator would have to excite the transformer by pulling a 480 volt cable out of the breaker and then be repowered with the 480 volt cable removed. The operator would then stab the 480 volt cable back into the breaker causing an arc.
05/27/96 - 07/10/96 |
75,000
05/07/1998 |
250.20.a |
| SSOCO Offshore Inc
GOM 97-07 |
BSL for heater treater inoperable.
07/30/96 - 11/12/96 |
$40,000
04/16/1998 |
250.122.b |
| CNG Producing Company
GOM 97-08 |
ESD was bypassed on Subsea Well No. 5.
09/20/95 |
$40,000
05/19/1998 |
250.123.c.1 |
| Conoco Inc
GOM 97-13 |
The SCSSV's for Wells E-2, E-8 and E-11 were bypassed.
7/27/97 |
$5,000
01/26/1998 |
250.20.a 250.53.c |
| Union Pacific Resource
GOM 97-15 |
The LSH and LSL were bypassed on the fuel gas scrubber.
12/10/96 |
$5,000
02/18/1998 |
250.123.c.1 |
| Phillips Petroleum Company
GOM 97-17 |
PMultiple safety devices were not tested within the required time frame.
11/20/96 |
$72,500
03/26/1998 |
250.124.a.3.i 250.124.a.3.ii 250.124.a.4 250.124.a.5 250.124.a.10 |
| Century Offshore Management
GOM 97-18 |
The total safety system shutdown, the performax, and the LSH on the skimmer sump tank were bypassed.
01/16/97 - 01/19/97 |
66,000
01/15/1998 |
250.123.c.1 |
| Walter Oil & Gas Corp
GOM 97-19 |
Well A-1 hydraulic control line to SCSSV closed and not flagged or monitored.
02/12/97 |
$5,000
02/18/1998 |
250.123.c.1 |
| Walter Oil & Gas Corp
GOM 97-25 |
Multiple safety devices were bypassed on the pipeline pumps, oil surge tank, test separator, sump tank, LACT booster pump, and flowlines.
03/22/97 |
$17,000
06/23/1998 |
250.123.c.1 |
| Shell Offshore Inc
GOM 97-28 |
A flash fire occurred when using a standard electric drill to drill holes in the floatation cell.
06/08/97 |
$12,000
06/04/1998 |
250.123.b.10 |
| Chevron USA Inc
GOM 97-29 |
There was not an operable firewater system or approved chemical firefighting system on the platform.
07/3/96 - 07/29/96 |
$162,000
02/23/1998 |
250.123.b.8.i |
| Conoco Inc
GOM-97-31 |
There were 2 openings on the production deck where grating had been removed. There were no barricades or flagging indicating the holes, there was no one monitoring the hole.
05/08/97 |
$5,000
05/27/1998 |
250.20.a |
| Chevron USA Inc
GOM-97-32 |
During the positioning of a lift barge, the legs of the barge ruptured a high pressure gas pipeline. The pipelines were not marked nor was the captain of the vessel made aware of the pipelines location.
02/02/97 |
$10,000
06/04/1998 |
250.20.a |
| Chevron USA Inc
GOM-97-32 |
ESD stations were bypassed at the supply control panel. ESD station switches in the well bay, compressor, blowcase, and +10-foot deck level areas did not activate the ESD.
09/06/96 |
$10,000
04/02/1998 |
250.123.c.1 |
| Taylor Energy Company
GOM 97-34 |
SCSSV was block out of service on Well E-17; tubing plug was not tested within the required time period for Well E-5.
07/03/96 - 07/24/95 |
$6,500
05/15/1998 |
250.123.c.1 250.124.a.1.iii |
| Chevron USA Inc
GOM 97-36 |
An employee was injured when he fell through open grating with no barrier.
03/13/97 |
$15,000
03/4/1998 |
250.20.a |
| Chevron USA Inc
GOM 97-38 |
Two workers did not have fall protection secured while working near an open hole.
02/05/97 |
$10,000
05/06/1998 |
250.20.a |
| Coastal Oil & Gas Corp
GOM 97-41 |
Numerous safety devices blocked out of service at the main control panel.
04/2/97 |
$135,000
08/3/1998 |
250.123.c.1 |
| Shell Offshore Inc
GOM 97-42 |
The gas and fire detection systems were not tested within the required time frames.
06/24/97 |
$10,000
06/15/1998 |
250.124.a.8 |
| Walter Oil & Gas Corp
GOM-97-44 |
The LSL sensor for the Compressor Suction Scrubber failed to operate. The adjustment screw was set in such a manner that the sensor would not activate (bypassed).
06/01/97 |
$10,000
06/11/1998 |
250.123.b.7.i |
| Ocean Energy Inc
GOM 97-45 |
A pollution incident occurred because the shutdown relay on floatation cell was blocked out of service (bypassed).
03/4/97 |
$15,000
10/9/1998 |
250.40.a 250.123.c.1 |
| Norcen Explorer Inc
GOM 97-46 |
Safety devices on 7 vessels were found bypassed. Pollution occurred when the LSH on the bad oil tank was bypassed. Well A-10 produced for 32 days without a subsurface safety valve.
01/14/97 - 06/29/97 |
$103,200
12/29/1998 |
250.40.a 250.121.e.3 250.123.c.1 |
| Ocean Energy Inc
GOM 97-48 |
Three open holes were not properly barricaded or flagged.
06/19/97 |
$15,000
07/9/1998 |
250.20.a |
| Burlington Resources
GOM 97-49 |
LSH on Vent Scrubber was inoperable.
07/09/97 |
$5,000
05/05/1998 |
250.123.c.1 |
| Panaco Inc
GOM 97-50 |
Platform sump system was inoperable; sump tank LSH was not tested within the required time period.
04/25/96 |
$64,000
08/6/1998 |
250.40.b.4
250.122.b. |
| Apache Corporation
GOM 97-51 |
The safety system for the compressor was bypassed at the master panel.
03/12/96 |
$8,000
08/19/1998 |
250.123.c.1 |
| Conoco Inc
GOM-97-52 |
LSH for the platform sump tank was bypassed.
02/22/97 |
$8,000
05/18/1998 |
250.123.c.1 |
| Callon Petroleum Oper
GOM-97-54 |
SCSSV for Well A-1 was bypassed at the well head; isolation valve was closed during testing and remained closed for two days until discovered during inspection.
07/10/97 - 07/11/97 |
$10,000
05/06/1998 |
250.123.c.1 |
| Seneca Resources Corp
GOM-97-58 |
The surface controlled subsurface safety valve (SCSSV) was detected in the by-pass mode for Well E016.
02/03/97 |
$6,000
06/22/1998 |
250.123.c.1 |
| Marathon Oil Company
GOM 97-59 |
The air supply valves to the air pumps that operate the BOP accumulator charging system were detected in the by-passed position during the inspection.
07/18/97 - 07/25/97 |
$26,000
06/04/1998 |
250.56.d.2 |
| Norcen Explorer Inc
GOM-97-60 |
PSHL bypassed on Well 16 A; SCSSV bypassed on Well 32.
09/07/97 |
$12,000
04/17/1998 |
250.123.c.1 250.123.c.4 |
| Nuevo Energy Company
PAC 98-01 |
Failure to have a qualified crane operator, exceeding dynamic rating for crane, and failure to prevent pollution.
01/15/98 |
$35,000
07/30/1998 |
250.20.a 250.20.c 250.40.a |
| Conoco Inc
GOM-98-02 |
When Plug and Abandon (P&A) operations were being conducted by Superior Well Service, a small fire flashed from a pneumatic saw which was being powered by instrument gas to cut casing. The fire burned an employee standing next to the operator of the saw.
08/06/97 |
$9,000
05/18/1998 |
250.20.a 250.20.c 250.40.a |
| Nuevo Energy Company
PAC 98-02 |
Failure to perform pre-use inspection on a crane.
04/4/98 |
$18,000
09/10/1998 |
250.20.c |
| Taylor Energy Company
GOM 98-03 |
Taylor did not test the safety devices within the required six-week interval.
08/20/97 |
$7,000
03/19/1998 |
250.803(c)(1) |
| Panaco Inc
GOM-98-05 |
The fire watch did not have a portable gas detector while conducting welding operations. Production equipment within 35 feet of the welding did not have flame proof covers. The platform sump's LSH was pinned out of service.
08/18/97 - 09/02/97 |
$15,000
06/05/1998 |
250.52.a.4 250.52.d.2 250.123.c.1 |
| Ocean Energy Inc
GOM 98-06 |
The hydraulic line for Well 9 was found isolated in the hydraulic panel (Manual override) in a closed position. The valve was not flagged or being monitored.
07/21/97 |
$6,000
06/12/1998 |
250.123.c.1 |
| Shell Deepwater Devel
GOM 98-07 |
An employee was observed working near an unflagged open hole, that did not have a barrier around it. The employee was not wearing full protection gear.
09/19/97 |
$15,000
09/1/1998 |
250.20.a.b |
| Samedan Oil Corporation
GOM 98-08 |
The PSHL was locked in open position, no fire detection system, PSE set higher than allowed, and the LSH was bypassed.
08/10/96 - 10/8/96 |
$24,000
07/8/1998 |
250.123.b.1.i 250.123.b.9 250.123.c 250.123.c.1 |
| Gulfstar Energy Inc
GOM 98-09 |
Failure to test PSV's.
03/15/96 - 01/15/97 |
$42,000
09/10/1998 |
250.124.a.2 |
| Aviva America Inc
GOM 98-16 |
The SCSSV was found bypassed for 6 wells.
12/18/97 |
$42,000
09/10/1998 |
250.123.c.1 |
| OXY USA Inc
GOM-98-18 |
Rig personnel was working in a hazardous area without wearing fall protection gear.
09/18/97 |
$5,000
06/22/1998 |
250.20.a |
| Ocean Energy Inc
GOM 98-24 |
The hydraulic line for well 11-D ball valve (SCSSV) found isolated at the tree. Valve was not flagged or being monitored.
07/21/97 |
$6,000
12/21/1998 |
250.123.c.1 |
| Chevron USA Inc
GOM-98-25 |
ESD system remote on the boat landing was bypassed.
11/24/97 |
$15,000
06/09/1998 |
250.123.c.1 |
| Chevron USA Inc
GOM-98-32 |
An injury occurred when the break-out tong was rigged up and used without hanging the tong off from an air hoist line and without securing the tong with a snub line.
11/11/97 |
$23,000
06/17/1998 |
250.20.a |
| Unocal Exploration Corp
GOM 98-33 |
The LSH on the sump was bypassed.
09/27/97 |
$3,000
09/15/1998 |
250.40.a 250.123.c.1 |
| Flextrend Development
GOM 98-34 |
The SCSSV was bypassed for Wells A-2, A-4, and A-5.
11/16/9 - 11/17/97 |
$24,000
08/12/1998 |
250.803(c)(1) |
|
Total Penalties Paid: 1/1/1998 - 12/31/1998 50 Cases: $1,297,200 |
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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.