What We Do / 2010 Civil Penalties

2010 Civil Penalties

2010 Civil Penalties

The goal of the BSEE 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.

2010 Civil Penalties Summary
(1/1/2010 - 12/31/2010)

Operator Name
and Case No.

Violation
and
Date(s)

Penalty Paid and
Date Paid

Regulation(s) Violated
30 CFR)

SPN Resources, LLC

G-2009-004

Unsafe and unworkmanlike methods led to the instrument fuel gas system being full of oil.

10-JAN-2009 - 10-JAN-2009

$20,000

2/12/10

 250.107

Apache Corporation

(Island Operators Co. Inc.)

G-2009-009

The level controller had been removed from the caisson sump, therefore the sump system could not automatically maintain oil at a level sufficient to prevent discharge into the Gulf of Mexico.

07-JAN-2009 – 23-JAN-2009

$435,000

4/23/10

250.300(b)

Badger Oil Corporation

(Production Services Network)

G-2009-011

The Burner Safety Low was bypassed on the Glycol Reboiler and the Level Safety Low was bypassed on the Glycol separator.

31-JAN-2009 - 31-JAN-2009

31-JAN-2009 - 31-JAN-2009

$20,000

3/11/10

250.803

250.803

Hunt Oil Company

(Gulf Coast Operator, LLC)

G-2009-014

The sump pumps would not work rendering the sump system inoperable.

06-MAR-2009 - 06-MAR-2009

$10,000

1/19/10

250.300(b)

McMoRan Oil & Gas LLC

G-2009-022

A Crane accident occurred while removing pins from the boom. The boom section was not securely blocked to prevent the dropping of the boom and/or boom section. Further investigation into the incident revealed the angle at which the auxiliary cable was attached to the heel section was insufficient and the auxiliary winch could not lift the boom.

27-FEB-2009 – 27-FEB-2009

$25,000

6/22/10

250.107

Apache Corporation

(Island Operators Co. Inc.)

G-2009-023

On May 2, 2009, the Surface-Controlled  Subsurface Safety Valve (SCSSV) at Well JA-001, failed due to a leakage rate greater than the allowable rate of 5 cubic feet/minute. Records indicate that no corrective action to remove, repair, reinstall, or replace was taken prior to the May 19, 2009, notification of inspection.

2-MAY-2009 – 18-MAY-2009

$255,000

4/23/10

250.804(a)(1)

ATP Oil & Gas Corporation

G-2009-024

There was an unsafe personnel transfer from a boat to a platform, where a worker fell into the Gulf of Mexico.

13-APR-2008 – 13-APR-2008

$20,000

3/13/10

250.107

Mariner Energy Corp.

G-2009-025

During an inspection, the sump pump was found to be inoperable. The sump system could not automatically maintain oil at a level sufficient to prevent discharge into the Gulf of Mexico. The inspection also uncovered severe corrosion and metal loss to multiple pieces of production equipment and piping.

19-MAY-2009 - 19-MAY-2009

08-MAY-2009 - 19-MAY-2009

$296,000

11/5/10

250.300(b)

250.401

Beryl Oil and Gas, LP

G-2009-026

During an annual inspection on June 16, 2009 it was discovered the test separator Shut Down Valve (SDV) actuator was welded in the open position. The operator informed the Agency that the B-5 well was tested and flowed for 8 days, from June 2nd thru June 9th 2009, with the test separator SDV actuator welded in the open position.

02-JUN-2009 – 09-JUN-2009

$40,000

6/15/10

250.803(c)

Mariner Energy

(Island Operators Co. Inc.)

G-2009-027

The heliport on a platform was taken out of service due to a fire, leaving a boat landing as the only access to the structure. The boat landing was taken out of service during an inspection due to corroded grating and missing handrails. Personnel did not have a safe way to visit this platform.

10-JUN-2009 – 10-JUN-2009

$20,000

6/7/10

250.107

Southern Natural Gas Company

G-2009-028

During a pipeline construction operation, an archaeological avoidance zone was disturbed when an unauthorized and unsupervised Radio Operated Vehicle investigation of the area was performed.

21-APR-2005 – 21-APR-2005

$15,000

1/22/10

250.1007

East Cameron Partners, LP

G-2009-029

During an inspection, it was discovered that the high pressure separator (MBD-2000) was in by-pass at themaster panel and pinned at the slave panel, and the test separator (MBD-3000) was pinned in by-pass with a tie-wrap and was neither flagged or monitored. It was also discovered that the pipeline pump (PAX-1000) pressure safety valve activated prematurely and the pressure safety high failed to shut in the pipeline pump due to failure to maintain redundant safety devices.

03-JUN-2009 – 03-JUN-2009

03-JUN-2009 – 03-JUN-2009

03-JUN-2009 – 03-JUN-2009

$85,000

6/29/10

250.803(c)

250.803(c)

250.107

Apache Corporation

(Island Operators)

G-2009-030

A four inch steam line that was part of the Waste Heat Recovery System ruptured emitting 375 degree steam with 120 psi.The steam line ruptured due to corroded metal.

02-JUN-2009-02-JUNE-2009

$22,000

9/21/10

250.107

Mariner Gulf of Mexico LLC

G-2009-032

Operator conducted operations without an H2S Contingency Plan with confirmed concentrations and volumes of H2S that could potentially result in atmospheric concentrations of 20 ppm.

11-JUN-2009 – 11-JUN-2009

$35,000

5/7/10

250.490(f)(1-13)

Mariner Energy

G-2009-033

The Operator failed to move or protect equipment containing hydrocarbons or other

flammable substances at least 35 feet from the welding area during operations.

13-JUN-2009-15-JUN-2009

$65,000

8/31/10

250.113

Merit Energy Company, LLC

(Gulf Coast Operator, LLC)

G-2009-034

During an annual inspection on September 3, 2009 the pressure safety high/low for the FA-2 flow line segment for Well B-2 was discovered to be in by-pass at the control panel and was not monitored and/or flagged.

03-SEP-2009 – 03-SEP-2009

$45,000

5/24/10

250.803(c)

Nexen Petroleum U.S.A. Inc.

G-2009-035

During a routine inspection, the SCSSV on well A-11 was found blocked/inoperable, which rendered the safety device incapable of performing its designed function.

05-JUL-2009 – 10-JUL-2009

$90,000

6/18/10

250.803

W&T Offshore, Inc.

(Baker Energy, Inc.)

G-2010-001

Repairs were being performed on a platform and a piece of grating was removed. Pre-constructed barriers were not put in place leaving open grating. An injury occurred when a worker tripped in the opening, striking his knee and left shoulder on the grating.

23-JUN-2009 – 23-JUN-2009

$25,000

6/10/10

250.107

Hilcorp Energy GOM, LLC

G-2010-002

During the course of an investigation, the lessee did not perform the compressor maintenance operations in a safe and workmanlike

manner causing a flash fire and injury.

14-OCT-2009 – 14-OCT-2009

$25,000

6/16/10

250.107(a)

W&T Offshore

G-2010-004

A fire occurred on the platform when the 1/2 inch stainless steel tubing drain lines from both air conditioner evaporator enclosures were commingled then routed to the cellar deck and terminated in the fuel gas skid.

18-SEP-2009 – 14-OCT-2009

$410,000

6/25/10

250.107

Stone Energy

G-2010-005

A pipeline riser ruptured during a manual shut-in of all production.

20-JUL-2009-04-DEC-2009

$20,000

7/13/10

250.107

Shell Offshore

G-2010-006

During the course of an inspection, it was discovered that two sections on the (+12) walkway were missing grating, creating an open hole hazard that was left unprotected and not barricaded.

18-NOV-2009-18-NOV-2009

$15,000

8/18/10

250.401

McMoRan Oil & Gas LLC.

G-2010-007

A fire occurred while repair work was being conducted on the contact tower's pressurized inlet valve. The fire destroyed the line heater's flame arrestor and posed a serious threat to the three personnel working in the immediate area as well as the other 17 personnel onboard the platform.

13-NOV-2009 – 13-NOV-2009

$20,000

6/24/10

250.107

BP Exploration & Production Inc.

(Transocean Offshore)

G-2010-008

During the course of a BOEMRE incident investigation, it was determined that the lessee did not ensure proper use of procedures for working aloft. An employee was working aloft without being secured to a fall protection system, which resulted in a fall and injury.

15-NOV-2009 - 15-NOV-2009

$30,000

11/22/10

250.107(a)

Samson Countour Energy E&P, LLC

G-2010-009

During an inspection, it was revealed that the cables used as a temporary barricade for open holes in the grating around two wells were loose and deemed ineffective for preventing personnel access into the hazardous area. The inspection also revealed that the wellheads were not secure.

27-JAN-2010-27-JAN-2010

$10,000

9/10/10

250.107

Medco Energi US LLC

(Island Operators Co. INC.)

G-2010-017

During the course of the BOEM RE inspection, the inspectors discovered multiple areas of severe corrosion with missing grating and handrails creating unsafe facilities for personnel.

05-MAY-2010 - 20-MAY-2010

$20,000

11/16/10

250.107

Total Penalties Paid: 1/1/10 - 12/31/10

26 Cases: $2,073,000

The following acronyms are used in this table:

SDV Shut Down Valve
SCSSV Surface Control Subsurface Safety Valve

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.