Outer Continental Shelf (OCS) Civil Penalties

DEPARTMENT OF THE INTERIOR

Minerals Management Service

Outer Continental Shelf (OCS) Civil Penalties

AGENCY: Minerals Management Service, Interior.

ACTION: Notice Summarizing OCS Civil Penalties Paid, September 1, 1997

through December 31, 1997.

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SUMMARY: This notice provides a listing of civil penalties paid

September 1, 1997 through December 31, 1997, for violations of the

Outer Continental Self 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

[[Page 5402]]

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: Greg Gould, Program Coordinator at

(703) 787-1591.

SUPPLEMENTARY INFORMATION: The Oil Pollution Act (OPA 90) strengthened

section 24 of the OCSLA. 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 (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, 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 increases the

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

Between August 18, 1990 and December 31, 1997, MMS initiated 170

compliance reviews resulting in 170 civil penalty cases. MMS assessed

102 civil penalties and collected $1,398,820 in fines. Eighteen cases

were dismissed and 50 are under review.

On September 1, 1997, the Associate Director for 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 September 1, 1997 through December 31, 1997. A quarterly update of

this list will be posted on the MMS worldwide web home page, http://

www.mms.gov.

Summary of OCS Civil Penalties Paid 9/1/97-12/31/97

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Regulation(s) violated Penalty paid

Company name (case No.) (violation date(s)) (date paid)

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Panaco Inc. (GOM-96-04)........ 30 CFR $10,000

250.60(c)(2)(iii). (10/29/97)

(06/13/95).............

Violation Summary: Drilling operations were conducted with an inoperable

mud return indicator.

Energy Development Corp. (GOM- 30 CFR 250.123(b)(9)... $10,000 (10/09/

96-26). 30 CFR 250.40(a)....... 97)

(01/27/95-02/09/95)....

Violation Summary: Failure to install Gas Detection System/vent;

hydraulic control line for surface controlled substance safety valve

(SCSSV) on Well A-5 leaked oil into Gulf of Mexico.

Vastar Resources, Inc. (GOM-96- 30 CFR 250.123(c)(1)... 440,500

33). 30 CFR 250.124(a)(4)... (10/16/97)

30 CFR 250.124(a)(5)...

30 CFR 250.124(a)(1)(i)

(09/07/95).............

Violation Summary: Pressure safety high level (PSHL) bypassed for Well G-

8; Well D-35 continued to produce after surface safety valve (SSV) was

found to be leaking; Well A-9D continued to produce after flow safety

valve (FSV) failed a leakage test; Well A-25A continued to produce

after SCSSV failed to test; Well A-28A continued to produce after FSV

failed to leakage test.

Shell Offshore, Inc. (GOM-96- 30 CFR 250.20(a)....... $8,000

35). (10/18/95.............. (09/30/97)

Violation Summary: Unsafe trap door on pig launcher (missing bolts).

Mobil Oil Exploration & 30 CFR 250.124(a)(1)(i) $45,000

Production (GOM-97-12). 30 CFR 250.123(c)(1)... (12/01/97)

(09/05/96-12/04-96)....

Violation Summary: 7 SCSSV's not tested within the required timeframe;

Pressure Safety Valve (PSV) blocked out of service on the water

polisher.

Kerr-McGee Corporation (GOM-97- 30 CFR 250.123(c)(1)... $8,000

14). (11/07/96)............. (10/30/97

Violation Summary: Level sensor low (LSL) on wet and dry oil tanks was

blocked out of service.

Norcen Explorer, Inc. (GOM-97- 30 CFR 250.123(c)(1)...

16) (02/06/97).............

$5,000

Violation Summary: The fuel supply valve for both sump pumps bypassed.

Total Penalties Paid, 9/1/ ....................... $126,500

97-12/31/97, 7 Cases.

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Dated: January 26, 1998.

Thomas R. Kitsos,

Associate Director for Offshore Minerals Management.

[FR Doc. 98-2193 Filed 1-30-98; 8:45 am]

BILLING CODE 4310-MR-M