Outer Continental Shelf (OCS) Civil Penalties

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, 1998--

December 31, 1998.

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SUMMARY: This notice provides a listing of civil penalties paid January

1, 1998, through December 31, 1998, for violations of the OCS Lands

Act. The goal of the MMS OCS Civil Penalties Program is to ensure safe

and clean operations on the OCS. Through the pursuit, assessment, and

collection of civil penalties and referrals for the consideration of

criminal penalties, we designed the program 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 OCS Lands Act 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 important, 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, we published new regulations implementing the

civil penalty provisions of the OCS Lands Act. Written in ``plain

language,'' 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 day, per

violation.

Between August 18, 1990, and December 31, 1998, we initiated 250

civil penalty reviews, assessed 151 civil penalties, and collected

$2,678,020 in fines. We dismissed 24 cases, and 75 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 we will publish an annual

summary of OCS civil penalties paid. The annual

[[Page 13812]]

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, 1998, and December 31, 1998.

Please note, we published a direct final rule (5/29/98, 63 FR 29477)

that renumbers each section in 30

CFR part 250. The regulations cited in the table are the citation

numbers that were current at the time of the violation and do not

reflect the redesignation.

A quarterly update of this 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.

OCS Civil Penalties Paid--Calendar Year 1998

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Penalty

Operator name and case No. Violation summary and violation paid and Regulation(s) violated 30 CFR

date(s) date paid

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Exxon Corp, PAC-96-01............ The failure to close pig $25,000 250.40(a)

launcher drain valves allowed 3/24/98

oil to flow into the Pacific

Ocean. 5/1/96.

Union Pacific Resource, GOM-96-37 Sump Pump found to be $9,000 250.123(c)(1), 250.40(b)(4)

inoperable; pressure safety 1/14/98

high level (PSHL) for the sump

pump bypassed; PSHL for the

platform fuel gas filter

bypassed. 5/7/95.

Shell Offshore Inc, GOM-97-05.... The gas and fire detection $18,000 250.124(a)(8)

systems for three platforms 2/12/98

were not tested within the

required timeframes. 02/26/96-

02/27/96.

Shell Offshore Inc, GOM-97-06A... A breaker used to conduct an $75,0000 250.20(a)

emergency shut down (ESD) test 5/07/98

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.

SOCO Offshore Inc, GOM-97-07..... Burner safety low for heater $40,000 250.122(b)

treater inoperable. 07/30/96-11/ 04/16/98

12/96.

CNG Producing Company, GOM-97-08. Wells A-2, A-4, A-9, A-10, and A- $40,000 250.123(c)(1)

14 surface controlled 05/19/98

subsurface safety valves

(SCSSV) were bypassed with the

wells hydraulic control lines

isolation vales closed. The

wells were not attended or

flagged. 11/03/96-11/04/96.

Conoco Inc, GOM-97-13............ ESD was bypassed on Subsea Well $5,000 250.20(a) 250.53(c)

No. 5. 09/20/95. 01/26/98

Union Pacific Resource, GOM-97-15 The level safety high (LSH) and $5,000 250.123(c)(1)

level safety low (LSL) were 02/18/98

bypassed on the fuel gas

scrubber. 12/10/96.

Phillips Petroleum Company, GOM- Multiple safety devices were not $72,500 250.124(a)(3)(i), 250.124

97-17. tested within the required time 03/26/98 (a)(3)(ii), 250.124(a) (4),

frame. 11/20/96. 250.124(a) (5), 250.124(a)

(10)

Century Offshore Management, GOM- The total safety system $66,000 250.123(c)(1)

97-18. shutdown, the performax, and 01/15/98

the LSH on the skimmer sump

tank were bypassed. 01/16/97-01/

19/97.

Walter Oil & Gas Corp, GOM-97-19. Well A-1 hydraulic control line $5,000 250.123(c)(1)

to SCSSV closed and not flagged 02/18/98

or monitored. 02/12/97.

Walter Oil & Gas Corp, GOM-97-25. Multiple safety devices were $17,000 250.123(c)(1)

bypassed on the pipeline pumps, 06/23/98

oil surge tank, and sump tank.

03/22/97.

Shell Offshore Inc, GOM-97-28.... A flash fire occurred when using $12,000 250.123(b)(10)

a standard electric drill to 06/04/98

drill holes in the floatation

cell. 06/08/97.

Chevron USA Inc, GOM-97-29....... There was not an operable $162,000 250.123(b)(8)(i)

firewater system or approved 02/23/98

chemical firefighting system on

the platform. 07/3/96-07/29/96.

Conoco Inc, GOM-97-31............ There were 2 openings on the $5,000 250.20(a)

production deck where grating 05/27/98

had been removed. There were no

barricades or flagging

indicating the holes; there was

no one monitoring the hole. 05/

08/97.

Chevron USA Inc, GOM-97-32....... During the positioning of a lift $10,000 250.20(a)

barge, the legs of the barge 06/04/98

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.

Chevron USA Inc, GOM-97-33....... ESD stations were bypassed at $10,000 250.123(c)(1)

the supply control panel. ESD 04/02/98

station switches in the

wellbay, compressor, blowcase,

and +10-foot deck level areas

did not activate the ESD. 09/06/

96.

Taylor Energy Company, GOM-97-34. SCSSV was blocked out of service $6,500 250.123(c)(1),

on Well E-17; tubing plug was 05/15/98 250.124(a)(1)(iii)

not tested within the required

time period for Well E-5. 07/03/

96.

Chevron USA Inc, GOM-97-36....... An employee was injured when he $15,000 250.20(a)

fell through open grating with 03/4/98

no barrier. 03/13/97.

Chevron USA Inc, GOM-97-38....... Two workers did not have fall $10,000 250.20(a)

protection secured while 05/06/98

working near an open hole. 02/

05/97.

Coastal Oil & Gas Corp, GOM-97-41 Numerous safety devices blocked $135,000 250.123(c)(1)

out of service at the main 08/3/98

control panel. 04/2/97.

Shell Offshore Inc, GOM-97-42.... The gas and fire detection $10,000 250.124(a)(8)

systems were not tested within 06/15/98

the required timeframes. 06/24/

97.

Walter Oil & Gas Corp, GOM-97-44. The LSL sensor for the $10,000 250.123(b)(7)(i)

Compressor Suction Scrubber 06/11/98

failed to operate. The

adjustment screw was set in

such a manner that the sensor

would not activate (bypassed).

06/01/97.

Ocean Energy Inc, GOM-97-45...... A pollution incident occurred $15,000 250.40(a), 250.123(c)(1)

because the shutdown relay on 10/9/98

floatation cell was blocked out

of service (bypassed). 03/4/97.

[[Page 13813]]

Norcen Explorer Inc, GOM-97-46... Safety devices on 7 vessels were $103,200, 250.40(a), 250.121(e)(3),

found bypassed. Pollution 12/29/98 250.123(c)(1)

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.

Ocean Energy Inc, GOM-97-48...... Three open holes were not $15,000 250.20(a)

properly barricaded or flagged. 07/09/98

06/19/97.

Burlington Resources, GOM-97-49.. LSH on Vent Scrubber was $5,000 250.123(c)(1)

inoperable. 07/09/97. 05/05/98

Panaco Inc, GOM-97-50............ Platform sump system was $64,000 250.40(b)(4), 250.122(b)

inoperable; sump tank LSH was 08/6/98

not tested within the required

time period. 04/25/96.

Apache Corporation, GOM-97-51.... The safety system for the $8,000 250.123(c)(1)

compressor was bypassed at the 08/19/98

master panel. 03/12/96.

Conoco Inc, GOM-97-52............ LSH for the platform sump tank $8,000 250.123(c)(1)

was bypassed. 02/22/97. 05/18/98

Callon Petroleum Oper, GOM-97-54. SCSSV for Well A-1 was bypassed $10,000 250.123(c)(1)

at the wellhead; isolation 05/06/98

valve was closed during testing

and remained closed for 2 days

until discovered during

inspection. 07/10/97-07/11/97.

Seneca Resources Corp, GOM-97-58. The SCSSV was detected in the by- $6,000 250.123(c)(1)

pass mode for Well E016. 02/03/ 06/22/98

97.

Marathon Oil Company, GOM-97-59.. The air supply valves to the air $26,000 250.56(d)(2)

pumps that operate the blowout 06/04/98

preventer accumulator charging

system were detected in the by-

passed position during the

inspection. 07/18/97-07/25/97.

Norcen Explorer Inc, GOM-97-60... PSHL bypassed on Well 16 A; $12,000 250.123(c)(1), 250.123(c)(4)

SCSSV bypassed on Well 32. 09/ 04/17/98

07/97.

Nuevo Energy Company, PAC-98-01.. Failure to have a qualified $35,000 250.20(a), 250.20(c),

crane operator, exceeding 07/30/98 250.40(a)

dynamic rating for crane, and

failure to prevent pollution.

01/15/98.

Conoco Inc, GOM-98-02............ When Plug and Abandon operations $9,000 250.20(a)&(b)

were being conducted, a small 05/18/98

fire flashed from a pneumatic

saw that 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.

Nuevo Energy Company, PAC-98-02.. Failure to perform pre-use $18,000 250.20(c)

inspection on a crane. 04/4/98. 09/10/98

Taylor Energy Company, GOM-98-03. Taylor did not test the safety $7,000 250.124(a)(3), 250.124(a)(5),

devices within the required 6- 03/19/98 250.124(a)(6), 250.20 (a)&(b)

week interval. 08/20/97.

Panaco Inc, GOM-98-05............ The fire watch did not have a $15,000 250.52(a)(4), 250.52(d)(2),

portable gas detector while 06/05/98 250.123(c)(1)

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.

Ocean Energy Inc, GOM-98-06...... The hydraulic line for Well 9 $6,000 250.123(c)(1)

was found isolated in the 06/12/98

hydraulic panel (manual

override) in a closed position.

The valve was not flagged or

being monitored. 07/21/97.

Shell Deepwater Development, GOM- An employee was observed working $15,000 250.20(a)(b)

98-07. near an unflagged open hole 09/1/98

that did not have a barrier

around it. The employee was not

wearing full protection gear.

09/19/97.

Samedan Oil Corporation, GOM-98- The PSHL was locked in open $24,000 250.123(b)(1)(i),

08. position, no fire detection 07/8/98 250.123(b)(9), 250.123(c),

system, pressure safety element 250.123(c)(1)

set higher than allowed, and

the LSH was bypassed. 08/10/96--

10/8/96.

Gulfstar Energy Inc, GOM-98-09... Failure to test pressure safety $15,000 250.124(a)(2)

valves. 03/15/96--01/15/97. 07/17/98

Aviva America Inc, GOM-98-16..... The SCSSV was found bypassed for $42,000 250.123(c)(1)

6 wells. 12/18/97. 09/10/98

OXY USA Inc, GOM-98-18........... Rig personnel were working in a 5,00 250.20(a)

hazardous area without wearing 06/22/98

full protection gear. 09/18/97.

Ocean Energy Inc, GOM-98-24...... The hydraulic line for well 11-D $6,000 250.123(c)(1)

ball valve (SCSSV) found 12/21/98

isolated at the tree. Valve was

not flagged or being monitored.

07/21/97.

Chevron USA Inc, GOM-98-25....... ESD system remote on the boat $15,000 250.123(c)(1)

landing was bypassed. 11/24/97. 06/09/98

Chevron USA Inc, GOM-98-32....... An injury occurred when the $23,000 250.20(a)

break-out tong was rigged up 06/17/98

and used without hanging the

tong off from an air hoist line

and without securing the tong

with a snub line. 11/11/97.

Unocal Exploration Corp, GOM-98- The LSH on the sump was $3,000 250.40(a), 250.123(c)(1)

33. bypassed. 09/27/97. 09/15/98

Flextrend Development, GOM-98-34. The SCSSV was bypassed for Wells $24,000 250.123(c)(1)

A-2, A-4, and A-5. 11/16/97--11/ 08/12/98

17/97.

Total Penalties Paid 1/1/98-12/31/98; 50 Cases: $1,297,200

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[[Page 13814]]

Dated: March 16, 1999.

Carolita U. Kallaur,

Associate Director for Offshore Minerals Management.

[FR Doc. 99-6868 Filed 3-19-99; 8:45 am]

BILLING CODE 4310-MR-P