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1998 Civil Penalties

1998 Civil Penalties

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
and Case No.

Violation and Date(s)

Penalty Paid and
Date Paid

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

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.