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4th Quarter of 1997 Civil Penalties

4th Quarter of 1997 Civil Penalties

1997 Civil Penalties

The goal of the 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.

1997 Civil Penalties Summary
All Penalties Paid in 4th Quarter of 1997
(10/1/1997 - 12/31/1997)


Operator Name
and Case No.

Violation and Date(s)

Penalty Paid and
Date Paid

Regulation(s) Violated
(30 CFR)
Panaco Inc

GOM-96-04

Drilling operations were conducted with an inoperable mud return indicator.

06/13/95

10,000

10/29/97

250.60.c.2.iii
Energy Development Corporation

GOM-96-26

Failure to install Gas Detection System/vent; hydraulic control line for surface controlled subsurface safety valve (SCSSV) on Well A-5 leaked oil into the Gulf of Mexico

01/27/95 - 02/09/95

$10,000

10/09/97

250.123.b.9
250.40.a
Vastar Resources  Inc

GOM-96-33

Pressure safety high level (PSHL) bypassed for Well G-8; Well D-35 continued to produce after 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 a leakage test.

09/07/95

$40,500

10/16/97

250.123.c.1
250.124.a.4
250.124.a.5
250.123.c.1.i
Shell Offshore Inc

GOM-96-35

Unsafe trap door on pig launcher (missing bolts).

10/18/95

$8,000

09/30/97

250.20.a
Mobil Oil Exploration & Production

GOM-97-12

Seven SCSSV's not tested within the required timeframe; Pressure Safety Valve (PSV) blocked out of service on the water polisher.

09/05/96 - 12/04/96

$45,000

12/01/97

250.123.a.c.1.i
250.123.c.1
Kerr-McGee Corporation

GOM-97-14

Level sensor low (LSL) on wet and dry oil tanks was blocked out of service.

11/07/96

$8,000

10/30/97

250.123.c
Norcen Explorer Inc

GOM-97-16

The fuel supply valve for both sump pumps was bypassed.

02/06/97

$5,000

11/14/97

250.123.c.1

Total Penalties Paid: 10/1/1997 - 12/31/1997

7 Cases: $126,500

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.