Interior Dept. issues BP, contractors violation notices for Gulf oil spill

The Interior Department has formally notified BP and two major contractors that they violated a slew of offshore drilling rules in connection with last year’s Deepwater Horizon rig explosion and massive oil spill.

A total of 15 violation notices — called “incidents of non-compliance,” or INCs — begin an effort to penalize BP, Deepwater Horizon rig owner Transocean and drilling services giant Halliburton for the accident that killed 11 workers and dumped millions of barrels of oil into the Gulf of Mexico.

The notices issued Wednesday follow last month’s report by the Interior-U.S. Coast Guard investigative team that detailed a series of missteps by the companies. They come a day before the co-chairmen of the investigative team and officials with the three companies are slated to testify at a House hearing on the report.

“The issuance of INCs to BP, Transocean and Haliburton is an important step in addressing the regulatory violations found during the joint investigation. To ensure the safe and environmentally responsible conduct of offshore operations, companies that violate federal regulations must be held accountable,” said Michael Bromwich, director of Interior’s Bureau of Safety and Environmental Enforcement.

“The joint investigation clearly revealed the violation of numerous federal regulations designed to protect the integrity of offshore operations; these INCs are the next step in vindicating the regulatory program designed to protect the interests of the public,” he said in a statement.

The notices allow a 60-day appeal period. After that Interior will review potential civil penalties. 

A Transocean spokesman said the company intends to appeal the violation notices.

Bromwich has repeatedly said the maximum penalties of $35,000 per violation per day (which were recently raised slightly) are far too low to serve as a deterrent to oil companies. But the spill is also expected to lead to billions of dollars of separate Clean Water Act fines, in addition to the potential penalties for allegedly violating drilling rules.

The Justice Department is conducting a criminal probe of the April 2010 blowout and spill. In addition, the department filed a civil lawsuit against BP and a number of other companies late last year.

Here is the list of alleged violations of drilling regulations that Interior released Wednesday afternoon:

INCs issued to BP
 
30 CFR 250.107(a)(1) – BP failed to protect health, safety, property, and the environment by failing to perform all operations in a safe and workmanlike manner.
 
30 CFR 250.300 – BP did not take measures to prevent unauthorized discharge of pollutants into offshore waters.
 
30 CFR 250.401(a) – BP failed to take necessary precautions to keep the well under control at all times.
 
30 CFR 250.420(a)(1) and (2) – BP did not cement the well in a manner that would properly control formation pressures and fluids and prevent the direct or indirect release of fluids from any stratum through the wellbore into offshore waters.
 
30 CFR 250.427 – BP failed to conduct an accurate pressure integrity test.
 
30 CFR 250.446(a) – BP failed to maintain the Deepwater Horizon BOP system in accordance to API RP 53 section 18.10.3.
 
30 CFR 250.1721(a) – BP failed to obtain approval of the Temporary Abandonment procedures actually used at the Macondo well.
 

INCs issued to Transocean
 
30 CFR 250.107(a)(1) – Transocean failed to protect health, safety, property, and the environment by failing to perform all operations in a safe and workmanlike manner.
 
30 CFR 250.300 – Transocean did not take measures to prevent unauthorized discharge of pollutants into offshore waters.
 
30 CFR 250.401(a) – Transocean failed to take necessary precautions to keep the well under control at all times.
 
30 CFR 250.446(a) – Transocean failed to maintain the Deepwater Horizon BOP system in accordance to API RP 53 section 18.10.3.

INCs issued to Halliburton
 
30 CFR 250.107(a)(1) – Halliburton failed to protect health, safety, property, and the environment by failing to perform all operations in a safe and workmanlike manner.
 
30 CFR 250.300 – Halliburton did not take measures to prevent unauthorized discharge of pollutants into offshore waters.
 
30 CFR 250.401(a) – Halliburton failed to take necessary precautions to keep the well under control at all times.
 
30 CFR 250.420(a)(1) and (2) – Halliburton did not cement the well in a manner that would properly control formation pressures and fluids and prevent the direct or indirect release of fluids from any stratum through the wellbore into offshore waters.

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