Saturday 15 October 2011

Bureau of Safety and Environmental Enforcement files "incidents of non-compliance" on BP, Transocean and Halliburton

The U.S. offshore drilling regulator on Wednesday formally issued sanctions
against BP and the major contractors for the 2010 explosion on the Deepwater
Horizon rig that killed 11 workers and unleashed more than 4 million barrels
of oil into the Gulf of Mexico.

The newly formed Bureau of Safety and
Environmental Enforcement filed 15 "incidents of non-compliance" to the
companies. It did not release details of how much the companies may face in
fines.

By law, the companies face fines of up to $35,000 a day, per incident for the violations. The infractions uncovered during the federal probe of the accident were outlined in the Interior Department's final report on the disaster, released last month.

BP, owner of the ruptured Macondo well, received seven sanctions, notices for violations ranging from failure to protect health and property to failing to keep well under control at all times.

In a first for the department, BP's contractors Transocean, which owned the Deepwater Horizon rig, and Halliburton, which carried out cementing on the well, also face sanctions. The contractors each received four notices of violations.

Traditionally, the department has only litigated against a well's operators for rule infractions. But after last year's spill, the department has asserted its has authority to regulate contractors too. The decision to sanction Transocean and Halliburton reflects the "severity of the incident, the findings of the joint
investigation, as well as Secretary Ken Salazar and Director (Michael)
Bromwich's commitment to holding all parties accountable, " the regulator
said in a statement this week.

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