PHMSA Seeks Record Fine Against Operator After 2023 Pipeline Spill
Federal regulators are seeking a record $9.6 million penalty against a pipeline operator following a 2023 oil spill, marking the largest proposed fine in PHMSA’s enforcement history.
(P&GJ) — The U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration has proposed a record civil penalty of $9.6 million against Panther Operating Company for alleged violations tied to a 2023 failure of the Main Pass Oil Gathering pipeline system.
The proposed $9,622,054 penalty is the largest ever sought by PHMSA in a pipeline safety enforcement action and stems from a November 2023 incident that released about 1.1 million gallons of crude oil into the Gulf of America.
“Safety drives everything we do,” said U.S. Transportation Secretary Sean P. Duffy. “We are sending a clear signal: when companies fail to abide by the rules, we won’t hesitate to act decisively. We’ll continue to enforce the law to ensure the safety and efficiency of our energy infrastructure.”
PHMSA said its investigation identified multiple probable violations of hazardous liquid pipeline safety regulations, including deficiencies related to integrity management, operations and maintenance, leak detection, emergency response, and protections for high-consequence areas. The agency detailed those findings in a Notice of Probable Violation issued to Panther last week.
“PHMSA’s focus on safety and holding operators accountable when they fail to comply with federal safety regulations will never change,” said PHMSA Administrator Paul Roberti. “It is important for pipeline operators to remain vigilant in their operations to prevent these types of failures or there will be serious consequences.”
In addition to the proposed fine, PHMSA issued a draft compliance order that would require Panther to take corrective actions to address risks on the Main Pass Oil Gathering system. The order would require the company to evaluate and develop measures to protect the pipeline against unanticipated external loads linked to geotechnical and geological hazards.
Panther has 30 days to respond to the notice, PHMSA said.