Oil Co. Sentenced, Fined

Friday, April 8, 2016 @ 05:04 PM gHale

Energy Resource Technology GOM LLC, a subsidiary of Houston-based Talos Energy LLC, received a $4 million fine Wednesday and ended up sentenced to three years probation after pleading guilty to federal environmental and pollution charges.

The charges included two felony counts apiece of violating the Outer Continental Shelf Lands Act and violating the Clean Water Act.

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Energy Resource in 2012 “knowingly and willfully failed to comply” with regulations for welding offshore and testing blowout preventers on a Gulf of Mexico production platform, according to court filings.

The initial Clean Water Act violation, in 2014, dealt with tampered sampling of monthly water discharge samples, which ended up taken to test for oil and grease.

The second violation, in 2015, came after two contract operators on one of the company’s Gulf oil production platforms bled pressure from the production casing on a plugged well without taking precautions against a potential discharge. The workers ultimately allowed “well bore fluid mixed with hydrocarbons” to fall into the water.

“This is an excellent example of federal agencies working together, collaboratively and effectively, to ensure that oil and gas companies operating in areas within the department’s jurisdiction meet their professional and legal responsibilities,” said Ron Gonzales, the special agent in charge of the Department of the Interior-Office of Inspector General-Energy Investigations Unit.

U.S. District Judge Ivan L.R. Lemelle also sentenced the company to make a $200,000 community service payment. During its probation period, the company and Talos Energy Offshore LLC must comply with a Safety and Environmental Compliance Plan.

The company made key organizational changes after acquiring Energy Resource, conducted a third-party audit and “increased training and leadership programs for personnel in the field to ensure incidents like these are not repeated,” said Talos spokesperson Brian Grove.

Talos reported the violations to federal authorities, which led to the settlement, according to Grove, who said the settlement “allows us to resolve these legacy issues and move our organization forward.”

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