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Record Fine for Louisiana Oil Spill
6 Jan
Summary
- Largest fine ever assessed by pipeline safety regulators.
- Spill resulted from systemic failure and inadequate risk assessment.
- Company disputes allegations, citing consistent regulatory compliance.
Pipeline safety regulators recently imposed a record $9.6 million fine on Third Coast Midstream following an oil spill that released 1.1 million gallons into the Gulf of Mexico off Louisiana in 2023. This penalty marks the largest fine ever issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA).
The spill, investigated by the National Transportation Safety Board (NTSB), was linked to a company-wide systemic failure. Regulators cited Third Coast's inadequate emergency procedures, failure to shut down the pipeline promptly, and insufficient risk assessments concerning geohazards like underwater landslides exacerbated by hurricanes.
Third Coast has expressed surprise at the allegations, maintaining that their operations consistently meet regulatory standards. The company stated they would address the concerns with PHMSA, disputing inaccuracies they believe were present in the agency's findings.
