What We Do / Safety Enforcement / Enforcement Tools / Incidents of Non-Compliance

Incidents of Non-Compliance (INCs)

Upon detecting a violation, the Bureau Inspector issues an Incident of Noncompliance (INC) to the operator and uses one of two main enforcement actions (warning or shut- in), depending on the severity of the violation. If the violation is not severe or threatening, a Warning INC is issued. The Warning INC must be corrected within a reasonable amount of time specified on the INC. The Shut-in INC may be for a single component (a portion of the facility) or the entire facility. The violation must be corrected before the operator is allowed to continue the activity in question.

In addition to the enforcement actions specified above, the Bureau can assess a civil penalty of up to $42,017 per violation per day if: 1) the operator fails to correct the violation in the reasonable amount of time specified on the INC; or 2) the violation resulted in a threat of serious harm or damage to human life or the environment.

Note: As of July 28, 2016 the new rate is $42,017 per violation per day.  The previous daily rate was $40,000.  Consequently, all civil penalties assessed after July 28, 2016 will reflect this new maximum penalty regardless of when the infraction occurred. (Based on guidance from the November 2015 Federal Civil Penalties Inflation Adjustment Act Improvement Act).  This rate will be reviewed on an annual basis.

Recent Panel Investigation INCs Issued

BSEE is working to make available Incidents of Noncompliance (INCs) issued to offshore oil and gas operators and contractors. As BSEE works to modernize our processes, web postings are limited. INCs issued during offshore inspections can be requested through the bureau's Freedom of Information Act (FOIA) office.

Issuance Date Panel Investigation INCs Issued to: (Operator/Contractor) Region
11-13-2013 Black Elk Energy Offshore Operations (BEE) Gulf of Mexico
11-13-2013 Compass Engineering & Consultants, LLC (Compass) Gulf of Mexico
11-13-2013  Grand Isle Shipyard, Inc. (GIS) Gulf of Mexico
11-13-2013  Wood Group Production Service Network (WGPSN) Gulf of Mexico
06-23-2013 Pacific Offshore Operators, LLC Pacific
03-06-2013 Pacific Offshore Operators, LLC Pacific
03-08-2013 Alliance Oilfield Services, LLC Gulf of Mexico
03-05-2013 ENSCO Driling Gulf of Mexico
03-05-2013 Island Operators Co., Inc. Gulf of Mexico
03-05-2013 Nabors Offshore Corporation Gulf of Mexico
02-05-2013 ERT GOM Inc. Gulf of Mexico

 

A comprehensive list of the number of INCs issued by BSEE (query by date showing company name) is also available here.

Annual INC Summaries can be retreived by an online Query for Incidents of Non-Compliance  which will report name of operator, type and number of INCs issued.

Incidents of Noncompliance (INC) Appeals

Appeal: An entity (lessee, operator, contractor, etc.) that receives notification of an incident of noncompliance (INC) may appeal the INC to the Interior Board of Land Appeals (IBLA) under 30 C.F.R. part 290 and 43 C.F.R. part 4. The entity must appeal the INC within 60 days of receiving it.

At the IBLA:

  • After filing its appeal, the entity appealing (the appellant) has 30 days to file a Statement of Reasons for the appeal if one was not filed with the appeal. Extensions may be granted.
  • The agency has 30 days to file an Answer responding to the Statement of Reasons. The IBLA will grant one automatic extension, not to exceed 30 days.
  • The appellant may file a reply brief within 15 days of receiving the Answer.
  • Any party may request a hearing to present evidence on an issue of fact. The request must be filed within 30 days after the answer is due. If the IBLA grants a hearing, the appeal will be referred to an administrative law judge.