BSEE INC/Civil Penalty Update Gulf Coast Action Team (GCAT) Meeting - PowerPoint PPT Presentation

BSEE INC/Civil Penalty Update Gulf Coast Action Team (GCAT) Meeting Shell Robert Facility Robert, Louisiana May 14, 2014

Office of Safety Management (OSM) Glynn.Breaux@bsee.gov – Chief OSM Jason.Mathews@bsee.gov – Safety and Environmental Management Specialist (SEMS) Regional Coordinator Roderick.Belson@bsee.gov – SEMS / District Incident Reviews / Safety Alerts Robert.Carroll@bsee.gov – SEMS Matthew.Nagy@bsee.gov – SEMS District Incident Reviews / Safety Alerts Tommy.Machado@bsee.gov – Annual Performance Review / Performance Improvement Plan (APR/PIP) Regional Coordinator Kenneth.Kinnett@bsee.gov – Civil Penalty Compliance Reviewing Officer (CRO) Stephen.Kovacs@bsee.gov – CRO Kevin.Sterling@bsee.gov – CRO Michael.Wilson@bsee.gov – CRO Jack.Williams@bsee.gov – Regional Accident Investigator (Panels) / Safety Alerts Stephen.Garcia@bsee.gov – Regional Accident Investigator (Panels) / Safety Alerts 2

AGENDA INC & CP Data  Office of Safety Management (OSM)  Incident Statistics and Summaries (Rainbow Chart – bsee.gov website) Fatalities (Work Related) Injuries Loss of Well Control Fires/Explosions Spills > 50 Barrels (2013 data not yet available)  GOM Region Production INCs Total INCs and Production Inspections Graph Total INCs issued vs. Components Inspected Graph Production facility INCs by Enforcement Type  GOM Region Drilling INCs Total INCs and Inspections Graph Rig Facility INCs by Enforcement Type  Top 10 Production INCs Top 10 Production INC Descriptions (appearing every year) Top 10 Production INC Descriptions (all remaining)  Top 10 Rig INCs Top 10 Rig INC Descriptions (appearing every year) Top 10 Rig INC Descriptions (all remaining)  Top 10 Civil Penalty (CP) INCs Top 10 CP INCs (appearing every year) Top 10 CP INC Descriptions (all remaining)  Number of CPs for Operators and Contractors  CP Case Status  INC Violations Warranting CP Review  Guidelines for Determining a Threat  INCs that Automatically Trigger a CP Review  CP Matrix/Assessment Table – July 30, 2011 3  Criminal Penalty Referrals

Incident Statistics and Summaries OCS Incidents/Spills by Category: CY 2007 – 2013 TYPE 2007 2008 2009 2010 2011 2012 2013 GOM GOM GOM GOM GOM GOM GOM 5 11 4 12 3 4 3 FATALITIES 423 318 285 273 213 253 226 INJURIES *** # 7 8 6 4 3 4 9 LOSS OF WELL CONTROL *** 110 139 133 126 103 134 97 FIRES/EXPLOSIONS 20 22 29 8 14 9 19 COLLISIONS *** SPILLS ≥ 50 bbls 4 33 11 5 3 8 ^ OTHER *** 268 278 308 155 186 236 272 INCIDENT TOTAL FOR THE 837 809 776 583 525 648 626 YEAR COMBINED TOTAL FOR THE 890 871 832 616 560 730 691 YEAR Note: Taken from bsee.gov website – See explanations for each legend (***#, ***, etc.) on 4 website.

GOM Region Safety Statistics Category 2007 2008 2009 2010 2011 2012 2013 Fatalities 5 11 4 12 3 4 3 (Work Related) Injuries 423 318 285 273 213 253 226 Loss of Well 7 8 6 4 3 4 9 Control Fires & 110 139 133 126 103 134 97 Explosions Collisions 20 22 29 8 14 9 19 *Data to Sig.(>50bbl) be Spills 4 33 11 5 3 8 provided later. 5

Fatalities (Work Related) Year 2007 2008 2009 2010 2011 2012 2013 Fatalities 5 11 4 12 3 4 3 Explosions/Fires – 16 (11-Deepwater Horizon; 1-tank cleaning fire; 4-hot work on tankage) Crush Points – 7 (4-Vessel transfers; 1-pipelay; 1-crane; 1-pipehandler) Falling Objects – 10 (all during rig/well operations) Falls – 9 (8 from heights or swing ropes & 1-decommissioning) Diving Related – 6 Helicopter Crashes – 3 Electrocution – 1 6

Injuries Year 2007 2008 2009 2010 2011 2012 2013 Injuries 423 318 285 273 213 253 226 Effective July 17, 2006 (MMS Incident Reporting Rule):  Operators required to report Lost Time Accidents, Restricted Work, Job Transfers for which total work time is lost, the employee’s work is restricted, or the person is transferred to another job for a period of at least one day. Also, if an injury required evacuation for the purpose of receiving medical treatment, it must be reported immediately. These are captured on the Accident/Incident Form as: LTA(1-3 days); LTA(> 3 days); RW/JT (1-3 days); RW/JT (> 3 days) 7

OCS Injuries 2007 2008 2009 2010 2011 2012 2013 INJURIES *** # GOM GOM GOM GOM GOM GOM GOM Loss Time Accident (1-3 days) 26 22 17 18 14 30 29 Loss Time Accident (>3 days) 105 76 64 116 74 80 68 Restricted Work/Job Transfer (1-3 26 27 29 15 16 17 18 days) Restricted Work/Job Transfer (>3 94 93 61 53 50 66 59 days) Other (< 1 Day Lost Time / 172 100 114 71 59 60 52 Restricted Work / Job Transfer) INJURY TOTAL FOR THE YEAR 423 318 285 273 213 253 226 8

Loss of Well Control 2007 2008 2009 2010 2011 2012 2013 LOSS OF WELL GOM GOM GOM GOM GOM GOM GOM CONTROL *** Flow 1 1 0 0 0 0 1 Underground Flow Surface 3 3 2 1 2 4 4 Diverter Flow 0 1 0 0 0 0 3 Surface Equipment 3 3 4 3 1 0 1 Failure LOSS OF WELL 7 8 6 4 3 4 9 CONTROL (TOTALS) COMBINED TOTAL FOR 7 8 6 4 3 4 9 THE YEAR 9

Fires/Explosions Year 2007 2008 2009 2010 2011 2012 2013 Totals 110 139 133 126 103 134 97 Catastrophic 0 0 0 1 0 0 0 Major 0 0 0 1 1 2 0 Minor 6 9 3 5 4 4 3 Incidental 104 130 130 119 98 128 94 Catastrophic – destruction of a facility worth greater than $10 million Major – property damage greater than $1 million Minor – property damage greater than $25,000 but less than or equal $1 million Incidental – property damage equal to or less than $25,000 10

Spills > 50 *Barrels Year 2007 2008 2009 2010 2011 2012 Crude & NGC 1 19 4 2 1 1 *Refined 5 0 0 0 0 0 Petroleum * *Synthetic- 2 2 4 2 2 3 Based Fluids Chemicals 1 12 3 1 0 4 Totals 9 33 11 5 3 8 * In the case of drilling muds, only the base fluids (e.g. diesel, mineral oil, synthetic fluid, etc.) are counted as pollution. A spill of 100 bbl of 65% diesel-based mud is counted as a 65 barrel diesel spill. A 100 bbl spill of 55% synthetic-based mud is counted as a 55 barrel synthetic-based fluid spill. * * In deepwater drilling, synthetic-based muds (SBM's) are preferred over petroleum oil-based muds (OBM's) due to the SBM's superior performance properties. The synthetic base fluid used in SBM's are less toxic to the marine environment and have the potential to biodegrade. Only the synthetic base fluids are counted as pollution. SBM's were first introduced in the Gulf of Mexico around 1999. Petroleum oil-based muds (OBM's) were the predominant muds prior to this time (generally with diesel or mineral oil as the base), and are still used outside of deepwater . 11

GOM Region Production INCs 2007 2008 2009 2010 2011 2012 2013 Warning 1149 776 984 1333 1006 960 1129 INCs Component 1040 736 1039 1381 1965 971 1055 SI INCs Facility SI 91 79 98 105 80 92 94 INCs Total INCs 2280 1591 2121 2819 2151 2023 2278 Components 46323 51014 55016 60449 50993 46269 56,930 Inspected INC-to- Component 0.05 0.03 0.04 0.04 0.04 0.04 0.04 Ratio 12

Total Production Process Inspection INCs issued vs. Inspections – Production Facilities 4500 Total INCs Inspections 4000 3500 3000 INCs issued in GOMR 2500 2000 1500 1000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 13

Total Production Process Equipment INCs issued vs. Components Inspected - Production Facilities Total INCs PRD_CMPNTS 4500 60000 4000 50000 3500 3000 40000 PRD Components Inspected INCs issued in GOMR 2500 30000 2000 1500 20000 1000 10000 500 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 14

Production Facility INCs by Enforcement Type C S W 2500 2000 INCs issued in GOMR 1500 1000 500 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 15

GOM Region Drilling INCs 2007 2008 2009 2010 2011 2012 2013 Warning 94 48 59 68 146 135 179 INCS Component SI 31 16 34 25 65 106 69 INCS Facility SI 30 7 20 19 51 38 49 INCS Total INCS 155 71 113 112 262 279 297 Inspections 999 870 771 724 869 1257 1188 INC-to- 0.16 0.10 0.15 0.15 0.30 0.22 0.25 Inspection Ratio 16

Total INCs & Inspections - Rig Facilities Total INCs Inspections 400 2500 350 2000 300 Rig Inspections in GOMR 250 INCs issued in GOMR 1500 200 1000 150 100 500 50 0 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 17

Rig Facility INCs by Enforcement Type C S W 250 200 INCs issued in GOMR 150 100 50 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 18

Top 10 Production INCs 2007 2008 2009 2010 2011 2012 2013 G111 G111 G111 G111 G111 G111 G111 G112 G110 G110 G110 G110 G110 G110 G110 G112 G112 G112 G112 G112 G112 F108 G115 G115 G115 G115 P412 M200 G115 P412 P412 P412 P412 M200 P412 E100 F108 P241 P406 E100 G115 E100 P412 E100 P470 E108 L141 P240 P280 P280 P240 F108 E100 P422 E100 G115 P470 P406 E100 P470 F108 P404 P470 Z100 L141 P422 E120 M200 P280 P121 19