The U.S. Department of Transportation has come down hard on Panther Operating Company, LLC, proposing a record-breaking fine for its alleged failure to adhere to pipeline safety regulations. Transport Secretary Sean P. Duffy, alongside Pipeline and Hazardous Materials Safety Administration (PHMSA) Administrator Paul Roberti, declared an unprecedented $9.6 million civil penalty in response to the November 2023 disaster where over a million gallons of crude oil spilled into the Gulf of America due to a breach in the Main Pass Oil Gathering pipeline.
According to a statement from the Department of Transportation, "Safety drives everything we do," Duffy stated. "We are sending a clear signal: when companies fails to abide by the rules, we won't hesitate to act decisively." The federal action emphasizes not just the magnitude of the fine, but also the resoluteness of the agency to uphold the law and prioritize infrastructure safety and efficiency.
An intensive PHMSA investigation pinpointed potential violations, including issues regarding integrity management and operations, especially concerning leak detection, emergency reaction measures, and the safeguarding of areas at high risk. Key findings and a comprehensive list of these probable infractions were detailed in the Notice of Probable Violation furnished 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," asserted PHMSA Administrator Paul Roberti. The agency intends for this stiff penalty to act as a deterrent, pressing pipeline operators to be vigilant in their operations to avert similar failures—or face serious consequences. In addition, Panther is expected to produce and implement a plan to fortify the MPOG system against unforeseen external loads, including those caused by geological hazards, as part of the proposed compliance order.
