Inspections and Enforcement

    Inspecting Offshore Facilities and Enforcing Federal Regulations 

    The OCS Lands Act authorizes and requires the Bureau to provide for both an annual scheduled inspection and a periodic unscheduled (unannounced) inspection of all oil and gas operations on the outer continental shelf. The annual inspection examines all safety equipment designed to prevent blowouts, fires, spills, or other major accidents. 

    The Bureau inspectors perform these inspections using a national checklist called the Potential Incident of Noncompliance (PINC) list. This list is a compilation of yes/no questions derived from all regulated safety and environmental requirements. 

    Potential Incident of Noncompliance (PINC) Guidelines  

    Certain sections of the PINC Guidelines may be periodically updated to reflect changes in the Code of Federal Regulations. When these changes are necessary, the most recent update will be posted under the heading or subheading of the opened file. 

    Field PINC List:  

    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. 

    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 $40,000 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.