Taylor Energy U.S. Coast Guard Fact Sheet
13 May 2015
U. S. Coast Guard Fact Sheet
Taylor Energy Oil Discharge at MC-20AWell Site and Ongoing Response Efforts
The U.S. Coast Guard, as the Federal On Scene Coordinator (FOSC)
under a Unified Command (UC) which includes the Bureau of Safety and
Environmental Enforcement (BSEE), the Bureau of Ocean Energy Management
(BOEM), and the Responsible Party, Taylor Energy, has monitored and
responded to discharges from Taylor Energy’s Mississippi Canyon 20A
(MC-20A) well site resulting from damage to the oil production platform
and 25 connected wells during Hurricane Ivan in 2004. The multi-agency
effort has worked continuously to prevent and control the discharge,
improve the effectiveness of containment around the leaking oil, and
mitigate environmental impacts.Taylor Energy is the Responsible Party required to pay for oil spill recovery and response costs under the Oil Pollution Act of 1990 (OPA). As the Responsible Party, Taylor Energy has a continuing legal obligation to respond to the ongoing oil discharge from the MC-20A well site and must comply with the Coast Guard’s Administrative Orders.
The FOSC is responsible for directing and overseeing all response operations associated with the discharge of oil into the Gulf of Mexico from the Taylor Energy MC-20A well site. The Coast Guard, as the FOSC, facilitates UC meetings with Taylor Energy and federal inter-agency representatives, including BSEE and BOEM, to ensure an effective response posture is being maintained at the field level. The UC’s collaborative efforts have resulted in the removal of the platform deck, removal of subsea debris, decommissioning of the oil pipeline, and intervention of nine of the 25 impacted wells.
Unified Command Activities and Key Milestones
- Oil that is discharging into the Gulf of Mexico from the well site is rising to the ocean surface and causing a visible oil sheen. From 2004-2008, the Coast Guard’s involvement in Taylor Energy was minimal due to no observed sheen in the vicinity of the MC-20A well site. However, in 2008, after the MC-20A site was identified as the source of daily sheen reports, a UC was established with Taylor Energy, USCG, BSEE, & BOEM to direct response efforts for the on-going releases from the Taylor Energy MC-20A well site.
- In 2008, the Coast Guard issued Taylor Energy an Administrative Order that required Taylor Energy to, among other things, conduct daily overflights of the MC-20A well site to visually monitor the oil discharges. Taylor contracts daily overflights of the area, with support from Coast Guard pollution responders and BSEE personnel, to monitor the discharge and report findings regarding the presence and estimated volume of oil on the ocean surface to the National Response Center (NRC). In the even
- In 2009, a subsea containment system (domes placed over projected leaking well sites) was installed on the seafloor at the MC-20A site.
- By 2011, efforts had been taken to plug nine of the wells, with 16 wells remaining to be addressed. In addition, subsea debris, including the platform deck, was removed and the oil pipeline was decommissioned.
- In March 2012, an incident action plan (IAP) was approved by the UC that established standard procedures for monitoring the site and responding to discharges.
- In 2012, due to problems with the original containment system, the FOSC issued an Administrative Order requiring the design, construction, and installation of a new containment dome that will more effectively capture the on-going discharge from the site. Along with the design specs, the AO directs Taylor Energy to submit a written plan including a projected timeline for fabrication and installation. As of May 1, 2015, the final engineering design of the new dome is not complete, and the dome has not been installed.
- In 2013, the last remaining operational containment dome was decommissioned due to damaged components and lack of efficiency/recovery of oil.
- In August 2014, the UC led a joint aerial observation workshop that included the Coast Guard, BSEE, NOAA, and Taylor Energy’s representatives and contractors. At that workshop, the aerial observation methodology used to estimate quantity and rate of discharge was reviewed and revised. The Coast Guard and NOAA have placed observers on the Taylor Energy-contracted flights to verify the new approach is being adhered to. The Coast Guard believes that the consistency of sheen size and rate of discharge estimates from reporting parties has improved since this workshop.
- In addition to Taylor Energy’s flights, the Coast Guard and NOAA periodically conduct their own overflights to validate sheen reporting methodology and retain independent oversight.
- The reported extent (size, dimensions, character) of the observed oil is a result of very dynamic and highly variable environmental conditions such as sea state, wind speed, and water currents. Calculations of daily oil volume are estimates based on observations of percent cover, sheen color, and dimensions. As such, there is some natural variability in reports.
- Based on data collected from nearly daily overflights since September 2014, oil sheens have been observed and reported by Taylor Energy to be as large as 1.5 miles wide and 14 miles long, with an average of 1 mile wide and 5.5 miles long, covering an average area of 8 square miles. Over this period, the daily volume of oil discharging from the MC-20 well site has fluctuated between a low of less than one barrel (1 barrel = 42 gallons) to a high of 55 barrels of oil (2,329 gallons). The average reported daily oil volume on the sea surface over the past seven months has been in the range of over 2 barrels (84 gallons); the volume on over 75 days was greater than 1 barrel, including 23 days of volume greater than 3.8 barrels (160 gallons) and 4 days greater than 35 barrels (1,470 gallons). These spill size and volume estimates are based on reports submitted by Taylor Energy’s contractors to the NRC. All NRC reports can be viewed at www.nrc.uscg.mil.
- The Coast Guard, working with the UC members, is committed to
exploring all options to control and contain the oil that is discharging
from the well site and to ensure Taylor Energy will work to permanently
stop the ongoing oil spill. The Coast Guard remains committed to
Responsible Party oversight and coordination to:
- Contain and recover as much discharge product as possible;
- Mitigate environmental impacts; and
- Pursue all available response options.
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Taylor Energy Oil Discharge at MC-20 Site and Ongoing Response Efforts
The Department of the Interior’s Bureau of Safety and Environmental Enforcement (BSEE) and the Bureau of Ocean Energy Management (BOEM) have worked with the U.S. Coast Guard under a Unified Command to monitor and respond to discharges from Taylor Energy’s Mississippi Canyon 20 (MC-20) site since the oil production platform and 25 of 28 connected wells were impacted and damaged during Hurricane Ivan in 2004. The multi-agency effort has worked continuously to prevent and control the oil discharge, improve the effectiveness of containment around the source of the oil discharge, and mitigate environmental impacts.
BSEE and the Coast Guard have also worked closely with representatives of Taylor Energy to mitigate the impacts of the discharge associated with the felled platform. Collaborative efforts have resulted in removal of the platform deck, removal of subsea debris, decommissioning of the oil pipeline, and efforts to plug nine of the 25 impacted wells. Despite these efforts, there is an ongoing oil discharge from Taylor Energy’s MC-20 site.
Based on data collected from nearly daily overflights since September 2014, oil sheens have been observed and reported by Taylor Energy to be as large as 1.5 miles wide and 14 miles long, with an average of 1 mile wide and 5.5 miles long, covering an average area of 8 square miles.
Over this period, the daily volume of oil discharging from the MC-20 site has fluctuated between a low of less than one barrel of oil (1 barrel = 42 gallons) to a high of 55 barrels (2,329 gallons). The average reported daily oil volume on the sea surface over the past seven months has been over 2 barrels (84 gallons); the volume on over 75 days was greater than 1 barrel, including 23 days of volume greater than 3.8 barrels (160 gallons) and 4 days greater than 35 barrels (1,470 gallons). These spill size and volume estimates are based on reports submitted by Taylor Energy’s contractors to the National Response Center (NRC). All NRC reports can be viewed at www.nrc.uscg.mil.
BSEE’s current estimate is that the oil discharge from the site, if left unchecked, could continue for 100 years or more.
The specific source(s) of discharge at the MC-20 site are not fully known. However, because the discharge volume is greater than can reasonably be accounted for by oil released from sediment only, oil is most likely emanating from one or more of the 25 wells.
Taylor had originally been ordered by the Minerals Management Service (MMS) in October 2007 to permanently plug and abandon all the wells by June 2008. In November 2007, MMS issued Taylor an order to provide supplemental bonding to guarantee performance of Taylor’s decommissioning obligations at the site. In December 2007, MMS ordered Taylor to prevent any 2 further hydrocarbon seepage from the MC-20 site. In February 2008, MMS sent Taylor a Notice of Incident of Noncompliance for failure to provide the required supplemental bonding.
The Department of the Interior and Taylor Energy entered into a Trust Agreement in 2008 wherein Taylor Energy committed funds to fulfill obligations under the Outer Continental Shelf Lands Act (OCSLA) regarding the MC-20 site. By entering into the Agreement, Taylor Energy fulfilled its supplemental bonding obligations and resolved the pending administrative citation with respect to those obligations. Decommissioning of the wells at the site, required under the regulations and the 2008 Trust Agreement, has not yet been completed. For example, not all of the wells have been permanently plugged and abandoned. Future work to be performed under the Trust Agreement will be determined based on site conditions and the availability of applicable technology.
In addition to its obligations under OCSLA, pursuant to the Oil Pollution Act (OPA) and BOEM regulations, Taylor Energy is required to provide evidence of financial responsibility (e.g., bond, insurance) demonstrating that it can fulfill its OPA obligations (e.g. removal, compensation for damages) for oil spills from the MC-20 site.
Significant uncertainty exists about future events, including discharge sources, cross-flows, pressure recharge in the oil reservoirs, evolving technology, and suitable remedial measures.
There is still more that can be done by Taylor to control and contain the oil that is discharging from the MC-20 site. BSEE and BOEM are committed to working with the Unified Command to contain and stop the ongoing oil spill.