DOJ: Noble pays $12.2 million for Alaska drilling violations
December 9, 2014
Noble Energy agreed Monday to pay $12.2 million to settle
felony charges brought by the U.S. Department of Justice tied to the company’s
drilling operations in offshore Alaska.
The DOJ alleged Noble violated safety, environmental and
record keeping laws for ships deployed in U.S Arctic waters.
In 2012, the Noble Discoverer drillship suffered numerous
problems with its main propulsion system and main engine, causing equipment
failures, engine shutdowns and creating unsafe conditions, the DOJ said.
At the time, the ship was under contract with Royal Dutch
Shell for work at Shell’s Chukchi Sea licenses.
UK-based Noble acknowledged it failed to report the
hazardous conditions to the U.S. Coast Guard.
The company was also charged with failing to keep proper
records for its operation of the Shell owned Kulluk drilling ship that ran
aground in December 2012 following work in the Beaufort Sea.
Under the settlement, Noble pleaded guilty to eight felony
charges and paid $8.2 million in fines and $4 million in community service
payments.
The company will be on probation for four years and must
also carry out a comprehensive compliance plan.
Noble said it has made “significant improvements” to the
Discoverer since 2013, Reuters said.