Furie Operating Alaska LLC, Jones Act Violation, Alaska 2011

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Alaska Oil Co. Bites the Bullet: $10M Penalty for Jones Act Violation

Anchorage, Alaska – Furie Operating Alaska LLC, a company with a focus on exploration and production of natural gas and oil in Cook Inlet, has agreed to pay a hefty price for its actions in 2011. According to Acting U.S. Attorney Bryan Schroder, Furie transported the Spartan 151 jack-up drill rig from the Gulf of Mexico to Alaska using a foreign flagged vessel without acquiring a waiver of the Jones Act from the Secretary of Homeland Security. This intentional move resulted in a $10 million civil penalty.

The Jones Act, passed in 1920, is a law that prohibits a foreign vessel from transporting merchandise between points in the United States. A violation of the Jones Act can lead to a civil penalty equal to the value of the merchandise. Furie’s actions, however, were not without consequence. The company was penalized for its reckless disregard of the law and its impact on the nation’s economic security.

The settlement in this case marks the largest Jones Act penalty in history, demonstrating the government’s commitment to enforcing this vital piece of legislation. Acting U.S. Attorney Schroder commends U.S. Customs and Border Protection, Office of General Counsel, for their active support and assistance leading to the settlement.

Furie’s decision to settle the case and pay the $10 million penalty brings an end to a long and contentious battle. The company had initially filed a lawsuit challenging the assessment of the civil penalty in 2012.

The resolution of this case sends a clear message: the Jones Act will be actively enforced, and intentional violations will not be rewarded. The government is committed to protecting the nation’s economic security and upholding the law.

The settlement also provides closure to Furie and is designed not to undermine its ability to bring natural gas to market in Southcentral Alaska. As the company moves forward, it is essential to remember that the law is in place to protect the nation’s interests and ensure that economic activities are conducted in a lawful and responsible manner.