Energy Resources Technology GOM LLC, Environmental Violations, Louisiana 2016

New Orleans, LA – Energy Resources Technology GOM, LLC (ERT) has been sentenced to three years of probation and a hefty $4.2 million in penalties following a guilty plea to multiple felony charges related to violations of safety and environmental regulations on its offshore oil production platforms in the Gulf of Mexico. The sentencing, handed down by U.S. District Judge Ivan L.R. Lemelle on April 6, 2016, marks a significant enforcement action by federal authorities targeting negligence within the offshore energy sector.

The investigation, a collaborative effort between the Department of Interior’s Office of Inspector General, the Bureau of Safety and Environmental Enforcement (BSEE), and the Environmental Protection Agency’s Criminal Investigation Division, revealed a pattern of deliberate disregard for safety protocols and environmental protections. Court documents detail two primary areas of concern: failures related to “hot work” procedures and falsification of critical blowout preventer testing records. These failures took place aboard the Ship Shoal 225 platform in late 2012.

Specifically, ERT was found to have knowingly failed to adhere to regulations requiring a 10-foot safety buffer during welding and other hot work near well bays. This violation, stemming from regulations outlined in Title 30 of the Code of Federal Regulations, Section 250.113(c)(4), could have created a catastrophic fire or explosion hazard. Simultaneously, the company falsified records related to blowout preventer (BOP) testing – a vital safety system designed to prevent uncontrolled releases of oil and gas. Investigators discovered that only six of seven required components were tested, and that the incomplete test results were not accurately recorded or approved by onsite representatives, leaving the platform vulnerable to a potential well control event.

Beyond the immediate safety concerns, the investigation uncovered a deliberate scheme to manipulate water sample testing. In 2014, ERT employees suspected contract operators were filtering produced water samples to avoid exceeding permitted levels of oil and grease discharge. Internal investigations confirmed these suspicions, revealing that multiple platforms were consistently violating Clean Water Act discharge limits. This tampering continued until June 2015, with a particularly egregious incident aboard platform Vermilion 195A where operators intentionally discharged pollutants directly into the Gulf of Mexico, bypassing established environmental controls.

The company pleaded guilty to two felony counts of violating the Outer Continental Shelf Lands Act (43 U.S.C. 1350(c)(1)) and two felony counts of violating the Clean Water Act. In addition to the $4 million fine and three years of probation, ERT was ordered to pay $200,000 in community service. As part of the probation terms, ERT, its subsidiaries, and affiliated entities, including Talos Energy Offshore, LLC, must implement and adhere to a comprehensive Safety and Environmental Compliance Plan. Federal officials emphasized the importance of holding energy companies accountable for maintaining both worker safety and environmental integrity.

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Key Facts

Defendant: Energy Resources Technology GOM, LLC (ERT)
Location: Offshore oil platforms in the Gulf of Mexico
Violations: Violations of the Outer Continental Shelf Lands Act and the Clean Water Act
Penalties: 3 years probation, $4 million fine, $200,000 community service
Specific Laws Violated: 43 U.S.C. 1350(c)(1), Title 30 CFR 250.113(c)(4), Title 30 CFR 250.617
Investigation: Joint effort by DOI-OIG, BSEE, and EPA-CID

“It’s imperative that energy extraction be done responsibly and in ways that doesn’t put human health and the environment at risk,” stated Ted Stanich, Acting Director of EPA’s criminal enforcement program. “When oil and gas operators cut corners and break the law, EPA will work with its law enforcement partners to hold them accountable in order to protect human health and the Gulf Coast ecosystem from harm.” The case underscores the ongoing scrutiny of the offshore oil and gas industry and the commitment of federal agencies to enforce environmental regulations and ensure the safety of both workers and the fragile Gulf Coast ecosystem.

Source: EPA ECHO Enforcement Case Database

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