Anchorage, Alaska – Noble Drilling (U.S.) LLC has been sentenced following a federal investigation into a series of environmental and maritime violations occurring during Arctic drilling operations in 2012. The company, contracted by Shell Offshore, Inc. and Shell Development, Ltd., faced charges stemming from the operation of the drill ship Noble Discoverer and the drilling unit Kulluk. The case, a joint effort by the U.S. Coast Guard Investigative Service and the U.S. Environmental Protection Agency Criminal Investigation Division, highlights the stringent enforcement of environmental regulations in sensitive Arctic ecosystems.
According to court documents, Noble Drilling was convicted on eight felony counts, including five violations of the Act to Prevent Pollution from Ships (APPS), one violation of the Nonindigenous Aquatic Nuisance Prevention and Control Act, and two violations of the Ports and Waterways Safety Act. These convictions relate to illegal discharges and safety lapses aboard both the Noble Discoverer and the Kulluk during voyages to and from drilling sites in the Chukchi Sea. The Kulluk notably ran aground near Unalaska Island after breaking free from its tow during a severe storm, while the Noble Discoverer experienced critical equipment failures requiring a dead-ship tow to Seward.
The sentencing, handed down by Chief Judge Ralph R. Beistline, includes a hefty $12.2 million in fines and community service payments. $4 million will be distributed to Arctic research institutions – $2.5 million to the International Arctic Research Center at the University of Alaska Fairbanks, $1 million to the National Fish and Wildlife Foundation’s Alaskan Arctic Fund, and $500,000 to the Arctic Research Consortium of the United States. These funds are earmarked for research and projects focused on the Alaskan Arctic and its natural resources. Additionally, $512,500 of the fine will be awarded to an individual who provided crucial information leading to Noble’s conviction under the APPS whistleblower provision.
Prosecutors emphasized the importance of the APPS reward system, explaining that it incentivizes crew members to report illegal discharges, which often occur in remote ocean locations and are difficult to detect without inside information. The government argued that this system is critical for enforcing maritime environmental laws, given the potential risks faced by crew members who come forward. Beyond the financial penalties, Noble Drilling will be subject to a four-year probation period, during which it must implement a comprehensive Environmental Compliance Plan, subject to independent auditing.
The parent company of Noble Drilling (U.S.) LLC, Noble Corporation plc, headquartered in London, England, has also agreed to implement an Environmental Management System across all its Mobile Offshore Drilling Units (MODUs) worldwide. This broader commitment aims to prevent similar violations from occurring in future operations. The case underscores the growing scrutiny of oil and gas companies operating in environmentally fragile regions, and the increasing pressure to adhere to stringent safety and environmental standards.
Key Facts
- Defendant: Noble Drilling (U.S.) LLC
- State: Alaska
- Year: 2015 (conviction occurred in December 2014)
- Statutes Violated: 33 U.S.C. 1908(a) (Act to Prevent Pollution from Ships), 33 U.S.C. 1232(b)(1) (Nonindigenous Aquatic Nuisance Prevention and Control Act), 16 U.S.C. 4711(g)(2) (Ports and Waterways Safety Act)
- Penalties: $12.2 million in fines and community service payments; 4-year probation with Environmental Compliance Plan; implementation of Environmental Management System by parent company.
- Vessels Involved: Noble Discoverer and Kulluk
- Whistleblower Reward: $512,500 awarded to individual providing information leading to conviction.
U.S. Attorney Karen L. Loeffler commended the investigative agencies involved, stating that the outcome reflects a commitment to protecting Alaska’s unique environment. The case serves as a warning to other companies operating in challenging environments that environmental crimes will be vigorously prosecuted.
Source: EPA ECHO Enforcement Case Database
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