TRACEN Yorktown/Sector New Orleans

Who remembers the DM 932 ?

Objectives Discuss Tips from the field. Discuss Cedyco Case Study Identify Issues and Concerns that arise

during these Federal Projects.

Quick Tips From The Field Know who your NPFC project case officer is Be familiar with BOA contracts and the project Contracting

Officer Be familiar with your local OSRO. Save these web sites to your favorites. http://webapps.mlca.uscg.mil/fdiv/BOAs/BOAs.html http://chemresponsetool.noaa.gov/ http://www.responsegroupinc.com/tools.html http://www.epa.gov/epawaste/index.htm http://www.glo.state.tx.us/oilspill/ www.npfc.gov

Cedyco Case Preamble Once upon a Time: Two years after Hurricane Katrina, three Cedyco facilities

have yet to come back up on line due to being damaged after the storm.

After almost three years after the storms Sector New Orleans ordered the owner/operator to put the facilities into caretaker status or get the facilities into compliance

Sector New Orleans Prevention Department planed a facility inspection. Cedyco refused to provide transportation to the facility.

A joint inspection with the state and USCG found Cedyco operating with countless pollution prevention regulation violations and oil actively discharging.

Cedyco Case Study

Cedyco Case Study Pollution Prevention Regulation violations?

Cedyco Case Study July 21st 2008, USCG Sector New Orleans

federalized the removal of all bulk oily liquid from the three Cedyco facilities.

Sector New Orleans Opened three federal projects, at the cost of a combined total of $750,000

Bayou DuPont Facility Substandard Platform that

was actively discharging oil from various locations

Storing oil and transferring oil without a FRP or state permit

Zero pollution preventative measures

State royalty meter from oil wells to flow lines were by passed.

Cedyco Bayou DuPont FacilityBefore and After

Cedyco Bayou St. Dennis Facility Substandard concrete

barge facility No FPR or state permit No pollution prevention

measures Storing oil in barge’s

ballast tanks Active discharge of oil

from several locations throughout the facility.

Cedyco Bayou St. DennisBefore & After

Cedyco Mud Lake Facility Substandard permanently

moored barge facility No pollution prevention

regulations No FRP No state permit Suspected storage location of

“royalty meter bypass” oil.

Mud Lake Before and After

Issues and Concerns Safety Concerns Logistics Legal issues with RP Political Issues

Safety ConcernsSite Safety Plan: 29CFR1910.120

Remote location: if somebody was injured it is a long ride to the hospital

Paramedic on scene and medivac contingency plan Confined space entry: Air monitoring, confined space entry plan and safety

officer on scene The benzene levels in Bayou St. Dennis’s tanks were

236 ppm

Cedyco Legal Issues Cedyco Owner, all of a sudden, wanted to play nice with the Coast

Guard when he realized that we were taking all the oil. OPA 90 is quite clear on allowing the O/O to actively participate in

the removal action if willing to comply. Case Manager reports that ES&H has submitted a claim, because

they have not been paid from Cedyco. Recordkeeping of all ISC 214 and all correspondence. Such as

Emails, letters, COPT/OSC Orders and phone call logs.

Political Issues Louisiana DNR was currently in litigation with Cedyco during the

time of our investigation/ projects. LA DNR refused to offer assistance during the legal proceedings.

The combination of the three projects, approximately 4000 barrels of oily liquids were recovered from the facilities.

2/3 of the oily liquids were Louisiana sweet crude and recyclable product. Valued at over $150,000.00

And guess who came over holding their hand out.

Political Issues The Great State of Louisiana requested to take

possession of the recovered oil from the facilities to off set royalties.

BOA Contract saves the day

Section I of the BOA contract :The Contractor shall give credit to the Government for cash and trade discounts, rebates, allowances, credits, salvage, the value of any appreciable scrap, commissions, and other amounts that have accrued to the benefit of the Contractor.

USCG CEDYCO Captain of the Port Orders

suspending all operations Issued Administrative

Orders directing Cedyco to remove all bunk oil from the facilities with USCG and OSRO on scene

Sector New Orleans assumed responsibility of removing the bulk oil from the facilities

Sector New Orleans confiscated Cedyco’s oil

Did not comply with COTP orders

Did not comply with Administrative Orders

Cedyco attempted to appeal the federalization process

Cedyco was very upset

Pending Charges • Environmental Crimes, • Gross Negligence, • Fraud/State Royalty Tax,• Failure to Notify, • False Statements to Law Enforcement Officials

Hot off the Press! The Judge ruled in

favor for LA DNR. All of Cedyco state

leases were revoked Cedyco is know longer

in the Oil Business.

What happens to the oil leases

Questions ???