TRACEN Yorktown/Sector New Orleans

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TRACEN Yorktown/Sector New Orleans
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Who remembers the DM 932 ?
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Objectives

• Discuss Tips from the field.
• Discuss Cedyco Case Study
• Identify Issues and Concerns that arise during
  these Federal Projects.

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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

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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.

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Cedyco Case Study
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Cedyco Case Study

• Pollution Prevention Regulation violations?

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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

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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.

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Cedyco Bayou DuPont FacilityBefore and After
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Cedyco Bayou St. Dennis Facility

• Substandard concrete barge facility
• No FPR or state permit
• No pollution prevention measures
• Storing oil in barges ballast tanks
• Active discharge of oil from several locations
  throughout the facility.

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Cedyco Bayou St. DennisBefore After
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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.

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Mud Lake Before and After
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Issues and Concerns

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

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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. Denniss tanks
  were 236 ppm

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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 ESH 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.

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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.

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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.

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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 Cedycos oil

• Did not comply with COTP orders
• Did not comply with Administrative Orders
• Cedyco attempted to appeal the federalization
  process
• Cedyco was very upset

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Pending Charges

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

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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.

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What happens to the oil leases

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Questions ???