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actions (warning, component shut‐in, or facility shut‐ in), depending on the
                   severity of the violation.  If the violation was not severe or threatening, a
                   warning INC was issued.  The violation had to be corrected within a reasonable
                   amount of time, which was specified on the warning INC.  The shut‐in INC
                   could be for a single component (a portion of the facility) or the entire facility.
                   The violation had to be corrected before the operator was allowed to continue the
                   activity in question.

                          In addition to the enforcement actions specified above, MMS could assess
                   a civil penalty of up to $35,000 per violation per day if: 1) the operator failed to
                   correct the violation in the reasonable amount of time specified on the INC; or 2)
                   the violation resulted in a serious harm or damage, or a threat of serious harm or
                                                                           405
                   damage to human life, property or the environment.

                          Figure 13 presents an example of PINC guidance about subsea BOP stacks
                   can be found below:























                        Figure 13 – Example of National PINC Guidance for Drilling Inspection

                          The Panel determined that there was no PINC on the inspectors’ checklist
                   for 30 CFR § 250.446(a) at the time of the Macondo blowout.  That provision
                   requires an operator to conduct a major inspection of BOP stack components
                   every three to five years.  Because no PINC existed for this requirement, MMS
                   inspectors did not regularly verify that the major inspection requirements had
                   been met during drilling inspections.



                   405  43 U.S.C. § 1350(b); 30 CFR §§ 250.1403 ‐ .1404.  For violations that occur after July 30, 2011, the
                   maximum civil penalty per day will be $40,000 per day per violation.


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