Texas firm hit with a record $9.6 million fine after a Gulf of Mexico oil spill

Pipeline safety regulators have issued their largest fine ever, $9.6 million, to Third Coast for a 2023 oil leak in the Gulf of Mexico. The leak released 1.1 million gallons of oil off the coast of Louisiana. Despite the record fine, it may not significantly impact Third Coast financially, given their extensive pipeline network and recent substantial loan. Watchdog groups argue that such fines need to be higher to truly deter non-compliance. Regulators cited Third Coast's failure to establish proper emergency procedures as a key issue. The company also neglected to adequately assess risks and maintain the affected pipeline. The National Transportation Safety Board previously stated Third Coast missed opportunities to evaluate geohazards threatening the pipeline. Underwater landslides, exacerbated by hurricane activity, were identified as the cause of the leak. Experts noted that the company was aware of these industry-wide threats but failed to act. Third Coast expressed surprise at the fine's size and some of the allegations made by regulators. They plan to address these concerns with the agency. The NTSB indicated that faster action from the control room could have lessened the spill's impact.