12 January 2026
By Greg LaRose
Contributing Writer
(lailluminator.com) — The Trump administration has assessed what it’s calling the largest civil fine ever for an offshore oil spill in 2023 off the Louisiana coast.
The Pipeline and Hazardous Materials Safety Administration sent notice Dec. 31 to Panther Operating Co. of Houston that it has proposed a $9.62 million fine for the failure of its Main Pass Oil Gathering pipeline system. An estimated 1.1 million gallons of crude oil leaked into the Gulf of Mexico when a connector on the pipeline malfunctioned, allowing oil to flow for more than nine hours, according to the agency. The leak was visible nearly 20 miles off the Mississippi River Delta.
Panther Operating Co., a subsidiary of Third Coast infrastructure, has 30 days to respond to the notice to explain how it will address the leak, contest the allegations or request a formal administrative hearing. Company representatives did not respond immediately to a request for comment prior to this paper going to press.
According to the notice, a Panther controller was aware of the leak at 7:30 p.m. Nov. 15 based on pressure gauge observations and noted a zero flow rate for the pipeline five hours later. However, the controller did not order the pipeline shut down before his shift ended the next morning at 6. His replacement called for it to be closed around 6:30 a.m., which was 13 hours after the pressure issues were first noted, the agency said.
No new or continuous oil flow was reported after Nov. 21, 2023.
The U.S. Coast Guard, the federal Bureau of Safety and Environmental Enforcement, the Louisiana Oil Spill Coordinator’s Office and the state Department of Wildlife and Fisheries conducted response and cleanup activities after the spill until April 2024.
The notice from the Pipeline and Hazardous Materials Safety Administration said Panther Operating Co. failed to account for underwater landslides and tropical storm impacts on the Gulf seabed in its maintenance of the pipeline.
“PHMSA’s focus on safety and holding operators accountable when they fail to comply with federal safety regulations will never change,” PHMSA Administrator Paul Roberti said in a news release. “It is important for pipeline operators to remain vigilant in their operations to prevent these types of failures or there will be serious consequences.”
This article originally published in the January 12, 2026 print edition of The Louisiana Weekly newspaper.