Pipeline Regulator Proposes $9.6 Million Fine for Gulf Oil Spill

Jan. 5, 2026, 8:03 PM UTC

The Transportation Department announced a record $9.6 million penalty Monday against a company in a pipeline safety action stemming from a massive Gulf of Mexico oil spill in 2023.

The proposed penalty would be against Panther Operating Co. for a failure in the Main Pass Oil Gathering pipeline system that caused about 1.1 million gallons of crude oil to spill into the Gulf.

“We are sending a clear signal: when companies fail to abide by the rules, we won’t hesitate to act decisively,” said US Transportation Secretary Sean Duffy in a statement. “We’ll continue to enforce the ...

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