PHMSA Proposes Record $9.6 Million Fine Against Panther Operating Company

PHMSA Press Releases

Filed January 5th, 2026

Detected March 17th, 2026

Summary

PHMSA has proposed a record $9.6 million civil penalty against Panther Operating Company, LLC, for alleged pipeline safety violations following a major crude oil spill in November 2023. The enforcement action includes a proposed compliance order to address future risks.

View original document View source feed page

What changed

The U.S. Department of Transportation, through PHMSA, has announced a record proposed civil penalty of $9,622,054 against Panther Operating Company, LLC. This action stems from alleged violations of hazardous liquid pipeline safety regulations related to integrity management and operations and maintenance, specifically concerning leak detection, emergency response, and protection of high-consequence areas. These violations are linked to a November 2023 incident where the Main Pass Oil Gathering (MPOG) pipeline system failed, releasing 1.1 million gallons of crude oil into the Gulf of America.

Panther Operating Company has 30 days to respond to the Notice of Probable Violation and Proposed Compliance Order. The proposed order requires the company to evaluate and develop a plan to protect the MPOG pipeline system from future geotechnical and geological hazards. Failure to comply with the final order could result in further penalties and legal action, underscoring the critical need for robust pipeline safety management and adherence to federal regulations.

What to do next

Review the Notice of Probable Violation and Proposed Compliance Order issued to Panther Operating Company, LLC.
Assess current pipeline integrity management and operations and maintenance procedures against PHMSA's hazardous liquid pipeline safety regulations.
Prepare a response to PHMSA within 30 days if operating under similar regulatory scrutiny or if affected by related industry standards.

Penalties

$9,622,054 proposed civil penalty

Source document (simplified)

In This Section

Contact Us

Office of Governmental, International, and Public Affairs U.S. Department of Transportation, Pipeline and Hazardous Materials Safety Administration
1200 New Jersey Avenue, SE
Washington, DC 20590
United States

Email:
phmsa.publicaffairs@dot.gov
Phone: 202-366-4831
Fax: 202-366-7431

If you are deaf, hard of hearing, or have a speech disability, please dial 7-1-1 to access telecommunications relay services.

Trump’s Transportation Secretary Sean P. Duffy Announces Record Fine Against Pipeline Operator for Violating Pipeline Safety Regulations

Monday, January 5, 2026 PHMSA 01-26
Contact: PHMSAPublicAffairs@dot.gov

$9.6 Million Proposed Civil Penalty is the largest ever proposed by PHMSA in a pipeline safety enforcement action

WASHINGTON, D.C. – U.S. Department of Transportation Secretary Sean P. Duffy and Pipeline and Hazardous Materials Safety (PHMSA) Administrator Paul Roberti announced the largest civil penalty ever proposed in a pipeline safety enforcement action. The enforcement action, brought against Panther Operating Company, LLC, includes a $9,622,054 proposed civil penalty for alleged violations that occurred in connection with a November 2023 failure of the Main Pass Oil Gathering (MPOG) pipeline system. The failure released 1.1 million gallons of crude oil into the Gulf of America.

“Safety drives everything we do,” said U.S. Transportation Secretary Sean P. Duffy. “ We are sending a clear signal: when companies fail to abide by the rules, we won’t hesitate to act decisively. We’ll continue to enforce the law to ensure the safety and efficiency of our energy infrastructure.”

PHMSA’s investigation identified multiple probable violations of its hazardous liquid pipeline safety regulations related to integrity management and operations and maintenance requirements, including those specific to leak detection, emergency response, and the protection of high consequence areas. Details of each probable violation can be found in the Notice of Probable Violation PHMSA issued to Panther last week.

“PHMSA’s focus on safety and holding operators accountable when they fail to comply with federal safety regulations will never change,” said PHMSA Administrator Paul Roberti. “It is important for pipeline operators to remain vigilant in their operations to prevent these types of failures or there will be serious consequences.”

The enforcement action also includes a proposed compliance order that would require the company to take certain actions to ensure compliance with federal pipeline safety regulations. As part of the order, Panther will be required to evaluate and develop a plan that works to protect the MPOG pipeline system against future unanticipated external loads caused by geotechnical and geological hazards.

Panther has 30 days to respond to PHMSA.

The Pipeline and Hazardous Materials Safety Administration develops and enforces regulations for the safe, reliable, and environmentally sound operation of the nation's 3.3-million-mile pipeline transportation system and the nearly 1.2 million daily shipments of hazardous materials by land, sea, and air. Please visit https://www.phmsa.dot.gov for more information.