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Record $9.6 Million Fine for Third Coast After Substantial Oil Spill in the Gulf of Mexico

The Pipeline and Hazardous Materials Safety Administration cited systemic safety failures and a 13-hour delay in response in the 1.1 million gallon Gulf spill, proposing a $9.6 million fine.

  • On Monday, the Pipeline and Hazardous Materials Safety Administration proposed a record $9,622,054 civil penalty tied to the Main Pass Oil Gathering failure that released about 1.1 million gallons into the Gulf off the coast of Louisiana.
  • The National Transportation Safety Board found underwater landslides and hurricane-driven seabed movement contributed to the failure and PHMSA said Third Coast Midstream failed to perform new integrity analyses.
  • Nearly 13 hours elapsed before workers in the Third Coast control room shut the 18-inch pipeline after oil was first spotted roughly 19 miles off the Mississippi River Delta on the 67-mile Main Pass Oil Gathering system.
  • PHMSA proposed a compliance order requiring Panther Operating Company to overhaul geological risk evaluations and plan seabed protections, with safety advocates describing the spill as a systemic failure.
  • Given Third Coast's scale and recent nearly $1 billion loan, critics question whether the fine deters noncompliance, as the proposed penalty is less than 3% of estimated annual earnings.
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Record $9.6 million fine for Third Coast after substantial oil spill in the Gulf of Mexico

Pipeline safety regulators have imposed their largest fine ever on the company responsible for leaking 1.1 million gallons of oil into the Gulf of Mexico off the Louisiana coast in 2023.

·United States
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Gulf Pipeline Leak Fine

·San Antonio, United States
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The Washington Post broke the news in on Monday, January 5, 2026.
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