United States v. Transocean Deepwater Drilling, Inc.United States v. Transocean Deepwater Drilling, Inc.
Lead Opinion
Transocean Deepwater Drilling, Inc. appeals from the district court’s order enforcing administrative subpoenas issued by the Chemical Safety and Hazard Investigation Board in connection with an investigation following the disaster on the Deep-water Horizon drilling unit in the Gulf of Mexico. Transocean contends that the subpoenas should have been quashed because the Board lacks authority to investigate the incident. We AFFIRM the district court’s judgment.
On April 20, 2010, a blowout, explosion, and fire occurred during drilling operations at the Macondo lease site in the Gulf of Mexico. The Macondo well was being drilled by the Deepwater Horizon, a mobile offshore drilling unit (“MODU”) tasked to the job by Transocean. As a result of the incident, eleven people were tragically killed, a large volume of flammable gas, oil, and other hazardous substances were released into the water and ambient air, and substantial property damage occurred.
Numerous governmental agencies responded to the disaster, including the Chemical Safety and Hazard Investigation Board (“CSB” or “the Board”). Established by the Clean Air Act Amendments of 1990 and modeled after the National Transportation Safety Board (“NTSB”), the CSB serves a public safety mission by investigating accidental releases of hazardous substances into the ambient air and by reporting to the public its findings and recommendations for preventing and minimizing the risk of industrial chemical accidents.
As part of its investigation into the incident at the Macondo well, the CSB issued five administrative subpoenas to Trans-ocean. The subpoenas sought answers to interrogatories and the production of relevant records, including documents generated by Transocean’s own internal investigation. Transocean took the position that the CSB lacked authority to investigate the incident, and it therefore failed to comply fully with the CSB’s subpoenas.
The United States filed a petition on behalf of the CSB to enforce the administrative subpoenas, while Transocean moved to quash them and to dismiss the petition. Transocean argued that the CSB was not authorized to conduct an investigation because, inter alia, the incident was a marine oil spill over which the CSB lacks jurisdiction, and the incident did not occur on a stationary source.
The district court denied Transocean’s motion and ordered enforcement of the subpoenas. The district court held that the CSB was investigating only the release of airborne gases from the blowout and explosion and was not investigating the subsequent oil spill from the well. The court further determined that the CSB would lack authority to investigate an incident involving a marine oil spill only if the NTSB was authorized to investigate. The court held that the NTSB was not authorized to investigate this incident, however, because the incident was located fifty miles off the coast of the United States on the Outer Continental Shelf and did not involve a “vessel of the United States,” and because the incident was not transportation related. The court also concluded that the Deepwater Horizon and its subsea riser comprised a drilling installation that satisfied the statutory requirement of a “stationary source” from which the accidental release of gases the CSB was authorized to investigate. The district court therefore held that the CSB had authority to investigate the incident and to issue the administrative subpoenas. Transocean now appeals.
II.
Administrative subpoenas issued in aid of an investigation will generally be enforced judicially if “(1) the subpoena is within the statutory authority of the agency; (2) the information sought is reasonably relevant to the inquiry; and (3) the demand is not unreasonably broad or burdensome.” See Burlington N. R. Co. v. Office of Inspector Gen., R.R. Ret. Bd.,
In this case, Transocean focuses its arguments on appeal on the authority of the CSB to issue the subpoenas. We review the district court’s factual findings underlying its decision on this issue for clear error and its conclusions of law de novo. Burlington,
III.
Transocean contends that the CSB had no authority to issue the administrative subpoenas because the CSB lacked jurisdiction to investigate the incident at the Macondo well. An administrative agency’s authority is necessarily derived from the statute it administers and may not be exercised in a manner that is inconsistent with the administrative structure that Congress has enacted. See FDA v. Brown & Williamson Tobacco Corp.,
A.
Transocean argues first that the CSB lacked jurisdiction to investigate the incident at the Macondo well because the Deepwater Horizon is not a “stationary source” as that term is contemplated by the statute. Transocean reasons that because the word “stationary” in the term “stationary source” is not defined, the word must be construed as commonly understood, which Transocean contends means a fixed and unchanging object rather than something that is moveable. Transocean argues that the Deepwater Horizon was not only moveable but also was a “vessel in navigation.” It reasons, therefore, that the drilling unit could not be a stationary source. We disagree with Transocean’s reasoning.
Nevertheless, in this case we are not dealing with the application of, or definitions under, the Jones Act and general maritime law. The fact that the Deepwa-ter Horizon may be a vessel for purposes of maritime law does not answer the question whether it meets the specific statutory definition of a “stationary source” under the Clean Air Act.
The phrase “stationary source” is expressly defined by the Clean Air Act. When Congress provides a specific definition of a term, we must accept that meaning and limit our analysis to the prescribed definition. See Stenberg v. Carhart,
We find nothing within the definition of “stationary source” found in
Of course, the whole point of the stabilizing thrusters is to keep the drilling unit largely stationary over the well so that it can perform its drilling operation, a “stationary activity.” See § 7412r(2)(c). Regardless whether the unit is considered to be underway, the Deepwater Horizon was “dynamically-positioned” and “employed a satellite global positioning device and complex thruster technology to stabilize itself.” In re Oil Spill by the Oil Rig “DEEPWA-TER HORIZON” in the Gulf of Mexico, on April 20, 2010,
It is true that the Deepwater Horizon was capable of propulsion. However, this propulsion ability is an advancement in drilling technology that has allowed these units to arrive and remain at different drilling locations, making it easier for the oil and gas industry to drill for oil in deeper water. See Chief Counsel’s report at 12. This is because “[i]n water depths greater than about 1,000 feet, it is increasingly impractical to conduct production operations from structures that are supported by the ocean floor, and floating facilities and subsea production systems dominate.” Id. at 7. This economic advantage to the oil and gas industry does not mean, however, that the activity of the mobile drilling units cannot come under the CSB’s jurisdiction as a stationary source if other statutory conditions are met, even though the drilling unit is also a vessel. “Once moved onto location, a [dynamically positioned] rig holds itself in place above a drilling location using satellite positioning technology and directional thrusters.” Id. at 12-13; see also id. at 26 (“Dynamically positioned MODUs utilize dynamic satellite positioning technology connected to powerful directional thrusters to maintain themselves in place over a subsea wellhead.”). In this case, the Deep-water Horizon was deployed to the Macon-do well site in February 2010 and had remained in place at the site for approximately two months.
Transocean raises a question in its reply brief about the terms of the stationary source definition, namely that the source “belong to the same industrial group,” be “located on one or more contiguous properties,” be “under the control of the same person,” and be something “from which an accidental release may occur.”
B.
Transocean next argues that the CSB lacked jurisdiction to investigate the Ma-condo well incident because Congress specifically denied the CSB authority over this type of incident. Its argument is essentially two-fold: first, it contends that the Macondo well incident was a marine oil spill, and the Clean Air Act specifically precludes the CSB from investigating all marine oil spills; second, it contends that even if the statute does not preclude the CSB from investigating all marine oil spills, the CSB could not investigate this incident because the NTSB had jurisdiction to investigate.
Transocean’s argument is based on the following provision of the Clean Air Act:
The Board shall coordinate its activities with investigations and studies conducted by other agencies of the United States having a responsibility to protect public health and safety. The Board shall enter into a memorandum of understanding with the National Transportation Safety Board to assure coordination of functions and to limit duplication of activities which shall designate the National Transportation Safety Board as the lead agency for the investigation of*493 releases which are transportation related. The Board shall not be authorized to investigate marine oil spills, which the National Transportation Safety Board is authorized to investigate. The Board shall enter into a memorandum of understanding with the Occupational Safety and Health Administration so as to limit duplication of activities. In no event shall the Board forego an investigation where an accidental release causes a fatality or serious injury among the general public, or had the potential to cause substantial property damage or a number of deaths or injuries among the general public.
Transocean argues that the above italicized language shows that the CSB is not authorized to investigate marine oil spills and that, instead, the NTSB is authorized to investigate all of those incidents.
The district court held that the marine oil spill exclusion did not apply to the CSB’s investigation of the Maeondo well incident because the CSB was not investigating the marine oil spill associated with the disaster but rather was investigating the release of gases and the explosion that preceded the release of oil. We agree with the district court’s conclusion.
Although Transocean argues that the primary environmental disaster resulting from the Maeondo well incident was the massive oil spill, it also concedes in its brief that the blowout, explosion, and fire, followed by the collapse of the Deepwater Horizon, involved the release of airborne gases. That release was the triggering of the CSB’s authority to investigate. See
Transocean’s argument is textual, and it is primarily based on the statutory provision noted above that the CSB “shall not be authorized to investigate marine oil spills, which the National Transportation Safety Board is authorized to investigate.” See
We agree with the district court, however, that the CSB is not precluded from investigating all marine oil spills, but rather only those “spills, which” the NTSB may investigate. In other words, the CSB may be precluded from investigating those marine-related incidents that the NTSB is authorized to investigate. This interpretation of the statute reads “which” to mean “that,” and it comports with the statutory scheme as a whole.
Transocean contends, however, that based on the rules of grammar and punctuation the word “which” preceded by a comma creates a nonrestrietive, descriptive clause so that the declarative portion of the sentence in
We note first that reading the comma-which clause to mean “that” is consistent with subsection (E) as a whole and the subsection’s other uses of the word “which.” In addition to the comma-which, the statute twice uses the word “which” in the previous sentence, reading thusly: “The Board shall enter into a memorandum of understanding with the National Transportation Safety Board to assure coordination of functions and to limit duplication of activities which shall designate the National Transportation Safety Board as the lead agency for the investigation of releases which are transportation related.”
If we read the first two uses of “which” in subsection (E) to mean “that,” it would be natural to construe the eommawhich to also mean “that.” See Powerex Corp. v. Reliant Energy Servs., Inc.,
Subsection (E) contemplates that the CSB is not the only government agency charged with a public safety mission and may not be the only investigating agency; indeed, it expressly directs the CSB to “coordinate its activities with investigations and studies by other agencies” with responsibility to protect public health and safety.
Moreover, the statute expressly directs the CSB to investigate any time an accidental release causes a fatality or serious injury to the general public. See id. (“In no event shall the Board forego an investigation where an accidental release causes a fatality or serious injury among the general public, or had the potential to cause substantial property damage or a number of deaths or injuries among the general public.” (emphasis added)). This must mean that for especially serious incidents involving either grave injury or the risk of injury, including marine oil spills, the CSB could have concurrent investigative authority with other agencies.
Transocean contends that even if the CSB could otherwise investigate the incident at the Macondo well, it was precluded from doing so in this case because the NTSB was authorized to investigate. Transocean relies solely on
However, when the blowout occurred on April 20, 2010, the Deepwater Horizon was dynamically positioned and physically attached to the seabed, having been on site and engaged in drilling operations for a number of months. The district court held that this fact was crucial to the determination that the incident was not transportation related. Transocean cites no contrary authority. Merely because a disaster involves a vessel does not mean that the disaster was necessarily related to transportation. Although the drilling unit may have been capable of transportation, it was not involved in transporting either individuals or property at the time of the blowout, explosion, and fire. See
IV.
For the reasons stated above, we conclude that the CSB had jurisdiction to investigate the incident at the Macondo well and to issue the administrative subpoenas. The district court’s judgment ordering enforcement of the subpoenas is therefore AFFIRMED.
Notes
. The amicus urges that the Deepwater Horizon could not be a stationary source because under Coast Guard regulations it is considered to be a vessel "underway” and not "on location.” It posits that if a vessel is not "on location” it cannot also be a "stationary source.” In support of this argument the amicus relies on a Coast Guard investigation report of the Deepwater Horizon incident that discussed the status of the drilling unit. See U.S. Coast Guard, Report of Investigation into the Circumstances Surrounding the Explosion, Fire, Sinking, and Loss of Eleven Crew Members Aboard the MOBILE OFFSHORE DRILLING UNIT DEEPWATER HORIZON in the Gulf of Mexico April 20-22, 2010, at 1-10, available at https://www.hsdl.org/?view&did= 6700 (hereinafter "Coast Guard Report”). The terms “on location” and “underway” have specific statutory definitions, however, that do not affect whether the vessel may be a “stationary source” for purposes of the Clean Air Act. For example, "on location” means merely that the drilling unit is anchored. See
. Again, that the drilling unit itself was capable of propulsion and could and did use its thrusters to counter-act wave activity in order to remain in place over the well does not negate the fact that the drilling operation of the Deepivater Horizon was, at the very least, a "stationary activity.” See
. Transocean refers to the emphasized language as the "marine oil spill exclusion.” For ease of reference we use the same terminology. We also refer to the clause beginning with the word "which” as the "comma-which " clause.
. The Coast Guard Report found as follows: As the well control incident unfolded, an uncontrolled volume of gas flowed up from the wellhead to the MODU and onto the Drill Floor and Main Deck. Gas samples collected by Woods Hole Oceanographic Institute on July 27, 2010 show that the composition of the uncontrolled gas discharged from the well was primarily methane (69.9%), with lesser amounts of ethane (6.9%) and propane (4.5%). The remainder of the gas consisted of a mixture of various weight hydrocarbons. Several minutes after the start of the release of gas from the wellhead, a gas cloud within the flammable range formed over large areas on several decks. The explosions likely occurred when gas from this cloud encountered one or more ignition sources on the Drill Floor or elsewhere on the MODU. Coast Guard Report, 5-6.
. Transocean argues that this provision of subsection (E) is inapplicable here because the Macondo well incident was incapable of causing death or injury to members of the general public insofar as the disaster occurred fifty miles off the coast of the United States. First, this argument is inapposite to whether the CSB is precluded from investigating all marine oil spills in the first place. Second, the offshore location of the disaster does not preclude the potential for injury to persons on shore since it cannot be denied that airborne hazardous substances could migrate and cause injury on land.
Dissenting Opinion
dissenting.
I respectfully disagree with the majority opinion, which assists the United States Chemical Safety Board (“CSB”) in expanding its jurisdiction into novel territory disallowed by Congress. This is the first time, in twenty years after CSB was ordained, that the agency has sought to investigate in connection with an offshore oil spill.
Because the majority opinion aptly describes the background of this controversy, only a bit need be repeated here. Trans-ocean objects to administrative subpoenas served by CSB when the agency instituted an investigation following the Deep water Horizon oil spill disaster. The standard for challenging an administrative subpoena is strict: courts may only interfere with the process in a limited number of circumstances, one of which arises when the agency plainly lacks jurisdiction. See Burlington N. R. Co. v. Office of Inspector Gen., R.R. Ret. Bd.,
The Board shall coordinate its activities with investigations and studies conducted by other agencies of the United States having a responsibility to protect public health and safety. The Board shall enter into a memorandum of understanding with the National Transportation Safety Board to assure coordination of functions and to limit duplication of activities which shall designate the National Transportation Safety Board as the lead agency for the investigation of releases which are transportation related. The Board shall not be authorized to investigate marine oil spills, which the National Transportation Safety Board is authorized to investigate. The Board shall enter into a memorandum of understanding with the Occupational Safety and Health Administration so as to limit duplication of activities. In no event shall the Board forego an investigation where an accidental release causes a fatality or serious injury among the general public, or had the potential to cause substantial property damage or a number of deaths or injuries among the general public.
Under this provision, if the Deepwater Horizon was not a stationary source, CSB lacked the authority to investigate. Likewise, if the disaster was a marine oil spill, or by even the majority’s construction a marine oil spill that NTSB was authorized to investigate, CSB lacks authority. I will discuss each of these limits on CSB’s authority in turn.
This question seems to answer itself. A “vessel,” as defined in federal law, is a device capable of providing transportation on water.
But the majority determines otherwise. First, the majority opinion acknowledges that the Deepwater Horizon is a vessel according to Coast Guard regulations, Supreme Court authority, longstanding case law in this circuit, and multiple decisions relating to this oil spill disaster. However, the majority contends, what is good law for maritime purposes does not govern the Clean Air Act’s statutory definition. Alternatively, the majority holds, the Deep-water Horizon was in fact “stationary” when the blowout and oil spill occurred, because its dynamic positioning devices kept the unit essentially in place without anchors securing it to the ocean floor while it engaged in drilling operations. Finally, the majority posits that the “Macondo drilling installation as a whole,” allegedly encompassing the drill string, riser, blowout preventer, wellhead and casing, all of which stretch over a mile down and into the Outer Continental Shelf seabed, maintained a stationary position.
The majority’s fundamental error lies in distorting “stationary” from its ordinary meaning, as required by the tools of statutory interpretation, Castro v. Collecto, Inc.,
Virtually every opinion of this court relating to the Deepwater Horizon oil spill disaster has referred to the MODU as a “vessel,”
The majority’s other reasons for holding that the Deepwater Horizon was a “stationary source” also defy common sense. The majority’s description of the sophisticated dynamic positioning system used by Mobile Offshore Drilling Units like the Deepwater Horizon is flawed and, worse, leads to the possibility that CSB jurisdiction will turn on fact-specific determinations of “stationary” versus “mobile” sources. Factually, it is true that the thrusters operated by the MODU’s navigational crew kept the unit positioned substantially over the wellhead, but the unit continues at all times to move with the wave motions. Essentially, the thrusters permit the unit to tread water. Anyone treading water, however, is constantly in motion, and so was the Deepwater Horizon. Likewise, a helicopter may hover in place over the ground, but it is always in motion, and I suppose even CSB would not contend it is a “stationary source.”
Even more unfortunate is the resort to fact-specific reasoning to determine that this vessel is a “stationary source.” Since the statute draws a dichotomy between the CSB’s responsibility for “stationary source” accidental air releases and NTSB’s jurisdiction over “transportation-related” disasters, the CSB’s aggressive attempt to blur the dichotomy is at odds with the statute itself. (As will be seen, CSB is horning into the primary jurisdiction of NTSB by urging this court to narrow NTSB’s scope as well.) Of course, the statute contemplates splitting duties between NTSB and CSB in appropriate cases, and in such cases requiring CSB to yield to NTSB, but one can easily envision overlaps without CSB’s having to mutilate the definition of “stationary.” For instance, if a chemical tank exploded at a rail yard and emitted hazardous fumes, there could be a question whether the cause was transportation-related or due to a stationary source nearby. Similarly, toxic substances or fuel used in connection with aircraft and aircraft maintenance might ignite at an aviation center, emitting hazardous air pollutants. The cause of either accident could be “stationary” or “transportation-related.” In the Deepwater Horizon disaster, however, CSB contends that the vessel itself was the “stationary source” because it was dynamically positioned. Henceforth, the same argument could result in fully overlapping CSB/ NTSB authority whenever a vehicle, aircraft, or vessel happens to be temporarily moored at the time of an unanticipated toxic air emission.
First, common sense tells us that the five thousand feet of drill string, plus riser and blowout preventer leading from the MODU to the well hardly created a stationary island 50 miles off the United States coast in the Gulf of Mexico. The MODU Deepwater Horizon and its appurtenances are connected to the seabed.
Second, both statutory law and well settled case law have distinguished between fixed and mobile drilling platforms and offshore devices for decades. The Outer Continental Shelf Lands Act distinguishes between “artificial islands” and vessels in order to demarcate between the application of federal or state law and admiralty law. See
2. Can the “marine oil spill exclusion” be excluded?
It is unnecessary to wade into the parties’ “comma, which” dispute to reach a sensible interpretation of
Taking the “marine oil spill exclusion” first, even if this language is read holistically and narrowly to exclude CSB from only those marine oil spills “that” the NTSB may investigate, this marine oil spill was “related to” transportation through the movement of hydrocarbons from the well through the drill string to the Deep-water Horizon
Holding that the “marine oil spill exclusion” does not apply if hazardous substances were incidentally released into the air during a “marine oil spill” turns the exclusion on its head and renders it a nullity.
Equally untenable is the holding that NTSB lacked authority to investigate this disaster. NTSB has jurisdiction over “any other accident related to the transportation of individuals or property when the [NTSB] decides—
(i) the accident is catastrophic;
(ii) the accident involves problems of a recurring character; or
(iii) the investigation of the accident would carry out this chapter.
Finally, the majority erroneously relies on CSB’s catchall investigative power over fatalities, serious injuries or property damages to “the general public.”
Conclusion
This case strictly and properly concerns an agency’s statutory authority to issue subpoenas and conduct an investigation. The much broader ramifications of the decision should not, however, be overlooked. First, when Congress has delineated agency authority against clear background principles and with easily defined terms, the agency itself should not play havoc with the statute to expand its authority; an agency has a duty to follow its mandate but go no further. For the sake of maintaining limited government under the rule of law, courts must be vigilant to sanction improper administrative overreach. See, e.g., Util. Air Regulatory Grp. v. E.P.A., - U.S. -,
For all these reasons, I respectfully dissent.
. Inside OSHA, Vol. 17, No. 13, at 6 (June 29, 2010).
. See, e.g., In re Deepwater Horizon,
. Casing, Schlumberger Oilfield Glossary, (last visited Sept. 16, 2014), http://www. glossaiy.oilfield.slb.com/en/Terms/c/casing. aspx ("Large-diameter pipe lowered into an open-hole and cemented in place.”).
. Wellhead, Schlumberger Oilfield Glossary, (last visited Sept. 16, 2014), http://www. glossary.oilfield.slb.com/en/Terms/w/wellhead. aspx ("The system of spools, valves and assorted adapters that provide pressure control of a production well.”).
. The majority's bottom-up logic is hard to square with a recent opinion of this Court that referred to the blowout preventer and riser as "appurtenances” of the vessel Deep-water Horizon, and the vessel and its appurtenances as separate from the well. In re Deepwater Horizon,
. Recall that NTSB is also charged to investigate pipeline disasters.
. It is an established principle of statutory interpretation that "[w]here possible, every word in a statute should be given meaning.” G.M. Trading Corp. v. C.I.R.,
. The present case involves an accident on the Outer Continental Shelf and is therefore unlike NTSB v. Carnival Cruise Lines, Inc.,